RTV3007 Final Study Guide

RTV3007 Final Study Guide - INDUSTRY Relationship between...

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INDUSTRY Relationship between broadcasters and network affiliates Convenient Source of Programs for Outlets Convenient Means for Advertisers to Reach National Audiences Network Obligations: Compensate Station Promote and Advertise Programs Network Receives: Access to Audience to Sell to Advertisers Station Obligations: Promote and Advertise Programs Station Receives: Network Compensation Programs Prestige Audience to Sell to Local and Regional Advertisers Network/Affiliate Disputes: Clearances and Pre-emptions Network Encroachment on Station Time Goal of Commercial Electronic Media The overriding goal of commercial electronic media is to make money Three-legged stool supports the broadcast industry – broadcaster, audience, and advertiser MONOPOLY - where there is no practical competition OLIGOPOLY - there are a limited number of competitors PURE COMPETITION - few market barriers allow many players to enter Ownership “Types” Single Station
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Group Ownership o Economy of Scale o Clout o Stations owned by the network (e.g. ABC) and affiliated with the same network (e.g. ABC) o Usually refers to a TV station or radio station that is owned by the network with which it is associated o This distinguishes such a station from an affiliate , whose ownership lies elsewhere other than the network it is linked to o Group owner owns a variety of stations and could be affiliated with a variety of networks. Owned and operated: a larger market Horizontal Integration Owning multiple entities within different product or service types A variety of cable networks Combination of broadcast network and cable networks A variety of TV and/or radio stations (outlets) A variety of cable systems (outlets) Vertical Integration Same entity controlling the production and distribution of a good or service In terms of Electronic media think in terms of conglomerates whose pieces include: Studio (producer of content) Network Outlet
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Broadcast television networks depend on affiliates to distribute its programming Definition of a “Network”: 2 or more outlets connected to allow simultaneous presentation of content Organization which “packages” and distributes content to affiliates Types of Broadcast Networks: Occasional or “Ad Hoc” (MDA telethon : Sept. 2-3) Regional (FRN: Florida’s Radio Network) Full service national network (ABC, FOX, CBS, NBC) Differences between broadcast and cable networks in how they are distributed Broadcast use affiliates in local markets Cable networks use MSO through local stations such as Cox, Time Warner Even though it offers more networks, why doesn’t cable have a huge audience share advantage over broadcast networks (within primetime)? Each broadcast has a much larger audience than cable does.
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This note was uploaded on 02/04/2011 for the course RTV 3007 taught by Professor Staff during the Fall '08 term at University of Florida.

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RTV3007 Final Study Guide - INDUSTRY Relationship between...

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