TV Programming Test #3 Timmer

Streaming VOD Stats

•2020: Americans subscribe to an average of 3 streaming services •2017: about half subscribed to only 1 streaming service •Cordcutting •2018: US consumers pay an estimated $2 billion/month on SVOD services •Estimated to have gone up by $1 billion/month during the pandemic

Cable Revenue Sources

•Advertising -not all carry advertising but most do •Carriage/affiliate fees (license fees) -per subscriber monthly fees -paid by operators •Dual revenue stream -broadcasters very jealous of this because for a long time their only revenue stream was ads) now have retransmission consent fees) -very advantageous to cable

RIP Cable Reading

•Basic cable networks prospered for years with their dual revenue stream: 1. Carriage/affiliate fees 2. Advertising revenue •Until recently, it was cable that drove much of the entertainment industry's bottom line •Cable networks made big money for media conglomerates •This led them to expand their portfolios of channels •Cable networks started out airing cheap programming in the 1980s •Grew and stole more viewers away from broadcast, they were able to pay top dollar for movie packages and off-network broadcast shows -larger audiences and revenue than broadcast -started off with cheap and low risk shows •With the further success this popular programming provided them, cable networks were able to invest in pricey sports rights and original series •This in turn allowed them to increase their carriage/affiliate fees and advertising revenue -programs worth more = charge more -circular process •Netflix began providing cable networks an additional revenue stream by licensing cable networks' original programming -Netflix originally has only off-network shows -producers liked getting $ from Netflix instantly -also didn't need to make 5 seasons necessarily •Some networks further benefited from the Netflix bump, turning their shows into bigger hits •But viewers began thinking of those shows as Netflix shows •Netflix began investing billions to crank out its own original programming •Meanwhile, cord-cutting began to increase •The number of pay-TV households peaked in 2010 at 105 million •Now it's down to approximately 82.9 million and it's expected to continue to drop •Most general entertainment cable networks have suffered double-digit drops in ratings in recent years •Young viewers, and kids in particular, don't think in terms of channels anymore •Linear ratings for Nickelodeon, Disney Channel and Cartoon Network have dropped sharply in recent years •Viewers still watch those networks' shows, but on streaming platforms •These young viewers seem unlikely to grow up to be cable subscribers or stick with linear tv •Conglomerates now are investing less in their cable networks •They are instead focusing on their still-healthy intellectual properties and the brands behind them -ex. Disney and Star Wars -trying to leverage this and make new worlds and content from it •Companies want to maintain their successful brands in the streaming world, and be seen as content creators rather than just networks -ex. extending brands into the streaming world (Disney and Disney+) •Cable networks are changing their programming strategies -Networks more frequently air marathons of programs that successfully continue to attract audiences -Many networks have been reducing or eliminating investments in high cost, high quality scripted originals -A lot of basic cable networks are going back to the strategies networks started with in the 1980s, relying on lower-cost programming, including unscripted programming •Cable networks are also seeking to define their niche •Now more than ever, it's important for cable networks to have a distinct brand •There's a sizable portion of the audience that will hold on to cable because they still see it as a utility -generally older people •Some pundits believe that cable penetration will bottom out at around 30 million households -still a business, but no longer one with enough reach to justify pricey expenditures like sports •Eventually, the conglomerates with sports rights will either have to include a streaming component -adding NBA to HBO Max or NFL to Disney Plus -or risk losing exclusivity as major leagues look to sell those streaming rights to a third party such as Google or Facebook

Broadcast Program Model

•Broadcast network series seasons have traditionally been 22-26 episodes -26 is 1/2 the year -have recently declined to be closer to 20 -goal is to have the longest running series -100s of episodes •Broadcast network program constraints: -Must leave time for commercials/promos (1 hour show, 40 mins of content) -Particular number of acts and act breaks (affects structure an writing, need hooks at ad breaks) -Standards and practices (can't air anything that will get the network in trouble and nothing controversial that will alienate the audience) -Typically aimed at a broad audience (must fit show into a certain mold)

