Empire

Ever since Empire premiered, it has experienced one shockingly long string of good news. The first episode was viewed by 9.9 million people, and since then the numbers have only gone up. The seventh and most recent episode was seen by 11.96 million viewers and achieved a 4.8 rating in the 18-49 demographic. The show was renewed for a second season after only a couple episodes. The show’s success is even more surprising considering its content. Empire is a soap opera-style program featuring a predominantly black cast, not exactly standard fare for television. Some of the show’s success could be attributable to the reputation of lead actor Terrance Howard and creator Lee Daniels, the latter of whom recently directed the critically acclaimed and commercially successful film The Butler.

And much like The Butler, Empire, in addition to being a commercial success, is also a favorite among critics, having garnered positive reviews on both Rotten Tomatoes and Metacritic. All-in-all, the future looks bright for Empire. It will be interesting to see how long this upward trend in ratings and viewership can continue before it begins to taper off.

 

The seventh episode of Empire continued the television show’s upward trend in viewership and ratings, pulling down 13.02 million viewers and a 5.2 rating in the 18-49 demographic, which places it first in its time slot by a significant margin. At this rate, I would not be surprised if Fox renews Empire for a third season before the first one ends. With the massive success that the shows has been–with the caveat that only eight episodes have aired, and we only have viewership data for seven of them–it will be interesting to see if the unorthodox premise of the show inspires derivatives and copycats in the coming years.

Both of the last two weeks, Empire has increased its viewership. I can’t imagine the television world will see anything like this for a long time after. It’s frankly rather mind boggling.

But the real news is that the Empire season one finale aired last night. The numbers aren’t in yet, but I would be shocked if there is anything less than a significant increase in viewership. In addition to the upward trend that has been seen in all of the previous weeks, they seem to have stepped up their advertising a bit for this final two-part episode. The past few days have seen a dramatic increase in advertisement on Youtube and other platforms.

One other thing to note is that the Empire soundtrack featuring all the original hip hop songs from the show was just released on March 10 and debuted at number one on the Billboard Top 200 with 130,000 albums sold. This is the first time a television soundtrack has debuted at number one since Glee in 2010.

The numbers for the finale of Empire are in, and as most people probably expected, there was a significant increase in viewership. Even within the two-part finale, the second half received far more viewers that the first. The first half received a 6.1 rating with 15.82 million viewers, while the second half received a 6.9 rating with 17.62 million viewers. Needless to say, these figures crushed all other contenders in the time slot competition.

In other news, Fox Broadcasting is preemptively launching a lawsuit against the real-life Empire Distribution Inc., a California based record label, over trademark rights to the title “Empire.” The lawsuit was filed in anticipation of a lawsuit by Empire Distribution. Fox’s argument appears to primarily be based upon the fact that Empire Distribution is a small and insignificant operation, coupled with the fact that the name “Empire” has been used by numerous other films, television shows, and companies with no infringement problems. Considering the lethargic pace of the civil court system in the United States, it is unlikely that the case will be settled any time soon.

Previously, I mentioned the absurdly high ratings for the Empire two-part finale, but it is also important to note that the final episodes achieved excellence in other areas as well. In the social media world, the finale broke a Twitter record by being the “most-tweeted about telecast since Nielsen started measuring,” with 2.3 million tweets viewed 112 million times by roughly 5.9 million people. This immense flood of tweets was beneficial to the actors’ personal Twitter accounts. The twitter account of one of the stars of the show, Jussie Smollett, saw an increase in followers from 54,000 to 204,000 on the day of the finale alone. Of course, any increase in the popularity of the personal twitter accounts of the stars of the show will naturally feed back into the amount of social media buzz that the show can generate, as the actors have been active on social media, and particularly Twitter, often live-tweeting the episodes as they air.

In addition, the finale two episodes were well received by critics. An article in Entertainment Weekly said that it “felt like the best episode of Trapped in the Closet in years,” while The New York Times called the entire first season, finale included, “pretty perfect.”

That being said, critical laudation in general appears to have become more mild as the show as progressed through the first season. While I have had trouble finding the exact numbers, if my memory serves me correctly, after the first few episodes Empire had a Rotten Tomatoes score in the mid-eighties, and a meteoritic score in the mid-seventies. Now, with the first season completed, these numbers stand at 79% and 69, respectively—still high enough to give this commercially popular drama a solid reputation of genuine artistry.

I mentioned earlier that Empire has been renewed for a season season—in fact, that it was renewed for a season season after only three or four episodes, a rare feat in and of itself. There is no new change to report here—a second season is still in the works. I only bring this up because a rumor was spreading around the internet recently claiming that the second season of Empire had been canceled. However, this was quickly traced to a fake news website (sort of a non-humorous version of The Onion) that in the past has also created fake buzz when it claimed Krispy Kreme was giving away free donuts and Martin Lawrence had died. Of course, it should come as no surprise that a second season of Empire is still in the works; with the constantly upward trending numbers it sported throughout the entire run of its first season, it is difficult to imagine any reason the network would forgo the immense opportunities afforded by a second season.

Last Man On Earth: 12 Days Until Premiere

What would happen to an average person if a whole society just disappeared? Fox released their first look at Last Man On Earth:

With just 12 days till the premiere Fox’s social media team is really promoting the show on Facebook generating over 40K “likes”. But not doing so hot on Twitter accumulating just over 1,200 followers. I see that the @LastManFOX account re-tweeted many powerhouse comedians like Seth Rogen, Jake Johnson and Kristen Schaal’s words of excitement over Forte’s new show.

News broke last week that Boris Kodjoe from Love & Basketball will join the cast for a mystery role.

Here’s a fun Fifty Shades of Grey spoof to get you curious:

TLMOE_50Shades_MrMiller_Poster_FINAL_0212184

Regulating Risque Content: Obscenity and Violence on Television

by Macy Jenkins

First Amendment

“Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof; or abridging the freedom of speech, or of the press; or the right of the people peaceably to assemble, and to petition the Government for a redress of grievances.” [1]

Material labeled “obscene” is not protected by the First Amendment, and therefore is subject to banning and criminal prosecution by federal and state governments.

Federal Communications Commission

The Federal Communications Commission (FCC) was established by Franklin Roosevelt in 1934.  The Commission had the right to restrict content, to require fairness in political programming and to regulate public use.  The fairness doctrine was dropped in the 1980’s but laws against obscenity, indecency, and profanity have prevailed since the 1950’s. [2]

Obscenity vs. Indecency vs. Profanity

A three-pronged test was established by the Supreme Court to define obscenity:

  • An average person, applying contemporary community standards, must find that the material, as a whole, appeals to the prurient interest
  • The material must depict or describe, in a patently offensive way, sexual conduct specifically defined by applicable law
  • The material, taken as a whole, must lack serious literary, artistic, political or scientific value. [3]

Indecency is defined by the FCC as “language or material that, in context, depicts or describes, in terms patently offensive as measured by contemporary community standards for the broadcast medium, sexual or excretory organs or activities.”

Source: West Seattle Funblog

Source: West Seattle Funblog

Profanity is defined by the FCC as “language so grossly offensive to members of the public who actually hear it as to amount to a nuisance.”

