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ATTACHMENT A MEDIA OUTLETS AVAILABILTY BY MARKETS Mark R. Fratrik, Ph.D. Vice President BIA Financial Network October 23, 2006 Table of Contents Executive Summary ................................................................................................i Introduction............................................................................................................ 1 Methodology ........................................................................................................... 2 Local Over-The-Air Television Stations .............................................................. 2 Radio Stations......................................................................................................... 5 Local Radio Stations..................................................................................................................5 Satellite Delivered Radio Programming....................................................................................7 Satellite & Cable Delivered Programming.......................................................... 8 Cable and ADS Penetration .......................................................................................................8 Number of Cable Delivered Networks ....................................................................................10 On-Line Penetration ............................................................................................ 12 Newspapers ........................................................................................................... 13 Daily Newspapers....................................................................................................................14 Weekly Newspapers ................................................................................................................15 Conclusion............................................................................................................. 16 BIA Financial Network Executive Summary The media landscape in 2006 is different than the landscape of even last year and extraordinarily different than ten or twenty years ago. New satellite and cable delivered networks have begun operations, satellite delivered radio services with hundreds of channels were introduced, and new radio and television stations were turned on. Added to those new “traditional” media options are the millions of web sites now available to an increasing number of consumers. The purpose of this report is to quantify this dramatic change over a twenty year period for 25 randomly selected Nielsen television markets of various sizes. Two earlier reports in this area provide historical benchmarks to document these changes. That longitudinal review clearly demonstrates the enormous increase in the choices now available to consumers in markets of all sizes. In these 25 markets, this study found the following: • The average number of full-power, local television stations increased by 39.0% over the last twenty years. There are also an average of 15.2 low power television stations now on air in these markets. • On average, there are in 2006 8.8 different owners of the 11.7 full-power television stations in the markets examined. • The average market saw a 42.3% increase in full-power local radio stations over the twenty year period. • On average, there are in 2006 37.6 different owners of the 73 radio stations in the markets examined. • Based on current penetration rates, satellite delivered radio services add an average of 15.1 additional radio channels in local markets, a 20.7% increase in audio services over and above the average number of local radio stations. • Multi-channel video programming service penetration has, on average, increased thirty- four percentage points in the markets examined over the last twenty years. • The number of cable programming channels in use has increased to an average 283.3 channels, a 793% increase over the average 31.7 channels in use for 1986. • Nearly three-quarters of adults have access to the virtually unlimited number of information and entertainment sources on the Internet. • There is an average of 8.1 daily and 28.6 weekly newspapers published in these markets. With the expected continuing improvements in technology and other marketplace developments, these increases will only continue with the final result being many more media BIA Financial Network i choices available to consumers throughout the country. Those increases do not only result from the new media outlets available on the Internet, but also a significant increase in the number of over-the-air local radio and television stations, increased numbers of satellite and cable delivered national and regional/local networks, and the introduction of two widely accepted national satellite delivered audio services. As a result, local consumers will be offered even more of a varied list of options to obtain information and entertainment. BIA Financial Network ii Media Outlet Availability By Markets MEDIA OUTLET AVAILABILITY BY MARKETS Introduction The media landscape in 2006 is different than the landscape of even last year and remarkably different than ten or twenty years ago. New satellite and cable delivered networks have begun operations, satellite delivered radio services with hundreds of channels were introduced, and new radio and television stations were turned on. Added to those new “traditional” media options are the millions of sources of online content now available to an increasing number of consumers. The purpose of this report is to quantify this dramatic change. In two earlier reports,1 we documented the number of choices available to consumers across markets of all sizes. With the number of media outlets in these markets from these earlier studies as benchmarks, we can provide a twenty-year view of the changes in local markets. That longitudinal review clearly demonstrates the enormous increase in the choices now available to consumers in markets of all sizes. With the expected continuing improvements in technology and other marketplace developments, these increases will only continue with the final result being many more media choices available to consumers throughout the country. 1 P. Vestal, “An Analysis of Media Outlets by Market,” June 15, 1987, Appendix B, comments of the National Association of Broadcasters in MM Docket No. 87-7; Mark R. Fratrik, “Media Outlets by Market-Update,” Attachment A of NAB Comments in MM Docket No. 98-35, July 1998. BIA Financial Network 1 Media Outlet Availability By Markets Methodology In order to examine specific examples in an easy-to-understand format, we randomly selected twenty-five markets to examine the changes in the number of media outlets. As in the previous two studies, the markets examined are the Nielsen television markets (DMAs). Those markets include all of the counties in the continental U.S., Hawaii, and the Alaska counties with noticeable populations.2 The twenty-five markets randomly selected are: Rank Market Rank Market 5 Boston, MA 72 Honolulu, HI 6 San Francisco-Oakland-San Jose, CA 84 Huntsville-Decatur-Florence, AL Harlingen-Weslaco-McAllen- 19 Sacramento-Stockton-Modesto, CA 92 Brownsville, TX 20 Orlando-Daytona Beach-Melbourne, FL 101 Charleston, SC 25 Indianapolis, IN 105 Greenville-New Bern-Washington, NC 35 Greenville-Spartanburg, SC-Asheville, NC 134 Wausau-Rhinelander, WI 38 West Palm Beach-Ft. Pierce, FL 135 Monroe, LA-El Dorado, AR 45 Oklahoma City, OK 160 Minot-Bismarck-Dickinson, ND 48 Las Vegas, NV 169 Quincy, IL-Hannibal, MO-Keokuk, IA 58 Knoxville, TN 176 Alexandria, LA 60 Richmond-Petersburg, VA 188 Laredo, TX 62 Mobile, AL-Pensacola, FL 209 North Platte, NE 65 Flint-Saginaw-Bay City, MI Local Over-The-Air Television Stations To start off the analysis, we first examined the number of full-power television stations (commercial and non-commercial) available in these selected markets. Table 1 shows the values for each of these markets in the selected years, along with the 2 Nielsen Media Research continues to not survey Puerto Rico, and therefore, we did not include that are in our selection of the twenty-five random markets. BIA Financial Network 2 Media Outlet Availability By Markets percentage change from 1986 to 2006.3 In addition, we provide the number of separate owners of these full-power television stations for 2006. 4 Finally, we include the total number of low-power television stations in these markets for 2006. In recent years, the number of low-power television stations has increased substantially, providing another source of local programming for communities. 3 In order to insure that we were counting television stations from the same geographic areas for 1986, 1998 and 2006, we utilized the BIA Media Access Pro™ database to count the number of television stations on air for the three selected years in the counties comprising Nielsen television markets as currently defined. 4 Unfortunately, given the limitations of the data, we cannot provide the corresponding numbers of owners for the previous years. BIA Financial Network 3 Media Outlet Availability By Markets Table 1 – Number of Local Television Stations and Owners In Selected Markets Number of Stations 2006 2006 No. Low % of Power Rank Market 1986 1998 2006 Change Owners TVs 5 Boston, MA 18 20 21 16.7% 15 11 6 San Francisco-Oakland-San Jose, CA 19 23 23 21.1% 17 19 19 Sacramento-Stockton-Modesto, CA 8 11 11 37.5% 8 16 20 Orlando-Daytona Beach-Melbourne, FL 9 14 16 77.8% 13 17 25 Indianapolis, IN 9 14 14 55.6% 11 12 35 Greenville-Spartanburg,