As the premiere for Grandfathered grows closer, Fox Executives and show creators are looking to create better buzz for the show. This past week, Grandfathered was a part of PaleyFest, the Paley Center’s fall event in Los Angeles. This event allows networks to promote their shows for the upcoming season by showing screeings of the premiere and conversations with the casts and creative teams. Grandfathered seized this opportunity for promotion with the hope of creating more publicity for the show.
Generated by IJG JPEG Library
This event provided fans and future fans with the opportunity to hear about the show from the actors themselves. John Stamos alongside creator Danny Chun answered questions about the show and discussed their perspective on its role in the Fall Season. Throughout the interview, their statements were put onto a live twitter feed, which provided the feeling of a first-hand encounter for fans that were not in the actual audience. This kind of multi-media promotion is extremely important in this day in age because it creates a sense of connectivity for viewers and hopefully draws them in week-to-week.
Back again! World’s Funniest Fails continues to keep its ahead above water in the death slot, on Fridays @ 8pm. For a show that should have been off the air a while ago World’s Funniest Fails is making quite the statement as of late. Since February 13th, the total viewers have gone up every single week with the most recent viewing coming in at just under 3 million total. While the ratings have now been stuck at .8 for the last four weeks the show is definitely making progress. Fox has officially ordered EIGHT, yes you heard that right, eight! new episodes. From Variety, “WORLD’S FUNNIEST FAILS ranks No. 1 in its time period among Men 18-34 (tie), Teens (tie) and No. 2 among Adults 18-34 (tie) and has improved upon FOX’s prior season average in the time period with entertainment programming in Adults 18-49 (+38%), Adults 18-34 (+60%), Teens (+50%) and Total Viewers (+45%).” Killing it! Hopefully Terry Crews and Co. can keep their momentum going through March into April and May. Stay tuned ! And don’t forget to check the show out, Fridays @ 8pm on FOX !
In the television business, distribution is the key component in making content accessible and viewable by consumers on traditional and new platforms. Distribution is not only the way programming reaches audiences, but is a large component of programmers and distributors business models.
Traditionally TV distribution used to be much simpler; it was primarily through TV and consumed on the TV set. In this old media structure there were barriers to reaching consumers, (you would have to own a network or have a program carried by one). Today broadband allows for video content to be carried and viewed on the web. Countless individuals and companies can now reach viewers in new ways with all types of video content.
Television is still the primary way people consume video but new devices and new content are beginning to change consumers viewing behavior. Viewers can watch traditional TV or now have the option to aggregate their favorite videos through many new options like Netflix, Hulu, Amazon, or TV Everywhere and watch them on their TV, or a tablet, phone or computer. The rise of new platforms to distribute TV content through DVR and VOD plus online viewership has resulted in a number of exciting developments for programmers and distributors, as well as real threats and challenges.
Right now television content distribution can be broken down into three categories: traditional distributors, new challenging distributors, and programmers that try to take advantage of all avenues of distribution. Programmers now distribute through the traditional multi-channel operators (Time Warner), phone companies (Verizon & AT&T) and satellite distributors (like Dish and DirectTV) and new avenues like apps, TV Everywhere through a cable operator or digital offerings like Netflix.
Traditional Distributors in the TV Market
MSO’s, satellite, and phone companies are actively trying to delve into the growing market of cross platform viewing and video streaming. A recent development is TV Everywhere.
Comcast successfully released Xfinity on demand and struck deals with cable networks, broadcasters, and pay TV to stream their content online for Comcast subscribers. Applications like TV Everywhere are being released by a multitude of distributors, allowing consumers to stream their carried programming on any tablet, phone or computer. Time Warner now has TWC TV and Cablevision has TVtoGO. Phone companies also provide online streaming; Verizon streams FiOS TV and AT&T streams U-verse.
In February, DirectTV joined the online game and released DirectTV Everywhere. For traditional distributors, “TV Everywhere” has become an important part of their distribution model. But their applications have a lot of competition coming from Netflix, HuluPlus and Amazon which offer library’s of content and more recently original or exclusive programming.
Rising Challengers to Traditional Distributors
The development of broadband as a vehicle for video has spurred huge entrepreneurial investment in companies like Netflix, Apple, Amazon, Hulu, YouTube as well as user-generated content. Traditional distributors are being challenged by new online distribution channels like Netflix, Hulu, Amazon, Apple TV, and Google (YouTube). These distributors are offering very appealing services to consumers and at low costs (Netflix & HuluPlus: both $8 a month and Amazon Prime $79/ yearly), or in the case of the web, Google or YouTube for free (you only need to have broadband). In addition, there is easy access through many devices like the computer, Xbox, iPad, etc with a wide range of content. We know this is appealing to consumers since Netflix recently grew to almost 28 million subscribers[1].
For the past few years Netflix, Amazon and HuluPlus have provided old shows, almost like a library service. This year Netflix shook up its programming strategy when it released original content “House of Cards”. They did what no distributor or programmer has done before: presenting an entire television series “House of Cards” to subscribers upfront. The viewer can than choose to watch the show all at once or at their own pace instead of once a week. In some ways, this strategy makes Netflix a competitor to HBO and cable channels. It also has blurred the lines as to what kind of company Netflix is: a distributor or original programmer? Further following a similar lead, Amazon is now promoting that they have exclusive content that you can only find and watch on Amazon[2].
Apple’s release of the Apple TV has further blurred the lines of traditional distribution; offering the perks of online streaming and TV together. Further Hulu Plus and other services are offered on the Apple TV [3]. These advancements have changed how the media works and how television content is distributed to consumers. Netflix offering original content, the Apple TV, Hulu Plus and Amazon’s exclusive content offerings shows how fast things are transforming in the distribution and video content business
TV Programming Distribution Strategies
Broadcast and cable networks, to stay competitive, have been dabbing into online streaming, tablet apps, and phone applications. Most cable networks do their best to offer applications that distribute some recent episodes, behind the scenes clips, best of clips, etc. However cable networks tend to limit the amount of long-form content because the distributors they partner with would not pay them as high of a sub fee for their programming. A critical part of the business model for cable programming services is maintaining a strong sub fee with distributors.
Cable channels like A&E, Discovery, History, Lifetime and many others have iPad applications. Disney offers “Watch” to stream ESPN and Disney Channel to computers and other devices [4]. Recently on the broadcast side, broadcasters have been making more content available on their websites and through services like Hulu. Since broadcast don’t rely on sub fees they have been much more aggressive in moving their content to other platforms than cable. And just this month ABC and CBS both came out with tablet applications to stream their television series.
Conclusion
Distributors have been and must adapt to new technologies, platforms and consumer demands. Despite the buzz that cable and broadcast are “dying mediums,” the Neilson graph below shows that while online viewership is increasing, people are still consuming a large percent of content on the TV set[5].
The real measure of the success of TV distributors will be how well their offerings satisfy consumer interests in viewing content how and when they want too. If the traditional distributors don’t provide it, new companies like Netflix and Apple will meet that demand.
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.
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/
Comcast successfully released Xfinity on demand and struck deals with cable networks, broadcasters, and pay TV to stream their content online for Comcast subscribers. Applications like TV Everywhere are being released by a multitude of distributors, allowing consumers to stream their carried programming on any tablet, phone or computer. Time Warner now has 
![[15]](https://bejone03.expressions.syr.edu/trf594/files/2013/04/watchespn-e1344529462661.jpg)
