TV industry memo

TV industry memo

<TV industry in US>

MVPD: Multiple Video Provider + Distributors

FX. 1/2 Rev from sub + ads. Now part of it from original content sales. (ie. iTunes, int ch, VOD)

Writer (Prod.comp) – R&D – Manufacture (Studio) – Retail (networks)

OTT (over the top) – Subscription VOD (ie. Netflix, Amazon, Hulu)

Cable – MVPDs (cable satellite op)

Virtual MVPDs – get TV through internet (ie. Play Station Network)

Telephone MVPDs (ie. ATT, Verizon)

Broad casters (ABC, NBC, FOX, CW, KCOP, KCAL, etc) – retransmission fee from cable comp. ask for channels – right to retransmit the programming

Cable – dual revenue (commercials & content) + subs fees

Basic Cable: 34 channels (measured) in exchange broadcast networks like cable networks

Premium cable network: HBO, Showtime, etc.

Public channel: PBS, BBC network affiliated ( # indiff.cities) – pay fee to carry network signal

FX: 96 million homes (fully distr. cable networks)

FXX: 74M, FXM: 50M

Studio: production entities + distribution. own prop + sell to network. Now few indep (Lions gate, Sony). comp. Finance prod.

MFN: most favorite nations clause

Prod.comp – procluce product, sell to studio

Mostly vertically integrated in TV.

Avg cost of FX show: 2.8 million

Nerwork: 3.5 million

HBO: 4.5 million

Nerworks pay 65% of cost

int. mkt. recoup deficit

Netflix: 4B on programming

Cable: 80B

Sports are important for channels

independent studios: sony, lionsgate, shine, WB

10/90 – straight – to – series acquired format

order 10 eps. nit ratings need to pick up 90 eps @ low price

prime time 8-11pm

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