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Study Guide

by: Alyssa Sampson

Study Guide

Marketplace > Indiana University > > Study Guide
Alyssa Sampson

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About this Document

Cheat Sheet for 207 Exam
Class Notes
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This 2 page Class Notes was uploaded by Alyssa Sampson on Sunday February 21, 2016. The Class Notes belongs to at Indiana University taught by in Summer 2015. Since its upload, it has received 16 views.


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Date Created: 02/21/16
3 Ages of Media Business Models:  Advertising: newspaper, magazine, radio, TV  Subscription/rental: movies, cable, satellite  Entrepreneurial: free speech, property rights Acceleration of Media Popularity (introduced & saturated):  Newspaper – 1700s & 1800s  Magazine – 1800s & 1800s  Radio – 1900s & 1930s  TV – 1940s & 1960s  Internet – 1990s & 1998 Broadcasting is an advertising enterprise – count viewers/readers British newspapers 1652 + 1747 have been around for 400 years Commercial Radio in 1920s  made by amateurs Demographics: age, sex (those are most important), income, race, religion, lifestyle Demographics Breakouts:  Women 18+  113,000,000  Men 18+  105,000,000  Persons 19 – 49  122,000,000  Teens  25,000,000  K2 – 11  40,000,000 Digital content is allowing us to get content directly from the content creators FCC: 1934 – licenses, hours of operation, PICON standards, regulates individual stations Gutenberg: printing press – ability to read – princess, king, queens Network vs. Affiliate Relationship  Advantages for Network: o National exposure o National reach for promotion o National reach by networking advertisers o Shared identity  Disadvantages: o Programming costs prohibiting expense o Must program for entire countries o Must be affiliated with weak lock station  Advantages for Affiliate: o Obtain steady stream of programs o Higher quality man self o No crash outlay o High ratings = high ad rates o Shared identity with national network  Disadvantages o Must take entire program schedule o Network content might offend local viewers o Must give up 75% if commercial inventory o Might be affiliated with weak network Numbers are language of business Philo Fransworth: 1 demonstration of TV in US sending messages through air PICON: P public, I interest, C convenience, O or, N necessity RCA (Radio Corporation of America): formed NBC Rapid growth of Newspapers 1775 – 1835 Radio wasn’t used too much in war because signals weren’t received Romans could send 600 messages per day Technology:  Economic – what money is involved  Competitive – who else is in there in same activity  Marketing – who are your customers  Regulatory – legislative, laws need to follow Top 10 TV Markets:  New York 6.5%, Los Angeles 4.8%, Chicago 3.1%, Philadelphia 2.6%, Dallas 2.3%, San Fran 2.2%, Washington DC 2.2%, Boston 2.1%, Atlanta 2.1%, Houston 2.1% TV Audience are growing older:  In 1999: 43  In 2009: 51  CBS: 55, NBC: 49, ABC: 51, CW: 34, FOX: 46 How many programs move forward?  Scripts read: 100/1000 o Pilots: 20/100  Exhibited: 5/20  Success: 1/5 HUT Level (Homes Using Television)  Definition: the percentage of homes using tv at any one given time  Formula: homes using tv/total homes Rating (most important for advertisers)  Formula: Rating (absolute) = #People watching program “A”/total # households Share  Formula: Share (comparative) = #People watching program “A”/total # households watching TV X X X X 1. HUT = 16/20 = 80 X X X X X X X X 2. Rating = 4/20 = X X X X 20 3. Share = 4/16 = 25 *** HUT > Share > Rating Videotape machine enabled people to become more profitable Live Videotape Production cost 100,000 100,000 Advertising sales 125,000 125,000 Repeat telecast - 125,000 Profit (sales – cost) 25,000 150,000 Profit margin 25% 150%


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