TOPIC 10 and 11 : FINANCING COMMERCIAL OPERATIONS
Corporate/ Commercial Broadcasting System (CBC)
Commercial media giants (and the advertising industry) always demand and work for a broadcasting system where
the commercial logic is central and public service remains on the margins, serving those audiences that the commercial
interests do not find profitable enough to exploit themselves.
At the same time, the commercial broadcasting, media, and advertising industries direct a publicity and
political lobbying campaign to promote the merits and genius of a commercial media system. It has the idea that
the owners and advertisers are insignificant because professional journalists and producers make the key programming decisions
In media, the free market notion is expressed in the dictum that competitive pressures force the commercial broadcasters
to "give the people what they want." The media have become increasingly dependent upon advertising revenue for support, which
has distinct implications for the nature of media content. Modern advertising was an outgrowth of the arrival of corporate
capitalism in the past century, and the very largest corporations conduct advertising excessively.
Broadcast Revenue
Advertising revenue
Network advertising
National spot sales
Local spot sales
Network compensation
Barter (Trade)
Spots are sold in several categories based on their scheduling:
FIXED POSITION: you buy a specific time for your spot to air
ROS: run of schedule. You buy several and they're scattered throughout the schedule.
PRE-EMPTABLE SPOTS: You may buy a specific time for a reduced rate and if some one wants to pay the higher rate, your commercial gets bumped.
PACKAGES: basically a volume buy. You buy several spots in multiple varieties.
SPECIAL EVENTS: remotes / sports sponsorship / event sponsor ship. Usually has a promotion tie-in and some giveaways
BTA: best times available
TAP: total audience plan (several spots during multiple times of the day)
LOCAL WINDOWS: certain times during morning news programs or prime time in which affiliates are allowed to sell spots
STATION BREAKS: Announcements between programs
MIDDLE BREAKS: usually at the bottom of the hour during an hour show; time allowed for affiliates to sell spots
Non commercial broadcasting : Public Broadcasting System (PBS)
PBS is not a broadcast network in the traditional sense. Unlike the commercial television broadcast model,
in which affiliates give up portions of their local advertising airtime in exchange for network programming, PBS member
stations pay substantial fees for the shows acquired and distributed by the national organization.
This relationship means that PBS member stations have greater latitude in local scheduling than their commercial counterparts.
Scheduling of PBS-distributed series may vary wildly from market to market. This can be a source of tension as stations seek to
preserve their localism and PBS strives to market a consistent national lineup. Programming is primarily ideological in nature
and to promotes a national policy. There may be some cultural programming as well. Entertainment is not a priority in this system.
Public television or the concept of ‘educational television’ has existed since the 1950s, but the few stations that were able to
broadcast without commercials carried low budget shows and little national programming.
National Educational Television (NET), with a corporate foundation and some government support, emerged in 1963
to provide approximately ten hours of programming per week.
In 1967, the Ford Foundation agreed to pay for several hours of live evening programming, and the Carnegie Commission
on Educational Television proposed the creation of a public broadcasting system.
The 1967 Public Broadcasting Act set up the corporation for Public Broadcasting (CPB) and the Public Broadcasting Service (PBS).
Today the CPB oversees public TV and receives most of its funding from the federal government, supplemented by local funding which is
declining