LadyCrais
05-26-2003, 03:13 PM
This is really old, but it's so relevant to SciFi's strategy that I thought I'd post it anyway.
http://209.61.190.23/news2002/jan02/jan28/3_wed/news4wednesday.html
Ratings don't tell
the full cable story
Beta's findings on how networks rate with viewers
By David Everitt
When you think of those cable channels that viewers are likely to pick as their favorites, certain networks naturally come to mind.
It should come as no surprise, for instance, that such channels as Discovery, Lifetime and ESPN ranked high in a recent survey of cable-subscriber preferences.
But the Hallmark Channel? And the Trinity Broadcasting Network?
Beta Research Corporation regularly conducts surveys of both cable operators and cable subscribers. Andy Klein, head of Beta’s cable division, has noticed some differences in the way the two groups perceive certain channels.
"We have found," he says, "that there are some measures in which certain networks rate higher among subscribers, like the History Channel, for instance. These channels have a high satisfaction and perceived value among those who watch. The measure here is not just ratings."
The results of the survey could be significant both for cable operators and advertisers.
In one category, Beta asked subscribers to name the channels that contributed most to their enjoyment of cable. The History Channel ranked No. 2 behind Discovery among major networks.
Of the mid-sized networks (35 to 68 million subscribers), Food Network, Turner Classic Movies, WGN and ESPN Classic rated No. 1 to No. 4, respectively.
"Those networks with a clear identity and a clear program focus tended to rate higher than broad entertainment networks," says Klein.
"In the future, as more and more channels are added, it will be increasingly important how clear a network’s brand identity is. Without a clear identity, broad-based networks can still get high ratings for particular programs but not necessarily overall satisfaction among subscribers."
In terms of program quality, viewers rated the History Channel once again as No. 2 after Discovery. The top four mid-sized channels included Food Network and ESPN Classic once more but were joined by CMT and the still-new Hallmark Channel.
Another measure was perceived value.
Subscribers were asked how much they would be willing to pay for a channel if they had to send in a separate fee for it each month.
Based on other results of the survey, most answers were pretty much as expected, but ranking at the top of mid-sized networks was the Trinity Broadcasting Network.
The religious-inspiration channel held a very clear lead, earning an average perceived value of $1.61, compared to CMT at No. 2 with $1.37.
Klein was not surprised by this result.
"This is a classic example," he says, "of a network with a lower Nielsen rating but with viewers who are fanatical about it. This shows brand and network loyalty. It should be important to operators that a small group of subscribers place a high value on certain networks.
"Networks like TBN or Hallmark, with a smaller audience who highly like the programming, can be just as valuable as larger networks. This kind of loyalty can help advertisers. Commercials on networks with high perceived value could help products advertised on those networks."
Based on the results of the study, Klein has some thoughts on advertiser strategy in cable.
"Advertisers shouldn’t rely strictly on ratings," he says. "The environment for the advertising is also important. They have to consider the image of the network and the satisfaction of the viewers."
January 30, 2002 © 2002 Media Life
--------------------------------------------------------------------------------
http://209.61.190.23/news2002/jan02/jan28/3_wed/news4wednesday.html
Ratings don't tell
the full cable story
Beta's findings on how networks rate with viewers
By David Everitt
When you think of those cable channels that viewers are likely to pick as their favorites, certain networks naturally come to mind.
It should come as no surprise, for instance, that such channels as Discovery, Lifetime and ESPN ranked high in a recent survey of cable-subscriber preferences.
But the Hallmark Channel? And the Trinity Broadcasting Network?
Beta Research Corporation regularly conducts surveys of both cable operators and cable subscribers. Andy Klein, head of Beta’s cable division, has noticed some differences in the way the two groups perceive certain channels.
"We have found," he says, "that there are some measures in which certain networks rate higher among subscribers, like the History Channel, for instance. These channels have a high satisfaction and perceived value among those who watch. The measure here is not just ratings."
The results of the survey could be significant both for cable operators and advertisers.
In one category, Beta asked subscribers to name the channels that contributed most to their enjoyment of cable. The History Channel ranked No. 2 behind Discovery among major networks.
Of the mid-sized networks (35 to 68 million subscribers), Food Network, Turner Classic Movies, WGN and ESPN Classic rated No. 1 to No. 4, respectively.
"Those networks with a clear identity and a clear program focus tended to rate higher than broad entertainment networks," says Klein.
"In the future, as more and more channels are added, it will be increasingly important how clear a network’s brand identity is. Without a clear identity, broad-based networks can still get high ratings for particular programs but not necessarily overall satisfaction among subscribers."
In terms of program quality, viewers rated the History Channel once again as No. 2 after Discovery. The top four mid-sized channels included Food Network and ESPN Classic once more but were joined by CMT and the still-new Hallmark Channel.
Another measure was perceived value.
Subscribers were asked how much they would be willing to pay for a channel if they had to send in a separate fee for it each month.
Based on other results of the survey, most answers were pretty much as expected, but ranking at the top of mid-sized networks was the Trinity Broadcasting Network.
The religious-inspiration channel held a very clear lead, earning an average perceived value of $1.61, compared to CMT at No. 2 with $1.37.
Klein was not surprised by this result.
"This is a classic example," he says, "of a network with a lower Nielsen rating but with viewers who are fanatical about it. This shows brand and network loyalty. It should be important to operators that a small group of subscribers place a high value on certain networks.
"Networks like TBN or Hallmark, with a smaller audience who highly like the programming, can be just as valuable as larger networks. This kind of loyalty can help advertisers. Commercials on networks with high perceived value could help products advertised on those networks."
Based on the results of the study, Klein has some thoughts on advertiser strategy in cable.
"Advertisers shouldn’t rely strictly on ratings," he says. "The environment for the advertising is also important. They have to consider the image of the network and the satisfaction of the viewers."
January 30, 2002 © 2002 Media Life
--------------------------------------------------------------------------------