Category Archives: Fall 2012

Programming

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by Christen Westbury

Programming Overview: What Makes the TV World Go ‘Round?

The answer to the question above, is television programming. Television programming refers to the shows that are aired on television networks for the purpose of obtaining an audience. Television programs are essentially the vitamins that keep the television industry growing and flourishing from year to year. The skeleton that supports programming is advertising. With the exception of publically owned TV stations, television networks are heavily supported financially by the advertising space that they sell to various companies. Corporations such as Proctor & Gamble, AT&T, and GM, funnel billions of dollars into television advertising every year. Their dollars translate into :30 second or :60 second commercials where they advertise their product or service between and during programs. Nevertheless, going back to what makes the television industry an industry, programming is the necessary piece that provides the content for what we see projecting through our TV screens.

Programming however, is not a guaranteed moneymaker and/or success story. It is one of, if not the most risky elements of the television industry. No programmer knows what exactly makes a hit show, nor does a programmer know exactly what makes a show last. There are general formats and concepts that have proven to be successful, however no one can predict how well a program will thrive, until it hits the TV screens of consumers. Programming is a component within the television industry that is more complex than most would assume. Programs must be constantly innovating and portraying what audiences want to see, but at the same time how exactly does one do that? That responsibility essentially rests in the hands of a programmer.

The job of the individual programmer is to act as a cultural and social interpreter, soaking up as much information about the society as possible. This involves but is not limited too, researching the competition, studying previous hit shows, learning about what are the latest social trends, predicting new crazes, analyzing demographics and consumer behavior, listening to the latest news, and deciding what fits the brand of the particular company. All in all, programming is something that is essential to this industry, but must be carefully executed in order to make shows come into full fruition.

Programming Genres: The Breakdown [1]

In the world of programming, there are a variety of different types of shows. The different shows in a specific category sometimes follow a general outline that has been successful for past programs, but some choose to manipulate the formula and go their own route. Overall, there are many genres of television shows, but there are four that are produced the most. [2]

The Sports Program

The first type of programming that is heavily produced are sports programs. Sports are a big business industry that is responsible for the production of many hours of programming footage for the various television networks (including both broadcast and cable). Sports programs include the coverage of tennis matches, soccer games, Monday Night Football, the NCAA basketball tournament, SportsCenter highlight shows, 30 for 30 documentaries, and a plethora of other types of sports coverage. This specific programming type is hugely seen within the TV industry due to the profitability of its market. Last year sports was a $422 billion dollar industry that TV was heavily apart of.

The Dramas

The second program type that is incredibly popular is the Drama. The television drama is scripted programming that incorporates fictional storylines. Dramatic programming is filled with suspense, cliffhangers, questions, and excitement. This category includes action dramas like Fox’s former hit series 24 all the way too soap-programming like ‘Revenge’.  It is a common but yet expensive type of programming to produce.

The News Program

Thirdly, News programming is something that is seen all across the TV medium. The 4 big broadcast networks are responsible for many hours of both national and international news coverage. In addition to their programming, there are also various networks such as CNN and MSNBC that report news 24 hours a day.

The “Reality Show”

The last, but certainly not the least programming type that is widely used in the U.S. is the “reality show”. Reality shows are programs that are intended to portray real life from the perspective of a “fly on the wall.” Essentially these shows are depicting real people in real situations that are unscripted. Some of the most recent reality shows include Big Brother, The Bachelorette, Bad Girls Club-Cabo, and the Real Housewives of Beverly Hills.

What’s the Latest?: Big Stories for Fall 2012 Programming

Walking Dead Season 3 Trailer [7]

‘The Walking Dead’ Walks Up the Ratings Score Board

The Walking Dead is AMC’s hit show that is crushing records in its third season. The success of this show has been one of the biggest stories within programming for the fall 2012 quarter. The Walking Dead is “the first cable series to beat every other show of the fall broadcast season in the adults 18-49 rating” [3]. This relatively new scripted series beat out seasoned vets ‘Modern Family’, ‘Grey’s Anatomy’, and ‘The Big Bang Theory’. Its midseason finale delivered a whopping 5.6 rating with a grand total of 15.2 million viewers. Additionally, ’The Walking Dead’ is reported to be the most mentioned show in cable programming. This groundbreaking new show has made historic strides, and shows no signs of letting up

