© 2017 by The Free Ecclesia

Southern California |  the.free.ecclesia@gmail.com

PROFIT, RATINGS AND REVENUE

September 10, 2017

 

Why would I get an unwarranted message on my cell phone this morning saying...Irma hits Florida, watch now. 

 

Why would a news station of sorts ask me to watch a hurricane hit a state? This is like asking for people to take a seat in the Roman Colosseum and watch the lions ravish Christians.

I do not subscribe to any news stations. Do you think they were begging for ratings and revenues?

 

After that I looked up Florida weather in

 

Key West... 83 degrees, 51 mph winds cloudy

West Palm Beach...91 degrees 43 mph winds rain

Miami...87 degrees 53 mph winds rain

Tampa...77 degrees 19 mph winds rain

Orlando...87 degrees 14 mph winds rain

 

I did a search and wanted to know how the news stations make their revenue.

 

On Quora a broadcast media professional answered:

TV Channels have multiple revenue stream:

  1. Ad revenue: A major chunk of money earned by TV channels comes from selling advertisement spots. The ad spot rates are directly proportional to the GRPs and TRPs (as detailed in earlier answers). In effect higher GRPs (higher eyeballs) higher ad revenue.

  2. Sponsorship: This is a more recent avenue. Sponsorship include program/event sponsor, wardrobe sponsors, location sponsors. digital sponsor and what not. This help brands grab some more eyeballs.

  3. Subscription: When an end user subscribes for a particualar channel either on cable or DTH or IPTV then the operator typically pays a subscription fee to the channel. This might not be applicable for free to air or smaller channel breaking into the market. Note that this is applicable over and above the carriage fee paid by channel to operators.

  4. Content royalty fee: TV channels generally own the content format of the shows produced by them. So if other channels would also like to produce the shows in the same format then they would pay a royalty fee. For example lets say XYZ channel in US launched program 1 and ABC in Philippines was now produce program 2 in the same format as 1 then ABC would pay a royalty fee to XYZ provided XYZ owns the content format.

     

     

     

     

     

     

     

     

     

 

 

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