Everything you wanted to know about Leased Access Programming - The cheapest way to broadcast your chiropractic infomercials

If you had to pay $100 each time you showed your 30-minute chiropractic infomercial on your local cable TV company, you would be able to show it 10 times a month for $1,000. At this price you may be able to build up a nice-sized practice over time, but it would probably take awhile.

But imagine if you could, for the same $1,000, broadcast your chiropractic infomercial 60 times or more instead of just 10. You could build a larger practice in a shorter time, that's for sure. Well, this is what can happen with "commercial leased access" programming. Nearly every chiropractor lives in a community where he can take advantage of the cheap leased access rates of cable TV. Leased access rates are typically about 1/10 of the normal retail rates. Rates can be even lower than $2 per broadcast.

But before we explain the ins and outs of leased access programming you need to be aware of one important item:

IF YOU’RE THINKING ABOUT PRODUCING YOUR OWN CHIROPRACTIC INFOMERCIAL AND THEN TAKING ADVANTAGE OF THE CHEAP LEASED ACCESS RATES ON YOUR OWN, YOU’LL BE MAKING A VERY COSTLY MISTAKE.

Here’s the catch: To get the cheap leased access rates you will be required by your local cable TV operator to buy broadcaster’s liability insurance. Your average price for this insurance will be about $5,000 per year. However, JMS's chiropractic infomercials are already insured, so licensees of our chiropractic infomercials can be added to our policy for just a few hundred dollars per year, saving you many thousands of dollars each year.

You can actually license a chiropractic infomercial from JMS, AND buy the insurance through JMS, AND broadcast your chiropractic infomercial on your local cable TV company, FOR LESS THAN THE COST OF BUYING JUST THE INSURANCE ALONE for your own chiropractic infomercial.

Commercial leased access is a great way to broadcast your infomercials cheaply. It makes it extremely affordable for chiropractors to broadcast their own chiropractic infomercials. And our experts will be there to help you every step of the way so that you will have the opportunity to broadcast your infomercials on TV for pennies on the dollar.

For your information we have provided the following facts about commercial leased access programming, so that you will know what it is and how it works.

LEASED ACCESS PROGRAMMING

For many chiropractors, the leased access provision of the Cable Act of 1992 is the key to getting their programming (infomercials) on the air at a very affordable price. The leased access provision requires cable system operators with more than 36 activated channels to make a portion of their capacity (usually 10% to 15%) available to everyone for a reasonable fee.

As an example, on a large cable system in Cincinnati, Ohio (330,000 subscribers) you can air a 30-minute infomercial for $22.68*. In Anaheim, California, you can air an infomercial on a cable system of 40,000 subscribers for $9.92*. Some cable systems have leased access rates that are even lower than these. In Texas, a cable system of 80,000 subscribers has rates as low as $2.65 per 30-minute broadcast. In Ohio, a cable company has rates as low as $1.70.

But few people take advantage of these "lower-than-retail" rates. Why? There are two main reasons. First, most people don't know that leased access programming exists. And second, the broadcaster’s liability insurance that you will be required to get is very expensive (that is, unless you license the chiropractic infomercials from JMS).

WHAT IS "COMMERCIAL LEASED ACCESS?"

Under section 612 of the 1992 Cable Act (and under the current rules in place since 1997), cable system operators with more than 36 activated channels are required to make a portion of their capacity available to everyone for a reasonable fee. The programmer (you) must place programs of at least 30 minutes in length (such as the chiropractic infomercials licensed through JMS).

The amount that cable operators are allowed to charge for leased access programming is determined by an "implicit fee" formula. This "implicit fee" is designed to give you, the programmer, a uniform and fair cost of access. The cable operator is also allowed to charge for franchise fees, cost to play back your programming, and possibly equipment rental costs. The franchise fee is determined by local government regulation, but the other charges must be "fair." The cable operators are only allowed to charge a "reasonable cost for such services."

As a general rule, leased access rates are about 10 cents on the dollar when compared to retail advertising rates. This means that instead of paying $100 for a 30-minute infomercial placement, you would pay about $10 through leased access.

The cable operator has no editorial control over your programming, meaning you will be allowed to air your chiropractic infomercials. The only restrictions are programs deemed to be inappropriate for the community standards due to gratuitous sex, violence, or profanity, or if your video is not of broadcast quality.

The programs must also be 30 minutes in length or longer. Because of this, a 30-minute chiropractic infomercial can sometimes be cheaper to broadcast than a 30-second commercial. The 30-second commercial must be shown at the high retail rates while the 30-minute chiropractic infomercial qualifies for the lower leased access rate.

Cable operators are required to publish a "rate card" for leased access rates. You can request this rate card and they are required to give it to you.

Most cable operators divide the 24-hour broadcast day into sections (for example: midnight-7AM, 7AM-7PM, 7PM-midnight). They are allowed to charge different rates for the different times of day. For example, they are allowed to charge higher rates during prime time hours. However, if the rates are higher during the prime time period, they must also be lower during other periods to compensate. This means that you can actually put your chiropractic infomercials on TV for even less than 10% of the normal retail rates during certain time periods. The total of all rates cannot exceed the monthly maximum as specified by the "implicit fee."

After you have received the leased access rate card, and decided on the broadcast times that you want for your chiropractic infomercials, you will need to sign an agreement (contract), show proof of insurance (broadcaster’s liability insurance, also known as media perils insurance), pay the leased access fee, and give them a broadcast videotape (usually U-matic 3/4", Beta SP, or Digital Video). JMS will make 2 master copies of each infomercial for you, one for broadcasting and one spare.

You also have the right to demand that your program be shown on a channel that reaches at least 50% of the subscribers in that cable system. And if your program is placed on a channel that does not reach 100% of their subscribers, the "implicit fee" must be adjusted to reflect the percentage of subscribers that it does reach.

You have the right to know in advance which channel your program will be shown on. If the cable operator changes the channel, he must give you advance notice of this change.

Cable operators will require you to provide proof of insurance (obtained cheaply through JMS in a matter of just a few days), and may require you to add them as an additional insured on the insurance policy too, before you will be granted leased access. If you produce your own infomercial you will have to buy your own broadcaster’s liability insurance policy that will cost you $5,000 or more. OUCH! But the chiropractic infomercials from JMS are already insured. You, and your cable TV company (if required), can be added to the policy for just a few hundred dollars.

Leased access programming is very exciting. It gives chiropractors like you the opportunity to broadcast your infomercials on TV for pennies on the dollar. And the best way to take advantage of this is with the JMS chiropractic infomercials.

NOTE: Just for your own information, you can estimate the average leased access rates for a cable system by multiplying the number of subscribers by $0.60 (60 cents) per household per month. This will give you the entire monthly cost of leasing a channel full-time (the full-time leased access rate). In a 30-day month there are 1440 30-minute blocks of time (48 half-hour blocks per day, 30 days a month). Divide the full-time leased access rate by 1440 to get an AVERAGE 30-minute rate for that cable TV station. (NOTE: this is for an AVERAGE rate. The actual rates may be much higher during certain periods of the day such as prime time, and much lower during other periods such as late night).

EXAMPLE: 40,000 subscribers multiplied by $0.60 = $24,000. You can lease a channel full-time, 24 hours a day, every day, for $24,000 per month. Divide $24,000 by 1440 to find out the rate for an average 30-minute placement (in this case it's $16.67). This won't be the exact rate, but an average estimate. For example, prime time rates may be $25 and late night rates may be $6, but the total average (according to the "implicit fee" formula) will be about $16.67 per 30-minute slot.