Television industry overview and key developments

Media

Television Industry

Narrowcasting is a general expression used for communications such as radio or television signals that are restricted to subscription customers or otherwise banned from being broadcast. Broadcasts are transmitted to the general public, accessible for any general receiver with the ability to capture the signal. Narrowcasting is aimed at particular viewers by way of proprietary equipment and encryption, or by some other biased means. One of the most ordinary examples of narrowcasting is cable TV. "The encrypted signals can only be viewed on a TV by first running through a descrambler provided by the cable company for a monthly fee" (What is narrowcasting, 2012).

"Original television networks CBS, NBC and ABC sought to appeal to as many people as possible by varied broadcast programming throughout the 50s, 60, and 70s. Now newer cable TV networks specialize in narrowcasting. MTV was the original music-only channel, while CNN produces news only. Home and Garden, the History channel, Sci-Fi, ESPN sports, and the Animal channel are all prime examples of the fundamental shift from broadcasting to narrowcasting in cable network television" (What is narrowcasting, 2012). While the original broadcast networks persist to put forward a variety of programming, narrowcasting has possibly influenced that model. Shows that are liked by the same audience segment are frequently aired back-to-back on the major networks, and while one night of the week might be dedicated to legal dramas, the next night might be dedicated to teen shows or sitcoms. There is little doubt that narrowcasting will persist to grow as technology opens doors to the tech-savvy people. Where it once it took a great deal of funds to broadcast a message, today even a teenager can use an Internet cafe or a free website to reach the world, or their own little niche audience, or both.

"While mighty adversaries like government regulators, broadcast networks, cable, and program producers, battle for the future of American can TV, the shape of that future remains uncertain" (Narrowcasting and Globalization, 2009). The present trends suggest that by the next century U.S. video will come together somewhere between a minimalist system of network broadcasting/cable narrowcasting, and a maximalist display in which internationally organized mega corporations control mass entertainment and information at every phase of commercial utilization. Narrowcast TV means more channels, more choices and a medium that is more responsive to individual differences within the U.S. population. There is some who think that this new technology will soon make interactive cable a possibility.

In the United States, narrowcasting is driven by economic need and competition. In public service systems around the world, where broadcasting is funded by license fees, by taxes, or by direct government support, there has never been the same need to reach the largest audience possible. As a result, programming for special groups like children, the elderly, ethnic or religious groups, has been standard practice. Ironically, the same technologies that bring opposition to commercial broadcasters in the United States, cause similar difficulties for public service broadcasters. In those systems new, commercially supported programming delivered by satellite and cable, frequently draws people away from public service programming. Government officials and elected officers become unwilling to provide limited public funds to broadcasters whose audiences are becoming smaller, forcing public service programmers to reach for larger audiences with different types of program content. "While multiple program sources -- cable, home video -- make it unlikely that these systems will move toward "mass audience programming" it is the case that the face of broadcasting is changing in these contexts" (Narrowcasting, 2012).

Digital signage networks for narrowcast advertising are becoming part of the mainstream and not some sort of on the edge experimental medium reserved for the daring and advanced. Rather than being seen as a risk in the eyes of media buyers, they are becoming a vital communications path for marketers and advertisers wishing to sway consumer spending decisions at the point of purchase. It isn't particularly surprising that narrowcast digital signage networks are entering the mainstream. Advertising buyers and marketers are witnessing a radical transformation of an advertising mainstay like television to the new and exciting world of narrowcasting. "Once a medium they thoroughly knew and understood, TV is moving away from a controllable, definable advertising proposition to one that's putting viewers in greater control of what they watch and when -most notably for this discussion, commercials" (Little, 2007).

There has been a lot written about the future of broadcasting vs. narrowcasting. In the past, TV, radio, newspapers and books were profitable by reaching the largest possible audience. One can see the impact of the Internet on traditional broadcasting by looking at the exploding number of web sites designed to add value to television shows. Newspapers are expected to offer online editions. Radio profits will explode when an available audience is no longer limited by geographic proximity. Wall Street is excited by the recently proposed CBS Viacom merger, not just because of the synergy created by owning a massive variety of content production and distribution, but because anyone in the world may now tune-in to a specific radio program (Stager, 2007).