It is a violation of federal law to (1) air obscene programming at any time, or (2) air indecent programming or profane language on broadcast television or radio between 6:00 am and 10:00 pm time. [3]

Although the FCC has the power to revoke a station’s license for noncompliance, it will typically charge the network with fine but leave their licenses in place.

Federal Communications Commission vs. Fox Television Stations (2012)

The gist of it: The FCC wanted to fine FOX for “fleeting expletives” on awards shows by Cher and Nicole Richie in 2002 and 2003.  (Before 2004, the FCC banned only repeated uses of certain four letter words).  The FCC also fined ABC over one million dollars for showing seven seconds of buttocks and a glimpse of “side breast” on NYPD Blue.

The ruling: The Supreme Court ruled that the FCC’s regulations were unconstitutionally vague and not clear enough for broadcasters to be able to follow them. [4] It held that broadcasters had a right to be warned if changes were going to be made to FCC policy. [5]

Recent headlines

Superbowl profanity

CBS is currently under fire after airing profanity during the Superbowl.  Just after the Baltimore Ravens beat the San Francisco 49ers, Ravens quarterback Joe Flacco used the F-word and another player said another curse word.  The moment aired on CBS because the network hadn’t set up a time delay.  The Parents Television Council (PTC) is calling for the FCC to fine CBS.

Ironically, CBS had set up a time delay for Beyonce’s halftime performance – remember Janet? – but did not set up a time delay for the on-field coverage. (Photo by Christopher Polk/Getty Images)

Ironically, CBS had set up a time delay for Beyonce’s halftime performance – remember Janet? – but did not set up a time delay for the on-field coverage. (Photo by Christopher Polk/Getty Images)

PTC president Tim Winter said the following in a statement [6]:

“Now nine years after the infamous Janet Jackson incident, the broadcast networks continue to have ‘malfunctions’ during the most-watched television event of the year, and enough is enough.  After more than four years of inaction on broadcast decency enforcement, the FCC must step up to its legal obligation to enforce the law, or families will continue to be blindsided.”

A 2011 study by The Parents Television Council found a 69% increase in profanity on primetime television between 2005 and 2010.  [7]  Source: Parenting Starts Here

A 2011 study by The Parents Television Council found a 69% increase in profanity on primetime television between 2005 and 2010. [7] Source: Parenting Starts Here

Egregious Cases ONLY

On April 1st, the FCC announced that September 2012, it had eliminated 70% of its pending indecency complaints.  That’s over one million cases.  FCC Chairman Julius Genachowski stated that FCC officials will only focus on the “most egregious examples” of violations. [8]

A large concern is the amount of backlog that the agency is up against.  At the same time of the announcement, the FCC asked for a public comment as to whether the cut back on the enforcement should actually occur.

PTC’s Winter weighed in on this, saying “either material is legally indecent or it is not.”

Violence in American Television

Violence is more prevalent than sex in American television.  Some believe we’ve simply become desensitized to violent scenes.  Experts believe the effects of continuous violent depiction is detrimental to society as a whole.

Self Regulation

Each network has a standards and practices department, which reviews programming and advertisements.  The idea is to regulate content to keep many different parties happy.  They have to meet FCC restrictions, intellectual property guidelines and personal rights requirements.  At the same time, the networks are concerned with serving the good of society and also preserving the image of the network.  And they have to keep a broader range of advertisers happy than cable networks do. [9]

V-Chip Technology

A “V-chip” allows adults to block television programs that they don’t want children to watch.  Each program is encoded with a rating (see below).  Adults can then program their televisions to only allow programs with a certain rating to be accessible.  The Telecommunications Act of 1996 required all U.S. television sets to have V-chips. [10]

Content Rating System

The ratings system established in 1997 [9]:

  • TV-Y:         Appropriate for all children
  • TV-Y7:       Appropriate for children 7 and older
  • TV-Y7-FV: Programs in the Y7 category with more intense or combative fantasy violence
  • TV-G:         Appropriate for a general audience
  • TV-PG:      Parental guidance suggested
  • TV-14:       Parents strongly cautioned – probably not suitable for children under 14
  • TV-MA:      Mature audiences only

Many are unhappy with the V-chip because a lot of people don’t even know how to use it.  And networks tend to “go light” with ratings or risk scaring off advertisers.  [11]

Violent Content Research Act

Senator Jay Rockefeller Source: csmonitor.com

Senator Jay Rockefeller
Source: csmonitor.com

Senator Jay Rockefeller (also chairman of the Senate Commerce Committee) D-W.Va., introduced the “Violent Content Research Act” in January.

His aim is to get the National Academy of Sciences to study the effects of media violence.  Specifically, he wants them to look at the effect that violent programming has on child behavior. [12]

Congress should do everything we can to address gun violence.  We need comprehensive policies to fully protect our communities. This study is an important element of this approach.” [13]

Future of Content Regulation

When you boil it down, the content we see on television is determined by the green.  If it’s too risque for advertisers, networks will adjust to please them. If it’s too risque for the viewers (and their children), networks will adjust to please them.  Networks want plenty of happy advertisers; advertisers want plenty of happy viewers; and viewers…well what they want changes from minute to minute.  The challenge is keeping up.

Sources

[1] “Bill of Rights”  http://www.archives.gov/exhibits/charters/bill_of_rights_transcript.html

[2] “Regulating Television” http://chnm.gmu.edu/exploring/20thcentury/regulatingtelevision/

[3] “Obscene, Indecent and Profane Broadcasts” http://www.fcc.gov/guides/obscenity-indecency-and-profanity

[4] “Critic’s notebook: FCC vs. Fox, the Supreme Court decides” http://articles.latimes.com/2012/jun/22/entertainment/la-et-st-fcc-vs-fox-supreme-court-ruling-20120622

[5] “Federal Communications Commission v. Fox Television Stations, Inc.” http://www.scotusblog.com/case-files/cases/federal-communications-commission-v-fox-television-stations-inc/

[6]  “Super Bowl F-bomb could put FCC in a bind.” http://blog.constitutioncenter.org/2013/02/super-bowl-f-bomb-could-give-fcc-a-headache/

[7] “PTC Files Supreme Court Brief in Support of Broadcast Decency.” http://www.parentstv.org/PTC/news/release/2011/0915.asp

[8] “FCC to target ‘Egregious’ Indecency Cases” http://www.tvnewscheck.com/article/66560/fcc-to-target-egregious-indecency-cases?ref=search

[9] “This Business of Television,” Third Edition; Blumenthal, Howard J. & Goodenough, Oliver R.; Billboard Books (2006).

