Chapter 7: Books
❖ A brief History
⮚ Movable type-Johannes Gutenberg first book 1455
⮚ Mostly religious books at first by monks
⮚ William Tyndall - Translated new testament into English, church views, translation issues.
⮚ Colonial America
▪ Book publishers came to America- Poor Richards almanac
⮚ Penny Press Era
▪ More specialized books, Thoreau
⮚ The Paperback Boom
▪ Civil war, more time to read. We also discuss several other topics like What is utopian philosophy?
▪ Dime novels, Paperback novels
⮚ The Early 20th Century
▪ More business like, Media conglomerating
⮚ Postwar Books: Paperbacks and Consolidation
▪ After war, cheap paperbacks.
▪ Merge with large companies, cheap and leisure, good investment. ⮚ The Contemporary Book Industry
▪ Start to order books on amazon
▪ Traditional book store hurting because of economic problems ❖ Books in the digital Age We also discuss several other topics like What are finite resources?
⮚ E-Readers and E-books
▪ 2006- e books, kindle changed it… Will not replace it but it is easier. ⮚ Printing on Demand
▪ Publishers create a huge database of books in digital form. A customer goes to a bookstore, browses and selects a book. Machine in the store then downloads and prints it while the customer waits
Don't forget about the age old question of What is the meaning of the matching principle?
⮚ Defining features of books
▪ Least mass of the mass media
▪ Books have a cultural impact
▪ Most enduring and oldest media.
❖ Organization of the Book Industry
⮚ 3 segments, publishers, distributors, and retailers
▪ Transform manuscripts submitted by authors into books that are sought by readers
▪ Classification system:
• Trade Books: general consumer and to bookstore, Fiction, nonfiction, cookbooks, and art books
• Religious Books: bibles, hymnal, prayer books, theology..
• Professional Books: doctors, lawyers, accountants, all who need personal reference library in their work
• Book club and mail order: some book clubs publish their own books • Mass market paperbacks: racks super markets, stores, airports..
• Elementary and secondary textbooks
• Higher education: college market
• Audiobooks: books released on disc
• E books
• Other: reference books
▪ Traditional: publisher ships copies of books to wholesaler or distributor who then sends books to retail outlet where consumer can buy it ▪ Amazon.com Warehouse to consumer We also discuss several other topics like Who is richard holmes?
▪ E books directly to consumer
▪ Amazon is beating bookstores….A lot of bookstores going out of business ❖ Producing the book
⮚ Departments and Staff
▪ 4 major departments
♦ Editorial: deals with authors, selects manuscripts and edits
♦ Production: oversees the physical design of the book, type style, composition, binding, etc.
♦ Marketing department: sales, promotions, and publicity.
♦ Business: finances, day to day
⮚ Publication Process
▪ Editors get books in 3 ways: through submissions by agents, as books sent in by authors, and books ideas generated by the editor.
❖ The Economics of Book Publishing
⮚ Publisher has 2 main sources of income
▪ The money that comes from book sales
▪ Money from subsidiary rights (sales to book clubs, foreign rights, paperback rights, and reprint permissions)
❖ The Book Publishing Audience
▪ Best seller lists & Nielson Book Scan- measures actual sale data from major retailer
Chapter 8- Radio
❖ A Brief History If you want to learn more check out What is mahabharata?
⮚ 1887 Heinrich Hertz detected radio waves
⮚ Marconi developed a wireless communication device to send Morse code. ⮚ GE high speed wave generator could broadcast the human voice and music ⮚ WWI- US Navy take over of radio
⮚ De Forest invented the vacuum tube-audion.
