The McGrawHill Companies, Inc., 1999

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(No Transcript)
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Chapter Ten
Television

• The McGraw-Hill Companies, Inc., 1999

McGraw-Hill College
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Taking abundance for granted?

• Old proverb, new realities
• Explaining free TVs inner logic
• The form and content of TV is a direct result of
• Selling audience's attention to advertisers
• Tensions between art commerce Is there another
  way? A vast waste land or cornucopia?

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History
Slide 10-1

• 1939 RCA demonstrates a two-hour TV broadcast
• 1946 TV in 8,000 homes
• 1956 TV in 35 million homes
• 1999 TV in 100 million homes

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The Structure of Early Television
Slide 10-2
Modeled after radio government requires local
and family programming
Four early networks CBS, NBC, ABC, DuMont
1956, Ampex Company invents videotape home VCR
comes much later
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1950sUHF, Color, and Network Dominance
Slide 10-3

• By 1960, over 90 percent of American households
  had TV.
• Also by 1960, NBC began broadcasting in color 3
  hours a day

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Coming of Age Television in the 1960s
Slide 10-5
Concern over social and political impact
Network news expansion
Public Broadcasting Act of 1967 educational TV
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Growing Public Concern the 1970s
Slide 10-7
Studies on effect of violence Scientific evidence
not conclusive
Citizen groups became interested in FCC policy
making
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The 1980s and 1990s Increased Competition
Slide 10-8
Erosion of viewers to new networks and cable
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Cable's Continued Growth
Slide 10-9

• special interest channels
• pay-per-view
• expanded premium services
• more of the advertising
• Cable Act

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Zipping, Zapping, Grazing, and DBS
Slide 10-10

• Movie rental is a billion dollar business
• Timeshifting
• Advertiser concerns that viewers
• Zap commercials, Zip by commercials, Grazing
• Direct Broadcast by Satellite (DBS)

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Organizationof the Traditional Television
Industry
Slide 10-12

• commercial vs. noncommercial
• markets
• networks affiliates independents

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TV Industry Production
Slide 10-13
Three programming sources
1. Local production 2. Syndicated programming 3.
Network programs
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Distribution
Slide 10-14
Three major distribution outlets
1. broadcast networks 2. cable networks 3.
syndication companies
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Exhibition
Slide 10-15

• 1200 commercial stations
• 365 non-commercial stations
• VHF channels 2-13
• UHF channels 14-69

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Ownership
Slide 10-16

• NBC - GE
• ABC - Walt Disney Company
• Fox - Rupert Murdoch's News Corporation
• CBS - CBS Corp. (merger pending w/ Viacom)
• WB - Time Warner
• UPN - Viacom/Paramount

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Getting TV Programs on the Air
Slide 10-18

• Local stations local news, interviews, sports
  shows
• Network level prime time (8-11 p.m.) gets
  greatest efforts
• Pilots
• Syndication

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Economics
Slide 10-19
Revenue
commercial time sales to national, national spot,
and local advertisers
Expenses
programming, the biggest expense
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Public Broadcasting
Slide 10-21
inadequate funding organizational problems
governmental apathy vague program identity and
goals
Problems
Programming
local vs. the centralized PBS organization
33 from federal and state governments 20 from
viewer contributions 15 from businesses 32
from misc. sources
Funding
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Cable Television
Slide 10-22

• Significant legal decisions 1992 Cable
  Television Consumer Protection and Competition
  Act Telecommunications Act of 1996 - giving
  telephone and cable companies the right to enter
  each other's industries
• Ownership trend toward consolidation
• Structure the head end the distribution end
  the house drop

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Cable Programming
Slide 10-23
Local
National
Local originationLocal broadcast television
stationsSuperstationsSpecial cable
networksPay servicesPay-per-view
Original production Movies Syndicated programs
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Cable income
Slide 10-24
Local
Subscription fees Local advertising
National
Advertising Carriage fees Subscription fees
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Home Video Industry
Slide 10-25

• Three distinct segments
• Production
• Distribution
• Retail

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Direct Broadcast Satellites (DBS)
Slide 10-26

• Advantages
• Crisper picture than cable
• CD quality sound
• More channels
• Low equipment costs
• Less expensive on a cost-per-channel basis

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Feedback
Slide 10-27

• A.C. Nielsen and the Peoplemeter
• Rating of households watching a program
  divided by total of TV households
• Share of the audience of households watching
  a program divided by number of HUT
• Sweeps
• Questionnaires, Concept Testing, Pilot Testing

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A Look Ahead
Slide 10-28
The merger of the computer and the TV set
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Digital television (DTV)
Slide 10-20

• Disadvantages
• Gigantic initial expense
• Advantages
• Better picture and sound quality
• HDTV capacity
• Stations could broadcast a lower standard digital
  TV (SDTV), allowing them to broadcast 4-5
  programs simultaneously, or use remaining band
  width for e-mail, data, pager signals, Internet
  access
• Interface between the TV and home computer
  industries

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Career Outlook
Slide 10-29

• In a tight job market, here are a few hints
• Think small
• Don't be afraid to start at the bottom
• Be prepared to move
• Growth in the cable and home video industries

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Questions for Discussion
Slide 10-30
Will cable and DBS eventually kill the big
networks?
What should be the goal of public television?
Should the government support it?
Will DBS become a significant competitor to the
cable industry? Why or why not?