Pay/Premium Cable Programming

•Build themselves on recent theatrical releases -try to get films earlier •Output deals -have with different studios -if HBO has an output deal with Warner Bros --> all released theatrical films will air on HBO -happens on TV too (CW and Netflix) -provides stability for the studios (get paid) and cable (know they have movie content coming) -deals require minimals for theatrical release -HBO pays based on box office revenues and how well it did in theaters •Increasing original programming -as they got more money they can invest in this

CW-Netflix Deal

•CW made an exclusive deal with Netflix in 2011 -would play all of its series there -full seasons initially available when the next season's premier aired -deal renewed in 2016 -series now available 8 days after the season finale -Netflix agreed to pay for each new season of the Supernatural -value of the show increases each new season -Netflix paid a lot to the CW for each episode they produced -original deal worth $1billion •Provided The CW some financial stability and revenue for its shows from day 1 •Allowed some shows to go straight to series •Netflix bump for Riverdale: 60% increase in live viewership from season 1 to season 2 •The CW could still make cable/broadcast syndication deals -Netflix only has the streaming rights exclusively •The CW declined to renew the deal in 2019 •New seasons of shows on the air as of 2019 will continue to appear on Netflix

Original Series on Cable

•Cable (and streaming services) can provide more freedom for program producers •Don't face the same structural and content restraints -some can have a timeline but others can have no length and episode requirement (specially on streaming) •Can be expensive and more risky than off-network programming •Reward: having promotable content that can't be seen anywhere else •Can bring attention/buzz to a network •Signature programs contribute to brand identity •Have invested more in original programming recently

HBO Max IP and Original Programming

•DC Comics: Doom Patrol, Green Lantern, DC Superhero High, Justice League Dark, Titans •Sesame Street: The Not-Too-Late Show with Elmo •Others: Gossip Girl, Pretty Little Liars: Original Sin •Based on movies: The Griswold

AMC-Universal Deal Impacts

•Even though Universal, under this new agreement, could theoretically debut the next "Jurassic World" or "Fast & Furious" installments on premium on-demand with 17 days of their debut, they will likely have longer exclusive runs in cinemas •Instead, the studio has the option to capitalize on its new freedom with mid-budget fare, comedies, and horror movies that might not have as robust runs in cinemas •But if smaller movies perform better than expected on the big screen, Universal can wait to put it digital rental services •The formal terms of the Uni-AMC deal limited this agreement strictly to PVOD — meaning streaming video providers are still shut out, even if its own originals are hopeful for physical screens •Netflix has tried and failed to force theaters to show its films on their screens, even carving out exclusive windows for films such as "The Irishman" and "Marriage Story" that dwarf the 17-day window Universal now enjoys •In the past, AMC has refused to show Netflix releases, arguing that the films debut on the streaming platform too early •With many major studios shifting their releases into 2021 and beyond, Netflix could be invaluable to AMC and other theaters struggling to reopen •Other theater chains are likely to feel pressure to sign similar pacts and other studios are likely to insist that AMC and other theaters allow them to release their films in the home earlier •The exhibition industry is struggling to attract audiences with studios pushing the releases of their major films back and audiences reluctant to return to theaters •They need "Jurassic World: Dominion" and "F9" to pack their multiplexes even if it means accepting that the next "Purge" movie may debut in the home within a few weeks of it hitting the big screen •Movie theater owners also could use some fresh revenue streams •By giving Universal the green light, they will receive a cut of its premium video on-demand sales •In the long run, this could be disastrous for theaters •If moviegoers decide it's a better deal to skip theaters and wait a few weeks to pay a steep rental fee, that could take a big bite out of box office revenues •Hollywood has made a point of backing comic book adaptations and franchise fare because it claims that the economics of the theatrical business are so brutal, they don't reward creative risk-taking •The excuse from Hollywood has been that it's too hard to build word-of-mouth for movies that are edgier or more challenging to market •Since it routinely costs tens of millions of dollars to advertise and distribute movies, it's hard to make a profit on anything that doesn't have a huge opening weekend •AMC and Universal's deal would theoretically alleviate some of those pressures, enabling the studio to find alternate ways of earn money on a film that's failing to catch fire at the box office

Netflix Release Model

•Netflix doesn't make pilots •Almost every project it buys is purchased with the intention of going straight to series (10-13 episodes) -committing to a full show has more financial risk •Management says there's no such thing as a "Netflix show" •Shows do not need to fit a particular brand, as with many networks •Says its brand is personalization

