If we watch tv channel for free. how do they make money out of it. is it from our cable bills or what.?

Question

it makes no sense to me.

no imean like wen a show becomes a hit like friends where does that money come form

Answer 1

commercials mainly, just like internet search engines like google

Answer 2

The Nielsen ratings determine what shows are popular and which ones aren't. The Nielsen company places boxes in particular homes that monitor TV viewing. If a show becomes a hit, the advertising price goes up because more people are watching the program. In turn, more companies will want to advertise during the show because of the viewership in spite of the higher cost. It works like this. A hit show wants $500,000 for a 15 second spot. (not an actual price just for the sake of example). The company spends the $500,000 and 1 million people watch their commercial. The company just spent 50 cents per person which they consider cost effective. The more people who watch, the lower the cost per person. There is a downside. Not everyone reached will buy that product but most companies are willing to take that chance. The network will then reward that show with higher salaries for the stars. When Jerry Seinfeld decided to call it quits, NBC tried to convince him to stay because of the enormous amount of revenue his show was producing. The cast of Friends demanded higher salaries based on the advertising and NBC obliged.

Answer 3

You notice commercials, right? Advertisers know you're watching TV and they want you to hear about their products so you'd be likelier to buy them. Advertisers therefore decide to pay a TV-channel broadcaster to air their commercials. They figure out how much they should pay by using a system of ratings, which estimate how many people of a certain demographic will watch a channel at a particular time, so they can choose how much they want to pay for the commercial to appear at a certain time to a certain group of people. You'll find very different commercials during Saturday morning cartoons than the evening news.

So, the advertisers pay the broadcasters, who buy the rights to TV shows or movies. Of course, a show is only bought only if it promises high ratings, the better to draw higher prices for the commercials. This further encourages producers to make better TV shows/movies. The whole cycle is based on capitalist greed and ends up with Survivor, but we're happy enough that we don't go watch Public Broadcasting (PBS) instead, which is paid for with tax dollars and volunteers.

Answer 4

The purpose of the program is to get you to pay attention to the TV. When you are looking at it, they get a chance to tell you about the things the sponsors want to sell you. It seems to increase sales and makes money for the sponsors, so they are willing to pay for the time their ad takes.
Advertising revenue is dropping, though, because folks speed through the ads or skip them and the advertisers are not getting as much value out of attracting your attention.

Answer 5

THEY MAke Money from ADVERTISING !!! The commercials you see are paying the TV Station/Channel to Air them... The company whose advertisement it is pays --- X amount of $ for X amount of time having the commercial on the air...

Answer 6

When a show becomes a hit, everyone is watching that channel so they can charge tons more for advertising spots in that time slot. Also, apperances, merchandising, etc.

Answer 7

In the UK, we have to pay a TV licence for two channels but there are three other terrestrial channels that pay for their own budget through advertising. There is millions to be made through advertising that it sees them through.

Answer 8

Those annoying loud spots in the middle, often better then the show called commercials.

Answer 9

electricity fees