Hurricane Sandy

Hurricane Sandy Aftermath

During this quarter of the year, the east coast experienced a natural disaster by the name of ‘Hurricane Sandy’. This super storm led a path of 13 days worth of devastation, destroying communities, killing over 90 citizens and displacing record amounts of people [4]. New York and New Jersey were among the states that were hit the hardest. New York city was crippled by the destruction of its transit system and gas shortage. In addition, areas of the city were left submerged under water, and many places of businesses were inaccessible. Inevitably the television industry faced major setbacks. CBS was forced to stop the filming of three of its programs, Elementary, the Good Wife, and Blue Bloods. Warner Brothers TV had to stop the filming of 7 of its shows, including the hit series’, ‘Person of Interest’ and ‘Gossip Girl’. Additionally, NBC had to halt the production of ’30 Rock’, ‘Law & Order: SVU’, ‘Smash’, and four of its programs [5]. Hurricane Sandy was responsible for the loss of programming dollars within an industry that cannot afford to sacrifice large production costs. Sandy caused the production of programming to be immobilized thus overall affecting budgets and schedules for many networks.

The Affects of DVR’s & Lower Expectations on Programming

In the past, if a show was not posting successful ratings a network would be quick to cut its losses and replace it with a new show. However, this fall there has been two new trends that are closely tied to DVR’s and the attitudes of those who wield the scissors. This fall more than ever, people have been watching shows not during the immediate broadcast but rather at a later time. This fact alone presents some type of promise that a shows may be posting better ratings then one initially thinks. DVR’s have played a critical role in saving programming that might have otherwise been cut from the fall 2012 lineup. In addition to the direct affects of the DVR, networks appear to also be lowering their standards. Network programming executives are aware that there is a surplus of programming options for the TV consumer during this day an age. With that said, fall 2012 appears to be the quarter where they are taking this fact into account, and lowering their programming rating expectations. This trend coupled with the affects of DVR’s has possibly been the sole reason why poor performing shows like ‘The New Normal’ are still around [6].

To Conclude

Programming is the beauty of the industry; it is what makes people turn on a TV set. It is an element of the TV industry that mystifies many who study this field, because no one really knows what will make something work, but when it does it truly makes your mind tick and your heart flutter. The experience of watching your favorite show of all time is indescribable, but nothing beats being the mind behind giving that feeling to millions, a position I someday will be in.

[1] http://www.esolcourses.com/content/topics/tv/tv-show-genres.html

[2] http://www.film.vic.gov.au/__data/assets/pdf_file/0019/973/AA010_TV_genre_analysis.pdf

[3] http://tvbythenumbers.zap2it.com/2012/12/03/the-walking-dead-is-the-first-cable-series-to-beat-every-other-show-of-the-fall-broadcast-season-in-adults-18-49-rating/160151/

[4] http://www.nytimes.com/interactive/2012/10/28/nyregion/hurricane-sandy.html

[5] http://www.huffingtonpost.com/2012/10/29/hurricane-sandy-cancellations-movies-concerts-delayed_n_2038824.html

[6] http://www.variety.com/article/VR1118062741

[7] http://youtu.be/38EKul6-LU0

[8] http://www.youtube.com/watch?v=FKR_2T__cB4

Pictures

1.) http://www.faniq.com/poll_results.php?poll_id=1186432&rnum=

2.) http://boxcleverfilms.blogspot.com/2012/02/is-concept-of-genre-relevant-to.html

3.) http://gizmodo.com/308126/dvrs-screw-up-nielsen-commercials-now-rated-too

Audience Measurement & Advertising

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by Merin Pasternak

Stephen White, Founder and Chairman, EMM International, a global media management performance and auditing consultancy, says it best, “Audience behaviour is vastly more complex and variable than before and audience measurement technology is like the quest for renewable clean energy.”  We have always seen that old is replaced by new technologies.[1]  First there were paper diaries that were replaced by electronic versions such as Computer Assisted Telephone Interviewing and people meters, and then followed Audience Establishment Survey that could determine size and composition of a large sample audience.  It was predicted that online and social would be able to one day measure themselves.  However, there have been some problems with this theory as page visits and Ad hits are not black and white, measurement systems are not always compatible, and there has never been a metric system that could seamlessly integrate TV, online and mobile.

Overview of Current Environment

Today’s media environment has drastically fragmented and is ever changing, from the once limited selection of TV channels.  Companies must identify the factors that impact average media consumers.  There are three forces in particular that must be quantified:

  • New sources of information: always update sources as new data forms we have not yet seen will continue to emerge.  
  • New forms of media: brings social websites into view as having social ads, as the line between content and advertising are blurred.