[10] “Children and TV Violence” http://www.aacap.org/page.ww?name=children+and+TV+violence&section=Facts+for+Families

[11] “A 15-year failure? Parents Television Council says TV content ratings are flawed” http://www.deseretnews.com/article/865564776/A-15-year-failure-Parents-Television-Council-says-TV-content-ratings-are-flawed.html?pg=all

[12] “Rockefeller Pushes Senate Bill Calling for Study of Violent Content” http://www.thewrap.com/media/article/rockefeller-re-introduces-senate-bill-calling-study-violent-content-74656

[13] ”Gun Violence Legislation: Senate Bills Emerge With Bipartisan Support” http://www.huffingtonpost.com/2013/01/24/gun-violence-legislation-senate_n_2546382.html

//

Programming and Program Development

Programming has traditionally been made up of two dominant genres, the drama and the situational comedy (or sitcom). In a typical week’s prime time schedule, the major five broadcast networks (ABC, CBS, CW, Fox, and NBC) air a combined 43 hours of dramas and 18 hours of comedy. Another notable genre in the current schedule is reality and competition shows which currently make up 14 hours of the broadcast schedule. When looking into the broader scope of television, more and more genres begin to emerge. Currently on cable and premium networks, dramas and sitcoms also dominate the schedule but they are accompanied by more diverse programming such as mini-series, more reality, and developing genres such as mock reality. Schedules are constantly changing and adapting as new programs are developed and programs begin to come off the air. The development process is unique for each genre and the current season has already showed some success and failures.

Drama

The beginning of any drama series typically happens in one of three ways. Either a writer-producer meets with the network and a concept emerges which then turns into a script or a writer-producer already has a script and pitches it to the network. The third common way for a show to develop is for a highly regarded star to decide they want to do a television program and a team is assigned to develop something which fits their needs. Once a script is written and the network approves along with a cast and crew, a pilot is produced and shown to the network. How many pilots are commissioned is dependent upon the networks overall tone, for example The CW is unlikely to produce a large amount of comedy pilots since their schedule is dominated by dramas, along with their current needs. If not many dramas survive the season, more are likely to be commissioned for the next season.

In the current pilot season, Vulture magazine has already spotted several programming trends. One of which is franchise programming. Shows such as NCIS, The Vampire Diaries, and Chicago Fire all have related pilots being worked on. Going off of the success of Once Upon a Time, there is also a tendency towards magical or supernatural themed programs. Vulture predicts a rise in “House” type characters as well as many bigger name stars following Kevin Bacon back to the smaller screen. Much of this is based off of the successes of this past season and an effort to keep promising trends rolling.

One of the more successful launches this Spring was Fox’s The Following starring Kevin Bacon. The show has already been picked up for a second season and has been consistently winning it’s time slot.

A significant drama which went off the air this spring was The CW’s Gossip Girl. While not a major player in the ratings, Gossip Girl was still influential in it’s run on the CW as a trend setter for other programming. The network saw an uptick in the amount of programs focusing on the glamorous and elite such as 90210 and this season’s The Carrie Diaries.

Cable networks typically are more adventurous in their programming and have been seeing a lot of success lately.

walking-dead-season-3-castAmong the biggest successes is AMC’s The Walking Dead. It is a slightly nontraditional show that has garnered huge ratings for the cable network. It was a major Sunday night competitor this season despite not being on a major broadcast network.

Another major program this spring was The History Channel’s mini series The Bible. It received a lot of attention for it’s content and created a viewing war with The Walking Dead.

Comedies

Comedies are developed in a very similar way to dramas. Typically more comedy pilots are produced each year because they are shorter and quicker to make. However, more concepts are abandoned and there are different standards for determining what shows get picked up. A comedy will rarely be picked up just because it’s funny. Comedies are evaluated more based on the current schedule and where there are holes. If a current show is going off the air or needs a stronger lead in, then a comedy has a stronger chance of making it to air. There is also a different target demographic for comedies. They are intended to appeal to younger, typically less educated, and lower income than other types of programming.

30983NBC had a much hyped new series in 1600 Penn which was given an early release of the pilot. The show did not hold an audience well and saw continually declining ratings. NBC chose to end the season early by airing multiple episodes in a night. The scheduling change combined with declining ratings led to cancellation rumors.

A more successful show this spring has been ABC’s How to Live With Your Parents For The Rest of Your Life. It had a late premiere date but has still seen favorable ratings. It focuses on a single mom having to move back in with her parents and the struggles that ensue from her eccentric family.

This season will see the end of the long running NBC comedy The Office. The show was a hit for the network for many years and led to similar programs such as Parks and Recreation which is still on air. Show Runner Greg Daniels promises a heartfelt goodbye to match the series all around tone and characters.

Reality

There are four general rules that define reality television. The first is that they do not involve actors, at least in the traditional sense. Second, while they may be planned, they are not written in the way that comedies and dramas are. They are always produced on location, and finally they have some sort of special gimmick. When in development, these programs are judged more on the potential of the idea than the reputations of the writers or performers. Reality television has created a place for itself in the schedule over the past few decades. It is especially prominent on cable networks with networks such as E! and Bravo airing almost exclusively reality in their prime time slots. Bravo recently announced they have 17 new series being planned, nearly all of which are reality.

1357229967_shakira-usher-the-voice-467

On broadcast networks, it is most common to see reality programming in the form of competition. The Voice saw a cast change this spring with Shakira and Usher replacing Christina Aguilera and Cee Lo Green as judges. The show has been seeing decent numbers with the new judges.

Emerging Trends

Mock Reality

Reality is clearly a genre which is here to stay. Over the years, reality programming has reached to some pretty extreme levels as far as the types of stories and characters that are put on the air. This has led to a new trend of mock realities, shows which are meant to look like reality shows but are scripted or improv and actually make fun of reality programming.

Mock Block Monday

E! has an hour every week titled “Mock Block Monday” which features two of these Mock Reality Shows. The first is Burning Love which is an imitation of dating shows such as The Bachelor. The second is After Lately which is a supposed documentary of the office of Chelsea Lately, another popular program of theirs.

Other networks are picking up on this trend as well. MTV recently announced a new show, appropriately called Reality Stars, which will be about four friends who get involved in reality television. BET has committed to a second season of The Real Husbands of Hollywood. The show follows men of Hollywood in their “natural environment”.

Social Media

twitter-to-dump-third-party-image-hosts-from-apps-report--692a5ff817

Nielsen announced earlier this winter that it plans to begin using Twitter to measure program popularity. This focus on the “second screen” could give more insight into what viewers are responding too and begin to dictate programming decisions. It can help programmers adapt to the growing social engagement of viewers and use social media trends to their advantage.

 

 Sources

1.http://www.fox.com/the-following/
2.http://epguides.com/grid/
3.http://tvbythenumbers.zap2it.com/2013/04/07/bubble-watch-vegas-craps-out-on-friday-go-on-still-on-the-bubble-how-to-live-with-your-parents-and-hannibal/176840/
4. http://tvbythenumbers.zap2it.com/2013/04/07/bubble-watch-vegas-craps-out-on-friday-go-on-still-on-the-bubble-how-to-live-with-your-parents-and-hannibal/176840/
5. http://insidetv.ew.com/2013/03/05/the-following-monday-ratings/
6. http://www.youtube.com/watch?v=8fFq-w5CxN8
7. http://www.huffingtonpost.com/2013/04/01/the-walking-dead-ratings_n_2993622.html
8. http://insidetv.ew.com/2012/12/18/gossip-girl-finale-ratings/
9. http://www.youtube.com/watch?v=ufkXlmtHJnw
10. http://mediadecoder.blogs.nytimes.com/2013/03/12/fall-season-brings-shift-in-tv-ratings-race/
11. http://www.digitaltrends.com/home-theater/nielsen-using-twitter-data-to-gauge-tv-programming-popularity/
12. http://www.bibleseries.tv/

13. http://www.mid-day.com/entertainment/2013/apr/060413-mtv-is-launching-a-new-tv-series-called-reality-stars.htm

14. http://www.bravotv.com/blogs/the-dish/bravo-announces-17-new-18-returning-series?page=0,1

15. http://insidetv.ew.com/2013/03/17/the-office-tease-series-finale/

16. http://www.youtube.com/watch?v=QzzerIyOI9s

17. http://www.vulture.com/2013/04/comedy-pilots-2013-everything-you-need-to-know.html

18. http://www.vulture.com/2013/04/pilots-2013-dramas.html

19. The Business of Television, Bleumenthol & Goodenough

 

 

Fox Network, O&Os and Affiliates

by Thomas Staudt

Fox Television, owned by News Corp, is one of the “Big Four” television broadcasters in the United States, and also owns a wide portfolio of cable properties domestically. Fall 2012 was a busy time for many areas of the business.

