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jeffk · 01-08-2014, 08:59 PM

This type of issue is puzzling to me. Broadcast TV makes money by selling ads. The amount they can charge for those ads is determined by the size of their audience. The audience is determined by the size of their viewing market and by the share of the market they reach through the popularity of their programming.

In theory, the more possible people they can reach the more they can charge for ads. Let's say (total speculation) that they can reach 10,000 broadcast viewers, 30,000 cable or satellite viewers, and another 5,000 internet viewers. ALL viewers get to see the ads, right? Shouldn't that allow them to increase their revenue stream by charging more for ads (to businesses) that reach more people? Why should they care how the ad is delivered to the viewer?

Is this just a problem because broadcast TV is greedily trying to pry extra bucks out of cable & internet providers?

01-08-2014, 08:59 PM	#26
jeffk Senior Member Join Date: Feb 2004 Location: Center Harbor Posts: 1,162 Thanks: 205 Thanked 431 Times in 248 Posts	Puzzling to me This type of issue is puzzling to me. Broadcast TV makes money by selling ads. The amount they can charge for those ads is determined by the size of their audience. The audience is determined by the size of their viewing market and by the share of the market they reach through the popularity of their programming. In theory, the more possible people they can reach the more they can charge for ads. Let's say (total speculation) that they can reach 10,000 broadcast viewers, 30,000 cable or satellite viewers, and another 5,000 internet viewers. ALL viewers get to see the ads, right? Shouldn't that allow them to increase their revenue stream by charging more for ads (to businesses) that reach more people? Why should they care how the ad is delivered to the viewer? Is this just a problem because broadcast TV is greedily trying to pry extra bucks out of cable & internet providers?