TV Channels Source of Revenue

Some of the key ways to earn revenue in TV broadcasting systems is to sell content,

earn advertising revenue, or generate revenue from direct sales.

Content Revenue - There are two key ways TV broadcasters earn revenue from content;
subscription fees and pay per view fees. In general, content costs from networks have been going
up. What is more challenging is that viewers can get content through many new media channels
reducing the value of your TV networks. To keep and grow their viewership, TV broadcasters
must get content that is more valuable to their viewers.

Advertising Revenue - Each year the amount of money that companies spend on advertising
increases with the gross national product (GNP). Unfortunately for TV broadcasters, advertisers
are shifting their ad spend to the Internet.

Advertising Revenue - Each year the amount of money that companies spend on advertising
increases with the gross national product (GNP). Unfortunately for TV broadcasters, advertisers
are shifting their ad spend to the Internet.

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TV advertising market growth in the Philippines 2012-2018

 In 2018, the market size of TV advertising in the Philippines fell by -3 percent and had the
highest growth of 22.6 percent in 2016. The sector accounted for about 62.8 percent market share
of the total advertising market in 2019.

Most of the TV channels earn money by advertising. Let us take an example of the various soap
operas that are telecasted on family entertainment channels, such as Star Plus and Colors TV.
Most of these soap operas are sponsored by companies making soaps and detergents. Also,
women form the bulk of the audience. So, this explains quite a lot about the revenue mechanism
of these channels.

The first is advertising. When you see a commercial on TV, the company being promoted has
paid a fee for that exposure. The amount varies by size of market, how many people are
watching at that time of day, how much advertising that company is buying, etc.

The second is from the cable or satellite operator that actually delivers the channel into your
home (assuming you cable or a dish). That payment is a fixed amount per household per month,
and it varies by popularity of the channel and what else that group of programmers can negotiate.
TV channels earn money as detailed below:

 Through advertisements. The rates differ according to time - say for 15

seconds, 30 seconds or one minute or two minutes. It also varies according to
time slot. For prime slots the rate will be more and for normal slots it will be
 less. For example slots between 07.00 P.M. to 10.00 P.M. are considered as
prime slots.
 Serials. The serials will be sponsored by some advertisers and the serial owners
have to pay some amount to the channels. In this case, the sponsors have some
free slots for displaying their advertisements.

Television serial earns money from the advertisements shown during the telecast of serials. Rate
of advertisements to be shown in between any serial is decided on the basis TRP of that program.
Generally rate is on per second basis.

Television Rating point (TRP) is a method of ascertaining which serials/channels are viewed the
most. For calculating TRP of serials/channels a device is attached to the TV set of few thousand
of viewers selected on random basis. After getting the inputs from these devices a index of
choice and popularity of a particular channel or serial is made

How to Write a Business Plan Template for a Broadcast Company Channel

Business plans, which have a traditional structure, can be modified to ensure a clear
presentation of your business idea. In television, radio and now in online and mobile broadcast,
many of those who will be reading it won't be familiar with the industry. 

Business Model

Start the section on your business model with a page or two explaining the key niches of the
broadcast industry your business idea will serve. Potential investors may not fully understand
how broadcasting works, particularly if you're proposal deals with an alternative media like
mobile or Internet radio. Don't leave any room for uncertainty. Explain why your channel is
necessary and show how its intended audience compares to other outlets. Discuss your vision
and mission and explain how you will create content, attract employees and build your
schedule around it.

Target Audience

Define your target audience in detail and provide examples of how your channel will provide
something they can't get elsewhere. Next, explain how you plan to market your channel to
them so they're compelled to give it a try. Describe how you plan to keep your audience
coming back and how you will build your channel into their lifestyles. Provide examples of
how, why and when your audience will be tuning in and how frequently. Include an
explanation of how you will attract sponsors and advertising.

Revenue Model

On-air and Internet advertising, subscriptions and sponsorship are among the revenue paths
you might use to make money with your channel. However, the size of your audience must be
verified by tracking services or a list of subscribers to justify your ad rates. Discuss how much
you intend to charge for subscriptions and advertising during your development phase. Unless
your content is unique and vital, you might have to offer the service for free until your channel
becomes popular enough to attract advertising dollars. Other sources of revenue include special
real-world events, charging guests for promotional appearances and running donation drives.

Financial Projections

Focus your financial section on defining what it will cost to build your broadcast channel,
including equipment, professional services and operational and marketing activities. Next,
estimate how much money you can reasonably expect to earn from your revenue streams.
Investor decisions will probably be based on the value of your programming and the likelihood
of attracting a substantial audience, so show how you will spend any investment funds and how
those expenditures will create audience numbers that result in a steady stream of revenue.

How to Write a Business Plan Template for a Cable Channel

Cable television has considerable competition from satellite TV, online television services and
even video games, with new technologies and applications coming out regularly.  

Cable Channel Business Model

Start your business plan with an introduction that gives a fair description of the current market
and discusses current and possible future trends. Use statistics to support a niche your channel
will fill. The next section should be a description of your business model, including your vision
of what your channel will be, how it will serve the niche you identified with its programming
and why it can succeed against its competition. Include details on where it will be produced, its
service area, and any regulatory, equipment and operational hurdles, taking care to discuss how
you will overcome them. Introduce your management team and what they bring to support
your future success.

Target Market Programming

In the next section, provide a detailed description of your target viewer with reasons why that
viewer will choose to watch your channel. Include demographics and psychographics to
support your claims. Relate how your programming schedule will fit into your target viewer's
schedule and the benefits the viewer will derive from your programming. Clarify why your
target audience will choose to view your channel rather than watching competing channels,
streaming movies or playing games.

Revenue Generation

Your revenue model is the next section. If you are seeking funding for your project,
demonstrate that your target market is lucrative enough to attract advertising revenues.
Describe how you will get your channel carried by cable providers and whether you have
innovative ideas for generating revenue from your programming. Discuss your programming
costs and any fees you will pay to the cable providers. Also note which cable providers are
most appropriate for reaching your target market and whether there would be difficulties to
overcome in being carried by your first choice.

Attracting Viewers

The next section should be your marketing model. Discuss your strategic marketing plan and
the tactics you will use to attract your viewers. Include how your marketing compares to your
competition and give statistics supporting how similar marketing models have succeeded for
other channels. Demonstrate innovative thinking regarding your strategies and tactics.

Operations, Contingencies and Financial Projections

Finish off your plan with a section discussing your build-out and operations. Add a section
containing a SWOT analysis listing the Strengths, Weaknesses, Opportunities and Threats
associated with your project. Your financial projections section should come at the end of your
document. Include a detailed sales projection, personnel plan, income statement, cash flow
statement and balance sheet. Discuss each part of the financial projections and your break-even
point.

Write the Executive Summary Last

Once you have finished your business plan, condense the highlights into an executive
summary. This should be no longer than one page. Use the executive summary to interest
people in taking a look at your business plan, so make sure it includes the key advantages
associated with your cable channel proposal

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