⮚ The Birth of Commercial Radio
▪ Big Business
• RCA formed- Marconi company- David Sarnoff-head of RCA-many points of receivers
▪ A Mass Audience
• Westinghouse – KDKA and then RCA, GE, AND ATT made stations
▪ Better Receivers: new and better
⮚ The Commercialization of Radio
▪ Early stations were owned by a polyglot of originations
• Network: linking radio into a network, rather than having each individual station pay the costs of producing its own program, much cheaper for stations the share the cost of a single program and broadcast the same show on all stations, networks have affiliates • Advertisements reach more audiences
• First network was NBC- National Broadcasting Company, subsidiary of RCA in 1926. Had red and blue stations (blue sold to ABC because it was becoming a monopoly). CBS second. Don't forget about the age old question of What is the meaning of atomic number?
• Advertisement profit allowed them to hire big-name entertainers. ▪ Government Regulation
• Interference became a problem.
• Radio act of 1927- set up by the FRC, federal radio commission, regulatory body cleaned up airways.
• Communication Act of 1934 (see further down)
⮚ The Depression and World War II
▪ Radio not hit that hard by depression, advertising tripled
▪ The FCC
• Federal Communications Commission (FCC): Roosevelt created a government agency that consolidated the regulatory functions of the communications industry.
• Communications Act of 1934: consolidated responsibilities for broadcast and wire regulation under a new 7 member FCC, scarcity rationale.
▪ The Birth of FM
• Armstrong –frequency modulated radio- FM, showed it to Sarnoff ▪ Radio Programs
• Diversion and escape so soap operas, live coverage of event ▪ World War II
• Radio did well during the war & Outplaced newspapers
• 1943 Supreme Court ruled that NBC must divest itself into 2 networks so NBC sold its weaker network - to ABC.
⮚ Innovation and Change: 1945-1954
▪ Specialized Formats
♦ Top 40 music and talk shows.
♦ Clock hour: specified every element of programming.
▪ Growth and Stabilization: 1955-1990
• Payola: media producers promos for playing songs on radio, pay for play
• Plugola: DJs get perks at places, mention restaurant and eat for free. • Nonduplication Rule: AM-FM combination from duplicating its AM content on FM stations for more than 50% of the time.
• National Public Radio (NPR): 1970s with an 80 station network, noncommercial radio network.
▪ Contemporary Radio
♦ Telecommunications Act of 1996: encouraged competition in the new communication technologies, erased cap on the number of stations a company could own and incre4aed to eight the number of stations a company could own in a single market.
▪ New developments, talk mostly on AM.
▪ HD radio, Internet Radio, XM, Competition from iPods, phones etc. ❖ Radio in the Digital Age
⮚ Terrestrial Stations on the Web
▪ Create and share playlists online
⮚ Internet Radio
▪ Internet Only Radio Stations: pure play radio stations on the Web, sometimes one person operations, Pandora
▪ Financial issue, must pay royalty to musicians
⮚ Satellite Radio
▪ Xm and Sirius merged in 2008. Primary consumer market. Profit hurt. ⮚ User Generated Content
❖ Defining Features of Radio
⮚ Portable, Easily transported, Supplemental- mostly occur while we are doing something else, Universal, Selective- niche medium, choose if you listen and what you want to listen to
❖ Organization of the Terrestrial Radio Industry
⮚ Local Stations, Networks, and Syndicated Programming
▪ Local is in cities, towns, across country. Big cities have multiple stations. ▪ Programming for these is by networks and syndication companies. ⮚ AM and FM Stations
▪ Broadcast radio stations are either FM or AM. Amplitude modulation or Frequency modulation.
▪ AM travels farther. AM is by channels: clear, regional, and local ♦ Clear: single dominant station that is designed to provide service over a wide area.
♦ Regional: channel shared by many stations, fairly large area
♦ Local: large number of stations to a smaller community
▪ FM doesn’t travel as far as AM, but FM has better sound-less interference. ⮚ Station Formats
▪ Format: type of consistent programming designed to appeal to a certain segment of the audience.
▪ Gives it a distinct personality and attracts an audience.
▪ Voice Tracking: go in and record, prerecorded for shows.
▪ Music Format
• Largest category, many subdivisions.
