1. Broadcast and Online Media Business Options
RTV 151

2. 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 (± 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

3. 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 – 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

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

5. 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

6. 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?

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

8. 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

9. 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

10. 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

11. 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

12. 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

13. 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

14. 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

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

16. 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

17. 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

18. 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

19. 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.”

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

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

22. 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 #

23. Digital Media

24. 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…

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

26. 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

27. 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

28. 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

29. 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

30. 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

31. 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

32. 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: seconds

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

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

35. 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

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

37. 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

38. 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

39. 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

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

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