    Source: g4tv.com

  • New screens: Conventional examples include theTV,Laptop, and even Mobile, but the tablet experience is new to us.  There are already discussions about Google lass – augmented reality coming soon as an additional fifth screen that will require a separate strategy. [2]

Multi-Screen Measurement System

comScore Approach

On October 16, 2012 comScore, Inc. (NASDAQ: SCOR), an internet company measuring how people navigate the digital world, revealed that a new solution to providing data of impressions delivered across TV, web, and mobile platforms.  This unique multi-screen measurement system is known as validated Campaign EssentialTM Multi-Platform (vCE MP).  This groundbreaking process enables marketing and media companies the information necessary to receive accurate performances indications of ad campaign delivery across all digital screens.  Specifically, reports include individual based demographics, frequency and gross ratings points (GRPs), used to measure the size of an audience reached by a specific media campaign.  This process has created a standard that is equivalent across different media platforms and channels. [3]

“Existing cross-platform solutions are limited by the use of traditional panel-based measurement … comScore’s census-based multi-platform methodology delivers … a campaign analytics product that is both robust and comprehensive enough to address the key questions our clients are asking.” –Cameron Meierhoefer, COO of comScore.

vCE MP Key Product Features

  • Unduplicated Person-Based Measurement of Audiences Across Platforms.  vCE MP is not based on cookie measurements of reach, frequency and GRPs, so it is not skewed due to the increase in cookies across multiple devices.  This solves a major problem for marketers who depend on these calculations for advertising allocations of TV, web, and mobile platforms.
  • Campaign Reporting for TV, Web, Smartphones and Tablets.  Currently, the solutions are not effectively reporting to the mobile screens, which have now become an essential part of today’s digital media landscape.
  • Multi-Platform Unification Using the comScore Census Network.  The product’s informational resource is based on the comScore Census Network, which uses census data points to piece together multiple media platforms into one consolidated index of digital consumer behavior and ad exposure.
  • Robust Sample Sizes.  comScore Census Network has the large advantage to observe digital media at a census-level, with sample sizes numbering in the millions rather than limited hundreds.
  • National TV Data from 5 Million U.S. Households.  It is also noteworthy that advertising information from 5 million U.S. households’ TV set-top boxes is integrated into data collection.
  • Viewability Measurement.  This refers to display ads based on comScore’s MRC accredited vCE technology ensuring that impressions are based on the same ‘opportunity to see’ used in TV measurement.

comScore vCE for Video Can Now Include Viewability in Addition to Audience Validation for Online Video Market, Improving Cross-Media Integration with TV. 

Nielsen Approach

Nielsen has also expanded its multi-screen audience measurement capabilities.  Nielsen has already arranged a series of in-depth tests with Cross Platform Campaign Ratings.  They have used advertising’s largest players such as ESPN, Facebook, GroupM, Hulu and Unilever.  These participants have allowed for unprecedented reach, frequency and GRP measurements for TV and Internet to ensure the best test results. [4]

The move to Cross Platform Campaign Ratings is a direct result of consumers and viewers interacting on a more cross-platform basis than ever before.  The typical American spends close to five hours online and watches more than 34 hours of TV per week, over half watch video online. [5]

Steve Hasker, President of Global Media Products and Advertiser Solutions for Nielsen, explains that “Online Campaign Ratings is the first comprehensive advertising measurement system that has existed … It brings is a whole new level of accuracy to online measurement.”  Online Campaign Ratings allows advertisers to demand and publishers to give guarantees based on viewers that are being bought and sold. [6]

OCR Key Attributes

  • Automated tagging – streamlines the end‑to‑end process.
  • Delivery of data in raw form to different platforms.
  • Adaptiveness to the measurement system by industry standards.

Role of Social Media

Facebook Tie-Ins

With the introduction of Nielsen’s new gross rating points (GRP) for Online Campaign Ratings (OCR) there are significant tie-ins with social media sites.  For example, Facebook data including gender and age are being combined with information from online advertising impressions to increase target effectiveness and improve monitoring of online advertisements.  This new technology allows for video intelligence suites to focus on specific Ad effectiveness, which differs from mainstream platforms that merely take into account predetermined delivery goals, margins and efficiencies.  Companies such as VideoHub, are able to monitor complex ecosystems in order to actively match Ads to the correct viewers, achieve marketing goals, and maximize impact.  The standard metric used to measure advertisement effectiveness to this point has been clicks, which are not at all accurate or up to date with current consumer usage.  This emphasizes the great importance of this new technological breakthrough in measurement systems.

Google Joins the GRP Movement

Google hopes to help standardize how digital advertisements are purchased and measured.  This aims to facilitate Ad agencies and brands to compare the performance of offline with online Ad initiatives.  In the attempt to achieve these goals Google has launched two new initiatives Active View and Active GRP, which are both available for display, content networks and YouTube.  This enables companies to purchase “viewable impressions.”

