The fact that television networks and programs make money by interspersing advertisements is generally known to all of us. Daily soap operas have largely taken over our daily lives.

How do TV networks generate revenue?

There are numerous commercial breaks in every TV program, news segment, and other type of content (some on repeat). Advertisers pay a fee to the TV stations for the right to air this advertisement during commercial breaks. The cost varies according to how long the advertisement is, with some being 5 seconds long and others being 10 seconds.

The majority of the money that TV networks receive comes from showing advertisements from sponsors. In actuality, this is not unique to India; every daily soap and channel depends only on commercials for funding.

TRPs

 The abbreviation TRP stands for Television Rating Point. In this, the number of views per second is used to evaluate TV programs and stations. This also affects how well-liked and popular a show or channel is with viewers. The higher the TRP, the more money TV networks make.

When it comes to how they make money from this, alternatively, the quantity of commercials that are aired during the program can be used to gauge their popularity. because advertisements are the lifeblood of media organizations and publications.

Cable DTH operators

This is one of the most exciting revenue streams for TV networks. All of us have either used or heard about set-up-box connections. In order to watch some channels on this, we would need to subscribe to them.

When we do this, the TV channels receive a small portion of the total fee. The TV channels profit significantly from this. The majority of the time, individuals only subscribe to high TRP channels; the other low TRP channels merely try to get more viewers. They often don’t ask for payment because they are free.

What are the TV channels’ earnings?

Now that we’ve quickly covered how TV channels generate revenue, it’s time to talk about how much money they actually make.

There isn’t a certain amount of money that the advisor would be compensated for through marketing. Let’s say a TV station charges Rs. 2 lakhs for the advertisement’s 20 seconds. Following that, it would charge Rs. 2,50,000 for a 25-second advertisement. Depending on their terms and conditions, various channels charge advertisers in different ways.