Radio, Television,The Internet & New Media Today-4, 5, & 6

Radio, Television,The Internet & New Media Today-4, 5, & 6

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Unformatted text preview: Radio,Television, The Radio,Television, The Internet and New Media Today Radio Radio Quick Facts Quick Facts ► Number of commercial AM stations in 2006: 4,795 Number of commercial FM stations in 2006: 2,746 Number of country radio stations (2006): 2,126 Average number of radio stations in most U.S. markets: 25 Number of stations in the U.S. playing a polka format: 4 ► ► ► ► Radio’s 3 C’s Indicate Radio’s 3 C’s Indicate the Nature of the Business Competition Consolidation Control Competition Competition ► There are more radio stations than any other media ► There’s competition for advertising revenue 5 times more radio than newspapers 10 times more radio than television within the radio market Advertising Advertising Expenditures 2004 The Radio Station Universe The Radio Station Universe ► Out of the 13,700 stations 35% are commercial AM stations 45% are commercial FM stations 20% are noncommercial FM stations The Radio Station Universe The Radio Station Universe ► Radio is a locally based medium AMs in local markets rely on local advertising FMs frequently dominate in larger cities, combination of national spot and local advertising Share of the Audience Share of the Audience ► FM stations ­ 80% of all radio listening ► The most profitable of all stations Big FM stations in major cities AM news/talk stations in major cities Consolidation Consolidation ► Increasingly competitive nature of radio reflects the companies now involved in the medium ► 1990s ­ NAB lobbied to deregulate radio Mom and Pop stations have largely disappeared Group ownership restrictions were lifted Telecommunications Act of 1996 shifted the radio landscape The Telecommunications Act of The Telecommunications Act of 1996 ► Relaxed ownership standards ► Set as a maximum that group owners could No limit to total number of stations a group can own own up to 8 stations in one marketplace ► Supergroups of station owners formed America’s 10 Largest Radio Group America’s 10 Largest Radio Group Owners Largest Radio Group Owners by Largest Radio Group Owners by Revenue Duopoly and LMAs (leased Duopoly and LMAs (leased market agreements) ► FCC studies show a trend in consolidation ► Top 50 markets, Clear Channel controls about 36% of all revenue ► The second largest firm in revenue controls 25% of all station revenue ► Four largest groups control 85% of revenues in largest markets Ownership Consolidation: Pros Ownership Consolidation: Pros and Cons ► Advocates of consolidation maintain that group ownership allows for economies of scale (more efficient programming/ better news coverage). ► Critics of consolidation point to sameness in formats from market to market, increasing use of voice­tracking by group owners Control Control ► Radio station formats are very structured ► Formats and music playlists tend to be very tightly controlled by station management ► Rigorous consumer research is done by group owners Radio Programming Today Radio Programming Today ► Most markets in the U.S. receive at least 25 radio signals ► Most stations cater to “target audiences” ► City (geographical area) where stations are a specific demographic segment (as opposed to a broad audience) located is called “market” Radio Programming Today Radio Programming Today ► Radio management targets audience by: Age Gender Music preference Lifestyles Radio Programming Today Radio Programming Today ► The program strategy is known as the radio station’s “format” ► Successful format consistently delivers its target audience to specific advertisers ► Target Audience attributes include aggregate size lifestyle preference gender income level habits Top 16 Radio Formats in the Top 16 Radio Formats in the United States Some Popular Formats Some Popular Formats ► Country ­ about 1 in 6 stations play this format News Talk and Sports Contemporary ­ concentrates on current hits Traditional ­ emphasize country western standards ► ► Adult Contemporary and Oldies Most popular AM format Helped by nationally syndicated personalities such as Rush Limbaugh Many types of music fall into these categories Tend to attract the audience most in demand by advertisers Some Popular Formats Some Popular Formats ► Contemporary Hit Radio ► Popular Ethnic Formats Emphasis is on most current hit music Music tends to be uptempo DJs tend to be assertive and loud Hispanic Radio Black / Urban Contemporary Noncommercial Radio Noncommercial Radio ► About 2100 radio stations ► Three types of noncommercial radio Community stations ­ licensed to civic groups College radio ­ sponsored by colleges and communication departments Public radio ­ CPB qualified radio stations Radio Station Organization Radio Station Organization ► Radio Station Departments Operations (a.k.a. traffic) ­ responsible for placing advertising on the station schedule Program Department ­ overall responsibility for the station’s sound Sales ­ responsible for sale of commercial time Engineering ­ keeps the station on the air A Radio Station Table of A Radio Station Table of Organization Broadcast and Broadcast and Cable/Satellite TV Quick Facts Quick Facts ► Network share of audience (prime­time) 1975: 90% ► Network share of audience (prime­time) 2005: 45% ► Number of TV networks, 1975: 3 ► Number of TV networks, 2006: 7 ► Number of U.S. homes with one or more TVs (2006): 110,600,000 Transition Sums Up Television Transition Sums Up Television Today ► Television has moved from analog to digital, high­ definition ► There are more television networks and cable networks today that 10 years ago Transition Sums Up Television Transition Sums Up Television Today ► Television competes with home video, video games, and the Internet for viewers ► cable television ► 26 million Americans subscribe to DBS Types of Television Stations Types of Television Stations Types of Television Stations Types of Television Stations ► VHF (Channels 2 ­ 13): about 570 stations ► UHF (Channels 14 and above): 750 stations ► DTV ­ new allocation for digital television Commercial versus Commercial versus Noncommercial ► Commercial TV ­ 78% of all television stations are commercial Commercial stations program information and entertainment in order to attract an audience Stations sell airtime to advertisers based on how large the viewing audience is Commercial versus Commercial versus Noncommercial ► Noncommercial TV ­ 22% stations are commercial free Most are affiliated with PBS or with a college or educational institution Network Television Network Television The Big 4 ► Big Three ­ started originally as radio networks ► Fox Broadcasting Company ­ started in NBC ­ National Broadcasting Company CBS ­ Columbia Broadcasting System ABC ­ American Broadcasting Company 1986 by Rupert Murdoch Network Television (continued) Network Television (continued) ► The 4 major networks (ABC, CBS, NBC and FOX) have the majority of television viewers ► New networks such as UPN, CW, and ION About 45% of all television viewers watch these four networks have smaller audiences. They tend to program less time than the big 4. Viewership is much smaller, too. Television’s Business Model Television’s Business Model Television is a business comprised of two separate business models: ► Network Television develops programs and distributes them to be shown by local affiliates. Networks sell time within the programming. Television’s Business Model Television’s Business Model ► Local Television Stations schedule programs when networks do not program. Local news, syndicated shows and network reruns are staple programming. Local Television Stations Rated Local Television Stations Rated by Profitability Lower­Power Television Lower­Power Television ► This service was created originally to promote minority ownership in 1982. ► Stations are limited to areas likely ► About 2,000 LPTV are in operation, mainly in rural 3000 watts VHF / 150 kilowatts on UHF ► Special Interest and minority programming are Alaska has the most LPTV stations TV Station Ownership TV Station Ownership ► Television owners tend to be large corporations ► Station ownership was limited before the Telecommunications Act of 1996 ► In 2003, Group owners can own as many stations as they wants as long as: the total number of U.S. TV homes reached by those stations does not exceed about 39% (actually, the FCC discounts penetration of some UHF stations) TV Station Ownership TV Station Ownership ► TV's TOP 25 STATION GROUP OWNERS Public Television Public Television ► PBS programs to more than 350 stations in the U.S., and U.S. territories and protectorates ► Watched by nearly 90 million homes weekly ► PBS garners funding from local television stations, PBS has a loyal following Typically PBS ratings hover around 2% of homes in the US Viewers have high incomes and are well educated from underwriting, and through federal grants Cable Television Cable Television ► Cable is a strong competitor to over­the­air television Cable revenues exceed $70 billion (2007) Cable systems growth ► ► Small 12 channel systems in the 1960s were the norm 1970s, 35 channel systems typical 2007, most people receive nearly 80 different channels ► Current “Must­Carry” / Retransmission Cable Television Program Cable