The Social Economy

Today, social capital and intellectual assets are defined by online and real world activity.  Participating in online communities and creating content that others are seeking, individuals are able to build an online brand, reputation and persona that transcends both the digital and actual world. [7]

The social economy and its landscape is creating vast opportunities for companies to reach consumers by engaging in conversations, thus allowing organizations to generate more in depth comprehension and form specifically targeted recommendations for consumers.  McKinsey Global Institute report shows that 72% of companies are using social technologies, the vast majority are not attaining the entire benefit. [8]

Mobile Measurement

Source: comScore

On November 12, 2012 Facebook revealed its new partner in mobile measurement – Localytics.  Specifically, Localytics reports engagement, retention and contribution to consumers value over a lifetime.

Localytics is built for mobile & tablet apps. This allows for event and screen tracking used to analyze conversion funnels, screen flows, feature usage, content

access, advertising performance, and much more.

Localytics is designed to measure apps, providing the greatest accuracy and lightest footprint. Apps differer from websites, offering richer experiences and integration.  Different from website and television, apps function offline and are essential for multitasking.  Apps have access to key data collection (geotagging, storage, accelerometers, etc.  Other key advantages include:

 

  • Complete user analysis to identify effective sources for growth.
  • Category based engagement and retention analysis.
  • Tracking of buying patterns and/or subscriptions.
  • Advertising APIs for integration optimize promotional campaigns.
  • App usage, screen flow, and event analysis that track performance levels and consumer interface with functionality.
  • Compliant with Facebook data and privacy policies. [9]

 (Source: Localytics)  [10]

Coming Up Next for Social Media

The Newsfeed is a key component that has not yet been tapped into by advertisers, but is on the near horizon.  This would allow the greatest amplification where brand messages can serve as a channel for exposure to “Friends” within respective social networks.  We are already seeing that Facebook’s mobile newsfeed ads are a great success with advertisers, and also allow for companies to acquire Facebook fans.  These new initiatives will enable companies to gauge who, where and why specific users engage and amplify certain brand messages.  This is why the newsfeed is classified as the “tipping point” when digital and social advertisements converge and result in a tangible and quantifiable return on investment.

Sources

[1] Twishy. (2012, October 23). Audience data powers our industry: Stephen white . Retrieved from http://www.exchange4media.com/48513_audience-data-powers-our-industry-stephen-white.html

[2] Owyang, J. (2012, May 21). Altimeter research theme: The dynamic customer journey. Retrieved from http://www.web-strategist.com/blog/2012/05/21/altimeter-research-theme-the-dynamic-customer-journey/

[3] comscore introduces revolutionary multi-platform campaign analytics solution to measure advertising effectiveness across tv, web and mobile. (2012, October 16). Retrieved from http://www.comscore.com/Insights/Press_Releases/2012/10/comScore_Introduces_Revolutionary_Multi-Platform_Campaign_Analytics_Solution_to_Measure_Advertising_Effectiveness_Across_TV_Web_and_Mobile

[4] Rodgers, Z. (2012, October 1). Nielsen, comscore move faster on multi-screen audience measurement. Retrieved from http://www.adexchanger.com/data-exchanges/nielsen-comscore-move-faster-on-multi-screen-audience-measurement/

[5] Delivering true multi-screen ad measurement, nielsen brings new solution to market. (2012, October 1). Retrieved from http://www.nielsen.com/us/en/insights/press-room/2012/delivering-true-multi-screen-ad-measurement.html

[6] Rodgers, Z. (2012, October 1). Nielsen, comscore move faster on multi-screen audience measurement. Retrieved from http://www.adexchanger.com/data-exchanges/nielsen-comscore-move-faster-on-multi-screen-audience-measurement/

[7] Solis, B. (2012, March 3). Social capital: The currency of the social economy. Retrieved from http://www.briansolis.com/2010/03/social-capital-the-currency-of-digital-citizens/

[8] Chui, M., Manyika, J., Bughin, J., Dobbs, R., Roxburgh, C., Sarrazin, H., Sands, G., & Westergren, M. (2012, July 1). The social economy: Unlocking value and productivity through social technologies. Retrieved from http://www.mckinsey.com/insights/mgi/research/technology_and_innovation/the_social_economy

[9] Facebook mobile app install ads now measured by localytics. (2012, November 12). Retrieved from http://pymnts.com/news/businesswire-feed/2012/november/12/facebook-mobile-app-install-ads-now-measured-by-localytics-20121112005546/

[10] Localytics. (Producer). (2012). Accessing your s3 bucket. [Web Video]. Retrieved from http://player.vimeo.com/video/34370949?title=0&byline=0&portrait=0;autoplay=1

Regulation of Distribution

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by Baindu N. Saidu

Distribution refers to the means by which television programming is delivered to consumers. It is done through traditional means like Broadcast, Cable or Satellite television, or through newer means like Video on Demand (VOD), Digital Video Recording (DVR), and online Subscription Video On Demand (SVOD) services like HULU Plus and Netflix.