Owned and Operated Stations

Fox Sells WUTB in Baltimore

Fox O&O WUTB in Baltimore

FOX Agrees to Sell O&O WUTB in Baltimore [17]

In May 2012, Fox Television reached an agreement with Sinclair Broadcasting to renew the Fox affiliations on 19 Sinclair owned stations for five years. As part of the agreement, Sinclair paid $25 million for the Fox affiliation on WBFF in Baltimore, as well as an option to purchase the Fox owned and operated station in Baltimore, WUTB, by March 31, 2013. The station had served as leverage for Fox when negotiating with Sinclair, since Fox would threaten pulling the Baltimore Fox affiliation from Sinclair’s flagship, WBFF, and switching to their own WUTB. WUTB is the MyNetwork affiliate in Baltimore, and was unique as the only MyNetwork station owned in the Fox television portfolio. [1]

On November 29, 2012, Sinclair exercised the option to purchase WUTB, paying an additional $2.7 million. Because Sinclair owns WBFF in Baltimore, the sale is between Fox Television corporate, and a third party Deerfield Communications, controlled by sole shareholder Stephen Mumblow. Sinclair will control the station through operations contracts with Deerfield. Sinclair will also owe an additional $25 million to Fox, unless Fox exercises an option to acquire certain stations from Sinclair’s current portfolio. WUTB is the third Sinclair controlled station in Baltimore, as they also control the CW station, WNUV, owned by Cunningham Broadcasting- which is owned by the children of Sinclair’s shareholders. [2]

Fox Owned and Operated Stations Receive Uniform Graphics and Music Update

The Fox owned and operated stations (17 stations) rolled out a uniform graphics update for locally produced programming during the first week of November, 2012. The changes are for show and segment openings, as well as lower third graphics. The Fox rectangular logo has largely been replaced with the Fox name, and appears with 3D and circular elements. The standard music package has also been slightly adjusted. Finally, Fox owned stations have standardized the practice of showing reporter’s Twitter handles, rather than email addresses under their name on air. [3] 
[18]

Affiliates

WFFF Fox Burlington Sold to Nexstar

Nexstar Broadcasting

Nexstar Broadcasting Purchases WFFF [19]

Nexstar Broadcasting announced the completion of a deal November 5, 2012 to purchase Fox affiliate WFFF in Burlington, VT from Smith Media. Nexstar agreed to pay $17.1 million for WFFF and sister station WVNY, an ABC affiliate. Mission Broadcasting is also involved in the transaction due to media ownership laws. The FCC is expected to approve the transaction in the first quarter of 2013. Upon completion of the deal,Utica,NYNBC affiliate WKTV will be the only television station still owned by Smith Media. [4]

While Burlington, VT is DMA 97, it is an important market because it reaches a substantial Canadian market not counted in its DMA size. This includes Montreal, a city with ten times more population than the entire Burlington DMA. Canadian cable operators carry WFFF in the southern Quebec province as their Fox station. [5]

4 Northwest Broadcasting Fox Stations Pulled From Dish Network

Northwest Broadcasting pulled four Fox affiliate stations off of Dish Network after retransmission renewal negotiations broke down on November 26, 2012 over a dispute about rate increases. The stations affected are WICZ in Binghamton, NY; KMVU in Medford, OR; KFFX in Yakima, WA; and KAYU in Spokane, WA. After months of negotiations, a deal could not be reached, and the signals went dark to Dish Network customers.

The impasse comes only two months after a long blackout of the same stations ended with Dish competitor DirectTV. The Northwest- DirectTV battle lasted for over 22 months, and at times was hostile. [6]

LIN FOX Stations Almost Pulled From Charter

LIN TV threatened to pull two other Fox affiliates, WNAC in Providence, RI and WLUK in Green Bay, WI off of Charter Communications cable platforms if increased retransmission rates were not agreed to by November 29, 2012. Charter claimed that LIN was demanding 150% increases in fees. [7] At the last moment before the stations were scheduled to go dark, the two sides reached a deal for undisclosed terms. [8]

Syndication

Fox O&O Stations Purchase Syndication Rights to Anger Management

Anger Management Promotional Poster

Charlie Sheen stars in Anger Management on FX [20]

Fox owned and operated stations signed a syndication contract in October, 2012 to begin airing the FX sitcom Anger Management starring Charlie Sheen beginning in the fall of 2014. FX will retain the cable syndication rights sold by Lionsgate Television. Lionsgate’s television division plans to produce 90 episodes over the next two years in order to fulfill syndication requirements. This follows a model the company has used in the past to get syndication fees sooner. Anger Management averaged 4.5 million viewers per episode during its initial summer run; new episodes begin in January. [9]

Fox O&Os Purchase Rights to Veteran’s Day Parade

NYC Veterans Day Parade Logo

The 2012 NYC Veteran’s Day Parade aired on Fox Stations [21]

Fox owned stations came to an agreement with the Wounded Warriors Project for the television rights to the New York City Veteran’s Day Parade for the first time in 2012. Fox owned stations aired the parade live or tape delayed (depending on local NFL games) with cut-ins from Fox News cable network. The live showings of the parade aired Sunday November 11, from Noon until 3:30 Eastern time. [10]

Bethenny Frankel Daytime Show Picked up by Fox Owned Stations

Fox owned and operated stations have signed a syndication deal to air the daytime talk show Bethenny, hosted by former reality television star Bethenny Frankel, and executive produced by Ellen DeGeneres. The show was left for dead in 2012, after it failed to achieve Fall 2012 clearances, but Fox kept the show alive by airing it on six owned stations for a trial period of six weeks during the summer. The positive results gave enough of a sample and momentum for Warner Brothers Distribution to syndicate nationally in other markets. The show is expected to premiere in early 2013. [11]

Ownership

Fox Purchases Stake in YES to Assist Clearance

YES Network Logo

FOX Purchased 49% of YES [22]

On November 20, 2012, News Corp, agreed to purchase a 49% ownership stake in the YES Network. A specific price was not released, but analysts estimate the network to be valued at $3 billion. News Corp completed the deal with Goldman Sachs and Providence Equity Partners. The contract includes a path for Fox to increase its ownership stake to 80%. YES has rights to air New York Yankees baseball through 2042, and is expected to be used as leverage to increase retransmission rates and clearance for other Fox properties in the nation’s largest market and surrounding areas. [12]