▪ Format Homogenization
• Consolidation, cheaper to broadcast same music,
❖ Non-Commercial Radio
⮚ FCC set aside stations, National Public radio, need funding, PRI ❖ Organization of Online Radio
⮚ Anyone who has access to software can start an internet radio station. ▪ Online stations that are affiliated with a terrestrial stations: some simply just play what is being broadcasted on terrestrial station
▪ Choice-based stations: Pandora or Last FM, let listeners choose artists and music types. Listeners create stations.
▪ Format-specific Internet Only stations: narrow genres, Pluto Radio ▪ Run on ads and also ask for contributions.
❖ Producing Radio Programs
⮚ Departments and Staff
▪ General manager and program director.
▪ Manager has responsibility for planning and carrying out station polity, monitor content, audience rating, etcs
▪ Sales department
▪ News Department
▪ Engineering Department
⮚ Putting Together a Program
▪ Music Format
• Format Wheel: format clock, pie chart of an hour divided into segments representing differnet program elements.
▪ All-News Format
• Cycle: amount of time that elapses before the program is repeated. ❖ Economics of Radio
⮚ Audience growing because of commute times
⮚ Sources of Revenue
▪ Sell advertising times
▪ Sale of time on network programs to national advertisers trying to reach a broad market
• Network spot, National Ad pots, Local Spots, Off Air income
⮚ General Expenses:
▪ Technical: payroll to engineers, equipment
▪ Programming: pay to talent, music fees
▪ Sales: salaries of sales
▪ General Administration: all other salaries
▪ News: cost of stories
❖ The Radio Audience
⮚ Sources of Feedback
▪ Arbitron: measurements for radio audiences, diaries, technology ▪ Portable People Meter: similar to how they compile TV, clipped to peoples clothes while the go about their day and hears the station and how much they listen to.
⮚ Ratings and Shares
▪ Rating: ratio of listeners of a particular station to all people in the market ▪ Shares: ratio of listener of a particular station to the total number of radio listeners in the market.
Chapter 9: Sound Recording
❖ A Brief History
⮚ Early Technologies
▪ Thomas Edison- Phonograph: 1877 invention that recorded the spoken word.
▪ Competition to phonograph when Bell and Tainter: graphophone: Edison’s foil was replaced by a wax cylinder. Berliner used a disk gramophone- pay to listen.
⮚ Rivalry and Growth
▪ Victor Talking Machine Company- Victor company- Victrola- disk format. ▪ Record players very popular-boom
▪ Jazz age- emerged from black experience in America
⮚ Impact of Radio on the Recording Industry
▪ Radio hurt record sales
▪ Rival by better quality recording, radio kept hurting live music ▪ RCA & Victrola combined
⮚ The Depression Years
▪ Economic blow to sound recording
▪ Record sales dropped
▪ Jukeboxes popped up, helped save
⮚ World War II & After
▪ Did not do well in war, shellac was a commodity so records plummeted ▪ Also marked a time where radio could sell records, record sent free music to radios to promote
⮚ The Coming of Rock & Roll]
▪ Elvis Presley, rhythm and country combo
⮚ The Commercialization of Rock
▪ Payola scandals
▪ Wholesome performers
▪ Etched grooves, Magnetic Tape, CD, Digital: single replaces album, ipod ⮚ The British Invasion
▪ Beatles- innovative, harmony, more cheery than American rock ⮚ Transitions
▪ Freedom, experimentation, innovation, social experimenting ▪ Rock opera, country rock, metal- amplifiers and electronic equipment ⮚ Industry Trends 1970s-1990s
▪ Disco in the 70s
▪ Michael Jackson
▪ CDs instead of tape
⮚ The contemporary Sound Recording Industry
▪ Digital music leads to illegal file sharing problem
❖ Sound Recording In the Digital Age
▪ Digital changed it into encoding music as information in binary numbers, PC and internet made it easy for people to download
▪ Single songs selling instead of whole album
▪ Record stores are hurting
▪ Make money in licensing songs to games, ringtones, and music videos ⮚ Mobile Music
▪ Walkman was the first device
▪ iCloud, server holds music
⮚ User Generated Content
▪ Artists and labels make their content available to incorporate into homemade production
▪ User-generated videos posted on YouTube, Justin Bieber
⮚ Social Media
▪ Promote songs, announce tours, keep relationship
▪ Fans create a community
❖ Defining Features of Sound Recordings
⮚ Social groups and cultural force
⮚ Business and talent
⮚ International enterprise
❖ Organization of the Recording Industry
▪ Originate, produce, and distribute records
▪ Singers, musicians, songwriters, everyone who hopes to make money by recording and selling their songs. HOPE to make money.
