Local Market Broadcasting and TV Programming RTV 453

Traditional TV service 210 Local TV markets In a local market Independent (KDFI, 27 ‘My Network TV’) (68, KPXD, ION) Network affiliate (WFAA, Belo-owned) O&O (4, 5, 11) Difference for LPTV Sources of programming Local, network, syndicated, paid

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 late night

Types of scheduling Stripping Checkerboarding 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, PAX / ION ‘Hybrid IPTV' services – Operators use either digital or satellite for linear TV and broadband for on-demand content

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?

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 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 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:  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 ###