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· – about 60 companies, Sinclair owns x number and those stations they own they can affiliate their stations with any network
· – one group can own as many stations as it wants as long as it doesn’t exceed 39% of the population
· Broadcasters have two customers -- the audience and the advertiser. Make, buy, or license programming to attract audience. Ad rates are determined by a program’s rating and share. Where an advertisement is placed is based on the audience demographic and psychographic
· broadband companies offering video, telephone and internet
· Retransmission fees- broadcasters and cable companies, the broadcasters want cable companies to pay them for their
· People pay the cable companies a monthly fee, Comcast has 20 million subscribers. Every month they send a check 85 million dollars to Walt Disney for being able to carry ESPN on their network. Comcast doesn’t pay ABC because they are a broadcaster
· Disney, Warner Bros., Universal, Fox, Paramount, Sony)
· United Artists, Carmike, AMC, Regal, General Cinema, Hoyts)
· conversions , seeing a film from actual film and the new digital equipment we now view movies in. don’t mess with films anymore.
one thing that makes the cascade begin
· release date, budget, director
uncontrollable: economy, what people think, overall mood
· There are about 13,000 radio stations across the US.
· About 9,000 FM, 4,000 AM
relaxed media ownership laws, allowing individuals to own more radio stations (as many as eight in a large market and an unlimited amount nation wide.). This allowed big companies to come in and buy out local minority station owners. (A wave of consolidation)
o satellite was projecting high numbers until the ipod
o two main XMradio and Sirius both were niche oriented
o internet has got Pandora and doing fairly well but it takes a lot of money because they pay the Copyright Royalty Board to stream music
o 1. FM Chip debate. NAB wants congress to pass a law requiting all US cell phones to have a FM radio chip.Obviously, cell phone makers do not what this to happen. 2. Internet has created internet radio stations. Online stations do not use public airwaves and therefore are not under programming restrictions. However, they do have to pay a performance fee to recording companies for the songs they play.
Three reasons radio burst out on the scene in the 20s
o Enthusiastic hobbyists
o Improvements in the war gave better radio reception and better range
o Big businesses realized that broadcasting might make money
· The Free Enterprise System has these characteristics:
o Private and Public Ownership
o Operates under the Law of Supply and Demand
o Features the Free and Open Market
o Driven by The Profit Motive
o Encourages Competition (and sometimes cooperation)
· in theory, there is a limitless demand for products and services, but limitations on the resources to supply them.
o The more the public is willing to spend for a product or service, the more resources will be used to create supply.
· you have the right to own property, either privately, or share it with others. You can control its use, you can exploit it, you can sell it and you can profit by it.
- The increase in efficiency of production as the number of goods being produced increases. · Reduce costs and greater volume – clear channel has 1200-1500 stations but only 50 disc jockeys spending less money but spreading
· the combinations of companies through mergers and acquisitions
· A conglomerate is a combination of two or more corporations engaged in entirely different businesses that fall under one corporate structure (a corporate group), usually involving a parent company and several (or many) subsidiaries. Often, a conglomerate is a multi-industry company.
· A performance measure used to evaluate the efficiency of an investment or to compare the efficiency of a number of different investments. MOST WANT 40% To calculate ROI:
· the recording company owns labels and those labels sign artists
o they acquire rights to an artist’s work often pay artist in advance against royalties
o - pays the cost of recording (producing) the work which it recovers from the artist
o pays the cost of distribution to consumers
· – Recording Industry Association of America works to protect intellectual property
· business is failing because they internet allows us to illegally download music for free
o no one buys cds anymore/ music anymore
· four ways to deal with trouble:
o denial – reject
o adapt – use it as an opportunity
o adopt – buy/become the threat
o co op – buy the company and kill it
· The music industry is an oligopoly:
o –A small number of firms control 85% of the market
o –Products are similar -- distinguished by branding and individual identity
o –One company’s actions (lowering prices) usually copied by competitors
original works of authorship:
o script works
o song writing works
o brand name
o Dramatic works
o Pictorial graphic
o Motion pictures
o Sound recordingsArchitectural works
o i) reproduction
o ii) modification
o iii) distribution
o iv) public performance
o v) public display
o studio wants
§ –Theatrical and Television rights
§ –Sequel and Remake rights
§ –Non- Theatrical rights
§ –Interactive, Music, and Home Video rights
§ –Print (other than book) and Stage rights
§ –Rights in media not yet devised
§ –Ancillary licensing rights
§ –Rights throughout the world, forever
· If after January 1 1978:
o •70 years after the author’s death.
o •Works for hire: 120 years after creation, 95 years after publication
If before 1978: copyright
95 years from the publication or registration date
· – the different sales opportunities specifically motion pictures, the first time you see a movie is the big screen, then to DVD then to pay per view then pay cable then winds up on network television and finally to syndication.
· simply television. Connected by means of wires that sends signals to ones homes
· wireless radio waves transmitted in order to reach a certain audience, simply radio
· a global network of interconnected computers
· created FCC Mandate for FCC, First order of business was to regulate radio
o apply to license with FCC, they had to approve and the FCC gave you a frequency, you have to file reports about you and public interest
· telephone companies to cable and cable companies to telephone. Ownership caps were loosed up. Reason radio isn’t local anymore. Changed cause there were more media od getting info
· financial and syndication rule 1971 not in affect anymore but the effect of it still exists. Said that if you are a broadcaster you cannot outright own the programming that you put on the air, you can only license it. What it did: it created opportunity for independent production companies to be played on networks and networks would by the rights to the show twice, once when it was on the air and 2nd time for re runs
· prime time access rule. Created to make more local programming during prime time (7:30 – 8:00 pm)
o Multicasting (important) in 2009 broadcasters had to go digital they don’t use all their spectrum space so they can now broadcast up to four signals on one spectrum space
§ Or you can have one HD channel and one normal definition
Why regulate communications?
o Allocate scarce resources
o Protect the public
o Promote competition
o defense advanced research project agency) agency that took responsibility for internet and first called it Darpanet. Was very small with foundational problems.
· Online culture that has developed. Someone will create a technology or computer program and then release it to the general public for free. The hope is that others will take it, use it, and improve it and then release it to continue the cycle. Tim Bereners Lee did this with the World Wide Web and HTML technology.
· the idea that it is a free and open source and no one should control traffic
· killin everyone and everything
o - is a high data rate connection to the Internet— typically contrasted with dial-up access using a 56 kbit/s modem. (use telephone lines)
o can connect to the Internet via a wireless network access point. An access point (or hotspot) has a range of about 20 meters (65 ft) indoors and a greater range outdoors. Multiple overlapping access points can cover large areas.
o Fiber-optic lines are strands of optically pure glass as thin as a human hair that carry digital information over long distances
· new technology or innovation that disruptsthe progress of another form of media for example the mp3 players and the ipod is disruptive innovation in the music or radio industry
· created the World Wide Web
· - Written statements of principle that guide the general behavior of those working in a profession. NAB (national association of broadcasters) created codes for programming (about news presentation, community responsibility, political broadcasting, religion, and programming aimed at children) and for advertising (which products were acceptable, rules for the presentation of broadcast ads and the time standards suggesting limits on the amount of allowable commercial time per hour.
· radio and television news directors association) has a six article code of broadcast news ethics that covers items from courtroom coverage to privacy invasions.
· – department that makes sure that their local commercials and programs don’t offend advertisers, affiliated stations and cable systems, audience members and the FCC.
· (national advertising review board) functions like court appeals. A panel is appointed to examine a case and the complaint is either upheld or dismiss. If upheld, the advertiser is asked again to discontinue the ad. If refused the case is referred to the FTC.
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