▪ Songs recorded into studio, engineer’s elaborate sound mixing facilities, publicity, advertising, and merchandising and packaging, promoting. ⮚ Distribution
▪ Direct Retail: stores that specialize in sales of CDs and other related products
▪ Rack Jobbers: service the CD racks in variety or large department stores, WalMart has this, jack robbers choose CDs sold and keeping up with this. ▪ One Stops: purchase CDs from recording companies and resell them to retail stores, small independently owned store
▪ TV packagers: sell directly to consumer
▪ Online Distribution: Amazon.com
▪ Direct Download online
▪ Target and Wal-Mart, 25% CDs purchased at mass markets. ❖ Ownership in the Recording Industry
⮚ Most concentrated of all media industries
⮚ Big Companies: sony, etc.
❖ Producing Records
⮚ Departments and Staff
▪ Artists and Repertoire: talent scout
▪ Sales and Distribution: sells products and make sure it gets to stores. ▪ Advertising and Merchandising: planning media ad campaigns and displays in sales outlets.
▪ Promotion: help promote company’s artists, having song on Glee. ▪ Business: lawyers, accountants, financial analysts, and clerical. ▪ Publicity: press coverage and news releases, and on magazines. ▪ Artist Development: tour dates, and shows, and TV appearances ⮚ Making a Record
▪ Demo: disc with sample of sound, this is what an artist does first to convince someone that they can sell
▪ Multiple Track recording: Mix down after recording, effects.
❖ The Economics of Sound Recording
⮚ Economic Trends
▪ CD sales drop, digital up
⮚ New Business Model
▪ 360 deal: company agrees to make a large cash payment to performer in return gets a percentage of all revenue generated. Concert tickets, tee shirts, etc.
▪ Video games songs
⮚ Rock Performers: The Bottom Line
▪ Touring is significant source of income
❖ The Sound Recording Audience
⮚ Sources of Feedback
▪ Billboard charts, most important channel of feedback. Composed of 1) exposure and 2) sales. Nielson SoundScan, keeps track of sales and digital downloads in US and Canada.
Chapter 10: Motion Pictures
❖ A brief history
⮚ Phi Phenomenon: we see one light source go out while another one close to the original is illuminated
⮚ Persistence of Vision: our eyes continue to see an image for a split second after image has disappeared from view.
⮚ Early American Cinema
▪ The Edison Lab
• Edward Muybridge, bet if all 4 legs of a horse were off the ground. • Edison and Dickson- first camera.
• Kinestoscope- Could show to one person at a time.
▪ The Nickelodeons
• Tell a story- A Trip to the Moon.
• Short cities, 50 to 90 seat theaters, 5 scent admission price.
▪ Adolph Zukor and D. W. Griffith
• Zukor copied filmmakers to make long, expensive films but at a middle class audience.
▪ Birth of MPPC
• Motion Pictures Patents Company: restrict moviemakers to nine companies that made up the MPPC. To cut down on legal expenses • Independent’s produced for cheaper, war against MPPC and INDIE
went to Los Angeles Hollywood- Tried to limit movie production companies- but backfired due to indies. Powerless by 1917. ▪ The Star System
• Florence Lawrence first movie star. Pickford and Chaplin, movie studios capitalized on these stars.
