Pain could harm the free TV channels

NEW YORK - For over 60 years of television news, sports and entertainment for free and earn money by displaying advertisements. This could not last much longer work. The business model is Unraveling at ABC, CBS, NBC and Fox and local stations, the broadcast networks. Cable TV and the Internet have broken the public free-TV and sucked their advertising investment. The advertising recession has further squeezed to force broadcasters to the pressure for new revenue for an accelerated program. It plays in theaters around the country. The changes could point to higher bills for cable TV or satellite networks and local stations squeeze more fees from pay-TV operators such as Comcast and DirecTV for the rights of television broadcasting in the area. The network can also broadcast signals for free space in the coming years. Instead, they can function as cable channels - a step which have announced the end of free TV as the Americans since the 1940s could mean. "Quality programming is expensive, has" Rupert Murdoch, whose News Corp. Fox said at a shareholder meeting this fall. "We can not be financed solely by advertising revenue." Fox's strategy further, in public, warning that its programs - including bowling green college football could be grim - Friday for subscribers of Time Warner Cable, unless the pay-TV operator Fox has higher costs. turn, Time Warner Cable is the customers ask whether it should "roll" or "hard line" in the negotiations. The future of free TV may also be the largest pay-TV provider, Comcast Corp. to be changed, is preparing to take control of NBC. Comcast has not indicated plans to stop broadcasts of NBC's free. But Jeff Zucker, boss of NBC and its sister cable channels like CNBC and Bravo, told investors this month that "the cable model is located directly on the distribution model." The traditional distribution model works as follows: CBS, NBC, ABC and Fox shows distributed through a network of local stations. Networks are even a few stations in large markets, but most are "undertaking", including from different companies. Tradition tionally transfer networks pay affiliates to show t heir w hen costs nothing, except that the local stations have seen their audience decline will be reduced. What has not changed is where the money comes mainly from advertising. The cable channels have most of their money through the collection of pay-TV provider a monthly fee per subscriber for programming. The average pay-TV provider to about 26 cents for every channel they carry to pay, according to research firm SNL Kagan. A string, expressed as high as ESPN can get almost 4 U.S. dollars, while others, such as MTV2, go for a few cents. With advertising and fees, ESPN has seen its turnover from 6.3 billion in 2009 from 1.8 billion a decade ago is growing, according to estimates SNL Kagan. He was able, for all your events, which were traditionally broadcast networks to offer such as football matches. The cable channels are also in a position to fund high-quality shows such as AMC Mad Men, "" rather than recycling of movies and TV series. That, plus a growing number of cable channels is a larger share of the advertising pie. In 1998, cable has attracted about 9.1 billion euros, or 24 percent of total TV ad, according to the Television Bureau of Advertising. In 2008 they received $ 21.6 billion or 39 percent. Have two revenue streams - advertising and pay fees to protected TV provider - cable channels recession. In contrast, forced over the air stations to reduce staff, and requested at least two broadcast groups of creditors in 2009. Fox shows the trend: the broadcast activities reported a 54 percent decline in operating earnings for the quarter ended in September. His cable channels, including Fox News and FX, has increased its operating profit by 41 percent. Analyst Tom Love ZenithOptimedia estimates that advertising revenue was in large networks by 9 percent in 2009 and will be followed by a decline of 8 percent in 2010 and zero growth in 2011. A small piece of ad revenue collected on-line, where networks sell episodes for a few dollars per piece, or to run ads alongside shows from sites like Hulu. Media economist Jack Myers projects online video advertising is growing at a entrep to 2 billion U.S. dollars in 2012 compared to only 350 million to $ 40 0 million in 2009. But i st not large enough to offset the loss of advertising revenue over the airwaves. Advertisers spent $ 34 billion U.S. dollars on advertising in 2008, minus 2.4 billion U.S. dollars from two years ago, according to the Television Bureau of Advertising. As if waiting until the Internet is a major source of revenue, networks and local stations are imitating what to do cable channels: they are fees broadcasters pay a monthly fee per subscriber for carrying their programming. Since 1994, the Federal Communications Commission, the networks and their affiliated companies allowed, including the requirement of payment for their programming in the pay-TV programming. Not everyone has demanded the payment first. Instead she has focused on the broader audience than cable and satellite, they could charge advertisers given. The major networks have also been satisfied, their stations, in most cases be due to higher fees for cable channels, which fell under the same roof will be funded. A pay-TV companies in negotiations with the Walt Disney Co., which owns ABC, is probably more for the ABC that the family would pay elsewhere, with the supposed extra help defray its costs for the Disney network ABC programming. But over time - these contracts are usually about three years - more networks began demanding payments for the stations they own. And its affiliated companies have received fees negotiated for more money. Some negotiations are tense. In 2007, Sinclair Broadcast Group pulled the 32 network-affiliated stations around the country operate, provides the signal for about a month from Mediacom Communications Corp., the cable TV to nearly 1.3 million "subscribers, especially in small towns. Mediacom May lose again signals from subsidiaries of Sinclair in the markets as large as Des Moines and Cedar Rapids, Iowa, after the negotiations produce a last chance on Monday to charges of failing to get a replacement for an agreement which expires on Friday. Mediacom Spokesman Tom Larsen Sinclair wants to call an increase of 50 percent of the cost, but none of the parties to certain numbers. Sinclair general counsel Barry Faber said no new talks were p PROGRAMS. The Ameri can be shortened have seen abelt Association says its members - mostly small suppliers of cable TV - have their costs for the implementation of local television stations tripled over the past three years. The head of the group, said Matt Polka these fees go "right to the wallet of the consumer accounts for more than cable. Gannett Co., for example, which operates 23 stations, has taken in 56 million U.S. dollars in fees from pay-TV operators in 2009, after negotiations on a new batch of agreements, compared to 18 million in 2008. Dave Lougee, president of Gannett Broadcasting's arm, defended the rights and said: "Broadcasters have a late start for the game really on the market value their signals. "Analysts said that CBS has managed as much as 50 cents per subscriber to carry most of his last interviews with the pay-TV providers, said that CBS-owned stations. CBS Corp. chief Leslie Moonves fees would add "Hundreds of millions of dollars in sales annually." This could be just the beginning. CBS and Fox also ask, are part of the costs that its subsidiaries will, with the argument that shows the network ", which gives the leverage of local stations Fees . Over time, networks will be able to obtain more money, so that the membership structure and a central element of the free-TV to be reversed. The reason: To be paid provider of pay-TV networks only for the networks to own stations. This represents just under one third of the spectators, the local affiliates to take, ie, at two thirds of these costs. When a network will be operated exclusively as a conduit and to reduce out subsidiary companies, the network could get the rights to the full content of spectators. If they are forced to go independent would their own affiliate programs, including local news and syndicated shows air. Fitch Ratings analyst Jamie Rizzo is at least one of the four broadcast networks "could consider" a cable channel from 2011. Any change will take years to unravel the complexity of enterprise networks contracts. At an analysts' conference in 2008, when CBS Moonves said the idea of a "a very interesting proposal." But he added he "would really change the world we're in."