House of Cards

•First Netflix original series •Data-driven decision. Netflix knew: -A lot of users watched the David Fincher directed movie The Social Network from beginning to end -The British version of House of Cards on its platform was a hit on the service -Those who watched the British version House of Cards also watched Kevin Spacey films and/or films directed by David Finch •In 2011 Netflix outbid HBO and AMC for the rights for a U.S. version of House of Cards •Straight to Series: Netflix commissioned two seasons of the show of 13 episodes each without first shooting a pilot •Total cost of over $100 million •According to Netflix, House of Cards was the most streamed piece of content in the United States and 40 additional countries at the height of its success •Within three months of introducing House of Cards, Netflix added 2 million subscribers in the US and 1 million international

Niche Streaming Services

•Focus on a specific type of content for a specific audience •ESPN+: Sports •BritBox (British programming), BroadwayHD, PureFlix (Christian programming) •Can be SVOD, AVOD, or hybrid •May try to serve neglected/underserved audience •Limited customer base •Limits potential revenues and ability to pay for content •May find themselves absorbed by larger general services: •DC Universe, Crunchyroll (anime and manga) and HBO

Reading: Your Favorite Sitcoms and Dramas Are Leaving TV For Good

•For the first time in at least a decade, the number of new scripted shows released in the U.S. will decline -due to Covid -some will be permanent -we may be leaving the peak TV Era •Cable networks increased their output of scripted shows from 30 in 2002 to more than 180 by 2017 -didn't have many original shows prior tp 2000 •This strategy made sense when pay-TV subscriptions were growing -made more money for affiliate fees -made more money selling ads •Networks could re-invest carriage/affiliate fees and advertising revenues into shows that boosted their prestige •This original programming helped networks secure carriage by cable operators •But cable networks are now losing customers and TV advertising is slipping -cord cutting -less revenue -smaller audiences with less valuable ads and lower affiliate fees -Covid economy •Cable networks are cutting back on scripted shows •Many networks have stopped making original scripted programming •Conglomerates are more focused on investing in programming for their streaming services •Falling ratings mean the broadcast networks have to be more strategic about spending, especially with the double-digit drop in TV advertising this year •The cost of sports is soaring, and that remains the top priority •To fill the rest of the prime-time hours, unscripted is cheaper and easier to produce (especially during a pandemic) -lots of reality, dating, and game shows -showing theatrical movies -imported series •The overall volume of new TV will still grow because of investment in new streaming services -will still need to add programming •How much of that investment goes to scripted programs remains to be seen •What does this mean for the viewer? -A bifurcated world where all of your live sports and news are on cable, and all your dramas and comedies are on streaming •This trend was accelerated by Covid but was not started by it

AMC-Universal Deal Background

•For years, Universal and other studios have pushed to shrink the window between a film's theatrical release and its debut on home entertainment •Traditionally, that frame of exclusivity has lasted for 90 days -theater owners have maintained is critical to prevent customers from skipping movie theaters and waiting until a film is available to watch at home •But studios have argued that movies make most of their box office revenues in the first few weeks of release and waiting three months to debut films on-demand and across other platforms requires them to spend more money to advertise them and re-familiarize the public

Importance of Off-Network Programming

•Historical importance to new program services, helping to get them established •Important to the ecosystem •Independent TV stations and PTAR -1970s -most markets have 3 stations of 3 broadcast networks -large markets supported a 4th independent station -no network supplying them, had to program -FCC passed the Primetime Access Rule --> said that the big 3 affiliates in the top markets could not air off-network syndicated programming in the access hour (this is the hour leading into prime-time, the next biggest hour other than the prime-time block) -independent networks were struggling -broadcast networks were outbidding them for content -FCC allowed the independent stations to get the rights, attract audiences, and grow •Happens to the early cable networks as well -pricey shows but worth it to grow with attractive programs •Streaming services do this too -Netflix had nothing to start with