When it comes to overseeing and regulating of these different means of mass television distribution, the Federal Communication Commission (FCC) is the principle government agency in charge. Its jurisdiction covers the means of mass emerging television technologies at the intersection of telephone, internet, computing, and digital signals. [1].

 

via the FCC website (http://www.fcc.gov/logos)

Several events have been ongoing during this semester related to the regulatory and legal aspects of distribution include a satellite provider, Dish’s disputes with both cable and broadcast networks, and the FCC’s ongoing plans for an incentive auction to reclaim spectrum space for wireless operators.

Dish Network vs. AMC Networks

The Networks’ dispute started years earlier with Cablevision’s lawsuit against Dish over their Voom HD channel which Dish stopped carrying in 2008. AMC was spun off from Cablevision in 2011. In April 2012, Dish notified AMC that it would drop their channels and by July, when their contract expired, Dish removed AMC Network channels AMC, WEtv, IFC, and Sundance from its lineup [2].

The companies indicated different reasons for the dispute. AMC stated that DISH dropped its programming because it wanted to gain leverage in an unrelated lawsuit involving Cablevision and their Voom HD channel [3]. DISH, conversely stated that the dispute was over “bundling,” in which big networks like AMC try to sell several of their channels, both high- and low-rated, to providers in a bundle to get a better price [4].

 

Image via Deadline website (http://www.deadline.com/tag/dish-network/)

By September, Dish’s 14 million subscribers had been without any AMC channels for more than two months and feared not be able to view the season premiere of the AMC hit show, The Walking Dead, set to premiere October 14. Speaking on the dispute, Dish’s senior vice president of programming, Adam Shull stated that “The problem is they’re asking me to pay for four channels for really what is the price of three shows,” thus Dish wouldn’t be paying for any AMC shows [5].

On their part, AMC turned to social media in a quest to get their channels back on Dish, launching a YouTube video contest for angry Dish subscribers called “Hey DISH, Where’s my AMC?” [6].

The conflict would not be resolved until October 21 when Cablevision and AMC Networks settled their lawsuit with Dish Network for $700 million. The deal brought to end a dispute over whether Dish breached an affiliate agreement by terminating AMC’s Voom HD Network in 2008. At a trial that began in late September, AMC sought some $2.4 billion in damages from what it believed was Dish’s improper termination. Dish had defended itself by saying that it had the authority to cancel the Voom deal based on a contractual clause requiring Cablevision/AMC to invest $100 million per year on the channel. As part of the deal Dish also reached a new carriage agreement with AMC, bringing the network back to their lineup along with IFC, Sundance, and WEtv [7].

Dish Network’s AutoHop vs. Broadcasters

Image via Dish Network Website (http://godish.com/)

Another battle Dish Network has been involved in pertains to the AutoHop feature for its DVR systems, Hopper and Joey. Introduced in March, Autohop, an International Consumer Electronics Show (CES) Innovations 2013 Design and Engineering Award Honoree, allows users who are watching Primetime Anytime recordings to completely skip commercials. When the user starts watching a recording, they are allowed to choose whether or not to skip commercials. Users who choose to skip the commercials move from segment to segment of TV shows without having to watch the ads [8]. This feature has undoubtedly caused uproar with broadcasters, who depend on ad sales for a majority of their revenue.

In May, three of the major broadcasters (CBS, NBC, and Fox) filed suit against Dish Network in Los Angles, contending that the technology violated copyright law. Dish simultaneously filed a suit against ABC, CBS, and NBC in New York seeking a declaratory judgment affirming the legality of their technology [9].  In documents filed August 22, Fox’s lawyer argued that AutoHop was in “violation of the express terms and conditions of its contracts with Fox and federal copyright law. Both parties argued their respective points of view in front of U.S. District Court judge, Dolly Gee, on September 21 in Los Angeles. On November 6, Gee denied Fox’s request for a preliminary injunction that would shut AutoHop down. Gee, in denying Fox said, “Although Dish defines some of the parameters of copying for time-shifting purposes, it is ultimately the user who causes the copy to be made.” She also pointed out that Fox hadn’t proved there would be “irreparable damage” if no injunction was issued. Any harm to Fox, she said, could be relieved by monetary damages. The judge did agree with Fox though that Dish had likely committed copyright infringement and broken the contract between the two companies in making copies of Fox programming for alleged quality assurance [10].

On November 9, Fox filed an appeal against the denial of its request for an injunction, moving the matter from the U.S. District Court to the U.S. Court of Appeals for the Ninth District[11]. More legal action from broadcasters followed on November 24 when ABC sought a preliminary injunction from U.S. District Judge Laura Taylor Swain in Manhattan federal court to also block AutoHop [12].

