Local Market Broadcasting and TV Programming RTV 453 Cell phones off and put away
TV syndication ‘Off Network’ Big Bang Theory, Raymond, How I Met… Seinfeld, Frasier, Friends Classic TV shows First Run Minimum number of markets Group owner impact Specific genres Cash / Barter
TV sales 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 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
TV sales Local cable system or IPTV DTV multicasting DBS (DirecTV / DISH) limitation All ‘linear’ services Development of ‘on demand networks’ Owners of TV shows / distribution 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: $750K - $2M Drama hour: $1.5M - $2M Co-production & deficit financing 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: $750K - $2M Drama hour: $1.5M - $2M Co-production & deficit financing
Buying Syndication Selling local TV inventory: What will we pay for The Ellen 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 local TV inventory: What will we pay for The Ellen 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: They take none = we pay $20k per episode; They take 8 minutes = we pay $10k (x5) We pay $10k. 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 Inventory: They take none = we pay $20k per episode; They take 8 minutes = we pay $10k (x5) We pay $10k. 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