Sports

Fox launches Saturday Night Football and Baseball

Erin Andrews

Erin Andrews Joined Fox to Anchor Sports Coverage [23]

For the first time in 2012, Fox aired weekly college football games on Saturday nights anchored by the popular Erin Andrews. Fox drew ratings as high as a 3.5 overnight, on a night previously ignored by networks and viewers. Fox also moved its Saturday afternoon baseball to Saturday nights, seeing ratings increases of over 25% for the season. [13]

Legal

Fox Denied in Suit Against Dish Network’s DVR

United States District Court ruled on November 29, 2012 against Fox Broadcasting in its attempt for an injunction against Dish Network’s advanced DVR and ad-skipping technology. The court found that Fox was not likely to succeed on the merits of copyright infringement against the DVR service, and that Fox had failed to show irreparable harm caused by the “quality assurance” ad-free copies made to show customers. [14]

Technology

 Fox Joins with Dyle to bring Television to the iPad

Dyle Ap

Dyle Can Bring Television to the iPad [24]

Fox has joined a consortium of broadcasters to allow people to legally watch the Fox television network for free on their iPad. Called Dyle, the program requires an antenna adapter since the device does not use the internet, instead using television broadcast signals. The technology is improving, and is a large step towards bringing television to the iPad. [15]

Performance

1st Quarter Financial Data for News Corp.

News Corp’s 1st Quarter (July-Sept) financial data showed a slow start to the television year. Overall company revenues were up 2.2%, but operating income down .5% to $1.38 billion. The company reported higher than expected political advertising spending, and a more than doubling on average of retransmission rates, but also had a poor start to the network season ratings. The Fox broadcast network and owned and operated stations posted a 17.3% increase in operating income to $156 million, while Fox cable properties showed 23% increase in operating income to $953 million.

The scatter market was not robust as the company had hoped, and the Olympics siphoned off some potential revenue, but Fox is working towards its stated goal of a dual revenue stream of retransmission revenue and reverse affiliate compensation. A low- rated four game World Series and poor fall launches hurt the quarterly performance, but projections for the 2nd Quarter are more optimistic. [16]

 References

  1. Malone, M. (2012, November 29). “Fox Selling WUTB to Deerfield Media for $2.7 Million”. Broadcasting and Cable.  http://www.broadcastingcable.com/article/490598Fox_Selling_WUTB_to_Deerfield_Media_for_2_7_Million.php
  2. Jessell, H. A. (2012, November 29). “Sinclair Makes it a Triopoly in Baltimore”. TV News Check. Retrieved from http://www.tvnewscheck.com/article/63866/fox-sellingwutb-baltimore-to-deerfield-llc
  3. Newscast Studio. (2012, November 16). “Fox Owned Stations Roll Out Graphics Overhaul”. Newscast Studio. Retrieved from http://www.newscaststudio.com/blog/2012/11/16/fox-owned-stations-roll-out-graphics-overhaul/
  4. Knox, M. (2012, November 5). “Nexstar Acquires Stations in California, Vermont.” Media Bistro. Retrieved from http://www.mediabistro.com/tvspy/nexstar-acquires-stations-in-california-vermont_b68213
  5. TV NewsCheck. (2012, November 5). “Nexstar Adding Stations in Calif. and Vt.” TV News Check. Retrieved from http://www.tvnewscheck.com/article/63324/nexstar-adding-stations-in-ca-vt
  6. Stiles, G. (2012, November 28). “New Battle for Northwest Broadcasting Inc”. Oregon Public Broadcasting. Retrieved from http://www.opb.org/news/article/new-battle-for-northwestbroadcasting-inc/
  7. Donohue, S. (2012, November 20). “LIN TV Threatens to Pull CBS, NBC, Fox Stations from Charter Communications”. Fierce Cable. Retrieved from http://www.fiercecable.com/story/lin-tv-threatens-pull-cbs-nbc-fox-stations-charter-communications/2012-11-20
  8.  Donohue, S. (2012, November 30). “Charter Signs Last-Minute Deal with LIN TV”. Fierce Cable. Retrieved from http://www.fiercecable.com/story/charter-signs-last-minute-retransdeal-lin-tv-still-no-directv-gannett-agre/2012-11-30
  9. Porter, R. (2012, October 31). “Charlie Sheen’s Anger Management Sold into Syndication, Which was Point All Along”.  Zap 2 It. Retrieved from http://blog.zap2it.com/frominsidethebox/2012/10/charlie-sheens-anger-management-sold-into-syndication-which-was-the-point-all-along.html
  10. Wounded Warriors. (2012, November, 8). “New York City Veterans Day Parade to be Broadcast in 10 Major Markets”. Market Watch. Retrieved from http://www.marketwatch.com/story/new-york-city-veterans-day-parade-to-be-broadcast-in-10-major-markets-2012-11-08
  11.  Andreeva, N. (2012, September 24). “Bethenny Frankel’s Talk Show to Launch on Fox Stations in 2013”. Deadline. Retrieved from http://www.deadline.com/2012/09/bethenny-frankels-talk-show-to-launch-on-fox-stations-in-2013/
  12. Jannarone, J. (2012, November 20). “News Corp. to Buy 49% of YES Network”. Wall Street Journal. Retrieved from http://online.wsj.com/article/SB10001424127887324851704578131030193577240.html
  13. Hiestand, M. (2012, November 4). “Saturday Nights: The Future of Big-Time TV Sports?” USA Today. Retrieved from http://www.usatoday.com/story/sports/2012/11/04/michael-hiestand-television-college-football-ratings-dan-patrick-notre-dame-alabama-lsu/1681031/
  14. Davidson, S. (2012, November 29). “Federal district court refuses to enjoin DISH Network’s advanced DVR and ad-skipping services”. Lexology. Retrieved from http://www.lexology.com/library/detail.aspx?g=f124e36b-91d0-441b-a617-1adb5aa26470
  15. Kafka, P. (2012, November 19). “Dyle Brings Legal, Live TV to Your iPad, With Many Strings Attached”. All Things SD. Retrieved from http://allthingsd.com/20121119/dyle-brings-legal-live-tv-on-your-ipad-with-many-strings-attached/
  16.  Messmer, J. (2012, November 6). “News Corp. Admits Soft Fall Start for Fox”. TV News Check. Retrieved from http://www.tvnewscheck.com/article/63366/news-corp-admits-soft-fall-start-for-fox
  17. Image. “WUTB Logo”. WUTB. Retrieved from http://www.my24wutb.com/
  18. Video. “November 12, 2012- Fox 13 WHBQ”. Newscast Studio. Retrieved from: http://www.newscaststudio.com/blog/2012/11/16/fox-owned-stations-roll-out-graphics-overhaul/
  19. Image. “Nexstar Logo”. Logos Wikia. Retrieved from www.logos.wikia.com
  20. Image. “Anger Management”. TMZ. Retrieved from http://www.tmz.com/category/anger-management/
  21. Image. “NYC Veterans Day Parade 2012 Logo”. Wounded Warrior Project. Retrieved from http://www.vetsday.org
  22. Image. “YES Network Logo”. SNY Networks. Retrieved from http://snynets.com/nets/nets-already-helping-yes-network-grow/
  23. Image. “Erin Andrews.” Daily Glow. Retrieved from http://www.dailyglow.com/beauty-news/erin-andrews-shares-her-best-beauty-tips-for-game-day.html
  24. Image. “Dyle”. Dyle TV. Retrieved from http://www.dyle.tv/devices/elgato-eyetv-mobile-tv-tuner/

Production

by Jennifer Pittz

© Hollywood Reporter- Getty Images [6]

In the beginning stages of television production, programs were produced by television stations, by one of the three big networks, or by motion picture studios. By the 1970s, a portable video camera and other production equipment were made available and television production has continued to evolve since [1]. Technological advancements in television production have helped to reduce costs, create time efficiency, and keep up with the demand for exciting television.