Traditional Backend: Deficit Financing

•Historically, what networks have done is pay a portion of those production costs, with the production company paying for the rest: deficit financing •In a traditional TV series licensing deal, the network airing the first run of the show pays a fee of only 60 to 70 percent of the show's production cost •The idea is that shows will be syndicated and sold internationally, allowing producers to recoup their deficit and make a profit •Profit participants can see paydays of tens of millions of dollars if the show is a big hit, from off-network, streaming and international sales, starting 4-5 years into the show's run •100 episodes, or 4-5 seasons are typically required for shows to have a profitable backend •In all of broadcast television in the last four years, maybe five shows that will hit a backend period: Young Sheldon, The Good Doctor, Black-ish, This Is Us and potentially 9-1-1 •However, the syndication success of one or two shows could bankroll 35 other productions

Major Affiliated Streaming Services

•Hulu (Walt Disney Company) •Disney+ (Walt Disney Company) •HBO Max (AT&T/WarnerMedia) •Peacock (Comcast/NBCUniversal) •CBS All Access (ViacomCBS) •All (but Disney+ perhaps) are general entertainment services

Cable Scheduling Strategies

•In addition to all the broadcast strategies: •Blocking - airing shows with similar appeal •Marathons - episodes of a single series all day, back to back -the cable equivalent of binging -can often do better than regular programing -can help promote your network and associate it with that show •Repeat showings: same thing over and over again -popular movie -a show's episode -can allow cume to be sold to advertisers for the same slot on all of these shows (base price on all) -cable has more room to fill than broadcast

Deficit Financing for Network Programming

•In its original network run •Network pays for limited rights to air the show •The studio continues to own the show -pay a license fee to air the show •Network licensing fee covers only a portion of production costs to make the show -Ex. Friends = $3million per episode, only paid $2million to air it -make up for the rest in selling advertising •Studio can incur a deficit of millions of dollars per season •Studio hopes to recoup deficit (and more) in off-network syndication •Off-net programs often stripped (air at the same time M-F) •Need about 100 episodes (4-5 seasons) to be successful -20 episodes per month -need a lot to keep the ratings up -not every show makes it to this -studio needs 1 big hit like Friends in order to make up for losses from other shows •Other revenue sources for the studio: home entertainment, international, streaming service deals (more instant) -streaming services can go on instantly and make money

Netflix Originals

•Increasing focus on producing original content •House of Cards was its first in 2013 •Has produced more than 1500 original titles since 2013 •Expected to spend $17 billion in 2020 •Spent $12 billion on original content in 2018, up to $14.6 billion in 2019 •Compare 2019: Amazon Prime, Apple TV+ about $6 billion each, HBO Max about $3.5 billion, Hulu about $3 billion, Disney+ about $2.5 billion •Netflix has high levels of debt --> hopes to make up for it in new subscriptions (US market is tapped) •Originals strategy is to have some content monthly for everyone •Not all content needs to be a big hit •Original program spending is motivated by economics of owning shows rather than licensing them from studios -May be difficult to license content from Big 4 and others with services becoming more competitive with them -Strategy also in anticipation of media companies moving to hold their programs for their own streaming services •Netflix has been signing big-money production deals with top TV producers •Greater creative freedom attractive to content creators that broadcast and cable are unable to give •Efforts to ramp up production of original films •Bought interest in small theater chain to enable films to qualify for Oscar nominations

Netflix Binging

•Largely credited with "binge-watching" phenomenon •Netflix invented the idea of binge-releasing: dropping full seasons at once rather than an episode a week as had been done since the beginning of television

Theatrical Films on Cable

•Many cable networks tend to air films •Windows: the different markets to release a theatrical film -PVOD/VOD, premium cable, ad-supported cable/broadcast networks •Cable networks have replaced broadcast networks as primary buyers -showing movies is more rare for broadcast now •Can more easily draw large audiences -more familiar content than originals •Can be shown multiple times -even in a row •Premium networks usually get rights first then advertiser-supported cable networks

History of Streaming Television

•Mid-2000s: TV programs become available via the Internet •2005: iTunes begins offering TV programs for download for a fee •2005: Video-sharing site YouTube launches, allowing users to share illegally posted television programs, among other videos •A few years later, TV networks create websites where programs could be streamed online •2007: Netflix begins providing streaming content •2008: Hulu, owned by NBC and Fox, launches •2008: Apps for mobile devices become available that allow viewing of content on mobile devices •End of the decade vs the beginning: lots of different options to watch