The broadcasters’ reason for going after AutoHop is that it “will ultimately destroy the advertiser-supported ecosystem” they depend on for revenue [13]. The networks make more than $19 billion a year in advertising, money that pays for the high cost of programming. Without advertising, network executives say, media companies would have to charge distributors three times the current rate for their signals, added costs which would be passed on to consumers. Dish, on its part, said that it believes that the AutoHop feature does not violate the networks’ copyrights. Instead, the company said AutoHop is simply an enhancement of existing ad-zapping technologies, and ultimately a matter of consumer choice [14].

FCC Incentive Spectrum Auction

Image via Cio website (http://www.cio.com/article/717594/FCC_Approves_Wireless_Spectrum_Incentive_Auction_Plan)

The FCC is a quasi-autonomous commission that has elements of each of the legislative, judicial, and executive branches of government. It is part of the group of independent regulatory agencies (see also the FAA, FTC, and SEC) [15]. In its control of television, the FCC performs several distinct functions such as rulemaking, licensing, registration, adjudication, enforcement, and informal influence [16].

Last February, President Obama signed a law empowering the FCC to buy spectrum from broadcasters wishing to give it up and then turn around and auction it to wireless broadband carriers. The FCC is working on the implementing rules for the incentive auction — so-called because broadcasters have a cash incentive to give up their spectrum [17]. They have hopes that the auction could begin as early as 2014, but have until September 2022 to conduct the sale and license the airwaves to wireless companies [18].

For the most part, full-service broadcasters with major network affiliations and newsrooms have said they have no interest in the incentive auction, preferring to hang on to their entire spectrum so they can offer new services. However, other broadcasters that are struggling see the incentive auction as a way to recoup some or all of their investments. Speculators have also entered the market, buying up marginal stations with the intention of selling their spectrum at a profit in the FCC auction [19].

Fall FCC Spectrum Auction News

  •  September 07, 2012: FCC Chairman Julius Genachowski set to release the FCC’s framework for the spectrum auction with target of  having a report and order voted by mid-2013 and the auctions completed by the end of 2014 [20]. Full article.
  • October 04, 2012: Chairman Genachowski said that the FCC will exceed its 300 MHz target for freeing up spectrum, a target the commission set in  the National Broadban Plan [21]. Full article.
  • November 13, 2012: An anonymous group of broadcasters interested in selling their TV spectrum in the incentive auction created the Expanding Opportunities for Broadcasters Coalition and tapped former Fox and Disney lobbyist Preston Padden to lead their efforts before the FCC as the commission writes rules for the auction [22]. Full article.
  • December 03, 2012: FCC officials spelled out some financial options in a PricewaterhouseCoopers LLP webcast, urging listeners to file comments as the commission works to write rules for the auction. The deadline for comments on its Notice of Proposed Rulemaking was extended to Jan. 25, with reply comments due March 26 [23]. Full article.

With the auction yet to occur, there is more news to come. To stay updated, check out the FCC’s official website.

 

References

[1] Howard J. Blumenthal and Oliver R. Goodenough. “This Business of Television: The Stadard Guide to the Television Industry,” 3rd Ed., pg.28.

[2] http://www.nytimes.com/2012/07/02/business/media/dish-network-drops-amc-channels-in-cable-dispute.html?_r=0

[3] http://adage.com/article/media/dish-network-ceo-charlie-ergen-tv-disrupter/238527/

[4] http://www.npr.org/2012/09/13/161019358/wheres-my-amc-dish-network-dispute-drags-on

[5] http://www.npr.org/2012/09/13/161019358/wheres-my-amc-dish-network-dispute-drags-on

[6] http://www.deadline.com/2012/08/hey-dish-wheres-my-amc-video-contest-launched-channel-dispute/

[7] http://www.hollywoodreporter.com/thr-esq/amc-back-dish-lawsuit-settled-381472

[8] http://godish.com/hopper/autohop.aspx

[9] http://adage.com/article/media/dish-network-ceo-charlie-ergen-tv-disrupter/238527/

[10] http://www.deadline.com/2012/11/fox-refused-dish-network-autohop-injunction-agrees-with-copyright-infringement-claim/

[11] http://articles.latimes.com/2012/may/25/entertainment/la-et-ct-broadcast-networks-fight-with-dish-over-adskipping-has-enormous-implications-20120525; http://www.deadline.com/2012/11/fox-appeals-denied-dish-autohop-injunction/

[12] http://www.businessweek.com/news/2012-11-24/disney-s-abc-asks-judge-to-block-dish-s-autohop

[13] [14] http://articles.latimes.com/2012/may/25/entertainment/la-et-ct-broadcast-networks-fight-with-dish-over-adskipping-has-enormous-implications-20120525

[15] Howard J. Blumenthal and Oliver R. Goodenough. “This Business of Television: The Stadard Guide to the Television Industry,” 3rd Ed., pg.29.

