Today when you turn on your TV, you are greeted by so many different TV channels. In fact the choice of what to watch is so many that sometimes it leaves you the viewer confused. Most times there may at least 97 different channels 90 of which you ever watch or will ever find the time to watch. The TV stations are so many you can’t help but think that there should be a lot of money in it for the owners.
After all they employees that they have to pay salaries to, they equipments they have to buy and maintain and they have other bills to pay. If they weren’t making money, then they should not be running all these shows. It is either this TV production houses are just some form of charity or the people behind them are just so rich they don’t know where to keep their money. Well we dare say that you are not the only one who has all these questions turning in their head. There are many other people out there just like you who will like to have the answers to these questions too. That is why in this article we will try to as briefly as we can explain some of the revenue sources of tv houses. And just before you get that idea stuck in your head, no, they are not for charity. They are in it for the money and very big money at that.
You see all those tv production that goes on tv. Those ones that they will stop your favorite series to show, you know those ones that are on the TV from morning to night you can recite every line by now. Those who requests for these commercials to be run pay the TV houses a lot of money. In fact the cost of running 10 seconds commercial can be ridiculously expensive. Then again, it will depend on when the commercial has to be run and the type of program during which it will run. TV programs with high viewership will normally command higher pay per run.
Third party fees
Tv channels will create Tv programs that other channels may be interested to retransmit. These other channels will pay a fee to the TV channels that created the program.
As can be seen from above, the bulk of the revenue that a TV channel makes will come from the tv commercials that companies pay to promote their products. That is why with the many different number of TV channels, there is stiff competition on these different channels to come up with very unique programs that can really attract high numbers of viewers. Those that succeed re those who can create programs that can keep viewers glued to their TV screens.