How the news makes money?



What are their different streams of revenue?

In: Other

Advertisements…hence the reason it is no longer news…it is “unscripted TV that is scripted to create the most outrage and thus the most views. That is their one and only source of revenue.

They essentially get paid based on viewership. The more people watching their news, the more money the make. Part of this is due to advertisements, but that is why news in America has the reputation of veing incredibly biased, because pandering sells.

Ads and views. The more people watch a show, the more ad companies are willing to pay, and the more the networks profit. The reason shows get canceled is that low viewership means that less money is being brought in.

It depends what you mean by the news.

There is print media, which makes money from advertising and sales

There is cable tv, which also makes money from advertising and sales (cable isn’t free)

There are companies like ABC, NBC, CBS, Fox, which sell their content to for profit tv channels.

Those same tv channels tend to produce their own local news segment. All of these channels revenues come from advertising.

There are also groups like PBS, which is a non profit, and produce content for non profit tv channels

(Note: im not an expert and not 100% confident in this answer)

Aside from government funding or charitable donations, a news organization’s only sources of revenue are subscriptions from readers/viewers and advertising space.

Both TV and print news rely on a combination of advertising and subscribers.

For TV news like CNN or FoxNews, they get monthly subscriber fees from cable providers. They also make money from selling the commercial spots that run during broadcasts. Local channel news makes money from advertising.

Newspapers make money from ads and print/online subscribers. newspapers used to make most of their profits from advertising like jobs and for-sale classifieds and the circular inserts… in fact they lost money on the subscriptions (cost more to print and deliver a paper daily that they charged) just to have a large customer base for advertisers to reach. The loss of much of that revenue as news has shifted from print to online has hurt newspapers, hence the huge cutbacks in newsrooms in the recent 15-20 years, but especially past 10.

Just to add one source of revenue people didn’t mention: You can pay the channel to make news about a specific subject (e.g. A pharmaceutic company can pay the channel, so one of their researchers can talk about their new product on the news)

I’ll touch on TV news since I worked in for a bit.

Take your local news station on their 5 o’clock news. It runs 30 minutes with 4-5 breaks for commercials which each run two minutes in length.

That’s 20 minutes of news with 10 minutes of commercials. Break it down to :30 second commercials and we have TWENTY commercials (which is probably a ton of car dealerships and injury lawyer spots).

Hypothetically let’s pretend those commercials run $500 each to run. That’s $10,000 in a 30 minute newscast and that’s just the commercials. Lots of tv stations get businesses to sponsor segments or their forecasts, etc.

Now look at how many news casts there are in a day: The morning, noon, 4, 5, 6 and usually a 10 or 11pm. Now we’re looking at about 50k a day in nothing but COMMERCIALS and that’s just from the newscasts!

In a year? That’s over 18 million.

Depending on the market size (like Los Angeles vs a tiny town in Iowa) and how the station ranks in their ratings will affect how much they charge. If you’re the #1 station and every one is dying to advertise during your newscast, you can ‘bump’ another commercial out because you’re willing to pay more (think: ELECTION YEARS).