Broadcast Networks vs Cable Networks

Flashcards covering key concepts from the lecture on Broadcast Networks vs Cable Networks, including definitions and important terms.

Broadcast Networks

Television networks that transmit signals over the airwaves to provide programming to viewers without requiring a subscription.

Cable Networks

Television networks that require a subscription fee, providing programming through services such as traditional cable, satellite, or streaming.

Pay TV Penetration

The percentage of total US television homes that subscribe to a live pay television service, approximately 52% in 2024.

Subscriber Fees

Monthly fees paid to cable networks by multichannel video programming distributors (MVPDs) for each household receiving that network.

Retransmission Fees

Fees required by broadcast networks from MVPDs for permitting the retransmission of their copyrighted signals.

Must Carry Rule

An FCC rule that requires MVPDs to carry local broadcast station signals in their designated market area.

Retransmission Consent Fee

A fee that broadcasters may require from MVPDs in exchange for consent to retransmit their broadcast signals.

Monetization of Broadcast Networks

Broadcast networks historically relied on advertising for revenue, but now also earn from retransmission fees.

Formula for Profit/Loss

Net Advertising Revenue - Rights Fee - Production Costs = Profit or Loss from acquiring and telecasting a sports event.

Net Advertising Revenue

Calculated as Number of Commercial Units x Average Unit Price x 0.85 after deducting 15% ad agency commissions.