[16] Howard J. Blumenthal and Oliver R. Goodenough. “This Business of Television: The Stadard Guide to the Television Industry,” 3rd Ed., pg.30

[17] http://www.tvnewscheck.com/article/63495/padden-heading-spectrumsellers-coalition

[18] http://online.wsj.com/article/SB10000872396390444772804577623883979783866.html

[19] http://www.tvnewscheck.com/article/63495/padden-heading-spectrumsellers-coalition

[20] FCC_Wants_Broadcast_Spectrum_Auctioned_by_2014.php

[21] http://www.broadcastingcable.com/article/489734-Genachowski_FCC_Will_Exceed_2015_Target_of_Freeing_Up_300_MHz_of_Spectrum.php

[22] http://www.tvnewscheck.com/article/63495/padden-heading-spectrumsellers-coalition

[23] http://www.tvnewscheck.com/article/63935/fcc-mulls-how-spectrum-auction-will-work

 

Distribution

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by Caitlin Desjardin

Overview

In the television world, and the entertainment world in general, distribution is where it all begins. Distribution, and all the various facets that it encompasses, is the machine. It is the force behind every production that is made, behind every network deal that is signed, and behind every advertisement that is created. Essentially, distribution allows the television business to be a business.

When discussing television in the broad sense, it refers to everything from the syndication of programs, to brand creation, to network affiliates, to satellite agreements. [1] It is the way that consumers gain access to content and the way that production companies, networks, and stations earn revenue. The term “distribution” is such a blanket word, because it could be argued that almost everything done in the television industry relates back to some sort of distributional motive.

That being said, the modern state of the distribution world can be divided into three main categories: broadcast, cable, and other media distribution deals. What is so interesting about the current state of the distribution market is that “other media” has increasingly become dominated by internet distribution deals, on services such as Netflix and Hulu. The future of distribution and the television industry in general seem to be heading in this direction, and distribution will be a huge factor in its success.

Broadcast

  • NBCUniversaland Verizon (FiOS TV) reached a long-term agreement that would allow Verizon to carry and distribute all NBCUniversal programming live and

    on-demand to subscribers. This access to NBCUniversal programming includes broadcast as well as cable, meaning that Verizon can now distribute NBCU subsidiaries such as USA, Bravo, Style, Syfy, Telemundo, E!, and the NBC Sports Network. In the second part of the deal, Verizon was promised rights to carry Olympic Games and four Comcast SportsNet channels, of which include those in the Philadelphia and New England market areas. [2]

  • As sometimes happens in the distribution world, and a testament to how powerful those who hold distribution rights can be, there can be disputes, such as the recent one between Cablevision and Tribune TV that strongly impacted Fox affiliates. Cablevision subscribers in states such as NY, PA, CT, and NJ were slammed with no access to Fox stations when Cablevision and Tribune clashed over retransmission fees in late August. As a result, Tribune denied Cablevision customers access to seven affiliates that were Fox, CW, and MyNetwork stations. After two months the blackout ended (terms of the agreement were not released) though it would not be surprising to see these distribution issues regarding retransmission fees appear again in the future. [3]

“We sincerely appreciate the patience of our customers as we worked to reach an agreement that is consistent with our focus on minimizing the impact of rising programming costs.” – Cablevision

  • One of the best scenarios for a distribution company is when syndicated television shows prove to be continuously successful. This is certainly the case for the CBS

    #1 Syndicated Program ‘Wheel of Fortune’ Logo [11]

    Television Distribution company, who distributes Wheel of Fortune and Jeopardy! in the United States, both of which have been the top syndicated game shows [4] and recipients of countless awards. The ABC Owned Television Stations Group (that reaches over 20% of US households [4]) recently renewed both of these games shows for 2015-2016, meaning that the ABC-owned stations will continue to be able air these shows on their affiliate stations.
  • Stepping away a bit from the specific broadcast television distribution deals, CBS Television Distribution president Scott Koondel was recently named senior VP and chief corporate content licensing officer. Why this is important when talking about the current distribution snapshot is because it shows the change in the structure of

    CBS Executive Scott Koondel [10]

    television distribution, and where it will most likely go in the future. Because of this restructuring, Koondel will now take on a roll that will require him take on the CBS licensing issues on the Internet, something that CBS was not previously actively involved in. This immense increase in distribution on Internet platforms has grown exponentially as of late, and is really where the entire television industry is headed in the future, with distribution leading the way. [5]

