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Media Companies Are Ready to Sell. Does Anyone Want to Buy?

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Re: AM radio providing audio for (streamed) TV shows - I believe that ABC TV put the audio of some of their popular TV shows on their NYC AM radio station during dispute with an NYC cable TV company (ABC was blacked out).
And I'm sure New Yorkers will be thrilled that they would need to find an AM radio and tune in to a station only to hear bad AM audio quality and no picture. Oh, and the radio stations won't be able to sell advertising anymore while this fiasco is going on, which means no revenue.
It's a win for everyone! Actually, no one.
 
Re: AM radio providing audio for (streamed) TV shows - I believe that ABC TV put the audio of some of their popular TV shows on their NYC AM radio station during dispute with an NYC cable TV company (ABC was blacked out).


Kirk Bayne

Let's stop and look at that.

You're saying that during a cable dispute in New York City, WABC-AM pre-empted its own programming to carry audio from ABC TV shows? Would LOVE some documentation of that.
 
I thought it was pretty clever by ABC TV to use WABC AM 770 to get around the cable company blackout - IIRC, it was during the time "Who Wants to be a Millionaire" was on ABC TV.


Kirk Bayne
 
Poor Kirk is getting even more lightheaded than usual.
I used to belong to a web site with a topic "Poor Kirk". It was in the "Gilmore Girls" section.

I thought of other shows I need to watch to free up space on the DVR. "Riverdale", "Katy Keene", "The Rookie: Feds" and "Yellowstone".
 
There's a pretty distinct difference between the vision the CBC and BBC have for a streaming-dominant future and the US TV system.

The CBC operates its entire transmission system itself, and the BBC controls its entire transmission system (though the actual transmitter sites are now operated by private contractors.)

The BBC has a mandate to provide service to essentially everyone in the UK, since everyone (pretty much) pays the annual TV license fee. The CBC attempted to do the same in the analog era, but didn't have the funding to convert the entirety of its network to digital when the time came.

The US system, of course, is far more convoluted and less centralized. Local TV was lucrative enough as a business that even without any national service mandate, individual broadcasters took only about 15 years (let's say 1948 to 1963) to build out enough local stations to provide something like 98% population coverage and better than 90% land coverage.

Nearly all of those stations were still profitable enough in the late 00s that they were able to convert to ATSC 1 DTV and continue providing OTA service to well north of 95% of US pop count. (Apologies to Albin, Wyoming.)

BUT: the business model for US broadcast TV has changed dramatically in the 15 years since analog shutdown, of course. Local stations that made most of their money from network retransmission payments (money coming FROM the network TO the local stations) and from selling local ads to local businesses had to change course - now the biggest source of income to local stations is the retrans consent money they get from cable and satellite companies, while local stations pay fees TO the networks for the programming they carry.

Local news can still be something of a profit center, but the audience is shrinking and aging rapidly.

The big group operators (Nexstar, Sinclair, Gray, Scripps, etc) that own the bulk of those local stations have already done some of the things Kirk reinvented: master control operations are largely centralized at a handful of hubs around the country, and some aspects of newscasts are also centralized, whether it's statewide weather operations or national graphics production or what have you.

So why aren't all these stations going to go away any time soon? Because it's still basically a decentralized system that can't be easily unraveled to create a more nationalized one. Cable and satellite retrans dollars only go to actual broadcast stations, so the transmitters have to stay on the air in some form in each DMA or else Gray, Nexstar, Sinclair et al. (and NBC/ABC/CBS/Fox for their O&Os) can't tap into retrans revenue. Most of the expense of broadcast TV transmission is a sunk cost at this point - a LOT of towers were rebuilt or reinforced for DTV just 15 years ago and are good to go for a couple more decades. We're down to just 138 MHz of UHF spectrum being used for TV (470-608 MHz, or channels 14-36), and that part of the spectrum is less desirable for mobile use at this point, since the wavelengths are getting too long to use in mobile devices, so there's less money to be had from selling off remaining TV spectrum.

Here's what I think WILL happen over the next decade or so:

There's something of a crisis coming with cable retrans money for broadcast TV, because the number of cable subscribers paying $20+ a month in "broadcast fees" is cratering. So there's less revenue heading for local TV in coming years. That's going to reduce local TV station budgets, of course.

Regionalizing "local" TV news doesn't really work. Spectrum has been trying that, and the results have been 24-hour channels providing nothing useful to anyone. Here in upstate New York, nobody in Syracuse cares about news from Rochester and Rochester doesn't care about Syracuse, never mind Buffalo or Albany or Yonkers. Start doing that to broadcast news stations and you'll watch ratings plummet, especially if the competition is still more local. Some broadcasters will continue the trend Sinclair has started of pulling the plug entirely on local news in unprofitable areas, but that's risky, too - you run the risk of losing the unique local content that keeps drawing remaining linear viewers.