Direct to Consumer (DTC) SVOD Services

•Model refined by Netflix, which has had great success and revolutionized television with it •Services have a direct connection to subscribers, providing them with data on viewing habits not available with linear television •Other entertainment companies have started their own DTC services •To compete, these companies need to invest billions of dollars in high-end content •While at the same time forgoing much if not all of the traditional licensing revenue that they would have commanded by selling rights to third-party networks and distributors •Likely to hasten the pace of cord cutting •Could put pressure on carriage fees for channels that may no longer be first in line for the hottest properties coming from their parent studios

Niche/Theme Networks

•More narrowly targeted •Appeal to specific audience segments •Usually have a single program type or theme OR •Target a defined demographic with a mix of program types -Ex. Sci-fy network is all sci-fi content, food network is all cooking, cartoon networks is all cartoons (content based) -Freeform, TLC, Lifetime, Nickelodeon) are all audience based •Pros: -Can provide better targeted advertising •Some are subscription based -May appeal to group willing to pay for programming -Ex. golf network

Streaming/Online Programming

•Most modern form of programming •Differences v. broadcast/cable: -Viewer receives a single transmission just for them --> no one else in the area watching the exact same thing at the same time -Absence of a prestructured schedule of programs -Viewed on TVs, computers, phones, or tablets --> no longer tied to the living room -Requires good connection speeds, sufficient bandwith to transmit huge amounts of data -Lacks geographic restrictions and fixed channel capacity --> compared to broadcast and cable that: *have limits on number of channels *franchises that limit area *limit on how much programming they can offer -No license or franchise needed for streaming, very little regulation *No FCC *Only regulations are with the equipment/internet service providers, not the streaming services themselves •Sometimes called Over-the-Top/OTT programming

Major Unaffiliated Streaming Services

•Netflix •Amazon Prime •Apple TV+

Netflix's Use of Data

•Netflix collects data from their 150 million-plus subscribers and creates detailed profiles of them, based on things such as: -The time and date a user watched a show -the device used -If the show was paused -Does the viewer resume watching after pausing -Do people finish an entire TV show or not -How long does it take for a user to finish a show -Screenshots of scenes people might have viewed repeatedly -The rating content is given -The number of searches and what is searched for -Time of the day and week in which content was watched and how it influences the kind of content watched •Other companies very jealous of this •broadcast/cable relies on Nielsen, not the most accurate •Netflix's data is precise •Netflix uses its recommendation algorithm to suggest TV shows and movies based on user's preferences -meant to keep subscribers engaged with the service for hours and hours •According to Netflix, over 75% of viewer activity is based off personalized recommendations •When Netflix adds more content, it lures new subscribers and gets existing ones to watch more hours of Netflix •As they spend more time watching, the company can collect more data on their viewing habits, allowing it to refine its decisions about future programming •Growth begets more growth begets more growth •Netflix uses its big data and analytics tools to decide if they want to greenlight original content •House of Cards •Netflix doesn't typically share its data with its program creators •Netflix looks at which shows new subscribers watch first •It lets them know if a show is driving people to sign up for Netflix

Netflix Taste Communities

•Netflix doesn't group members by traditional demographic categories •Subscribers are divided into "taste communities" (or clusters) based solely on past viewing behavior •There are some 2,000 taste communities •Netflix keeps the specifics secret, saying its valuable like the formula for Coke •Users can belong to multiple communities •Netflix uses these taste communities to drive viewers to programming it estimates they might want to watch •Those shows are featured prominently on users' home screen

Netflix Season Length

•Netflix has reportedly switched from the initial (and traditional) 13-episode seasons to seasons of 10 episodes or less •Reportedly, the shorter seasons are considered optimal for consumption, and any additional episodes beyond 10 a season do not add value, so they are an unnecessary expense for the service •The same reasoning supports there being fewer seasons of many shows •As an asset, having 30 episodes of a series (three seasons) is considered enough to satisfy viewers discovering the show •Tacking on more episodes or seasons often does not add significant value