• Chaplin and Pickford helped make United Artists, star interest. • Longer movies meant need for nicer theaters- the Strand, 3000 seats, and an orchestra. Egyptian Theater in Hollywood
▪ Consolidation and Growth
• Combined production and distributions into one corporate structure • Paramount and Fox rivals, so own theaters. Loew MGM. • Block Booking: owners exert control over independent exhibitors;
theater shows two or three top films and other bottom ones. (prohibited in 1948)
▪ The Roaring Twenties
• Increased cost, huge salaries. Scandal, sin city because of fame and money. Needed censorship.
• Hay Code: sets standard of behavior, film industry regulating itself. ▪ The Coming of Sound: The Late 1920s
• Jazz singer- killed silent film
• Technicolor helped. Expensive so shut a lot of them down. Left eight major studios
▪ The Studio Years: 1930-1950
• Huge movie sets, showy.
• Government suits against studio vertical control
• 1948 ruling: studios must divest themselves of at least one type of holding (sold their theaters)
▪ The Reaction of Film Industry to TV
• TV cut into Film.
• Studios didn’t advertise films on TV, not release old films. People kept buying TVs
• Film fought back- 3D, it was expensive. Cinerama & Cinemascope. • Film and TV began to start working together in 50s.
▪ Realignment: The Film Industry from 1960-90
• More independent production
• Supreme court loosened controls, self regulated content. G, PG, R, X ratings.
• PG-13 in 1985. NC-17 replaced X in 1990.
▪ New Technologies: 1990-2010
• DVD- digital video disc replaced CVR. 2006 80% OF HOMES. • Competition between downloading movies on tv, Netflix, etc, ▪ Contemporary Trends
• Illegal file sharing and piracy concerns.
• Dvd still most money for film, theatrical is getting more revenue, but most likely because more expensive tickets
• 6 big: Sony, NBC universial, Disney, fox, WB, and paramount ❖ Motion pictures in the digital age
▪ Most still produced on film, digital affecting.
⮚ Making Digital Movies
▪ Digital camera, digital editing, animation, motion capture
⮚ Digital Distribution to Theaters
▪ Digital is much cheaper
⮚ Digital Projection
▪ Expensive for digital screens
❖ Defining Features of Motion Pictures
⮚ Potential cost, Big conglomerates, Aesthetic, media art form, Big studio films are made to make a profit, but indie make it for art, Social Dimension` ❖ Organization of the Film Industry
▪ Mostly major finance and distribute but indie rising in prodiction. ▪ Studios: film production, distribution, TV production, administration. ⮚ Distribution
▪ Supply to theaters
▪ Big companies mostly distribute because expensive
▪ Big is financing for indie films
▪ Multiplex theaters, really nice theaters coming up.
❖ Producing Motion Pictures
▪ Idea, Screenplay
• First draft script
• Revised script
• Script polish
▪ Also find actors, contract flat fee, secure money, crew, location scouting ⮚ Production
⮚ Post Production
❖ The Economics of Motion Pictures
⮚ Money take in at box office
⮚ Revenue from the International box office
⮚ Sales and rentals of DVDs
⮚ Film revenue is at an all time high.
⮚ Movies are most expensive medium
⮚ Movie attendance and tickets are declining
⮚ Financing a Film
▪ First method is if a producer has a good track record, and film looks good, distributor may give all the money if gets rights. Direct loan from a distributor.
▪ Second method: pickup: a distributor agrees to pick up cost of finish product at a later date at a sets price, can take out a loan.
▪ 3rd is limited partnership: arrangement where the film is financed by outside investors. Each partner puts up set amounts and liable.
▪ 4th is Joint Venture: under set up of several companies involved in film product and destruction user their resources and agree to finance and distribute, more common so that several companies can share risk
▪ Pay distributor and for the film before earn. Must earn two an done half to three times to profit.
⮚ Dealing with the Exhibitor
▪ Split percentages of box office income
▪ Sliding Scale: box office revenue increase, so des amount of money the exhibitor would pa the distributor.
