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Economies of Scale example: TV PROGRAM INCOME Audience size Advg revenue / year Profit 500,000 $ 8 million -$2 mil

Economies of Scale example: TV PROGRAM INCOME Audience size Advg revenue / year Profit 500,000 $ 8 million -$2 million 100,000,000 $ 15 million $5 million 200,000,000 $ 28 million $18 million 400,000,000 $ 45 million $35 million 800,000,000 $ 85 million $75 million

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Economies of Scale example: TV PROGRAM INCOME Audience size Advg revenue / year Profit 500,000 $ 8 million -$2 mil

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  1. Economies of Scale example: TV PROGRAM INCOME Audience size Advg revenue / year Profit 500,000 $ 8 million -$2 million 100,000,000 $ 15 million $5 million 200,000,000 $ 28 million $18 million 400,000,000 $ 45 million $35 million 800,000,000 $ 85 million $75 million The TV show costs $10 million to make regardless of its audience size.So the larger the audience, the more efficient a show is to produce.

  2. Television Sandwich Commercials Programming The audience’s sandwich TV Executive’s sandwich

  3. What percentage of revenue comes from advertising and marketing? 100% TV 80% newspapers 60% magazines

  4. —from Seventeen Magazine media kit

  5. —from Seventeen Magazine media kit

  6. —from Seventeen Magazine media kit

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