Micro Syndication: Is this the Solution for Indie Christian TV?

tv imageI have written about this before, but I wanted to talk about it again. Christian TV is upside down. Content creators buy time on educational licensed stations so they can then ask for money from viewers. I never paid for airtime with my show, Peculiar,  but most of the time we didn’t get money either. Only one network gave us anything, and that was just to help with paying for closed captioning.

In most cases on religious stations/networks the most you can hope for is free air time. Your program costs money to make, and you want to sell it to them. They can’t sell ads to cover the time, so they aren’t buying. There are a few networks that could afford to buy programming, but they don’t. That’s a problem for shows that don’t ask for donations, because it still costs money to make them.

So what can you do with your program?

Micro Syndication. This is an idea I want to try with my next series. It will be a lot of work, but I don’t see why this wouldn’t work.

The goal is to buy time on a for-profit network locally, and sell advertising during your paid programming. I went as far as pricing the air time on this once before. There are stations that will let you do it.

First you need a program. You’re going to have to have at least the pilot, and likely a few more episodes done before you can implement this. The program needs to be 22:30 with 6:00 of breaks. That’s room for twelve :30 spots. Your program must have space for advertisers, or it won’t work. And your program has to be something people want to see, or it won’t work for long.

Second you need a media buying agency. You could do this yourself, but once you get beyond a couple markets, the relationships your agency has will serve you well, and they can find deals you will miss. They know when and where you can find time near shows that are similar to yours. And you want that.

Third you need a sales agent to find sponsors for your program. They will get a percentage of each ad they sell, but they should be local to the station you’re trying to get on.  Their first calls should be to people in the pages of any Christian Business Indexes for the area your trying to broadcast in. They aren’t just selling spots, their selling a vision. You’re delivering viewers during a program with content they want to support.

The Process:

In a target market have your media buyers shop for a good spot for your program. Find out what it will cost per week. See if they can work in some ads to promote your program.

Once you know how much your program will cost per week, figure out how much to sell spots for. There are a couple of ways to go about this. You could just do a flat rate for every spot. Or you could charge more for different locations in the show. For instance, if you have a strong program in front of your show, one :30 spot right up top could cost more since they will be getting viewers who have stayed from the previous program. For the purpose of this post, let’s say they are all priced the same.

Example (Smaller Market):

  • Weekly airtime cost = $400
  • 12 spots at $50 per spot = $600
  • 20% of $600 for sales agent= $120
  • $80 “profit” per week.

That’s not much. And not a lot of wiggle room if a sponsor drops out. But you could get things off the ground with this. The goal isn’t to generate enough revenue from one market, but to get lots of markets bringing in revenue so you can afford to make more programs. Replicate this in 10 markets and you’ve got $800 per week. $41,600 annually. 20 markets is $83,200. There are hundreds of markets in America. Every one will be different, and will be very hard to expand into any of them.

Example (Larger Market):

  • Weekly airtime cost = $750
  • 12 spots at $90 per spot = $1080
  • 20% of $900 for sales agent = $216
  • $114 “profit” per week

Finally, sell the spots and buy the time. Gather the spots, embed in the shows and deliver them to the stations.

Make no mistake, this is a huge amount of work. And you’re not bringing in the kind of revenue that allows a big staff. And while you are managing all this, you need to be creating more content. If it was easy, everyone would do it.

How can you make this work better? Reduce costs.

Can you get the airtime for less per week? In the smaller example, at $300 for airtime you’re bringing in $180. That’s $2340 for a 13 week run. $9360 annually. From one market. But this is a balance. The better the time, the more expensive the time. Your buyer needs to be aggressive.

Can you charge more for ads? Your media buyers should be able to tell you what ads in your time slot would go for. Christian who are business owners may be willing to give a little more to support the kind of programming you are creating. $60 per spot? $75? With a discount for multiple spots in a program? I once paid $3500 for a :30 spot in the bottom half of the hour during a season finale on a major network. If you have the audience, people will buy the spots for more.

Work out a trade with a station. They give you the time, you provide the audience, and you split the ads spots. In the smaller market, you’d be looking at $300 per week in revenue. This becomes tricky with the media buyers, because you still need to pay for their services for that market. They will want, and you should be willing to pay for, their cut for buying the time. You should still clear more revenue per market, per week. But you need to show the station that you have an audience in their market.

This is going to be a lot of work.

Issues to Overcome:

Selling spots. You have to keep the spots sold, or you will sink. That’s it.

Placement. You have to have the program in the best time slot. Cheap enough to allow you to sell spots. Good enough that people will watch your show. 3:00 AM will be cheap, but no one will watch. Without viewers, it’s a waste.

Why not use a network? The key, at least initially, is local advertisers. It’s definitely possible to go to a cable network and buy time regionally and nationally, but it’s a lot of money. (Even Christian networks can charge $5000 for a 30-minute slot.)  You’ve got potential advertisers on the local level. But, they won’t pay to advertise their business where they don’t sell products. Until you can prove your show can draw a good audience, the regional and national sponsors aren’t going to be an option. You might have dreams of going to an Interstate Batteries or Chic Fil A for sponsorship, but they are going to want some ratings and proof of audience before they spend any money. So start local.

Why bother with traditional broadcasting? We know that online viewing and streaming is on the rise. TV viewing is declining. But it’s not dead yet. People still watch 140+ hours of TV per month. How to generate revenue online is a huge topic, and we should be working toward a sustainable model there as well. But in the meantime there is still an audience for your program watching traditional broadcasts.

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