How do TV broadcasting networks get their money? I’d guess it would come partially from the advertisers, but do they really get paid that much for letting them show commercials?
I’m ready to meet Him
‘Cause where I’m livin’ ain’t right
Black hate white
White hate black
It’s right back to the same fight…
–DMX
I’m no expert on television network economics, but as far as I know they pretty much get all their income from the sale of broadcasting time to advertisers. There are a few shows that are produced by the networks which might earn them some eventual syndication money, but most shows are produced independently of the networks.
I have to agree with Mike. Here are some numbers:
In 1995 ABC charged $45,000 for each 30-second spot during NightLine.
In 1993, ABC’s sitcom “Home Improvement”, commanded $325,000 for a 30-second spot.
In 1992, Proctor & Gamble shelled out $535,000,000 in network television advertising.
SuperBowl 1998. 30 second ad: $1,300,000.
Kind of makes you want to run out and buy a TV network, doesn’t it?
No doubt about it. Advertising is big bucks.
BTW, this is limited to the networks. Local broadcast stations and commercial radio stations also make all their money from advertising. That is why ratings are so important.
Sorry. That should be “This is not limited to the networks…”