Television in The United States - The Business of Television

The Business of Television

Over-the-air commercial stations and networks generate the vast majority of their revenue from advertisements. According to a 2001 survey, broadcast stations allocated 16 to 21 minutes per hour to commercials. Most cable networks also generate income from advertisements, although most basic cable networks also receive subscription fees. However, premium cable networks, such as the movie network HBO, do not air commercials. Instead, cable-TV subscribers must pay extra to receive the premium networks.

In the days of broadcast television, networks allocated a portion of commercial time for their shows to the local affiliates, which allowed the local stations to generate revenue. In the same manner, cable-TV system operators generate some of their revenue by selling local commercial time for each cable network being broadcast. The other main source of revenue for the cable-TV operators is subscription fees.

Read more about this topic:  Television In The United States

Famous quotes containing the words business and/or television:

    Every expansion of government in business means that government in order to protect itself from the political consequences of its errors and wrongs is driven irresistibly without peace to greater and greater control of the nation’s press and platform. Free speech does not live many hours after free industry and free commerce die.
    Herbert Hoover (1874–1964)

    Laughter on American television has taken the place of the chorus in Greek tragedy.... In other countries, the business of laughing is left to the viewers. Here, their laughter is put on the screen, integrated into the show. It is the screen that is laughing and having a good time. You are simply left alone with your consternation.
    Jean Baudrillard (b. 1929)