House of Cards Marketing

•Netflix made 10 different cuts of the trailer for House of Cards, each geared toward different audiences •The trailer you saw was based on your previous viewing behavior •If you watched a lot of Kevin Spacey films, you saw a trailer featuring him •Those who watched a lot of movies starring females saw a trailer featuring the women in the show •And David Fincher fans saw a trailer emphasizing his role •Netflix did not have to spend too much time and resources on marketing the show because they already knew how many people would be interested in it and what would incentivize them to tune in

Netflix Cost-Plus Model

•Netflix's cost-plus model bypasses backend altogether as the platform takes on all worldwide rights exclusively •It involves the streaming platform effectively "buying out" a series backend at the outset, in exchange for paying a full license fee plus a premium (typically in the 125%-130% range) •It allows studios to start making profit from Day 1 vs. incurring deficits for years under the traditional broadcast/cable model •Netflix pays creators for the cost of production and adds a negotiated profit payment on top of it starting with the very first episode, but creators give up the rights to any backend revenue •Netflix commissions an entire season of a show at once •Netflix employs a cost-plus model, which means that it pays a show's entire production costs, plus a 30-40% premium on top •Producers get more bonuses and pay bumps the longer a series carries on •These premiums/bonuses increase modestly from season 1 to season 2 and season 2 to season 3 •They start to increase much more significantly after season 3, sometimes from hundreds of thousands to millions of dollars, and continue to increase from there •As a result, shows get more expensive for Netflix the longer they go on •This may be a reason why Netflix seems to be canceling many shows after 2-3 seasons •Financially, it makes more sense for Netflix to commission a new show than to renew an underperforming show which is only going to get more expensive the longer the series goes on •Netflix's deal structure, which comes during contract talks with production companies, make it very hard for TV networks to compete •Netflix offers way more money up front than networks usually do •But in exchange for the upfront payments, outside studios give up the potential upside that normally comes up with owning a long-running successful series, including off-network and international sales •That means the creators sign away most of their future revenue opportunities, which can mean tens of millions of dollars on the most successful show •For a lot of creators, the Netflix deal is great because they get much closer to full budget to make their shows •On top of that, Netflix has a reputation for being hands-off because it has fewer advertiser demands, and the company is known for treating show creators well •Show creators get to make the show they want with less up-front risk, even if that means a lower payday in the future •Bottom line, if you're swinging for the fences and want the biggest possible payday in success, that would be a broadcast or cable hit that sells into syndication and international •But if you want to take less risk, have more creative freedom and still make a nice payday, then the streaming service deals are very attractive •Netflix didn't create the cost-plus model •HBO has used similar models in the past for its programming •Amazon Studios is believed to have been the first company to introduce a per-point model for its shows a couple of years ago •But Netflix has popularized it

Cable Network Basics

•Networks are exclusively carried on cable or satellite which is different than broadcast •License existing shows -this is off-network syndication -very popular •Commission original programming -however this is not required •Package programming and advertising •Deliver to MVPDs that carry it -the biggest task/goal is to convince MVPDs to carry you -want to be carried on as many as possible -want to reach the entire country -competing for tier/channel placement •Support with advertising and promotion

Netflix Series Longevity

•Not many Netflix series have gone past 3 seasons •House of Cards, Orange Is the New Black, Grace and Frankie, The Crown have had long Netflix runs of six seasons •The first two were the first originals that put Netflix on the map and generated awards buzz throughout their runs •The shorter runs may be spreading to other platforms, where shows also are ending relatively quickly •Amazon is ending its flagship drama The Man in the High Castle after four seasons •Only two original series on Amazon or Hulu — Amazon's Transparent, which put that service on the map, and police procedural Bosch — have gone beyond four seasons, with the majority of shows canceled after two or three seasons

Transactional VOD

•Pay based on how much content you watch •Typically renting/buying individual titles •Two subcategories: DTR and EST •DTR, or download to rent: viewers can watch content for a specific period of time for a fee •EST, or electronic sell-through: a customer pays a higher fee to have permanent access to the content •Renting v. buying content •Examples: Apple's iTunes, Google Play, some Amazon content •Tends to offer more recent releases

