#1 Purpose of Commercial #1 Purpose of Commercial Broadcasting, Cable, Satellite Broadcasting, Cable, Satellite

or Internet:or Internet:

Attract AudiencesAttract Audiences

Who, then, influences the kinds ofWho, then, influences the kinds ofprograms which will do this?programs which will do this?

Advertisers Set the TrendAdvertisers Set the Trend

• NarrowcastingNarrowcasting

• DemographicsDemographics

• PsychographicsPsychographics

• SegmentationSegmentation

Programs Programs followfollow the trend the trend

Consumer Targets

• Males and females 18-34

• Females 25-54

• Marketing studies indicate they wield the most spending power

• They may also have the most disposable income

Bottom Line Thinking:

• Programmers want the best shows for the best price

• The aim is to get the most valuable viewers for the least cost

• All other considerations secondary

• What does that say about us?

Programs and CostPrograms and Cost

• Sparing useSparing use of material (stretching plot) of material (stretching plot)• ReplayReplay (summer reruns, scheduled (summer reruns, scheduled

reruns)reruns)• RepurposingRepurposing (Network shows appear (Network shows appear

on cable channels owned by the same on cable channels owned by the same media corporation)media corporation)

• What is lost/what is gainedWhat is lost/what is gained

Parsimony PrincipleParsimony Principle

Birth of a ProgramBirth of a Program

• Network tells studios what audience it Network tells studios what audience it wants to target (studios already know)wants to target (studios already know)

• Studios pull concepts off the shelf, Studios pull concepts off the shelf, make a pilot, show it to the Netmake a pilot, show it to the Net

• Net may like it, ask for changes, or ask Net may like it, ask for changes, or ask for a few episodesfor a few episodes

• Only 25% make it on the airOnly 25% make it on the air

• Darwinian, market based and dumbDarwinian, market based and dumb

Deficit FinancingDeficit Financing

• Studios retain rights to the program and Studios retain rights to the program and to its distributionto its distribution

• First purchase by Net rarely covers First purchase by Net rarely covers production costsproduction costs

• Resale to cable and individual TV Resale to cable and individual TV stations is called stations is called off-network syndicationoff-network syndication

• That’s where the REAL money is.That’s where the REAL money is.• Are we getting the market point?Are we getting the market point?

SyndicationSyndication Any non-local programs not Any non-local programs not

currently licensed to a networkcurrently licensed to a network

• Off-networkOff-network: have appeared or may still : have appeared or may still

be running on a broadcast networkbe running on a broadcast network

• First-runFirst-run: originally designed for : originally designed for

syndication never seen on a networksyndication never seen on a network

• How do new creative enterprises get inHow do new creative enterprises get in

How Syndication WorksHow Syndication Works

• Industry showcases new offerings (but Industry showcases new offerings (but most deals happen most deals happen beforebefore hand) hand)

• Station Station leasesleases a syndicated program for a syndicated program for a certain # of runs or a time perioda certain # of runs or a time period

• Lease fee is cash or Lease fee is cash or barter barter (free time) or (free time) or a combination of botha combination of both

• Some contracts specify a time slotSome contracts specify a time slot

The Barter Dilemma:The Barter Dilemma: Trading advertising for programmingTrading advertising for programming

• Progams come off the satellite with Progams come off the satellite with spots already insertedspots already inserted

• Reduces # of local availabilities [avails]Reduces # of local availabilities [avails]

• Stations may also be forced to pay cashStations may also be forced to pay cash

• Smaller markets/lower rated stations Smaller markets/lower rated stations pay pay more--more--spots are less valuablespots are less valuable

Who’s doing the Syndicating?Who’s doing the Syndicating?