Recent Changes in Production

Television production continues to go through constant changes as technology progresses. Production equipment is now mobile, lighter, digital, and offers more creative features. Production locations are primarily in big metropolitan cities like New York City, Los Angeles, Washington, DC, and Chicago. Production is an aspect of the television business that must stay up-to-date with technological developments and current economic activity to stay competitive and maintain cost efficiency.

Production Houses Migrating out of L.A.

© LA Times – Hollywood, CA [3]

Practically all production companies and broadcasting stations own at least one on site studio or a production house. Studios can be used for several purposes including news production, creating local commercials, public affairs programming, and talk shows. The majority of production houses are located on the West Coast, typically in Los Angeles. Since the 1980s, when Twentieth Century FOX established the FOX Network, L.A. quickly transformed into the production capital of the world [5]. A couple years later Paramount, Warner Brothers, and Disney followed. The talent of the cast and crews, the industry resources, diverse locations, and constant weather help to keep L.A. the primary area for production [2].

© Jen Pittz [14]

However, the television industry is constantly changing to stay cost effective and many production companies are migrating to other locations. Production in Los Angeles County has lost over 16,000 jobs sine 2004 because of work migrating out of the state [3]. California was not competitive with other states despite the favorable environment it offers.The state’s lack of offering competing tax incentives as well as the current program on its way to an end has driven production out of the hub. During this same time frame New York, North Carolina, New Mexico, Georgia, and Louisiana have added thousands of jobs because of new film tax credits. Production of pilot programs for broadcast and cable networks have been mounting outside the state, making L.A. take only half of the pie in 2011 [6].

However, September 30, 2012 Governor Edmund G. Brown Jr. signed the Assembly Bill 2026 and Senate Bill 1197 to extend government funding for California’s Film and Television Tax Credit Program. Governor Brown signed the state on for a new two-year, $200 million extension to the existing bill that was due to expire at the end of next year. The new bill will be offered through the 2016-2017 fiscal years [4]. The new bill is positive for productions that are currently in the works or productions that will end by 2016-2017. The bill was overwhelmingly supported by the state Assembly and the Senate. California offers a 20 percent to 25 percent tax credit towards production costs to offset business tax liabilities but compared to what other states offer the bill appears to be limited and not competitive [7]. But for upcoming and long-term productions, the bill does not encourage the film and television industry to stay.

Hurricane Sandy’s Impact on Production

© 2012 The City of New York [4]

Since production crews have recently relocated to new locations, the East Coast became a popular place to set up equipment. New York City has always been known as a television hub, but has lately flourished in the absence of L.A. production. In May of 2012, the Boston Consulting Group released a study recognizing New York City’s film sector is the strongest in its history. In 2011 it generated $7.1 billion and increase in over $2 billion since 2002 [9].

After Hurricane Sandy touched down and made land fall October 30 of this year, production throughout the North East came to a halt and was postponed. New York City officials announced that all film permits were to be revoked October 29 and October 30 for Hurricane Sandy precautions [10]. At least nine television shows were hurt by the shutdown including “Blue Bloods” (CBS), “Elementary” (CBS), “Gossip Girl” (CW), “Person of Interest” (CBS), “666 Park Avenue” (ABC) and “The Following” (Fox). Without the production of these new television shows, networks were forced to preempt other shows and shuffle around television programming for the week.

© Huffington Post [12]

Late night talk shows, morning shows, and news stations were forced to figure out ways to get their shows on the air despite the natural disaster. Several talk shows also cancelled television production during the disaster and its aftermath including “Katie,” “The Colbert Report,” and “The Daily Show With Jon Stewart[10]. “Jimmy Kimmel Live,” which normally is filmed in L.A., was set for production for a special “Jimmy Kimmel Live from Brooklyn” in New York [10]. “The Colbert Report” and “The Daily Show With Jon Stewart” filmed their shows despite missing the studio audience [8]. “Jimmy Kimmel Live from Brooklyn,” was not filmed according to plan. Morning news shows were able to go on for air but were forced to remain inside. ABC’s “Good Morning America,” NBC’s “Today Show” and “CBS This Morning” aired live Tuesday with extensive storm coverage [13].

© CNN 2012

Other production problems that came with Hurricane Sandy include getting enough news station crews out safely to shoot video and report for air. Stations were forced to be innovative and use the most of technology and social media with limited resources. In order to keep up with breaking news and current updates, CBS sent out its own mobile SUV weather lab to measure wind and rain [15]. Reporters also turned to citizen journalism by means of social media to get video and pictures on the scene. More equipment and labor are needed in order to cover a massive event at different locations and different news angles. CBS sent reporters and equipment from as far as Minneapolis and Dallas to help stations hit by the super storm on the East Coast [15].

 

Sources

1. Howard J. Blumenthal and Oliver R. Goodenough, The Business of Television, 2006.

2. http://www.resource411.com/content/?pageID=1013

3. http://www.latimes.com/entertainment/envelope/cotown/la-et-ct-laedc-report-20121116,0,3320485.story

4. http://www.film.ca.gov/Incentives.htm

5. Dominick, Joseph R., Sherman, Barry L., & Messere, Fritz. (2000). Broadcasting, Cable, The Internet, and Beyond, 4th Edition. Boston: McGraw Hill.

