Changes in Network Structure and Ownership of US Broadcast Television Essay

Changes in Ne twainrk Structure and Ownership of US Broadcast Television - Essay ExampleTraditionally the US television diligence was guided by the sheer ethical standards of good programming and content presentation. The networks adopted the basic belief of understanding the viewers as the owners of the air and had been providing them with programmes tr eating them as sovereigns.The United States Broadcast Television industry has undergone a tremendous alteration in the last few years due to various factors like shift in the viewers media-consumption habits, scientific advancements resulting in new digital products and reduction in the advertisement r tear downue. Grabbing audience, holding on to them and to monetize on the audience have become tough jobs for the Broad Cast companies with the advent of Internet sites like YouTube that extend television programming including shows from NBC with little financial gain for the networks. Not only the net works notwithstanding all the media companies are facing the brunt due to the uncertain future of the media business. Before the year 2006 television companies profited to the highest degree entirely from producing, distributing and selling TV content. Success in those areas meant higher profits and returns for the stakeholders. However this trend had changed with the onset of online stores and a variety of digital platforms with which the TV media had to compete. This paper makes a study as to how this state of personal business has necessitated changes in the network structure and ownership of US Broadcast Television industry.Traditionally the US television industry was guided by the sheer ethical standards of good programming and content presentation. The networks adopted the basic principle of understanding the viewers as the owners of the air and had been providing them with programmes treating them as sovereigns. Providing true entertainment was the sole business slogan of the network companies. Pr inciples of free enterprise system guided the network companies to broadcast programmes with values and commercial advertisement formed a minor part of these entertainers. But with the advent of internet the situation stated float and the advertising r eveues started declining Faced with arguing from an array of digital competitors, which produce content of their own and sometimes even carry network programming, TV companies have seen their revenues shrink, along with the confidence of traditional Wall Street investors. (Anne Becker 2007) The competition from the digital competitors was the major hurdle for the network companies to continue to survive healthily as this competition started eating up their advertising revenue. This echoed in the quality of the content and programming expertise of the network companies as even the larger ones had to resort to job cuts and were unable to retain real talents by paying hefty salaries and perks. 3.0 stamp of Reduction in Advertising Re venues on Network CompaniesOne of the major problems identified as confidential information to the reduction in the revenues to the net work companies is the reduction in the advertising revenues. As against the enlarge in the ad-spending for the internet was predicted to scale up to 13 percent in 2006 the network-TV advertising remained flat without any attach and newspaper advertising fell 3 percent according to a report by TNS Media Intelligence. such(prenominal) drastic changes in the revenues had forced the major network companies to cut the jobs and thereby reduce the cost to increase the profitability. NBCU announced its layoffs after its broadcast network dropped more than 15% in the adults 18-49 demographic over two consecutive seasons and the company saw its profit plummet 10% during third quarter 2006. (Anne Becker 2007) Similarly MTVN has overly resorted to job cuts after the share price of its parent company Viacom fell over the past year. MTNV had withdraw all the staff from its two cable networks, giving their responsibilities to other staffers at MTV and VH1. 4.0 Commercials and the Web sitesAnother measurable factor which needs consideration in falling revenues of the network TV companies is the shift in the advertising sponsors resorting to internet media than the Television media. Alex Mindlin (2007)