How tv channels earn money. You must watch the TV, and having any or other favourite TV channels and show. Some people like to watch News, some likes serial, movies, and children likes to watch cartoons, but have you ever thought that TV channels and shows how does they make money.
You think that DTH operator takes money from you and by advertisement money is made, then it is correct short of, if you think so, but it is not the complete reality.
Let’s know how it works. First of all we know that what is the ongoing GRP on TV channel? and what is ongoing show’s TRP on the channel?
Best 5 way to know How tv channels earn money?
1. GRP – Gross Rating Point.
Let’s we first describe you, there is a measurement of advertisement in TV world. Where different -different advertiser first checks the GRP of the channels and accordingly TV channels gets money to run advertisement. Now you must thinking that how is GRP checked? It’s having a simple formula.
It is not seen that at what location your TV channel is being watched although it is seen that how many people visited to your channel and with the help of mathematical terms GRP is calculated.
2. TRP – Target Rating Point.
TRP means a TV show is being watched from which location and how many people are watching the show. There is a team to check the TRP of any TV show which select some specific homes , some are from city and some are from rural areas.
This team connects these all home’s TV with specific device and prepare a list of shows which channels and TV shows are being watched more.
INTAM– Indian Television Audience Measurement, only one Indian electronic agency which measures TRP in India.
3. How Tv channels and shows make money with the help of TRP
We have come to know that what are GRP and TRP. Let’s know how channels and shows make money by this. Channels takes money from advertiser company to run advertisement on channel and advertisement are different type and their time also differ to run on channel.
Advertisements are run in time shift 15,30,45,60,120 per mints. The advertising having more time charges is applied accordingly. It is considered that the time from 8:30 Pm to 10:30 Pm is prime time caused most the TV runs at this time at home in India. Because of that advisements charges increase 3 times at this time rather than other time.
4. FREE TO AIR
Some channels are free to air mean they don’t charge for it, but some channel having more TRP they don’t free to air their channel and they charge subscription fees to watch the channel which takes from viewers by different DTH operators.
5. SPONSORS INCOME
You must have seen that some company sponsors the show and channel some ration of amount keeps itself and some ration gives to shows. Channels make 80% money from advertisements and 20% from copyrights and subscription fees.
First of all amount of advertisement goes to channel and channel gives the amount to shows according to TRP and rest of the amount channel keep itself as a profits.