6. http://www.hollywoodreporter.com/news/California-runaway-production-tax-incentive-337952

7. http://articles.latimes.com/2012/sep/30/entertainment/la-et-ct-state-film-tax-credit-20120930

8. http://thecomicscomic.com/2012/10/30/late-night-with-jimmy-fallon-the-no-audience-hurricane-sandy-edition/

9. http://www.nyc.gov/html/film/html/statistics/stats.shtml

10. http://articles.latimes.com/2012/oct/29/entertainment/la-et-ct-storm-production-20121029

11. http://www.hollywoodreporter.com/live-feed/jimmy-kimmel-cancels-monday-brooklyn-384033

12. http://www.huffingtonpost.com/2012/10/29/jimmy-kimmel-brooklyn-show-canceled-hurricane-sandy_n_2038338.html

13. http://www.huffingtonpost.com/2012/10/31/superstorm-sandy-aftermath-nyc-entrtainmen_n_2048791.html

14. http://www.deadline.com/2012/07/tv-production-takes-another-big-hit-says-filml-a/

15. http://www.broadcastingcable.com/article/490148/Stations_Improvise_to_Cover_Massive_Sandy.php

 

Big Media

by Thomas Staudt

Ownership Rules

FCC Proposes Relaxing Media Ownership Rules

Federal Communications Commision

The Federal Communications Commission Has Proposed Changing Media-Ownership Rules [19]

The biggest news in Fall 2012 regarding the topic of Big Media is a proposal by the FCC to implement changes in the media ownership rules. The biggest change aims to relax the ban that prevents cross-ownership of a television station and newspaper in the same market. The rule does not apply to top 20 markets, although a waiver could be obtained to allow it to be applied. Regulations against the ownership of duopoly television stations will remain in effect. The proposal comes at a time when the media landscape is shifting, and local news operations are struggling for resources. [1]

Advocates for the proposal suggest that allowing mergers between local television and newspaper outlets will allow the outlets to stay in business in a tougher media economic climate. Without the rule change, the argument is that total media outlets will severely decline do to sustainability issues in the coming decade. [2]

Opponents of the plan claim that relaxing the ownership rules will promote further concentration of ownership, and erode diversity, competition, and localism that are in the public interest. The FCC has agreed to accept further opinions and research on the manner, and will hold off on voting until early 2013. [3]

Tribune Requires Ownership Waiver for Sale

Tribune Company Logo

The Tribune Company is an FCC Waiver Away from Emerging from Bankruptcy [20]

 While the FCC considers officially changing cross-media ownership rules, the FCC announced in November, 2012 that it was close to granting a cross-ownership waiver to the Tribune Company to allow the transfer of ownership to a group composed of Oaktree Capital Management, Angelo Gordon, and JP Morgan Chase. The waiver is needed because the group currently owns television assets in Los Angeles and four other markets involved. A permanent waiver is expected Chicago, and temporary 1 year waivers for Los Angels, New York, Miami and Hartford. The waivers will allow the closing of the sale, and the completion of four years of bankruptcy. [4]

Ownership Report

FCC Releases Minority Ownership Report

At the beginning of November, 2012, the FCC released its bi-annual report on the ownership of commercial broadcast stations in theUnited Statesas of the end of 2011. The timing of the report is noteworthy as the FCC is in the midst of examining further deregulation of ownership rules, something critics believe will lower ownership diversity even further.

Of the nation’s 1,348 television stations, whites own 69.4%. That is an increase from 63.4% in 2009 when there were 1,187 stations. Accompanying this, African American ownership fell from 1% to 0.7% and Asian ownership fell from 0.8% to 0.5%. Following national trends, Hispanic ownership rose, but only slightly, from 2.5% to 2.9%. There is also a large gender gap in commercial television ownership. While on the rise, women own only 6.8% of stations in the US as of 2011, up from 5.6% in 2009.

The television ownership statistics are not dramatically different than radio, where whites own 80% of stations, and men own 70%. [5]

Cable Networks

Liberty Media Spins off the Starz Network

 

Starz Logo

Starz Will be Spun Off into Its Own Company by Liberty Media [21]

Liberty Media announced in August, 2012 that they intend to spin off their premium network Starz into a separate, publicly traded company. The deal is expected to be completed by the end of 2012. Liberty shareholders will receive Starz stock as a one-time dividend. The new company will acquire all of the Starz portfolio and assets, as well as $1.5 billion debt, and undisclosed cash. [6] Analysts are skeptical about the financial prospects of the new company, with Starz reporting an 11% decline in income against last year. [7]

Fox Purchases Stake in YES to Assist Clearance

On November 20, 2012, News Corp, the parent company of Fox, agreed to purchase a 49% ownership stake in the YES Network. A specific price was not released, but analysts estimate the deal values the network near $3 billion. News Corp completed the deal with Goldman Sachs and Providence Equity Partners. The contract includes a path for Fox to increase its ownership stake to 80%. YES has a contract to air New York Yankees baseball games through 2042, and is expected to be used as strong leverage to increase retransmission rates and guarantee clearance for other Fox properties in the nation’s largest market and surrounding areas. [8]

Current TV for sale

Current TV Logo

Al Gore’s Current TV is Up for Sale [22]

In October, 2012, Current TV, the networked owned by former Vice President Al Gore, announced that it was up for sale. The struggling network does not have a full time program line-up, and is focused on the far left side of the political spectrum. Austin, Texas startup SocialGood.tv confirmed December 1, 2012 that it was working to raise funds to purchase the network. Although they do not yet have the funding, a released business plan shows that they would move the network to the political central in order to increase both viewer and advertising bases. SocialGood.tv claims to be close to having financing in place, but it will remain to be seen if the company can complete the transaction. [9]

 O&O Stations

Fox Sells WUTB in Baltimore to Deerfield Communications

In May 2012, Sinclair paid $25 million to Fox for the affiliation for WBFF in Baltimore, as well as an option to purchase the Fox owned and operated station in Baltimore, WUTB, by March 31, 2013. The station had served as leverage for Fox when negotiating with Sinclair, as Fox used the threat of pulling the Baltimore Fox affiliation from Sinclair’s flagship, WBFF, and switching to their own WUTB. [10]

On November 29, 2012, Sinclair exercised the option to purchase WUTB, paying an additional $2.7 million for the station. Because Sinclair owns WBFF in Baltimore, the sale is between Fox Television corporate, and a third party Deerfield Communications. Sinclair will control the station through an operations contract with Deerfield, and will owe an additional $25 million to Fox, or Fox can exercise an option to acquire certain stations from Sinclair’s current portfolio. [11]

Television Station Groups

Nexstar Buys 5 TV Stations

Nexstar Broadcasting announced that intends to reinvest its windfall from this year’s political season to purchase 5 television stations in California and Vermont. On November 5, 2012, Nexstar announced that it paid Newport Television $35.4 million for the CBS affiliate, KGPE, in Fresno, CA; the NBC and CW affiliate, KGET, in Bakersfield, and a low-powered Telemundo affiliate, KKEY, in Bakersfield, CA.  [12]

In a separate sale, Nexstar Broadcasting announced the completion of a deal November 5, 2012 to purchase Fox affiliate WFFF in Burlington, VT from Smith Media. Nexstar agreed to pay $17.1 million for WFFF and sister station WVNY, an ABC affiliate. The Burlington DMA is important due to its sizeable Canadian audience, including Montreal.  [13] Mission Broadcasting is also involved in the transaction due to media ownership laws. The FCC is expected to approve the transaction in the first quarter of 2013, upon which, Utica, NY NBC affiliate WKTV will be the only television station still owned by Smith Media. [14]

Cox buys 4 Newport Stations

Cox Media Logo

COX Media Purchases 4 Newport Television Stations [23]

Newport Television also closed a deal to sell 4 stations to Cox Media on December 4, 2012. Cox purchased the FOX and CBS duopoly, WAWS and WTEV, in Jacksonville, Florida as well as the FOX and MyNetwork affiliates, KOKI and KMYT, in Tulsa, Oklahoma. [15]

