Domestic & International

Syndication
Broadcasting Syndication is the
license to broadcast television
programs and radio programs by
multiple television stations and radio
stations, without going through a
broadcast network.
Syndicated means a television program
being shown on a different television
network than the one that first showed
the program. A syndicated program can
also be a program that was not made for
a television network.
3 Main Types of syndication
First-runSyndication
Off-network Syndication
Public Broadcasting Syndication
 First-run syndication

A programming that is broadcast for the first

time as a syndicated show and is made
specifically to sell directly into syndication.
 Off-network syndication

A program that originally aired on network

television is licensed for broadcast on
another network.
 Public broadcasting syndication
 Thisform of syndication more closely
resembles the news agency model, where
nominally competing networks share resources
and rebroadcast each other’s programs.
Ex. National Public Radio (NPR) stations
commonly air the Public Radio Exchange’s
This American Life, which may contain
stories produced by NPR journalist.
 The syndication chain

4 Routes to Putting Programs on TV

 Network
 Paid
 Local
 Syndicated
 Syndicated chain

 Network
 Big Six Networks
 ABC
 CBS
 NBC
 FOX
 CW
 NETWORK

 Supplies network programs

 For
airing these, affiliates receive
compensation
 Usually air simultaneously on all affiliates
 Paid programming

 Stationsare paid by program suppliers to

air paid programming
 What are some examples
 When do we see these?
 Local programming

 News
 Talk
 Public Affairs
 What are some locally
 Assume all costs for these
 Syndicated programming

 Series, specials motion pictures

 Sold
to individual stations for exclusive
showing for a limited time
 May be distributed by satellite or on tape
 Syndicated programming

 Local station licenses a program from a syndicator

 Syndicator is a national company
 Licenses
the same program to other stations in
other markets
 Not stations in the same market
 Will not air simultaneously in all markets
 Will not solely air on affiliates of a single network
 Syndicated programming

 Cable Syndication
 Radio Syndication
 Noncommercial Syndication
 Syndicated programming

 Programs arise in  Feature Films

three ways  Theatricals
 First run syndication  Made for TV
 Off-syndication  Made for Cable
 Off-cable
programming
 Run
 Syndicated Programming

 The producer and Production Company

 The Production Company
 The Syndicator
 The Program Director
 The Rep
 Payment

 Cash and Amortization

 Cash license fees paid as money
 Cash
in often on a payment plan with a down
payment of 10-15
 Allocate cost of program against operating budget
 Budgeting to maintain a profit margin
 Toreduce operating expenses can rest show or
place hiatus
 Payment
 Amortization Schedules
 Straight Line
 To calculate station operating cost
 Place equal value on each run of each episode
Example:
 Program cost 10,000 per episode 5 runs
 Amortized cost per run 2,000
 Station charges itself equally though performance may decline
 Advantage Initial run is comparatively inexpensive
 Disadvantage Final run is just as expensive.
 Payment

 Amortization Schedules
 Declining-Value Amortization
 Each run assigned a different value
 Assume show loses value each time it airs
 First run 40
 Second run 30
 Payment

 Third run 20
 Fourth run 10
 Fifth run 0
 Advantage: If the show falls apart in the
ratings after a few runs, most of the expense
in behind it
 Can decide not to tun
 Payment

 Straight-line system is used often on first run

shows
 Usually not re-run (not more than 2x)
 Fully amortized ach week
 Declining-value
system is often used for off-
network programs and feature films
 Only an internal allocation of cost
 Payment

 Cash-Plus-barter
 Part of license fee paid in cash
 Lower cash value
A stipulated amount of commercial time
available for syndicator
1 minute for syndicator
 530 for station
 Payment

 Barter
 Station agrees to run national commercials sold by
the syndicator
 Station gets right to air the program
 No money changes hands
 Syndicator gets all the costs paid by advertising
 Station has fewer spots to fill
 payment

 Barter and Cash-Plus-Barter

 Usually used for sale of first-run programs
 Effective way for syndicator to maximize
revenue
 Allow the station a reasonable cost
 clearance

 Goal
 Sellenough markets to cover 70-80 of the
country
 What’s an Emmy worth?
 In 2004, HBO won 32 awards
 Where they saw profit DVD sales
 No evident effect on subscription sales
 HBO 27 million subscribers
 HBO chum 60 – 8 million never re-subscribe
 Diminished appeal of theatrical movies
 Reinforces image of network to writers, actors, producers
 20 of revenue comes from sources other than subscription fees
 Sopranos and Sex and the City both recouped entire
production costs from DVD sales
 Content trends

 Ifno major new off-net sitcoms this year,

where do we get our off-net syndicated
programming?
 Cable
 Cable gaining in  Sold to Spike
importance  Ripley’s Believe it or
 Off-cable original Not
series dramas  Premiers on TBS
 Weekend lineups  Syndicated Medicine
 Sex and the City and (Lifetime)
South Park  Rescue Me (FX)
 The Shield  The Closer (TNT)
 Basic-to basic cable
 Crime Dramas
 Law and Order
 CSI
 TNT, USA, AE, Spike TV
All boast a syndicated police procedural
All use as a promotional platform
Use as a lead-in for original programming
Stack it for an entire night
Use it to fill holes
Dependable and repeatable
 Reality
 Survivor  FX – Fear Factor
 King World  GSN – The Amazing Race
 Bought by Outdoor Life  More modest cost -- $55
Network (OLN) K per episode
 Exclusive syndication rights  Next up:
to all 10 seasons o The Bachelor
 Deal -- $10 million o The Apprentice
 How’s it working?
 VH1 – America’s Next Top
Model
 Serialized Drama
 Bad track record  Generally low license
 Tough syndication fees
battle $250,000 (24)
 Up for syndication: $200,000 (Alias)
Alias – TNT  Compare to:
24 –A&E  Without a Trace

 Cleared 98% of the  Spike TV

country  $1.5 million per episode

 Run it twice
 Case Study
 Maury Povich #1 – Oprah
New, multi-year deal #2 – Dr. Phil
In 10 of 12 to markets  Ahead of Ellen
Renewed:  Youngest median age of
On all Tribune and any syndicated talk show
Sinclair owned (41.1)
stations  Goal for new season –
 Third highest rated talk “more timely and
show among women 18-34 topical”
 Question
 HurricaneKatrina has greatly affected ratings for
syndicated season.
 Most post declines.
 Why?
Shift programs to wee hours of morning
Jeopardy & Wheel often bumped by news overruns.
Not really an impact on ratings in New Orleans
44 national people-metered homes in New Orleans
41 reported ratings on Aug. 24
1 reported on Aug. 31.