In markets with little to no OTA viewership (Palm Springs, Fort Myers, Binghamton), it's easy to imagine stations being willing to shut down ATSC 1.0 signals in the next few years and consolidate all their 3.0 signals on a single transmitter that will be cheaper to run. Markets with more 1.0 viewership might also see some consolidation of those 1.0 signals on "lighthouse" transmitters. There's no reason to downgrade video resolution or audio to do any of that, though - improvements in encoding take care of that nicely for video, and audio consumes only a tiny portion of the total DTV bitrate.

Beyond that? Before anything happens technologically, we're looking at regulatory and business changes. Will the current model of network affiliation last another 15 years? That, to me, is a much more interesting area of speculation than some future 480i multiplex or whatever.
 
Will the current model of network affiliation last another 15 years? That, to me, is a much more interesting area of speculation than some future 480i multiplex or whatever.

It's a great question. Those of us who study history have the radio example to draw on. As we know, network affiliation meant one thing in the 1930s, another thing in the 1970s, and now something even else in 2024. It depends on the type of radio you do. I guess that too will apply to TV.
 
It's a great question. Those of us who study history have the radio example to draw on. As we know, network affiliation meant one thing in the 1930s, another thing in the 1970s, and now something even else in 2024. It depends on the type of radio you do. I guess that too will apply to TV.

I spent 30 years in television and this still falls under the heading of wild-ass guess, but my bet is the affiliation model continues at least as long as the networks have owned station groups.

Sometime after they divest those, more and more of the network programming will slide to streaming. Could be gradual---a shrinking prime-time, an evaporating midday, smaller morning news blocks, perhaps the end of evening news and late-night talk/comedy shows---but eventually there'll be a date at which (with some notice) the network will cease to exist as an entity that feeds programming to OTA television stations. And those dates may be staggered from one network to the next.

It'll be up to those OTA stations to decide if there's a business beyond that or not. Enough OTA viewing is non-network that I don't think we should automatically assume that when ABC, NBC, CBS and FOX are no longer feeding stations, there is no more OTA TV, but from that point on, it's a glide path down to the ground as the remaining households gravitate to streaming.
 
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It'll be up to those OTA stations to decide if there's a business beyond that or not. Enough OTA viewing is non-network that I don't think we should automatically assume that when ABC, NBC, CBS and FOX are no longer feeding stations, there is no more OTA TV, but from that point on, it's a glide path down to the ground as the remaining households gravitate to streaming.
Or...quicker if an asteroid hits Earth.
 
This country can't even shut down a service that's as obviously obsolete as AM radio...much less a service that still has at least some viability left in it.
In fact, the FCC perpetuated "dead" AMs by giving a boatload of them translators. They now can't turn off the AMs, as they would lose the micro-FMs. And those translators, as limited as they are, often do better than daytime AMs, high band AMs and many of those absurdly directional stations.

Beyond that, there are a lot of AMs, mostly in larger markets, giving service to everything from Kreyol to Farsi speakers and many religious groups that find a radio voice to be useful and sustainable.
 
Well....yeah.

Or if Kirk starts feeding the stations from the old general store in Albin, Wyoming.
For my own part, trying to make sense of the streaming landscape, one thing I've noticed is the rapid advance in TV sets' built-in support for programming from multiple streaming sources. One of the challenges I've had is that our Samsung set was made in 2015. Welp. The set says it supports apps. The reality is that most services only support apps on Samsung sets made after 2017. For LG, the magic year seems to be 2016. So stuff simply doesn't work out of the box.

The solution appears to be to get a streaming player, e.g. a Roku box, which can then be a "middleman" between anything I subscribe to and the TV set. In other words, a STB in functional disguise. So I've got one on order, to arrive later this week. I still can retain direct over-the-air TV since the apparently already quasi-obsolete Samsung supports that pretty well.

I mention this because, eventually (and in some instances, it's already the case) all the apps, services, and over-the-air TV may appear to the viewer as a single menu of program sources. No channel numbers, just names. As with streaming versus FM versus whatever for "radio", it's all just going to be "TV". I expect there still will be room for local television, especially news, weather, and sports. It may look and act different, but I think it will still be there. The power grid in Albin, Wyoming should continue to be safe and stable.

Hoping this doesn't sound too "gee-whiz" but, again, I plead inertia, for I just stuck with the cable box for more than 20 years until the move...I have had a life to live and a career to tend...and now I'm trying to make sense of a landscape that no longer fits the mental architecture that I have from more than 60 years of TV viewing tied to channel numbers and RF-based technology. It's a landscape that's in transition.
 
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