Supernatural Screening

•Premiered on The WB in 2005, moved to The CW in 2006 •Was supposed to conclude in May •Monster of the week formula •With longer story arcs, often drawing on Christian mythology, with angels and demons as characters •Episodes have a mixture of tones/style Scooby Natural: •Warner Bros. owns the rights to both Supernatural and Scooby-Doo •Studio saw the value in bringing the two together •Otherwise would have been copyright infringement •Option: Parody •Could use enough of Scooby-Doo to "conjure up the original

What works best for Off-Network Syndication

•Procedurals and sitcoms have done best -Ex. Law and Order -audience doesn't have to commit •Serialized shows typically don't do well in syndication -M-F everyday -hard to attract the audience everyday - do well on streaming services -all available to watch anytime

Off-Network Syndication

•Program originally aired on a broadcast network in primetime (Or cable network = off-cable) •Licensing the right to air reruns •May air simultaneously with new episodes on broadcast network or after the show concludes its run -only previous seasons get syndicated -newer episodes will still air on broadcast •Reduced risk for station -getting a show with a track record -well-liked -know the demographics of the target audience -know the ratings

Pay/Premium Cable

•Provide commercial-free premium programming for an additional fee -not a part of a tier -separate subscription fee (split between the network and the cable operator (cable operator gets 40-50%)) •Ex. HBO, Showtime, Starz, Cinemax •Cable will try to get you to subscribe •Splinter networks/multiplex channels -different variations of the channel -Ex. HBO Family, HBO Latino, HBO Comedy -try to keep you •Try to attract largest cumulative audience over a month -not interested in ratings (no ads) •Try to limit churn -biggest problem because there is lots of it •Minipay services: provide older content for lower fee -still no commercials -not as premium of content

Ad Supported VOD

•Provides consumers free-to-access content in exchange for viewing ads •Tends to be shorter in length and less often premium •Though there are lots of exceptions •YouTube, Peacock •May offer version without ads for payment

Categories of Streaming Programming

•Repurposed content: traditional TV programs: -library/licensed content -Recent or older -Was important for new services to attract/retain subscribers -Select titles becoming important to help differentiate services •Original content: produced specifically for online distribution -Helps establish/differentiate services

Pay/Premium Cable Scheduling Strategies

•Rotation -refers to premium able channels resting the same content on the service •Repeat showings - strategy to maximize the audience potential; air something multiple times; hope they see the 2nd or 3rd viewing if they miss the first; maximize the audience •Premieres - things that are new to the service; movies, series, episodes; new content •Carryovers - things from the previous month that are repeated in the following one •Encores - content that is brought back to the service that 1st aired it; aired before the past month •Wide variety of content •Multiple chances to see that content

General Entertainment Cable Networks

•Similarities to Big Four broadcast networks •Mix of rerun and original programming •Covers some live sports •Airs some theatrical and original films •Sells advertising •Main difference from broadcast: does not offer news •Ex. TNT, TBS, USA, FX

Disney+ IP and Original Programming

•Star Wars series: The Mandalorian, Obi-Wan Kenobi series and others in the works •Marvel: The Falcon and the Winter Soldier, WandaVision, Loki, Hawkeye, others in the works •High School Musical: High School Musical: The Musical: The Series •Series based on films: The Mighty Ducks, Turner & Hooch, National Treasure, Percy Jackson & the Olympians, others

Original Programming and IP

•Streaming services have relied on existing IP for some of their original programming •Netflix: -Disney's Marvel series (Daredevil, Jessica Jones, Luke Cage, etc.) -Revivals: Gilmore Girls (Warner Bros.), Fuller House (Warner Bros.), Arrested Development (FOX) •But, studios now focusing on developing their own IP as series for their affiliated streaming services •World/universe building

Subscription VOD

•Subscribers can watch as much content as they want in exchange for a recurring fee, typically monthly and/or annually •Model that has come to dominate v. transactional •Netflix, Disney+, HBO Max •Can have hybrid AVOD/SVOD services: Hulu •Churn a major issue for subscription services

