How do news channels/media actually make money off of news stories?
In: Economics
They charge advertisers based on the average ratings for the time slot.
So, better stories, more viewers, higher fees to advertising companies in that time slot.
A common misconception about tv and radio is that the tv or radio station is the merchant, the content is the product, and the audience is the customer. In fact the audience is the product and the advertiser is the customer. The content is what attracts the audience for the advertisers.
Two big sources: advertisements, and cable subscriptions. Adverts are the reason you get 2 minutes of commercials every 5-10min of show. Additionally, cable providers pay news networks for the privilege of broadcasting their news network. It doesn’t cost much at all to get TV to your house; the cost of cable mostly goes to all the channels that are in your cable package.
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