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Broadcasters' woes could spell trouble for free TV
AP via SFGate ^ | 12/28/9 | ANDREW VANACORE, AP Business Writer

Posted on 12/28/2009 9:32:21 PM PST by SmithL

For more than 60 years, TV stations have broadcast news, sports and entertainment for free and made their money by showing commercials. That might not work much longer.

The business model is unraveling at ABC, CBS, NBC and Fox and the local stations that carry the networks' programming. Cable TV and the Web have fractured the audience for free TV and siphoned its ad dollars. The recession has squeezed advertising further, forcing broadcasters to accelerate their push for new revenue to pay for programming.

That will play out in living rooms across the country. The changes could mean higher cable or satellite TV bills, as the networks and local stations squeeze more fees from pay-TV providers such as Comcast and DirecTV for the right to show broadcast TV channels in their lineups. The networks might even ditch free broadcast signals in the next few years. Instead, they could operate as cable channels — a move that could spell the end of free TV as Americans have known it since the 1940s.

"Good programing is expensive," Rupert Murdoch, whose News Corp. owns Fox, told a shareholder meeting this fall. "It can no longer be supported solely by advertising revenues."

Fox is pursuing its strategy in public, warning that its broadcasts — including college football bowl games — could go dark Friday for subscribers of Time Warner Cable, unless the pay-TV operator gives Fox higher fees. For its part, Time Warner Cable is asking customers whether it should "roll over" or "get tough" in negotiations.

(Excerpt) Read more at sfgate.com ...


TOPICS: Business/Economy; News/Current Events
KEYWORDS: legacymedia; networktv
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1 posted on 12/28/2009 9:32:23 PM PST by SmithL
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To: SmithL

Anyone who expects to still have OTA network affiliates in 2019, stand on your head.


2 posted on 12/28/2009 9:34:04 PM PST by Petronski (In Germany they came first for the Communists, And I didn't speak up because I wasn't a Communist...)
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To: SmithL
Good programing is expensive

Too bad that there isn't any. I got rid of TV 2 years ago.

3 posted on 12/28/2009 9:34:56 PM PST by DJ MacWoW (Make yourselves sheep and the wolves will eat you. Ben Franklin)
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To: SmithL
Free TV will probably disappear in the next five years. Its just too expensive to broadcast programming on an ad based model any more.

"Show me just what Mohammed brought that was new, and there you will find only things evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelogus

4 posted on 12/28/2009 9:35:58 PM PST by goldstategop (In Memory Of A Dearly Beloved Friend Who Lives In My Heart Forever)
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To: SmithL

People still watch that crap?


5 posted on 12/28/2009 9:36:43 PM PST by LouAvul
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To: SmithL

Well..if Direct TV raises its price for 500 and something channels OF ABSOLUTELY NOTHING DAY AFTER DAY MONTH AFTER MONTH, then I’m just gonna go without TV. Nothing but Obama on tv anyway, and who the hell wants to see that? If I want to watch a movie, I’ll just buy the blu ray or watch it on the net.

I mean seriously, how much do they think I’ll pay for movie channels that show soft core porn more than movies, mythbusters, mythbusters, mythbusters, mythbusters, mythbusters, mythbusters, mythbusters, mythbusters...The gay and lesbian channel, National Geographic- “KKK: American Terror”, COPS, COPS, COPS, COPS, COPS, COPS, COPS, COPS, COPS, COPS, COPS, COPS, COPS, COPS, COPS, COPS, ...

Hell, I think I’m going to cancel this crap right now.


6 posted on 12/28/2009 9:40:12 PM PST by chris37
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To: SmithL
what they need to do is make the cable more direct in viewing and paying. if you want only one channel then get that channel.

Basically that would put MTV/CNN/MSNBC and a bunch of the liberal cr#p out of business. I'd even cancel Nick for some of the PC cr@p they're trying to pull. I'd go for just pay as you go with recording rights. the only reason half of the cable channels are on is because they are bundled.

7 posted on 12/28/2009 9:40:49 PM PST by erman
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To: SmithL

Sinclair Broadcasting, which owns the local CBS affiliate and manages the local FOX affiliate, is threatening to pull both stations from Mediacom cable starting this Friday unless the parties come to an agreement. That would mean no Orange Bowl (Iowa Hawkeyes) on cable for us, and of course no NFL playoffs either.


8 posted on 12/28/2009 9:41:31 PM PST by xjcsa (Ridiculing the ridiculous since the day I was born.)
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To: Petronski
I don't watch them now except for NFL and 24. The later is contingent on whether it goes continues the PC route. As far as cable goes, I hate paying for 300 channels when I only watch 10 or so channels. I spend more time online than in front of the tube.
9 posted on 12/28/2009 9:42:06 PM PST by bleach (Sarah, Wake me in 2012)
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To: SmithL

If the networks think that they are going to survive by going all-Pay TV....they are dead. They cant compete with pay cable now....they will not be able to compete if they challenge pay cable directly


10 posted on 12/28/2009 9:42:12 PM PST by UCFRoadWarrior (Merry Christmas and Happy New Year to all FReepers)
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To: SmithL

I often wish we could choose programming a la carte. I have basic DirecTV, and I customize the guide to block out anything I know I will never watch (hi, MSNDNC & CNN). I end up with maybe thirty channels. I’d lose even some of those if I could pay only for those I really want.