• StudiosStudios like Paramount and Buena like Paramount and Buena Vista (with off-network syndication they Vista (with off-network syndication they can make a profit)can make a profit)

• Production CompaniesProduction Companies like King World like King World (their programs cheaper to produce)(their programs cheaper to produce)

• Syndicators may bundle a genre Syndicators may bundle a genre together and offer together and offer packages of samepackages of same

• Local broadcast stations may pay extra Local broadcast stations may pay extra for for exclusivity on a given programexclusivity on a given program

Rules and RegsRules and Regs

• fin/syn:fin/syn: elimination of this rule allowed the elimination of this rule allowed the mergers of networks with production mergers of networks with production companies and syndication firmscompanies and syndication firms

• (Financial Interest and Synication Rules)(Financial Interest and Synication Rules)

• Huge debates about access related to Huge debates about access related to fin/syn rules.fin/syn rules.

• The networks have freer reign againThe networks have freer reign again

Radio SyndciationRadio Syndciation

• Syndicated formatsSyndicated formats

• Syndicated featuresSyndicated features

• Talk show, business, consumer adviseTalk show, business, consumer advise

• A growth in niche programmingA growth in niche programming

• A shrinking diversityA shrinking diversity

• Less local contentLess local content

• Much less jobs availableMuch less jobs available

Radio: Syndicated FormatsRadio: Syndicated Formats

Playlists are Playlists are downlinked downlinked via Satellitevia Satellite

Radio: Syndicated FeaturesRadio: Syndicated Features

Rush Limbaugh Howard SternRush Limbaugh Howard Stern

DividingTV DaypartsDividingTV Dayparts

• Early Morning (News and Info)Early Morning (News and Info)

• Morning (Talk and Info)Morning (Talk and Info)

• Noon (News)Noon (News)

• Afternoon (Soaps)Afternoon (Soaps)

• Early Fringe/News Block (varies)Early Fringe/News Block (varies)

• Local AccessLocal Access

• Prime TimePrime Time

• Late Fringe/News BlockLate Fringe/News Block

• Late Night….. OvernightLate Night….. Overnight

Radio DaypartsRadio Dayparts

• Morning DriveMorning Drive

• MiddayMidday

• Afternoon DriveAfternoon Drive

• NightNight

• OvernightOvernight

• Radio Format Clock p. 235: we will Radio Format Clock p. 235: we will discuss March 20discuss March 20

TV Program SourcesTV Program Sources

• LocalLocal

• Major Hollywood Film StudiosMajor Hollywood Film Studios

• A few Minor Hollywood StudiosA few Minor Hollywood Studios

• A few Major/Minor Independent A few Major/Minor Independent ProducersProducers

• Some foreign syndicatorsSome foreign syndicators

Feature FilmsFeature Films

• 1st reach audience through theatres1st reach audience through theatres

• More money made through video More money made through video distributiondistribution

• More money made through premium More money made through premium cable movie channels (HBO)cable movie channels (HBO)

• Even more money made through rights Even more money made through rights to broadcast networksto broadcast networks

• More money still… reruns on cable More money still… reruns on cable networks (Turner)networks (Turner)

Network Programming Network Programming StrategiesStrategies

• CounterprogrammingCounterprogramming

• Block programmingBlock programming

• StrippingStripping

• Strong lead-inStrong lead-in

• Leading-outLeading-out

• Hot switchingHot switching

• HammockHammock

Radio Program StrategiesRadio Program Strategies

• Schedule program elements in 60 Schedule program elements in 60 minute cycles (CNN was the first TV minute cycles (CNN was the first TV network to utilize this strategy)network to utilize this strategy)

• Try to match audience activities and Try to match audience activities and environmentsenvironments

• Counterprogramming, stripping, Counterprogramming, stripping, blockingblocking

Program PromotionProgram Promotion

• Image: promote a station’s or network’s Image: promote a station’s or network’s news philosophy or experiencenews philosophy or experience

• Topical: promote specific news Topical: promote specific news segments or entertainment episodessegments or entertainment episodes

• Program: Generic Program: Generic • Billboard: lineup of what’s on tonightBillboard: lineup of what’s on tonight• Radio/TV “tradeouts” (may involve Radio/TV “tradeouts” (may involve

tickets)tickets)