OVERVIEW Albarran – Chapter 1, 2

CMM 446 Electronic Media Management 2 Abbreviations & Acronyms  CEO  CPM  CPP  DTV  DVD  EEO  FCC  GRP

CMM 446 Electronic Media Management 3 continued  HH  HUT  ISP  P & L  HR

CMM 446 Electronic Media Management 4 HIGHLIGHTER  “…management is defined as a process by which individuals work with and through other people to accomplish organizational objectives.” (p.2)  Electronic media – “radio, television, cable television, and telecommunications (telephone) industries.” (p.2)  Add: music recording, film and video production, Internet, and multimedia (CD’s, DVD’s).  “A good manager must balance the needs of owners, employees, and … audiences.” (p.3)  “In addition to providing.. entertainment and information products, the electronic media influence culture and help define social reality. (McQuail, 1994).” (p.3)  “The electronic media pervade society.” (p.3)

CMM 446 Electronic Media Management 5 continued  Management challenge: dealing with change. “…changes in technology, regulatory issues, social issues, and consumer tastes and preferences.” (p.4)

CMM 446 Electronic Media Management 6 Radio (starting on p.5)  “…the grandparent of the electronic media industries …established many practices…by introducing the sale of hardware (receivers), the marketing of commercial time (advertising), the practice of networking, and the distribution of programming to audiences.”  AM radio – based on amplitude modulation 107 channels – “begin a 540 kHz and repeat every 10 kHz.” up to 1700 kHz 4783 AM stations (38% of all radio stations) Appeal mainly to older listeners Typical formats: News & Talk, Sports, niche music (Big Band, Oldies, Spanish)

CMM 446 Electronic Media Management 7 FM Radio  FM Radio – based on frequency modulation  FM stations – 62% of all radio stations 5766 commercial 2066 non-commercial (all stations between 88.1 and 91.9 MHz): universities, churches, high schools No commercials permitted, but program underwriting and on-air fund drives are allowed NPR is in this category.

CMM 446 Electronic Media Management 8 Television  “In 1952, the FCC ended a 4-year…’TV freeze’.” (p.8)  UHF authorized along with VHF, but TV sets weren’t required to have UHF tuners until  Networks dominated programming ABC, CBS, NBC each have 200 affiliates Fox has about 175 Affiliates clear certain hours to accept network programs and advertising – and receive cash from the network (based on the audience delivered).  561 VHF, 682 UHF, 373 non-commercial stations  Cable emerged in the 1970s.  “According to Nielsen, the average household watches television more than 7 hours a day (TV Viewing, 1999).” (p. 11)

CMM 446 Electronic Media Management 9 Cable (television)  Revenue streams: Local advertising Subscriber fees Equipment rentals (converter boxes and remotes) High speed Internet services (Road Runner) Premium and PPV programming (telephone services being planned – AT&T and Time Warner)  Cable households: 80% of the total million HH (U.S. Penetration, 2000) Cable Systems: 10,700 in 1999

CMM 446 Electronic Media Management 10 Telephony (pp. 14, 15)  3 market segments long-distance (“interexchange”) local exchange wireless (cellular)  1982 case FCC ordered the breakup of the AT&T 22 regional Bell’s  Present situation MCI/World Com Sprint 7 Regional firms (previously the 22 Bells) emerged, then began to merge again, leaving now: Verizon, SBC, Bell South Qwest

CMM 446 Electronic Media Management 11 Internet references