CBS’s Les Moonves, President/CEO and the guy who has polished the tiffany network to a continues rating shine, is bullish about the possibilities of what digital broadcasting will do for CBS and its affiliates bottom line. CBS plans to begin digital multicasting (CBS 2) in all of its markets by fall 2006. According to Moonves, there is even a possibility in the next few years that there could be a CBS 3, 4 and even a 5. (It’s no wonder that this kind of thinking puts him and CBS on top. Learn anything 13th & Peach?)
Why are Moonves and CBS (This fall... The Couric Broadcasting System) so bullish on digital? Digital technology bandwidth allows stations to broadcast several programs at once on the same channel. Possible programming talked about is national news, local news, sports weather etc. But not to overlook the revenue potential, Moonves said “the network is working on ways to exploit the advertising opportunities that would be available on the additional channels.”
One of the problems of adding this capacity with existing compression technology is that it would tend to squeeze the room for a good HD signal. (I hope the engineers can figure out that solution.) This thinking shows that broadcasters, or those in Erie who think they are broadcasters, have to start thinking outside the box.
Erie broadcasters and the Erie Times-News are quick to use digital when it saves them money, but not exactly forthcoming to what the advantages can be for the consumer. The Erie media are culpable with our politicians in putting this market into a large pit with everyone looking down saying “poor Erie;” instead of saying what can we do to help Erie and keep it on a pace with the rest of the country.
At CBS, Les Moonves is paid handsomely to look after CBS’s future and has done a remarkable job in building a network back that can compete not only with NBC, ABC and FOX, but with the cable networks as well. (CBS will have the fewest program changes of any network this fall)
Multicasting presents opportunities for the the local stations to challenge the cable networks for viewers and advertising revenue. When will NEXSTAR, SJL and son of SJL ever see the digital potential? (October 2008?)
Stay Tuned!
"Congress passed a law on February 1, 2006, setting a final deadline for the DTV transition of February 17, 2009. Most television stations will continue broadcasting both analog and digital programming until February 17, 2009, when all analog broadcasting will stop.” FCC http://www.dtv.gov/
Just 24 Days To Go Before WSEE DT Channel 16 Construction Permit Expires.
2 comments:
J: I think if they run Prime and Sports in HD, then go standard digital all other times they could make the multicasting work. But here's my question for you: will advertisers in this market known for their "frugality" support more broadcast streams? Right now I could pay: $500 for CSI prime, $200 for Action News 24, $60 for Classy 100 AM drive, or $20 for Adelphia cable on any number of channels. What kind of money could a CBS 2 or 3 get in Erie? And would it pay for the stream?
Jo..Jo. I think they would as they do now for cable advertising at a significantly reduced price. That is why I think multicasting could be the broadcaster's answer to cable channels.
The DVR,oddly enough, is going to make this more possible. Right now it is so easy to record and skip commercials. The only programs that you don't want to DVR, for the most part, are those that a viewer needs immediately such as news and sports. I plan on writing a future post about DVR's and the impact on adverertisng.
You have good observations and questions always.
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