Do you know how TV Channels make money? - Shixak Power

Do you know how TV Channels make money, if you don't know anything about this, today we are going to tell you about it. TV is a form of entertainment that we have been watching since childhood, it has become an important part of our lives. There is hardly a person in the world who has not seen TV. TV is now seen in every home in the country. If you watch TV, you have often wondered how the TV Channels appearing in the TV make money, who will pay for these Channels. Here we will try to tell you in very simple language so that you can understand quickly.

How Do TV Channels Make Money?

How TV Channels Make MoneyWhen you watch any serial, news or cricket on TV you will know that between these programs you are shown advertisements, TV Channels pays the advertising money to show these advertisements. Because the ad can be 5 to 30 seconds long. Therefore, the duration of the ad depends on how much money you get for showing the ad. A lot of money is spent on showing advertisements on TV not only in India but all over the world. Although advertisements are being shown on most internet websites, apps and video websites like YouTube today, most of the advertisements are still shown only on TV.

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The revenue of TV Channels is not fixed as their revenue is generated through advertisements and the rate of advertisement increases or decreases with time. Almost all channels have different rates for showing ads at different times. Very few people watch the serial between 7 and 10 in the morning, so the rate of advertisement in the serial channel will be less at this time, while the news channel on the other hand is the most watched in the morning, so the advertising rates of these news channels are very high. Speaking of evenings, many people watch TV in the evenings, which includes both news and serials.

How Much Money Do TV Channels Make?

Now you may know that TV channels earn money through advertisements shown during breaks, but now you want to know what will be the rate of these advertisements shown on TV. So let us tell you that there is no fixed rate for any channel. If a channel charges Rs 1 lakh for showing a 10 second ad, it will charge 1 lakh 80 thousand for showing an 18 second ad and 50 thousand for showing a 5 second ad.

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If the company wants to show 10 seconds of advertisements in the channel on TV in the evening, you have to pay at least Rs 1 lakh to the channel. However, in some channels, during the morning and during the day, the company can show its advertisement by paying 10 to 15 thousand. You can see in the picture below which channel charges how much, although these figures are taken from the internet, so these rates can be more or less.

how tv channels make money

The rate at which ads are shown on TV Channels also largely depends on TRP as it shows how many people are watching the channel. The higher the TRP of a channel, the higher the rate at which it will show ads. For example news channels like Colors, Sony, Star Plus, Zee TV, Life OK and Aaj Tak, India Today, India TV, Zee News, ABP News etc. have the highest TRP as these channels are watched by most people. If a company wants to show advertisements on these channels, you may have to pay Rs 3 to 4 lakh for a 10 second advertisement.

If we talk about Live Cricket Match then Cricket is a very popular sport in India which most people in India love to watch. When Cricket Match is broadcast live on TV, the number of viewers of the channel reaches millions, which greatly increases the TRP of the channel. If a company wants to show its advertisement during Live Cricket Match, it will have to pay Rs 10 to 15 lakh for just 10 seconds of advertisement. As such, the channel's daily earnings from these small advertisements range from millions to crores of rupees.

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Now you may be wondering what is the benefit to the company by showing advertisements in this, let us tell you that showing advertisement of a product increases its sales, people start to know about that product through advertisement. As a result, sales of that product multiply. Showing advertising does no harm to the company as it adds advertising costs to the price of the product. In this case, both the TV channel and the advertising company benefit from showing ads.

So now you must have known how TV Channels make money, after reading this post you must have known that TV Channels make money through advertisements and they earn millions of crores of rupees every day. This whole game also happens on TRP. The higher the channel's TRP, the more it earns.