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© 2009, The McGraw-Hill Companies, Inc. All rights reserved.

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1 © 2009, The McGraw-Hill Companies, Inc. All rights reserved.
Broadcast Television Chapter 10 © 2009, The McGraw-Hill Companies, Inc. All rights reserved.

2 CHAPTER OUTLINE History Contemporary Broadcast Television
Television in the Digital Age Defining Features of Broadcast Television Organization of the Broadcast Television Industry Ownership in the Television Industry Producing Television Programs Economics Public Broadcasting Home Video Feedback

3 HISTORY 1920s-1930s WWII: FCC halted development of TV
Philo Farnsworth Vladimir Zworykin WWII: FCC halted development of TV 1948: TV’s growth so rapid the FCC imposed freeze on new station licenses 1952: FCC established rules to minimize interference – 12 VHF and 70 UHF channels

4 The 1950s: Networks, Tape, UHF, and Color
TV modeled after radio Local stations affiliated with networks 1956, Ampex developed videotape By 1960, most programs were taped UHF channels didn’t compete well Network color broadcasts began, up to about 3 hours per day by 1960

5 The Golden Age of Television
1950s growth and experimentation Pioneering programs: Ed Sullivan’s Toast of the Town; Milton Berle’s Texaco Star Theater High quality dramas: Studio One Adult westerns: Gunsmoke

6 Coming of Age: Television in the 1960s
1960: TVs in more than 95% of US homes 1965: TV news expands from 15 to 30 minutes TV journalism earns praise (Kennedy, Civil Rights; moon walk) 1967: Public Broadcasting Act establishes PBS Cable grows during the 1960s Escapist/fantasy fare dominates

7 The 1970s: Growing Public Concern
Surgeon General’s report on violent TV Modest connection between heavy viewing and violence among some children Citizen groups (Action for Children’s Television; minority group coalitions) influenced broadcast policy Cable industry began competing with TV Programming trends included crime drama, then adult sitcoms, then prime time soap operas

8 The 1980s and 1990s: Increased Competition
Continuing erosion of the big 3 networks’ audiences Increased competition from new networks and cable channels

9 Cable’s Continued Growth
By 2000, cable reached more than 68% of the population Channel capacity increased and new programming services emerged Cable full-fledged competitor to broadcast TV

10 Zipping, Zapping, Grazing, and DBS
VCR in 90% of US households by 2000 VCR impact on broadcast and cable TV Time shifting, zapping, zipping, grazing Low-power television (LPTV) Direct broadcast by satellite (DBS) Telecommunications Act of 1996 TV program ratings and V-chip Programming trends: 1980s family-oriented sitcoms; 1990s newsmagazines; 2000s reality programs and cable dramas

Audiences are shrinking Advertising dollars going to web Big Four networks using new distribution channels Digital Video Recorders (DVRs) Increasing in number; replacing VCRs Greater reliance on reality shows than scripted shows TV is on an average of 8 hours per day. Broadcast networks still best way for advertisers to reach audiences

February 17, 2009: Official transition from analog to digital TV broadcasting Advantages of digital television (DTV) Clearer pictures and sound More rectangular format Allows high definition TV (HDTV) Channel can be subdivided and multiple programs can be sent at the same time

13 Broadcasters Discover the Web
More programs available on the Internet Broadcasters’ web sites offering more Full-screen, high-resolution streaming video Original online content Social networking options MySpace pages Advertising on sites and in streaming video Podcasts Local stations still need to do more

14 Broadcasters and Broadband
Broadband: High-speed internet connections Cable modem; DSL Supports sending video over web Networks offer special-interest (non-broadcast) content via broadband Not yet profitable, but not too risky Reach younger audiences

15 Mobile TV Broadcasters supplying content to cell phones
MobiTV Mobile pedestrian handheld technology

16 User-Generated Content
Broadcasters were first to realize potential of user-generated content America’s Funniest Home Videos How to relate to video sharing giants such as YouTube?

