Local Market
Broadcasting and TV
Programming
RTV 453
Traditional TV service
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210 Local TV markets
In a local market
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Independent (KDFI, 27 ‘My Network TV’) (68,
KPXD, ION)
Network affiliate (WFAA, Belo-owned)
O&O (4, 5, 11)
Difference for LPTV
Sources of programming
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Local, network, syndicated, paid
TV Dayparts
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overnight 1-6 am; early morning 6-9 am
daytime 9-3; early fringe / late afternoon 3-5
early evening 5-6; access 6-7
note time zone variations
prime time 7-10
late fringe 10 - 1030
late night 1030 - 100
Types of scheduling
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Stripping
Checkerboarding
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Daypart differences / prime-time vs. not
Stacking, blocking
Lead off, hammocking, lead-in, tent-poling
Stunting (sweeps)
Basics of network operation
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Original benefit vs. today
High cost programming / national audience
Network compensation
Value of station / network-affiliate relations
O&O
‘Hybrid networks’ Univision, PAX / ION
‘Hybrid IPTV' services – Operators use
either digital or satellite for linear TV and
broadband for on-demand content
Basics of network operation
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ABC, NBC, CBS, Fox, CW – how much do
they need their local stations?
How can local TV survive?
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Multicasting?
Cable cost + streaming option?
Distinction of ABC, NBC, CBS, Fox vs.
ESPN, CNN, MTV, HBO
A ‘cable network’ is not a network
Mobile media – national or local?
TV syndication
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‘Off Network’
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First Run
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Big Bang Theory, Raymond, How I Met…
Seinfeld, Frasier, Friends
Classic TV shows
Minimum number of markets
Group owner impact
Specific genres
Cash / Barter
TV sales
National buys: upfront vs. scatter market
Local market buys: national spot market,
rep firms, media buyer, local direct client
Local Cable System: Premium channels,
Basic cable vs. local broadcast stations,
insertion advertising, must carry, MSO
National ‘basic’ and ‘premium’ cable
channels
TV sales
Local cable system or IPTV
DTV multicasting
DBS (DirecTV / DISH) limitation
All ‘linear’ services
Development of ‘on demand networks’
Owners of TV shows / distribution
National TV
genres of TV programs--sit-coms,
dramas, mini-series, made for TV
movies, theatricals, variety shows,
game shows, reality shows
Production costs
Reality hour: $300K - $1 million
Sit-com half hour: $750K - $2M
Drama hour: $1.5M - $2M
Co-production & deficit financing
Buying Syndication
Selling local TV inventory:
What will we pay for The Ellen Degeneres Show?
Budget for their show: $500,000 per week
52 weeks of the year – how many re-runs? 26
weeks of production
26 x $500,000 = $13 million per year cost
210 TV markets ---- sell to 150
150 x 50,000 per station per week = $7.5 million
150 x $20,000 per episode national clients / $100k
/ week = $15 million
Selling the show
Inventory:
They take none = we pay $20k per episode; They
take 8 minutes = we pay $10k (x5)
We pay $10k. Our avails are 10 minutes (20 :30
spots)
Our audience rating number is 5 = 75,000 people
CPM is $8 = 75 x 8 = $600 per spot
600 x 20 = $12,000
SELLOUT rate 80%
$12,000 x .80 = $9600
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