Tv Companies?

Question

This is gonna sound really stupid but ive always wondered how a tv company eg BBC makes more money from the more viewers that watch? We pay a tv licence but we dont pay to watch thier programs do we.

Answer 1

Because the more people watch the BBC or any other channels, the pricier the cost of advertising on this channel become.

Let's say BBC has an average of 4 million viewers at 18h00 who watch a certain program. They could sell the advertising space for lets say £5000 for each 30 seconds of ads they show.

If the next year the BBC has 10 million viewers at 18h00 they could sell the advertising space on their channel for maybe £8000 for each 30 seconds, thus making more money.

Why do ad cost more? Because more people watch, so more potential buyers can be reached so companies like Coca colaare willing to pay more to reach them.

Hope this help.

Answer 2

The BBC doesn't make more money, even if it has the most viewers. The way it makes more money is when you call to vote on programmes like Strictly Come Dancing, Fame Academy, How Do You Solve A Problem Like Maria etc.

Answer 3

They don't make more money from more viewers, everyone who has a tv pays the licence whether they watch BBC or not.

Answer 4

Commercial TV stations like ITV1 and Channel Four make money from adverts, and charge more to put an advert in a popular programme than a less popular programme. The more people who watch a programme the more people will see the advert.

Answer 5

They get revenue from all sorts of places like selling programmes overseas and from merchandising rights on their flagship programmes from DVD sales and the like. They've been round long enough not only to know all the tricks in the book but also to have invented a fair few themselves. The Beeb is one of, if not the, biggest broadcasting franchises in the world and they're pretty good at making cash (pity they're not so hot at making programmes anymore).