▪ 90/10 deal
❖ The Motion Picture Audience
⮚ Sources of Feedback
▪ Variety top grossing list
⮚ Market Research
▪ Focus groups to ask them what they liked and didn’t lie
❖ Movies at Home
⮚ Still a huge contributor
⮚ Pay-per-view and VOD: huge revenue
Chapter 11: Broadcast Television
❖ A Brief History
⮚ Philo Farnsworth
⮚ Vladimir Zworykin- Westinghouse then RCA, iconoscope
⮚ NBC owned RCA
⮚ WW II interrupted TV development
⮚ FCC, tv fast growth 1948.
⮚ The 1950s: Television Takes off
▪ Networks, Tape, UHF, and Color
• Modeled after radio
• 4 networks: CBS, NBC, ABC, and Dumont.
• Advertisers had control over much content
▪ The Golden Age of Television
• Many people bought TVs here because of shows
⮚ The Coming of Age: Television in the 1960s
▪ Became a part of life
▪ Journalism, NBC CBS and ABC, funeral of JFK and first walk on the moon ▪ Public Broadcasting Act of 1967: PBS
▪ Rural comedies
⮚ The 1970s: Growing Public Concerns
▪ Exposure of tv, effect? Suggested that violence influenced us. ⮚ New Technologies
▪ Time Shifting: playing back programs at other times
▪ DBS, direct broadcast by satellite.
▪ Telecommunications Act of 1996: program ratings and V chip ❖ Contemporary Broadcast Television
⮚ The big four: ABC, NBC, FOX (original 4 ABC, NBC, FOX) AND CBS ⮚ DVR, Hulu, DVD has replaced VCR
⮚ Rely on advertising
❖ Television in the digital age
⮚ By 2009, all TV stations were broadcasting digital television. ⮚ Clearer pictures, better audio, less space.
⮚ 3D television, remotes (not having to get up)
⮚ Zipping, Zapping, Grazing: through commercials and channels ⮚ Broadcasters and the Web
▪ Use web to promote the show.
⮚ Broadcasters and Broadband
▪ Web only shows-- Not much profit.
⮚ User-generated content
▪ America Funniest Home Video
▪ Cell phone video on news, but not much
❖ Defining Features of Broadcast Television
⮚ Universal medium, 99% homes have a working TV
⮚ News and entertainment for Americans
⮚ Broadcast audience is fragmenting
❖ Organization of the broadcast television industry
⮚ Commercial Television: consists of all local stations whose income is derived from selling time on their facilitators to advertise
⮚ Noncommercial television: consists off stations whose income is derived from sources other than the sale of advertising time
⮚ FCC markets 210 divided by location. We are in Columbus market. NYC biggest market. Glendive, Montana smallest.
⮚ A local statin that signs a contract with one of the big networks is an affiliate. ⮚ ABC, NBC, CBS have 200 affiliates, fox has fewer, few groups own it all ⮚ Local stations that are not affiliated are independents.
⮚ TV is divided into 3 segments, production, distribution, exhibition. ▪ Production: is providing the programming viewed
▪ Distribution: networks and cable and syndication companies ▪ Exhibition: responsibility of local TV stations
▪ 3 basic sources of programming
▪ Local: produced in local studio or on location. Newscasts, large audiences, and large advertisers, Local sports events, public affairs. ▪ Network Stations: networks supply 60-65% of the programming by affiliated. News, sports, and early talk shows.
▪ Most independent prod companies sell shows to syndication firms, Wheel of fortune, jeopardy,
▪ Network transmits programs via satellite, then transmits to viewers. ▪ Now they charge local stations a fee to carry network programming, reverse compensation.
▪ Syndication Companies, lease taped of filmed programs to local tv stations in each market. Station buys a package of programs and contracts the amount of time it can be played.
