TV

Television Overview

Television is a widely used medium for communication and entertainment. It has evolved significantly over the years with the advent of various platforms and technologies.

Types of TV

  • Broadcast

    • Examples: NBC, WJAC

  • Cable

    • Examples: ESPN, Comcast

  • Satellite

    • Examples: DIRECTV

  • OTT (Over-The-Top) Streaming TV

    • Examples: Hulu + Live TV, Sling TV, YouTube TV

    • vMVPD (Virtual Multichannel Video Programming Distributor)

    • Examples: Hulu + Live TV, Sling TV, YouTube TV

  • OVD (Online Video Distributor)

    • Examples: Netflix (260 million global subscribers in 2023), Amazon, Disney+, Paramount+, Peacock

  • Note: For OTT and on-demand services, the exhibitor is the Internet Service Provider (ISP).

Top Rated TV Programs (2024-25 Season)

  • Source: Porter, R. (2025, June 6). TV Ratings: All 112 Shows That Averaged 5 Million or More Viewers in 2024-25. Hollywood Reporter.

    • This section provided insight into the most popular television shows based on viewership metrics.

Importance of Football to Broadcasting

  • Top 100 Most-Watched U.S. Broadcasts of 2024

    • Statistic: 73 out of the top 100 broadcasts were related to NFL programming.

    • Major Events:

    1. Super Bowl

    2. NFL Games

    3. Thanksgiving Parade

    4. World Series

    5. College Football

    6. Academy Awards

    7. Grammy Awards

    8. Women's College Basketball

    9. Political Programming

    10. Super Bowl Lead-Out

    11. Summer Olympics

  • Source: Sportico, Nielsen live-plus-same-day data (Jan. 1 - Dec. 31, 2024)

Commercial Broadcasting in the U.S.

  • Approximately 1700 TV stations in the U.S.

    • Divided into 210 TV Designated Market Areas (DMAs)

    • Example DMAs:

    • Johnstown/Altoona/SC is #102

    • Affiliates:

      • WATM = ABC

      • WTAJ = CBS

      • WJAC = NBC

      • WWCP = Fox

      • WPSU = PBS

  • Ownership Structure:

    • Some TV stations are owned by networks, while many are owned by station groups like Sinclair Broadcast Group that owns 193 U.S. broadcast TV stations, including in Johnstown/Altoona/SC.

  • Public Concerns:

    • Concentration of ownership raises concerns about content uniformity, especially concerning political content.

  • Example of Uniform Content: “Must run” segments broadcasted across multiple network affiliates.

Recent Developments in Broadcasting

  • Sinclair has recently been in the news related to the topics of broadcasting and content ownership.

  • They have retracted certain segments amid controversies along with Nexstar, another broadcasting station chain group.

Television Ratings

  • Definition: Ratings are a measurement of “product/feedback” in commercial television.

  • Current Measurement Standards:

    • Nielsen continues to dominate, utilizing:

    • Portable People Meters (PPM)

    • Data from smart devices

    • Data from streaming services

Advertising Rates and Economics

  • Transition to advertising rates based on audience metrics.

  • Advertising Cost Factors:

    • Audience size

    • Demographics

    • Air date

    • Consumption friendliness

    • Lack of controversies

    • Critical acclaim (not a primary factor)

  • Advertisers can negotiate based on the volume of ads purchased and product placement agreements.

Fall 2024 Primetime Network TV Advertising Costs


  • Summary of Costs for 30-Second Commercials:

    Rank

    Program

    Network

    Price


    1

    Sunday Night Football

    NBC

    $1.01M*


    2

    Monday Night Football

    ABC

    $638K


    3

    Thursday Night Football

    Amazon Prime

    $563K


    4

    American Idol

    ABC

    $132K


    5

    The Voice (Tue)

    NBC

    $126K


    6

    The Voice (Mon)

    NBC

    $118K


    7

    Survivor

    CBS

    $95K


    8

    Chicago Fire

    CBS

    $92K


    9

    Dancing with the Stars

    ABC

    $90K


    10

    Golden Bachelor

    ABC

    $87K

    • Total Media-Rights Revenue for NFL (2023-33): $111 billion.

    Determinants of Advertising Costs

    • Key Factors Influencing Costs:

      • Size of the audience

      • Demographics of viewers

      • Air date of the program

      • Content’s consumption friendliness

      • Absence of controversies surrounding the content

      • Critical acclaim plays a minor role in this calculation.

    • Negotiation: Advertisers have the ability to negotiate pricing structures based on the number of ads they are buying and product placements included in their agreements.

    Syndication and Licensing

    • Concept: - A significant aspect of television economics involves licensing Intellectual Property (IP), which refers to TV shows, to various local stations and other platforms.

    • Opportunities:

      • Allows cable/satellite networks, local stations, and streaming services to lease old shows to fill their programming gaps.

      • New shows can also be created to satisfy programming needs for local TV stations.

    • Impact Example:

      • Off-network syndication of I Love Lucy (1951-1957), has generated approximately $1 billion.

    Benefits of Syndication for Networks

    • Economic Advantages:

      • Cable networks appreciate syndicated shows for fulfilling their scheduling needs, as low ratings are acceptable due to high content utilization.

    Role of Digital TV Channels

    • Digital Transition: In 2009, local TV stations transitioned to digital broadcasting to improve bandwidth efficiency, enabling them to offer multiple channels.

    • Programming Strategy:

      • The inclusion of inexpensive syndication is key to filling these additional digital channels.

      • Channel Examples:

      • Main Digital Channel: Local News and Network Programming

      • Supplemental Digital Channels: Heavy use of off-network syndication and first-run syndication (e.g., The Tim Allen Channel).

    Case Study: Financial Success of Friends

    • Production Costs and Salaries:

      • At the show's height, NBC invested significantly in production costs reaching about $70 million in production fees and nearly $100 million for the cast across its ten-season run.

      • Initially, stars earned $22,500 per episode, escalating to $1 million per episode in its final seasons.

    • Syndication Revenue:

      • Friends has generated an estimated $4.8 billion in syndication for Warner Bros., not including additional revenue from DVD sales.

      • Cast members and creators share in the syndication profits, estimated at around $260 million for the cast and around $475 million for the creators after deducting associated costs.

    Reruns and Streaming Services

    • Netflix Strategy:

      • Their approach to seasons emphasizes freshness, significantly relying on licensed content (77% as per estimates). Breaking Bad was an early key show driving subscriptions.

    • Amazon's Strategy:

      • Maintains older content to enhance its Prime ecosystem, effectively turning viewers into customers beyond just watching.

    • Hulu and Other Streaming Platforms:

      • They benefit from content ownership by companies like Disney (Hulu, HBO Max, Disney+, Paramount+, Peacock) promoting high-profile deals that attract publicity.

    Implications of Digital Environment on TV Economics

    • The digital landscape has profoundly altered TV economics, viewing habits, and even the definition of television. Several operational dynamics such as:

      • Advertising Changes: Varied structures with new incentives

      • Storytelling Evolution: Changes influenced by new technologies

      • Copyright Challenges: Increased complexities due to technological advancements.

    Conclusion

    • The television landscape is complex and continues to evolve with technological innovations and consumer behaviors reflecting broader societal trends.