Today in Adv 486

1
Today in Adv 486

• Bruskin-Goldring followup
• Structure of Cable TV

2
Bruskin-Goldring

• A little test of your knowledge of how people
  choose TV.
• http//www.msu.edu/newelljj/bruskin.htm

3
A little history

• 1940s Community antenna systems in
  Pennsylvania
• 1970s cable penetration 8 million homes
• 1970s Gerald Levin starts H-B-O, Ted Turner
  launches TBS
• 1980s cable penetration 35 million homes

4
Today

• 75 million cable homes
• 14 million direct broadcast satellite (DBS) homes
• 12 million broadcast-only homes
• 6 million others

5
Cable systems

• 12,000 local systems
• Per sub value 3000-4500
• Revenue
• Basic subscription
• Pay channels (ex HBO)
• Local advertising
• New revenue streams

6
Cable system new revenue

• Pay per view
• Telephone
• Internet connection

7
Multiple system operators (MSO)
Top 10 Multiple System Operators

• 1 ATT Broadband (16.9 million)
• 2 Comcast (7.1 million)
• 3 Time Warner Cable (6.5 million)
• 4 Charter (6.2 million)
• 5 Cox (6.1 million)

8
Cable networks

• 1984 48 networks
• 1992 87 networks
• 1998 174 networks
• Subscriber counts http//www.cabletvadbureau.com
  /Marketplace/Subcounts.htm

9
Cable revenues

• Subscription fees
• Advertising sales

10
Cable Network Ownership

• AOL Time Warner
• TCM
• TNT
• TBS
• CNN
• The W-B
• HBO
• Webpage http//www.aoltimewarner.com

11
Other cross ownership

• Disney
• ABC
• ESPN
• ESPN2
• Lifetime
• Disney
• Soap Channel

• Viacom
• MTV
• Nickelodeon
• USA
• Comedy Central
• VH-1

12
Broadcast vs. cable
13
Next week

• Monday (CAS 161) Planning and goal setting
• Wednesday (ENG 1208)
• 1240 Agency 1
• 100 Agency 2
• 120 Agency 3
• Friday (ENG 1208)
• 1240 Agency 4
• 100 Agency 5
• 120 Agency 6