What are their different streams of revenue?
In: Other
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).
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