Sinclair buys 7 Newport Stations

On December 3, 2012 Sinclair Broadcasting closed a deal for $459.7 million for seven stations owned by Newport Media. WKRC in Cincinnati, OH; WOAI in San Antonio, TX; WHP in Harrisburg-Lancaster, PA; WPMI and WJTC in Mobile, AL; WHAM in Rochester, NY, and KSAS in Wichita, KS are the stations included in the deal. Sinclair has already announced sweeping personnel changes at many of the stations involved. [16]

Sinclair and Nexstar in running for 24 Barrington stations

Sinclair Television Logo

Sinclair Television is a Finalist for Barrington Television Stations [24]

On November 29, 2012, Barrington Broadcasting, the group run by former AOL Time Warner COO Bob Pittman, announced that it was looking to sell its entire portfolio of 24 television stations. Located in 15 markets ranging from market size 67 to 200, the portfolio consists of ABC, CBS, NBC, FOX, and CW stations. Although several companies made bids, Sinclair Broadcasting and Nexstar are the finalists. These two companies have advantages over others due to their nationwide retransmission agreements with a variety of distribution platforms. Upon the completion of a sale, the retransmission rate of the sold station would become that of the new owner, often much higher than that negotiated by the station. [17]

Denali Media Purchases Three Alaska Stations

On November 9, 2012, Denali Media Holdings, Alaska’s largest telecommunications company, announced that it was looking to purchase three additional television stations across the state. As part of a strategy to create a state-wide news and entertainment network, Denali is purchasing the Anchorage CBS affiliate, KTVA, from Media News Group of Denver. It is also purchasing the NBC affiliates in Juneau and Sitka, KATH and KSCT respectively, from North Star Broadcasting. The FCC is expected to approve the sales in early 2013. [18]

References

  1. Lowry, B. (2012, December 1). “Media-Ownership Rules Need New Look”. Variety. Retrieved from http://www.variety.com/article/VR1118062935
  2. Johnson, T. (2012, December 5) “FCC: Rule Changes Would Actually Promote Diversity”. Chicago Tribune. Retrieved from http://articles.chicagotribune.com/2012-12-05/news/chi-tms-variety-fcc-rule-changes_1_cross-ownership-fcc-s-media-bureau-media-ownership
  3. Kang, C. (2012, December 5). “FCC Relax of Media Ownership Ban Draws Fire.” The Washington Post. Retrieved from http://www.washingtonpost.com/blogs/post-tech/post/fcc-relax-of-media-ownership-ban-draws-fire/2012/12/05/729dfafe-3e56-11e2-a2d9-822f58ac9fd5_blog.html
  4. Puzzanghera, J. (2012, November 15). “Tribune Close to Clearing Last Bankruptcy Hurdle”. LA Times. Retrieved from http://www.latimes.com/business/la-fi-tribune-bankruptcy-20121115,0,6621573.story
  5. Flint, J. (2012, November 14). “FCC Media Ownership Survey Reveals a Lack of Diversity”. LA Times. Retrieved from http://www.latimes.com/entertainment/envelope/cotown/la-et-ct-fcc-diversity-20121114,0,5618853.story
  6. Lieberman, D. (2012, August 8). “Liberty Media Says it will Spin Off Starz”. Deadline. Retrieved from http://www.deadline.com/2012/08/liberty-media-starz-spin-off/
  7. (2012, December 2) “Liberty Media Closes in on 50% Ownership of Sirius XM”. Seeking Alpha. Retrieved from http://seekingalpha.com/article/1039341-liberty-media-closes-in-on-50-ownership-of-sirius-xm
  8. Jannarone, J. (2012, November 20). News Corp. to Buy 49% of YES Network. Retrieved from http://online.wsj.com/article/SB10001424127887324851704578131030193 577240.html
  9. Sheppard, N. (2012, December 1). “Al Gore’s Current TV May Be Bought By Texas Startup Looking to Make It More Centrist”. Newsbusters. Retrieved from http://newsbusters.org/blogs/noel-sheppard/2012/12/01/al-gores-current-tv-may-be-bought-texas-startup-looking-make-it-more
  10. Malone, M. (2012, November 29). “Fox Selling WUTB to Deerfield Media for $2.7 Million”. Broadcast & Cable.  Retrieved from http://www.broadcastingcable.com/article/490598-Fox_Selling_WUTB_to_Deerfield_Media_for_2_7_Million.php
  11. Jessell, H. A. (2012, November 29). “Sinclair Makes it a Triopoly in Baltimore”. TV News Check. Retrieved from http://www.tvnewscheck.com/article/63866/fox-selling-wutb-baltimore-to-deerfield-llc
  12. Lieberman, D. (2012, November 5) “Nexstar Buys 5 TV Stations in California and Vermont.” Deadline. Retrieved from http://www.deadline.com/2012/11/nexstar-tv-station-acquisition/
  13. TV NewsCheck. (2012, November 5).”Nexstar Adding Stations in Calif.and Vt.”. TV News Check. Retrieved from http://www.tvnewscheck.com/article/63324/nexstar-adding-stations-in-ca-vt
  14. Knox, M. (2012, November 5). “Nexstar Acquires Stations in California, Vermont”. Media Bistro. Retrieved from http://www.mediabistro.com/tvspy/nexstar-acquires-stations-in-california-vermont_b68213
  15. Eck, K. (2012, December 4). “Cox Media Group Closes on Purchase of Newport Stations”. TV Spy. Retrieved from http://www.mediabistro.com/tvspy/cox-media-group-closes-on-purchase-of-newport-stations_b71843
  16. Knox, M. (2012, December 3). “Sinclair, NewportTelevision Close Seven-Station Deal”. TV Spy. Retrieved from http://www.mediabistro.com/tvspy/management-changes-at-sinclair-stations-as-newport-deal-closes_b71663
  17. Messmer, J. (2012, November 29). “Sinclair, Nexstar In Running for Barrington”. TV News Check. Retrieved from http://www.tvnewscheck.com/article/63834/sinclair-nexstar-in-running-for-barrington
  18. Associated Press (2012, November 9). “GCI to Buy 3 AlaskaTV Stations”. Fairbanks Daily News Miner. Retrieved from http://newsminer.com/view/full_story/20786800/article-GCI-to-buy-3-Alaska-TV-stations-?instance=home_news_window_left_bullets
  19. Image. “FCC Logo”. LBA Group. Retrieved from http://www.lbagroup.com/blog/ebs-substantial-service-deadline-extended/
  20. Image. “Tribune Logo”. Top News. Retrieved from http://topnews.us/content/2675-wsj-reports-tribune-could-file-bankruptcy
  21. Image. “Starz Logo”. GP Com. Retrieved from http://blog.gpcom.com/?tag=starz
  22. Image. “Current TV Logo”. TV By the Numbers. Retrieved from http://tvbythenumbers.zap2it.com/2011/11/10/the-young-turks-with-cenk-uygur-to-launch-on-current-tv-monday-december-5-at-7pm-et/110277/current-tv-logo/
  23. Image. “Cox Communications Logo”. Dioji. Retrieved from http://www.dioji.com/newspress.asp
  24. Image. “Sinclair Broadcasting Logo”. Awesome Cake. Retrieved from http://awesomecake.com/portfolio/logo-designs/

Regulation of Distribution

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

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/