HOW THE MEDIA MAKES MONEY

Transcription

1 HOW THE MEDIA MAKES MONEY

2 Read the WWE Article Summarize the article in 4-5 sentences.

3 The Main Idea Media companies (Facebook, ESPN, CNN, CBS, Fox News, Disney) are all businesses. A business has one goal: Make Money

4 How do they make money?

5 A Couple of Different Ways 1. Advertisements 2. Sponsorship 3. Subscriber Fees

6 TV Ads Commercials TV Companies sell ads which is why we have commercial breaks. The more people watching, the more money they can charge for advertising. Ratings

7 v=lhekfcmkkks This commercial is effective in marketing a product (TAG Body Spray) to you males. TAG was the first with a body spray for teenage males, now it s a thing.

8 Sponsorship Companies will sponsor TV shows, on-air attire, and other things. TV anchor outfits are a form of sponsorship. Product Placement

9 Subscriber Fees Netflix, WWE Network, Disney. You pay a fee each month to get access to their content. (This is for TV Channels too!) Cable/Satellite companies bundle subscriber fees to bring you TV packages.

10 Channel Cost Per Month Top ESPN $ TNT $ Disney Channel $ NFL Network $ Fox News $ USA Network $ FS1 $ TBS $ ESPN2 $ Nickelodeon $0.73

11 The Main Point To generate the most revenue possible, the media outlets have to get as many people watching/viewing their material. So the content must be interesting.

12 Getting Views/Clicks People will look at or watch items that the find interesting. News, Sports, TV Shows, etc.

13 How Does This Work Sports TV Companies pay leagues fees to get the television rights for their product. News Networks Have to have compelling news shows Entertaining and appealing to people. CNN, MSNBC, Fox News TV Shows People have to want to watch. Law & Order & CSI

14 How Does Netflix Work Movies They pay fees to the movie company to have their films. TV Shows They pay fees to the company (Ex. Criminal Minds (CBS) to have seasons to stream. Netflix Originals Netflix uses their own money to fund the creation of the movie or TV Show. They keep it forever.

15 Why Ratings Matter HJDAxk

16 Which TV Event Generates the most money for commercial advertisement?

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19 Question 1.Why is the TV landscape changing? 2.Is this changing for all forms of media too?

20 Media Math Cost of Content < Sponsors, Advertisements, & Subscriber Fees The above equation results in a profit for the media company. If it is the inverse, they are losing money and will go out of business.

21 Sports Content Research In your groups, your group needs to find the cost for the following sports contracts: ESPN, Fox, NBC, CBS: NFL NBC: Premiere League Fox Sports: FIFA World Cup ESPN & TNT: NBA ESPN & Fox Sports: Big 10 Football ESPN: College Football Playoff Turner Sports: NCAA Basketball Tournament

22 Results?

23 Articles 1.NFL Profit Article 2.NBA Contracts Article 3.UEFA Champions League Article

24 Questions Do most networks make a return on their investment with sports? Why do the invest in them? Why does Clay Travis say there is a sports bubble? What model is Turner following with the Champions League? Will it work? How many of you would pay to see all the games from a sport? How much would you pay?

25 A La Carte TV Read the two articles and summarize the two on the same sheet of paper.