Broadcast and Online Media Business Options RTV 151

Traditional TV service ‘terrestrial’ / OTA 210 Local TV markets (Nielsen) (DFW) In a local market (1000 KW) Independent (KDFI, 27 ‘My 27’) (68, KPXD, ION) Network affiliate (WFAA, Tegna-owned)(Gannett) O&O (4, 5, 11) Difference for LPTV (± 15 - 100 KW) Sources of programming Local, network, syndicated, paid When did it become obvious that the Internet was not an extension of old media and not just a means of PR? Difficult to make judgments in the middle of a transition ‘Product Life Cycle’ -- everything has a life span

TV Dayparts overnight 1-6 am; early morning 6-9 am daytime 9-3; early fringe / late afternoon 3-5 early evening 5-6; access 6-7 note time zone variations  prime time 7-10  late fringe 10 - 1030  late night 1030 – 100 ‘decline in linear TV market share’ When did it become obvious that the Internet was not an extension of old media and not just a means of PR? Difficult to make judgments in the middle of a transition ‘Product Life Cycle’ -- everything has a life span

Types of scheduling Stripping Checkerboarding Stacking, blocking Daypart differences / prime-time vs. not Stacking, blocking Lead off, hammocking, lead-in, tent-poling Stunting (sweeps)

Basics of network operation Original benefit vs. today High cost programming / national audience Network compensation Value of station / network-affiliate relations O&O ‘Hybrid networks’ Univision, ION

Basics of network operation ABC, NBC, CBS, Fox, CW – how much do they need their local stations? How can local TV survive? Multicasting? Cable cost + streaming option? Distinction of ABC, NBC, CBS, Fox vs. ESPN, CNN, MTV, HBO A ‘cable network’ is not a network Mobile media – national or local?

Modern practices HBO model Netflix model Influence of digital files access iTunes Digital download videos ‘How to monetize’

TV syndication ‘Off Network’ First Run Cash / Barter Big Bang Theory, Last Man Standing… Seinfeld, Frasier, Friends Classic TV shows First Run Minimum number of markets Group owner impact Specific genres Cash / Barter

Advertising Supported National buys: upfront vs. scatter market Local market buys: national spot market, rep firms, media buyer, local direct client Local Cable System: Premium channels, Basic cable vs. local broadcast stations, insertion advertising, must carry, MSO National ‘basic’ and ‘premium’ cable channels

Whose distribution? A broadcast network Dayparts scheduled / ones not A nationally produced syndicated show Strategic daypart needs A digital media company (Netflix) Nonlinear, VOD Hulu – advertising option

Selling Inventory Local cable system or IPTV DTV multicasting DBS (DirecTV / DISH) limitation All ‘linear’ services Development of ‘on demand networks’ Owners of TV shows / distribution

National TV genres of TV programs--sit-coms, dramas, mini-series, made for TV movies, theatricals, variety shows, game shows, reality shows Production costs Reality hour: $300K - $1 million Sit-com half hour: $1 - $3M Drama hour: $1.5M - $5M Co-production & deficit financing

Buying Syndication Selling local TV inventory: What will we pay for The Ellen Degeneres Show? Budget for their show: $500,000 per week 52 weeks of the year – how many re-runs? 26 weeks of production 26 x $500,000 = $13 million per year cost 210 TV markets ---- sell to 150 150 x 50,000 per station per week = $7.5 million 150 x $20,000 per episode national clients / $100k / week = $15 million

Selling the show Inventory: * All business is about ROI * They take none = we pay $10k per episode; They take 8 minutes = we pay $5k (x5) We pay $10k. Our weekly cost is $25K. Our avails are 10 minutes (20 :30 spots) Our audience rating number is 5 = 75,000 people CPM is $8 = 75 x 8 = $600 per spot 600 x 20 = $12,000 SELLOUT rate 80% $12,000 x .80 = $9600 Are we making or losing money? --radio

Settling in Why are you here? Adult responsibility, self responsibility I have not mastered time travel

Class content Read Study Learning in an active process Getting better, not getting by Not just show up in class and play with your phone

I want you succeed… Learn about this field Develop skills for particular jobs Understand the importance and impact of having a job in this industry Advertising impact and ethics Your relationship with an audience How you present information affects people Legal and ethical considerations

One class in context Industry person: students no longer have the luxury to just do one thing—just as they may expect to multi-task, the industry expects them to be multi-talented News: MMJ, but all areas

Industry people Long time Hollywood talent (Double Dare) and producer Marc Summers at the NBS-AERho 2014 convention said: (Give me the magic way into a job questions) “I never get up in the morning worrying whether or not you have a job.”