The Haunting of Hill House and Anthology Series

•The Haunting of Hill House is an anthology series available on Netflix •Anthologies have been on TV since its earliest days - 1950s -called the Golden Age of TV -had critically acclaimed and well-known talent •present a different story, in a different setting, with a different set of characters each episode •cast members may appear in multiple episodes as different characters •largely but not completely disappeared from tv for decades •advantages of episodic series contributed to this -easier to attract audiences, write and produce •networks could air failed summer pilots as an anthology series •recent trend: anthology series with a different story and a different set of characters in each season -Ex. The Haunting, American Horror Story •can explore a story more fully than a 2 hour movie •since it wraps up by the end of the season: stakes are higher for characters, can be killed off or changed dramatically •can attract talent to television that wouldn't want the long-term commitment to television of a traditional series •the show's quality and brand name can bring back fans for new seasons -if you like 1 season or episode hopefully you will like the rest •perfect for bring watching

Off-Network Programs on Cable

•This is an important part •Offerings in primetime and other parts of the day •Cable networks compete for popular off-network programs •More easily attract large audience with well-known shows •Off-network hits can be pricey

CBS All Access and Original Programming

•To be rebranded Paramount Plus in early 2021 •Star Trek series: Star Trek: Discovery, Star Trek: Picard, Star Trek: Lower Decks, Star Trek: Strange New Worlds •Based on movies: Grease: Rise of the Pink Ladies •The Good Wife: The Good Fight

The CW

•Took the most popular WB and UPN shows to create the CW •First CW show original --> Gossip Girl •Show Supernatural supposed to end in May but delayed into the Fall from Covid -Some stand alone episodes and some longer story arcs with continuing storylines •Linear ratings for original episodes often low, although solid by CW standards •CW strategy is to make its shows available on digital platforms (good for targeting younger audiences)

AMC-Universal Deal Terms

•Universal Pictures and AMC Theatres have signed a multi-year agreement that will allow the studio's films to premiere on premium video on-demand within three weeks of their theatrical debuts •The deal substantially shrinks the amount of time during which films can only show on the big screen in AMC's venues •The arrival of this moment had been threatened for decades •Now, Universal will have the option to put its movies on digital rentalservices after they have played in theaters for 17 days •Universal only has the ability to put its movies on premium on-demand, meaning the rentals that go for roughly $20 a pop •It cannot sell films or rent them for lower on-demand fees, in the $3 to $6 range, until three months after they debut in cinemas •AMC will share in these new revenue streams, which means that it will get a cut of any money made on these digital rentals

Netflix Verticles

•Verticals are the way Netflix executives think about what kinds of content to buy or make •"Verticals" are super-specific genres of film and television, such as young-adult comedies, period romances, or sci-fi adventures •Verticals allow Netflix to see in which areas it has many programs and in which areas it may want to add programs

Netflix Renewal and Cancellation Decisions

•When gauging a show's performance, Netflix will consider how big its audience is and whether the show is cost-effective •Netflix renewal/cancelation decisions are "based on a viewership versus cost of renewal review process, which determines whether the cost of producing another season of a show is proportionate to the number of viewers that the show receives." •In making this determination, Netflix looks at two viewership data points within 1. the first seven days and 2. the first 28 days of a show being available on the service •Within these time frames, Netflix looks at: -Starters: households who watch just one episode of a series -Completers/Completion: subscribers who finish an entire season •The bulk of Netflix's decision-making is based on data from the first month of the show's season's availability on the service •The number of Completers who watch an entire of a season within the first 28 days of it being on the service is one of the most important metrics used to decide renew •Netflix is known for giving writers and producers creative freedom and has been relatively patient, picking up a significant portion of its freshman series for a second season, giving them time to find their legs •But as the shows' prices start going up, the network tightens its renewal criteria •If a show hasn't grown significantly in popularity over seasons two or three, then Netflix thinks that it's unlikely to gain any new viewers •Other factors: -Strong reviews from critics, such as for One Day at a Time, can seemingly get a show a second-season renewal at Netflix, but rarely a third -Awards recognition can also help, because that is thought to help drive subscriptions -Netflix seeks to ensure that its series will remain Netflix exclusives even after their cancellation -Netflix's deals with producers typically prevent them from taking a cancelled series to another programming service for 2-3 years, making a continuation on another network/platform virtually impossible