The icing on the cake would be the quick demise of lots of liberal channels (hi again, PMSDNC) and lots of absolute crap (too many to mention). Like most liberal enterprises, the liberal channels would probably not be able to compete on their own merits...they need subsidies from unwilling donors.


11 posted on 12/28/2009 9:44:56 PM PST by LostInBayport (When the riders in the cart outnumber those pulling the cart, the cart stops moving. My back hurts.)
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To: erman
"the only reason half of the cable channels are on is because they are bundled."

How true.

I get X number of channels from Verizon and most I don't watch or don't need.
Why can't I watch what I want when I want? I willing to pay a reasonable amount for that.

12 posted on 12/28/2009 9:45:35 PM PST by AGreatPer (Impeach Obama)
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To: SmithL

The market will decide. Provided Obama and the Gummint stay the hell out. In other words, stay tuned for Nationalized TV.


13 posted on 12/28/2009 9:46:19 PM PST by bigbob
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To: SmithL
You can watch live television on your PC right now.
Ditch cable and satellite, and connect your broadband internet directly to your widescreen TV. Cable, IMO is a total waste of money. I can watch anything on the Internet and I plan on renewing my Netflix subscription to catch up on TV shows and movies.
14 posted on 12/28/2009 9:46:43 PM PST by Extremely Extreme Extremist (10 YEARS OF FREEPING! HAPPY ANNIVERSARY EEE!!!)
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To: SmithL

OMG — how will the inner city masses get Democrat
propaganda for voting if the "free" TV media goes kaput?

15 posted on 12/28/2009 9:46:47 PM PST by BP2 (I think, therefore I'm a conservative)
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To: SmithL
The Alphabet stations should charge for their programming.

Unfortunately, they won't because they'll go broke and it looks like the fees will be passed on to those who already pay for cable.

16 posted on 12/28/2009 9:48:24 PM PST by TheThinker ( Reverend Wright obviously cheered on 9/11. Did Obama?)
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To: Petronski

No problem, the Obama Regime will take over TV, radio, Internet and newspapers and magazines.

Worked fine in the old USSR.


17 posted on 12/28/2009 9:48:33 PM PST by OldArmy52 (Christmas 2009: Democrats give us Obama Cr*pCare, the t*rd that keeps on stinking.)
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To: LostInBayport

They’ve known for years that if we were allowed to select the channels we wanted to pay for, it would become obvious that they could not justify the bandwidth to carry many of the lesser-watched channels. That would be fine by me, let the market decide what is worthwhile and what isn’t - not some cable executive. The problem is, if “we” only choose to watch 10 or 20 or 30 channels of our choice, we wouldn’t want to pay as much as the bundles of 50 or 100 or 200 they shove across the satellite or cable today. They don’t want a bunch of $20/month customers, they want a bunch of $80/month customers.


18 posted on 12/28/2009 9:54:24 PM PST by bigbob
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To: xjcsa

Try an antenna. Since everyone went digital, there’s no such thing as a fuzzy picture. You either get it in crystal clear digital, or you don’t.

FOX is trying to position the situation as the cable companies not wanting to pay their fair share. But they’re asking for $1 per subscriber.

The signal’s out there absolutely free - go get it.


19 posted on 12/28/2009 9:56:48 PM PST by Hessian (Time flies like an arrow, fruit flies like a banana.)
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To: SmithL
This will be a "tailchaser", for sure.

Broadcasters base their advertising rates on their viewers/listeners and their ratings derived from these numbers.

The problem with making all OTA stations, "Pay" stations is, none of them have programming interesting enough to be worth the subscription fee.

Those who have cable already pay for TV, but we get much more variety, and much clearer pictures. However, those PAY Cable Channels STILL RUN ADVERTISING.

They are an example of what the dems would do with the "fair tax"...charge a sales tax AND and income tax.

But, I invested in a DVR and I can fast forward through all those commercials if I want.

Anyway, back to the subject...exactly how much would we pay to see CBS, NBC, ABC, PBS, and the "Super Channel"? Only a few choices, and all of them in bed with obama's kampf.

Of course, I'm sure I could do without TV completely, as I only watch a couple of old movies a week, and I could away rent those. I don't have an "antenna" on my TV at all, as I use DISH, and it suits me just fine. I told them to give me the cheapest package they had that featured FOX News, and that's what I've had for about 12 years now...it's just fine.

But, the "subscription" money they will charge will be "in addition to" the advertising money...so you'll still to sit through those SHAMWOW commercials just to see Katie Couric regergitate the latest propagana from dear leader.

But, maybe the dems will sneak it into the healthcare bill and threaten to fine us #250,000 or 5 years in jail for not subscribing to, and watching, their PRAVDA channels.
20 posted on 12/28/2009 10:02:52 PM PST by FrankR (Time waits for no man...or man-child, including kenyans.)
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