▪ Before the switch, stations divided into
• VHF: 2-13 stations
• UHF: 14-69
❖ Ownership in the Television Industry
⮚ All major networks under conglomerates
▪ NBC under Comcast, ABC owned by Disney, Fox by News Corp, CBS corp, ▪ Telecommunication Act of 1996- allowed org to own as many stations as long as the combined reach of stations did not exceed 35% of US population.
❖ Producing Television Programs
⮚ Departments and Staff
▪ Depends on size of town of size of station
▪ Station manager is responsible
• Sales-selling time to local and national ads
• Engineering: tech
• Production/Programming: puts local plus outside sources
• News: produce news program
• Admin: clerical, accounting, etc.
▪ Major networks
• Sales: sale of commercials and with agencies
• Entertainment: develop programs
• Owned and operated stations: admins those stations by the network • Affiliate relations: all contracts with network affiliates
• Standards: laws and ethics
• Operations: tech aspects of sending
▪ Getting TV programs on the Air
• Anchors, weather, reporters, director, producer
• Network must fill time.
❖ The Economics of Broadcast Television
⮚ Commercial Time
▪ Sale of commercial time by networks and local stations to advertisers. ▪ 3 types of advertisers who buy time on TV
• National Advertisers: general consumption items, soda pop, cars, hair spray, biggest audience possible reached.
• National Spot Advertisers: used mainly in one region, snow mobile in Denver, surfboards in Florida.
• Local Advertisers: local businesses, singe market.
▪ Larger the audience, the more the station can charge.
▪ Depends on station and the program.
▪ Product placement,
⮚ Where did the money go?
▪ Programming is a huge expense. Half hour sitcom usually 1.5 mil. ❖ Public Broadcasting
⮚ A Brief History
▪ Educational tv only at first
▪ Public Broadcasting Act: authorized money for construction of new facilities and established CPB to oversee programs, and funded PBS. ▪ Cable hurt public TV.
▪ Loyal audience is aging.
⮚ Programming and Financing PBS
▪ Civil War doc highest rated.
▪ Government, donations, and such, grants.
❖ Home Video
⮚ Because of VCR- DVD replaced this
⮚ Digital Video Recorder DVR: allows viewers to record TV program on a hard drive
❖ The Broadcast Television Audience
⮚ Sources of Feedback
▪ Network Ratings
• Nielson Media Research, NTI. Nielson People Meter, thin that gathers viewing info.
• Portable People Meter: device that detects signals on radio or TV ▪ Local-Market TV Ratings
• Diaries, Set Meters
⮚ Ratings Reported
▪ Rating: number of households watching a program/number of TVs households in a given market w/ a tv
▪ Share of the Audience: number of households watching a
program/number of households watching a television at a particular time.
▪ Nielson sweep-feb, may, july, nov. every local TV market is measured.
Chapter 12: Cable, Satellite, and Internet Television
❖ A Brief History
⮚ CATV- cable access TV- John Watson
⮚ Satellite transmission came of age in 1976, HBO started this. ⮚ MSO, Multiple System Operators: cable industry dominated by these by the 80s.
⮚ ESPN signed a contract with NFL,. CNN coverage of major events, ⮚ Direct Broadcast Satellites/DBS: cable competitor, send signal directly to a small home satellite dish, bypassing cable, Dish and DirecTV, dominated industry.
⮚ 1984 congress deregulated the rates cable systems could charge consumers ⮚ 1992 congress reregulated and passed Cable Television Consumer Protection and Competition Act- must carry, and retransmission consent
▪ Must carry: local cable station had to carry signal
▪ Retransmission: local station had the right to negotiate compensation for carriage of its signal
⮚ Networks started charging for cable to carry program
⮚ Cable then started charging monthly fee
⮚ ** A la carte cable in the future??
⮚ Telecommunication Act of 1996: gave phone companies and cable companies right to provide other services, could own competing systems.
⮚ Voice over Internet Protocol (VoIP): Cable companies were able to offer an alternative to traditional phone lines. Verizon FiOS, Internet, cable, phone. ⮚ Internet TV: webcasting, streaming, computer stores video signal. ⮚ Buffering: plays them back while at the same time storing new incoming signals.
