Business of Broadcasting-1

Business of Broadcasting-1 - The Business of Broadcasting,...

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The Business of Broadcasting, Satellite and Cable
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Quick Facts Average cost of 30-second Super Bowl spot in 1976: $125,000 Average cost of 30-second Super Bowl spot in 2006: $3 million Total amount spent on online ads in the United States (2009): $22.7 billion Cost of a 30-second spot on CBS’s The Amazing Race, 8pm. (Fall 2009): $109,736 Total spot TV advertising in Los Angeles TV market
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What is the Business of Broadcasting? Broadcasting and cable are ways of linking viewers with advertisers while entertaining and informing an audience. Stations attract audiences because of their programming.
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What is the Business of Broadcasting? Advertising revenue generates the profits that make programming possible. Television and cable have different revenue streams.
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Some Basic Fundamentals The overriding goal of commercial electronic media is to make money Three-legged stool supports the broadcast industry – broadcaster, audience, and advertiser
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Some Basic Fundamentals Technologies make the broadcast industry more capitol intensive rather than labor intensive Mass media technology - an economical way to link large numbers of peoples with advertisers
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Some Basic Fundamentals Consolidation increases dependence of Wall Street approval No longer mom and pop operations, if they ever truly were
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Competition and Electronic Media Electronic media all face competition Government oversight is tied to the level of competition between the media businesses Radio - 11,000 commercial stations - fewer regulations Television - 1,370 commercial stations - more regulations Cable - Local franchise - local mandates for serving the community
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Competition and Electronic Media 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
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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)
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Vertical Integration Same entity controlling the production and distribution of a good or service In terms of Electronic media think in terms of conglomerate whose pieces include: Studio (producer of content) Network Outlet
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Vertical Integration
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Broadcast Stations Ownership “Types” Single Station
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Broadcast Stations Ownership “Types” Group Ownership Economy of Scale Clout
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Business of Broadcasting-1 - The Business of Broadcasting,...

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