Other industry people Local Market TV News Director--- Excuses for not getting work done, needing to be out frequently: “We all have lives.”

Local Radio Business Formats emerged in 1950s Block programming before that Why? What do we block program today? Sports, talk, NPR style

Music Radio Record companies / promotion Pay for programming? Music licensing – BMI, ASCAP and SESAC How much inventory? Dayparts, spot costs, gross revenue – calculate spot cost and dayparts #

Digital Media

About Digital Media Design Critical Technical digital video, game design, interactive media, interface design, electronic and digital installations… (content, like all media) Critical communication law and theory, media studies, new media journalism, philosophical and theoretical approaches to digital media… Technical Content drawn from Mass Communications and Computer Science fields…multimedia authoring, digital audio production, video field production, operating systems…

Traditional Content Distribution Telegraph / Telephone Routing signals Electrical pulses AM Radio, VHF, UHF, FM Modulation Coverage areas POTS Print -- newspapers, magazines

Digital Content Distribution Satellite Sirius/XM ; DISH, DirecTV ; other uses Internet Microwave ISDN / DSL / wired & wireless broadband Cable -- Digital Cable / High Speed Fiber Optics DTV Mobile -- Cell Phone / Wi-Fi

New Media Applications Staff at TV station doing news (options) Web sites – newspaper and video Interactive News Story Entertainment Content (Netflix / Hulu) Interactive? Citizen ‘Journalists’ Data sharing Nonlinear media

Digital Measurements Processing Power Storage Bandwidth How many operations per second Original Intel chip in 1971: 2,300 transistors Intel’s high-end today: 1.7 billion transistors Storage Larger data files, smaller storage space Bandwidth Speed of data transfer

Processing Power Challenges Space / size limitation: chip and wires, and speed of copper Changes in propagation characteristics Development of silicon photonics Laser / optical connections New construction materials

Storage Comparisons 1.5 KB = one double-spaced page 1 MB = one long novel, 1 full-page B/W image, 1 3x5 color picture, 7 seconds of CD-quality audio, 0.04 seconds of broadcast quality video 4 GB = average full-length movie 1 Terabyte storage device would hold 250 full-length movies

Bandwidth Terms Kilobits: 1,000 bits per second Megabits: 1 million bps DSL: 3 Mbps, 4G, 10 Mbps (throughput) Gigabits: 1 billion bps Terabits: 1 trillion bps Petabits: 1,000 trillion bps Exabits: 1 billion billion bps

Bandwidth Example Download Library of Congress: 56k modem: 81.5 years 1.5 Mbps: 3 years 1.7 Gbps: 23.5 hours 10 Gbps: 2.35 hours 100 Gbps: 14.1 minutes 1 Terabit / second: 1.41 minutes 1 Petabit / second: 8.26 seconds 1 Exabit / second: 0.826 seconds

Traffic Types Voice Data Image Video Only narrowband required Digitized text or document information Image Medium to high bandwidth Video High bandwidth required

Broadband Evolution Embedded Devices Intelligent Wearables Human-Machine Interactions Grid Computing Real-Time Communications

Embedded Devices Smart Tags (RFID) Smart Devices Smart Offices Transportation, product identifiers… Smart Devices Appliances,automobiles… Smart Offices Improve efficiency, improve working conditions For the Home… Smart Refrigerator Smart Washing Machine Smart Picture Frame Medical issues/smart bed

Mobile Embedded Devices Interactive Name Tags Car video monitors Navigation systems Highways Systems ‘intelligent highway’ Smart pillbox

Intelligent Implants Hearing aids Health history Personal location Diabetics monitoring blood glucose / pump provides insulin Business applications--purchases, personal identification, safety/security in environments like schools

Human-Machine Interfaces Affective Computing Building emotions into computers Brain-Computer Interfaces Control computer by thoughts Software Agents Perform routine tasks & act proactively The Semantic Web Understanding of meaning Teleimmersion Virtual reality

The New Public Network Intelligent, programmable Low latency Optical Private segments of public network Broadband Multiservice platforms (handle voice, data, images, video) Secure encryption and security

New Technology Adoptions HDTV iPod / Mobile Players Slingbox / Sling TV WiFi / WiMax Bluetooth devices Entertainment content (‘starfield’) others

The Evil, Negative Side Hackers Viruses Exploitation (scams, etc.) Costs (availability - universality) Warfare / Terrorism … ? And so apply this to business models…