I’ve never understood it. Is it based off of viewership? If so how does that work? I’m not paying a fee to watch individual episodes. Does it comes from Advertisements? If so, why would it matter how many people watch the show?
In: Economics
Though American television is dominated by advertising revenue, there are other revenue models. The British Broadcasting Corporation (BBC) does not sell commercial advertisements. Most of it’s revenue comes from a licensing fee charged on every television sold in the U.K. In America this may seem like a rather small niche broadcaster, but in fact the BBC is the world’s largest television broadcaster by number of employees.
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