Universal medium, in about 99% of US homes TV on for about 8 hours per day Dominant US medium for news and entertainment Expensive Audience continues to fragment

Commercial or noncommercial stations Licensed by FCC to serve community 210 such “markets” in US 6 commercial networks plus PBS Network affiliates Independents

19 Production Local production Network programs Syndicated programs
Off-net series

20 Distribution Distribution outlets Network-affiliate contract
Broadcast networks, cable networks, syndication companies Network-affiliate contract Local station carries network programs Network pays station (compensation) Compensation is decreasing and may be eliminated Syndication companies lease content to individual stations in local markets Profitable aftermarket for prime time TV series

21 Exhibition About 1300 commercial stations & 380 noncommercial stations
VHF (very high frequency, 2-13) or UHF (ultra high frequency, 14-69) With cable, differences between VHF and UHF are less important; will be still less important with digital TV Most local stations are network affiliates

All major networks are owned by conglomerates NBC - General Electric ABC - Walt Disney CBS - CBS Corp, spun off from Viacom Fox - News Corporation CW - Joint venture CBS & Time Warner MyNetwork TV - News Corporation Telecommunications Act of 1996 No ownership limit unless combined reach exceeds 39% of US population Big groups control most TV stations in top 100 markets

Many people are involved in getting programs on the air

24 Departments and Staff Station Network
Station manager, sales, engineering, production/programming, news, administration Network Sales, entertainment, owned and operated stations, affiliate relation, news, sports, standards, operations

25 Getting TV Programs on the Air
Local station: Local newscast is key Also interviews, sports shows Network: Prime time programming is key 8:00-11:00 p.m., Eastern Prime time programs Program ideas, sample scripts, pilots About 25 pilots per network per year

26 ECOMONICS TV industry has been profitable since 1950
Ad revenue increased every year since 1971 Changes in the industry are affecting the bottom line of networks and stations

27 Commercial Time Three types of advertisers
National advertisers National spot advertisers Local advertisers Bigger ratings=higher costs for airtime TV shows also generate revenue from Product placement Text messaging fees

28 Where Did the Money Go? Network programming is expensive
30:00 sitcom: $1 million per episode 60:00 show: about $3 million per episode Quiz and reality shows are a lot cheaper

29 PUBLIC BROADCASTING Public broadcasting has existed in the US for more than 40 years

30 A Short History 1967 Public Broadcasting Act
Corporation for Public Broadcasting (CPB) Public Broadcasting System (PBS) Internal disputes regarding programming Competition from cable channels Reduced funding – political issue Stations looking for other funding sources

31 Programming and Financing
Tension between local stations and centralized PBS organization 1990: moved toward more centralized programming. Ratings remain low Sesame Street; Nova 354 PBS stations; licensed by FCC Licensed to 169 community organizations, universities, states/cities Funding from government, viewer contributions, businesses, grants, etc. PBS moving slowly into digital age

32 HOME VIDEO DVDs & VCRs common in US households
DVRs (Digital Video Recorders) gaining ground VCRs and DVRs can time-shift Home video industry functions: Production (motion picture studios dominate) Distribution (record-like rack jobbers dominate) Retail (retail and department stores) DVD opened new aftermarket for TV Retailers concerned about video on demand and premium channels

33 FEEDBACK The television industry seeks feedback in a variety of ways

34 Measuring TV Viewing Demographic data and viewing behavior
Nielsen Media Research Network ratings: Nielsen Television Index People Meter, national sample = 5000 Testing Portable People Meter (PPM) Nielsen Local-Market TV Ratings 200 markets, 4 times per year (sweeps) Diary/electronic metering Nielsen hopes to phase out paper diaries

35 Ratings Reporting Rating: Number of households watching a program, divided by the total number of TV households Share: Number of households watching a program, divided by number of households actually watching TV at that time Sweeps (Feb, May, July, Nov) Local market people meters will decrease importance of traditional sweeps periods Determining accuracy of ratings Media Ratings Council (previously Electronic Media Ratings Council; EMRC) set up to monitor, audit, accredit broadcast ratings services Sample size: statistically, 5000 is acceptable Other criticisms may deserve closer attention

36 Questionnaires, Concept Testing, and Pilot Testing
Questionnaires: Networks ask people about their tastes, opinions, beliefs Concept testing: Networks ask people for reactions to paragraphs describing possible new programs Pilot testing: Networks show people sample programs and ask for evaluations.

37 Television Audiences TV is entrenched in American life
TV set in 99% of homes; 75% have more than one set TV is on for eight hours per day; average person watches more than three hours Viewing is heaviest: During prime time In winter (lightest in July/August) In low-income households Among people with lower educations Among females

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