Today: 487.18.96 Commercial Television and Cable The Golden Age (1948-1960) n Glorious Black and White n VHF dominance n Network dominance n Live programming The Genre Era (1960-1970) n Cops/Robbers, Westerns, comedies n UHF becomes viable n Still network dominated n News comes into its own n Greater use of syndicated material The Era of Competition (1970-1985) n ABC reaches parity n ENG changes news n Network affiliation to 80% n Independents emerge o revenge of the "U"s o cable "must carry" regs o ad hoc networking for events o innovative programming, scheduling The Era of Consolidation (1985 to present) n all 3 networks change hands n widespread cost-cutting n rise of Fox n loss of audience to cable, indies (50%) n rise of CNN o despite impact, ratings low o more news competition The Era of New Media n Networks in new hands n financial interest, syndication rules changed (1995) n affiliates stronger than nets o can change affiliation to Fox o compensation can't be cut o affiliates want fewer netwk hrs o affiliate groups produce programs CABLE BEGINNINGS n Pennsylvania (or maybe Colorado...) n Family businesses n Pole attachment litigation Growth n Failed attempt at federal regulation n Local, state regulation instead o franchising agreements n 1965 Must Carry Rule n Syndicated Exclusivity Rule n FCC tilt toward broadcasters 1970s Changes in FCC Rules n 1969 Local Origination n 1970 Public Access n 1978 Copyright Royalty Tribunal Then came satellites n 1975 Home Box Office n Turner's UHF WTBS n Franchising competition n Multiple System Operators (MSOs) n Services multiply 1980s Bring Consolidation n Subscriber disconnects n Services change hands, fold Current Revenue Sources n Subscriber Fees (basic) n Subscriber Fees (pay services) n Advertising (national and local) n Pay Per View n Misc. (installations, guides, etc.) Today's Challenges n Poor public image-poor customer service n Lack of reliable ratings n Telco switching capacity, sheer size: major competitors n Opps: cable modems increase on-line bandwidth Today's Challenges n Based on convergence o Phones, TV, computers n Driven by technology n Start-up era characteristics: o confusion o consolidation/ partnerships o new challenges to all players The Advertiser n It should be great! o new media o targeting to consumer n BUT: video on demand n AND: fragmentation o New measurement methods essential The Advertiser: Now What? n Possibilities: o buy a cable channel o design ads so that viewers WANT them o sell the same "space" many times o new measurement methods essential