1-Ch 1 & 2 - Chapter 1 Managing Electronic Mass Media...

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Chapter 1 Managing Electronic Mass Media Systems “Broadcasting”— transmission of electromagnetic energy intended to be received by the public . Concerned with PRODUCING, DISTRIBUTING, and EXHIBITING information and entertainment. Includes LOCAL entities—TV stations, local cable companies— NATIONAL companies—networks syndicators, cable program services, MSOs—and PROGRAM SUPPLIERS —producers and studios. Evolving Media Systems and the Marketplace Role of manager Was coordinating people and creative planning Now getting more sophisticated in macro-budgeting (what’s that?) Merger-mania ” undercut predictability; also changing technology, international Rate of technological change (“ future shock ”) a challenge to managers. But most important: social, cultural, and commercial applications of their creations. Industry Growth AM overtaken first by TV, then by FM 99% homes in US have radios , average SIX each. 98% of homes have TV , most color. National audience of “big 3” networks declined from 90% in 1970 to 55% in 1995 . Cable systems tripled from 1975 to 1996 ; subscribers increased 7-fold to 62 million. (has been leveling off) Telecom Act of ‘96 removed limitations on cable owners and authorized phone companies to enter cable business 1 2 3 4 5 6
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Media Changes as Challenges Large market TV stations often hugely profitable ; most stations earn good profits Generally 15-20% of revenue (that’s still damn good!) Small markets 5% or less down to losses Radio profitability less Generally 5-10% of revenue Highest stations earn 20% Losses of some as much as 22% Profitability of overriding concern, but managers CANNOT ignore “ social reach ” of broadcast and cable media. Competing Creatively Defensive strategy has plagued broadcasting throughout history of R-TV. “Imitation is the sincerest form of television”—Fred Allen But it was true of radio as well. True originality or creativity rare. “Station management often disproportionately respects ratings.” WELL, WHY SHOULDN'T THEY? US undergoing significant
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1-Ch 1 & 2 - Chapter 1 Managing Electronic Mass Media...

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