❖ Cable, Satellite, and Internet TV in the Digital Age
▪ All use digital now
▪ Makes VOD possible, high def and DVR
▪ Cable and TV bundles
⮚ User-Generated Content
▪ CNN Ireport
▪ Youtube is biggest place for this, cable TV is moving away from user generated though to look more professional
❖ Defining Features of Cable, Satellite, and Internet TV
⮚ Boxes have program for cable
⮚ Needs dish or receiver for satlite
⮚ Internet needs modem or connection
⮚ Pay extra to get, unlike broadcast.
⮚ These services must carry many channels that appeal to niche or highly differentiated audiences.
❖ Organization of the Cable and Satellite Industries
⮚ Structure of Cable TV
▪ 3 main components
• Head End: consist of antenna or other equipment that receives the signal from distant TV station and process these signal so that they may be sent to homes.
• Distribution System: actual cables that deliver the signals to subscribers. Cable can be underground or on telephone line.
• House Drop: section of the cable that connects the feeder cable to the subscriber’s TV set. Drops can be one way that travels from head end to house or two way ccan be sent back to head end then to subscriber. ⮚ Programming and Financing: Cable TV
▪ Local cable system operator
• Local origination: this programming may be local news, high school football, local govt
• Local broadcast TV stations: some cable systems carry signals from nearby cities in addition to local channels
• Superstations: Local stations carried by many systems nationwide. KTLA, LA, WTBS, Atlanta.
• Special Cable Networks: services distributed to satellite to cable systems, most advertiser supported, weather, USA, MTV.
• Pay Services: Commercial fee, HBO, showtime
• Pay per view and VOD: showing of recently released films and events, expensive.
▪ 2 basic sources of income for local cable
• subscription fees from consumers
• local advertising
▪ Cable may also pay for programming, split between cable company and network
▪ National cable network
• 3 major sources of programming
♦ Original Production
♦ Syndicated Programming
• EX-CNN relies on original production
• Movies on HBO
• USA AND lifetime-syndicated
• 3 major sources of revenue sources
♦ Local Advertising
♦ Carriage Fees: charge local operators a fee to carry station, cable stations pass these fees along into the cable fee
♦ ARPU/ Average revenue per user
♦ Subscription Fees
▪ Most money made on sporting events, movies, concerts, and adult content. Pay 5-50 to see. Competition with VOD and digital cable. ⮚ VOD
▪ Cable or satellite stores movies or TV shows on a huge server then index contains what is available. Selections sent immediately to set. Whatever you want, whenever you want it.
▪ Slow to catch on due to lack of content and complicated interface. ⮚ Structure: Satellite TV
▪ 5 Elements
• Content providers, ESPN, Nick, send signals to
• A broadcast center who takes the programming and then sends it to • Geosynchronous commination satellite, which receive programs from broadcast center and send them back to
• A small satellite dish, picks up signal and transmits it to
• A receiver so that it can be viewed.
▪ Signals are encrypted so only those with subscription get it. ⮚ Programming and Financing: Satellite TV
▪ If carried by major cable, usually over satellite.
▪ National NOT local
▪ Monthly subscription fees
▪ Charge extra for HDTV, DVRs
▪ Hardware expenses
❖ Internet Video
⮚ Web faster so internet video expanding
⮚ Cutting the cord on cable
⮚ Structure: Sources and Content
▪ Professional or amateur
▪ Professionally Produced Content
• Commercial media companies, abc.com
• Content aggregators, hulu, Netflix
• Public Relations, marketing advertising firms: leoburnnet.com • Companies that sell products and services, amazon
• Govt agencies
▪ Amateur Content
• Half of online video is amateur
▪ Micro casting
♦ Sending message to small groip
▪ Economics of Online Video
• Subscription fees, merchandising, advertising, combos.
❖ Cable, Satellite, and internet TV audiences
⮚ Sources of feedback