Television Program Services Consent Rules Broadcasters could choose either “must carry” ­ cable operators are obligated to carry local station, or Retransmission consent ­ need to negotiate carriage with cable company Today, most cable operators continue to carry programming of TV stations in their service areas ► USA, Lifetime, CNN and ESPN ­ Cable Television Program Cable Television Program Services examples of advertiser supported basic cable services ► Pay services such as HBO and Showtime ­ commercial free services. ► Electronic Program Guides (EPGs), local Nearly one of three cable homes subscribes to HBO government channels ­ examples of specialty services Cable Terminology Cable Terminology ► Homes passed ­ about 98 of the 105 million homes in the U.S. are capable of subscribing to cable ► Households that subscribe to services like HBO are called pay households Cable Terminology Cable Terminology ► Multipay households subscribe to more than one pay service ► Systems with addressable converters allow subscribers to pick movies and events on demand (PPV) ► Cable Ownership Cable Economics Cable Economics ► High up­front capitalization (cost to wire each home) ► Tier system provides additional revenues ► Local systems now sell local advertising ► Additional services such as high speed Internet access provide additional revenue streams Direct Broadcasting Satellites Direct Broadcasting Satellites (DBS) ► Started in 1994, DBS has 1 in 5 television viewers Broadcasts from powerful KU band satellites ► Direct Broadcasting Satellites Direct Broadcasting Satellites (DBS) ► ► ► Sells packages of services Generally cheaper than cable television Few DBS markets have local television channels included Television Station Organization Television Station Organization ► Television stations generally have 5 divisions Sales ­ sells time to advertisers Engineering ­ keeps the station operating Business ­ responsible for collecting money and paying the bills Programming ­ develops programming for station News ­ produces local newscasts and informational programming ► Departments of the cable franchise Cable System Organization Cable System Organization Technology Marketing Customer service The Internet and New The Internet and New Media The Internet is different from The Internet is different from traditional broadcasting ► ISPs, routers, Java, and domain names are words that reinforce this notion ► Early development of the Internet was among scientists, computer hobbyists, and businesspeople The Internet is different from The Internet is different from traditional broadcasting ► Today, media presence on the World Wide Web is important and growing ► Streaming media and net broadcasting are examples of media on the Web Internet Evolution Internet Evolution ► Internet began as ARPANET in the late 1960s, run by Dept. of Defense ► Development of TCP/IP Protocols in mid 1970s, incorporated into ARPANET in 1983 ► NSF supports TCP/IP in CSNET in early 1980s ► ARPANET and CSNET merge in 1980s Prodigy and America Online ­ Prodigy and America Online ­ Early ISPs ► ISP ­ Internet Service Provider ► Prodigy differed from earlier services Provided monthly services for a flat fee Used a graphical interface Contained advertising embedded in the screens Prodigy and America Online ­ Prodigy and America Online ­ Early ISPs ► America Online provided new services Chat rooms and discussion forums helped AOL distinguish itself Early ISPs Early ISPs ► Changes in technology during the 1980s Modems increased in speed Telephone access costs decreased Newer computers like Apple’s Macintosh introduced ease of use Color displays replaced black­and­white displays ISPs Grow, Business Plans Fail ISPs Grow, Business Plans Fail ► World Wide Web and Internet browser (Mosaic) spurred growth of local Internet Service Providers Prodigy and the Source ► Sudden growth of ISPs challenged AOL, ► Newspapers and broadcasters began experimenting with content Growth of the World Wide Web Growth of the World Wide Web ► In 1993, Mosaic became the first browser for personal computers ► Web pages use HyperText Markup Language (HTML) ► Growth of the World Wide Web was instantaneous Growth of the World Wide Web Growth of the World Wide Web ► Search engines provided ways for users to navigate around the Web ► Growth of Internet users 1993, alittle over 1 million users 2006, more than 150 million users 2006, 700 million people worldwide Growth of the World Wide Web Growth of the World Wide Web Internet Basics Internet Basics ► Cyberspace ­ no one owns the Internet Internet Society comprised of Internet users World Wide Web Consortium develops guidelines and specifications for the Web ► ► Internet Basics Internet Basics ► Standards and protocols are decided upon by voluntary consultative groups Universal Resource Locator (URL) provides a key to retrieve information on the Web Domain names help provide unique addresses ► ► Internet Basics Internet Basics ► Most popular services on the Internet E­mail World Wide Web File sharing and swapping Social Networking Plug­ins Plug­ins ► Plug­ins are “helper” applications that extend the usefulness of Web browsers ► Examples of plug­ins Apple’s Quicktime ­ audio and video streaming Real Player ­ audio and video streaming Macromedia’s Flash and Shockwave ­ interactive applications Portals and Communities Portals and Communities ► Portal ­ defined as an “entrance” or “doorway” ► Internet Portals ­ starting places for cyberjourneys Portals and Communities Portals and Communities Portals can provide a startup page for browsing Portals provide link pages and information about other websites May provide space for advertisers Portals and Communities Portals and Communities ► Communities ­ places where people can congregate Discussion forums ­ places to trade ideas Virtual communities ­ communities of websites, free email Online games ­ special interactive game sites Electronic and Interactive Electronic and Interactive Gaming ► Started with Spacewar in 1962 ► Industry today estimated at more than $28 Developed by Harvard researcher Stephen Russell and friends billion The Bottom Line The Bottom Line ► Commerce and advertising revenue­ small compared to broadcasting and cable industries 1997, $550 million 2006, $170 billion ► Dotcom bust in 2000, many companies went bankrupt ► Media companies are looking for a working business model Internet Usage in the U.S. Internet Usage in the U.S. ► U.S. is ranked 12th in terms of Internet users per 100 inhabitants TOP 5 Countries in Internet usage: 1. Iceland 2. New Zealand 3. Sweden 4. Australia 5. Korea ► Who governs the Internet? Who governs the Internet? ► No centralized controlling authority ► Standards and protocols set by a number of self­governing organizations, including: Who governs the Internet? Who governs the Internet? ► Standards and protocols set by a number of self­governing organizations, including: Internet Society (ISOC) Internet Architecture Board (IAB) Internet Engineering Task Forces (IETF) Internet Corporation for Assigned Names and Numbers (ICANN) Who governs the Internet? Who governs the Internet? Existing governing and political institutions may influence policy Misnomer to believe Internet is completely unregulated ► June 1999, Napster allowed users to Media Sharing: Napster and Media Sharing: Napster and iPods search for and swap music on the web College students joined Napster almost immediately ► RIAA sued for copyright infringement in December 1999 Metallica and other bands threatened to sue Napster Media Sharing: Napster and Media Sharing: Napster and iPods ► In 2001, Court order shut Napster down ► Morpheus and LimeWire examples of peer­to­peer sharing Media Sharing: Napster and Media Sharing: Napster and iPods ► iPods Introduced in 2001 2003: Apple introduced the iTunes Music Store 2004­2005: iPod sales increased by 600% 2006: Apple sold nearly 70 million units (3/4 of MP3 player market) World Wide Web and Electronic World Wide Web and Electronic Media ► Broadcasters use the web for cross­ promotion ABCnews.com provides streaming of newscast segments 60 Minutes web stories match weekly TV show stories World Wide Web and Electronic World Wide Web and Electronic Media ► National Public Radio allows listeners to download radio segments on the Web ► Entertainment sites provide information about storylines and stars on websites Radio and Webcasting: Radio and Webcasting: Streaming Media ► Online users appear to listen to commercial radio less ► Internet users aged 12­ 34 spend less time with traditional media as Internet usage increases ► 57% of streaming media listeners are under the age of 35 Radio and Webcasting: Radio and Webcasting: Streaming Media ► Internet users generally feel the Web is “cooler” than traditional media ► Copyright issues ­ many U.S. stations pull plug on webcasting Television on the Web and IPTV Television on the Web and IPTV ► More feasible today due to: increases in computer capabilities broadband connections ► Internet Protocol Television (IPTV) Shows are downloaded via broadband connection Capable of both standard and high definition ...
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This note was uploaded on 02/15/2011 for the course RTV 3007 taught by Professor Staff during the Fall '08 term at University of Florida.

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