As you watch your favorite show on TV, sometimes, you can’t help it but get annoyed when they have to pause the show to give way for some commercials; more so, if they run several advertisements long enough. But did you know that this is one way in which a cable company makes their money? Without these commercials, they won’t be able to pay for the license that they need to air your favorite shows, which is very important.
You should understand that licensing and other related matters are extremely important in order for a cable network operator to continue doing their business. With this, the broadcast council of the republic of macedonia has called on all cable companies to ensure that they get the lawful copyrights especially when they are airing foreign TV shows. Otherwise, such companies will lose their permit to operate.
How do cable operators earn money?
There are two major ways in which a cable network operator can make money. The first one is through commercials, just like what we have mentioned earlier, and the second is subscription fees. Let us have a closer look at each of these revenue sources for cable companies.
Since billions of people worldwide are turning their TV’s on every single day, business owners and advertisers have made this as an avenue to market their products and services. This helps a lot in promoting brand awareness not only at the national level but also internationally.
Most companies are charged depending on how long and how many times the advertisements are aired. This involves thousands or even millions of dollars. That is how expensive TV commercials are. However, this amount of money does not go all the way into the owner’s pocket, considering that there are many things that he has to pay for which include the employees and other expenses of the company.
Back in the day, people who live in remote areas had no access to any TV channel. Some of them were using antennas which were not that reliable. But, nowadays, all you have to do is to pay a certain amount of money as a subscription fee, and off you go with all the TV channels that you want to watch. This is another way for cable companies to earn money.
What they do is they create ‘bundles of channels’, and of, course, each package comes with a certain fee. The more channels you wish to have, the more you would have to pay.