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

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

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

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

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

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

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

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

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

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

CONTEMPORARY BROADCAST TELEVISION 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

TELEVISION IN THE DIGITAL AGE 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

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

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

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

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?

DEFINING FEATURES OF BROADCAST TELEVISION 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

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

Production Local production Network programs Syndicated programs Off-net series

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

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

OWNERSHIP IN THE TELEVISION INDUSTRY 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

PRODUCING TELEVISION PROGRAMS Many people are involved in getting programs on the air

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

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

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

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

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

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

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

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

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

FEEDBACK The television industry seeks feedback in a variety of ways

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

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

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.

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