Cable

  • CNN has created a new subsidiary called CNN Films, that will allow it to integrate documentary films into its television network. CNN Films will buy the desired full-length documentaries, and then distribute them during primetime on CNN. Having this new unit will allow CNN to manage the distribution of their desired documentaries both in terms of showing it on their network, as well as give them the added bonus of potentially distributing the documentaries in theaters. [6]

    [12]

  • ION Media Networks, Inc. partnered in a recent distribution deal with DIRECTV. This deal, while not specifically released, will allow ION Television to be available nationwide to all subscribers of DIRECTV. [7] Recently, at a Leadership in Communications panel in Syracuse, NY, ION Media executive Doug Holloway discussed the journey of the ION television network, and how important it is to fill the “white” areas of distribution where ION is not currently carried. [8] ION Media Networks Overview (Video)

Other Media

  • In what has been regarded as potentially one of the biggest distribution deals of the past couple months, CBS Corporation finally announced that they would be engaging in a licensing agreement that would allow the CBS television library to be distributed via Hulu Plus, the paid subscription service facet of Hulu.com. This means that users will now have the ability to stream classic shows such as “Star Trek” and “CSI: Miami” on Hulu, as opposed to only being able to watch CBS video on the CBS website, as exists now. This is expected to go into effect January 2013. [9]

“This marks another agreement that meets the growing demand for our content on new platforms.” – Scott Koondel, Senior Vice President of Corporate Licensing, CBS Corporation

Conclusion

The overall trend of the current distribution market can be seen clearly, whether it be in Koondel’s position switch, CBS’s licensing agreement, or many of the other recent distribution deals. While television is still the most popular platform to watch content on, more and more consumers are turning towards the Internet. As such, and because distribution is essentially the backbone of the television industry, it must adjust with this rapidly changing market, something that is occurring now and that we will continue to see in the imminent future.

The Future of Television [14]

 Sources

1. Blumenthal, H. J., & Goodenough, O. R. (2006). The business of television. New York: Billboard Books.

2. TV News Desk. (2012, 11 27). Nbcuniversal announces wide ranging agreement with verizon fios tv. Retrieved from http://m.bwwtvworld.com/article/NBCUniversal-Announces-Wide-Ranging-Agreement-with-Verizon-FIOS-TV-20121127

3. Block, A. (2012, 10 27). Tribune-cablevision deal ends blackout in new york tri-state area. Retrieved from http://www.hollywoodreporter.com/news/tribune-cablevision-deal-ends-blackout-383665

4. Bibel, S. (2012, 10 29). ‘Wheel of fortune’ and ‘jeopardy!’ reupped through 2016 by abc owned television station group. Retrieved from http://tvbythenumbers.zap2it.com/2012/10/29/wheel-of-fortune-and-jeopardy-reupped-through-2016-by-abc-owned-television-stations-group/155099/

5. Baysinger, T. (2012, 11 8). CBS expands koondel’s role following distribution business restructuring. Retrieved from http://www.broadcastingcable.com/article/490317-CBS_Expands_Koondel_s_Role_Following_Distribution_Business_Restructuring.php

6. CNN announces creation of CNN films. (2012, 10 8). Retrieved from http://cnnpressroom.blogs.cnn.com/2012/10/08/cnn-announces-creation-of-cnn-films/

7. ION Media Networks, Inc. (2012, 10 9). Ion media networks announces new agreement with directv. Retrieved from http://www.ionmedianetworks.com/press/ion-media-networks-ion-media-networks-announces-n?id=297

8. Holloway, D. (2012, 11 28). Leadership in communication series Syracuse.

9. CBS and Hulu announce licensing agreement for library content on the hulu plus subscription service. (2012, 11 5). Retrieved from http://www.cbscorporation.com/news-article.php?id=918

10. Flemming, S. (Photographer). (2008). Cbs paramount executive, scott koondel. [Web Photo]. Retrieved from http://www.broadcastingcable.com/photo/253/253749-Scott_Koondel.JPG

11. (2012). Wheel of fortune logo. (2012). [Web Photo]. Retrieved from http://c.ymcdn.com/sites/www.harvardwood.org/resource/resmgr/auction/wheeloffortune_logo.jpg

12. (2012). Cnn films logo. (2012). [Web Photo]. Retrieved from ION Media Networks Overview

13. (n.d.). What the future holds. [Web Photo]. Retrieved from http://irldefender.files.wordpress.com/2010/11/what-the-future-holds.jpg

14. MIPCube. (Designer). (n.d.). Exploring the future of tv. [Web Photo]. Retrieved from http://blog.mipworld.com/2012/02/infographic-exploring-the-future-of-tv/mipcubegraphic-1/