[BC] Absurd markups!

Rich Wood richwood at pobox.com
Thu Oct 25 08:44:05 CDT 2007


------ At 07:07 AM 10/25/2007, Cowboy wrote: -------

>  By the same token, the cost of air time, once the station is built and
>  on the air, is equal to the lowest cost spot, which *is* zero in the case
>  of unsold inventory, so the markup on drivetime can be called "absurd."

Having done budgets for New York stations and networks I might 
disagree with that. With talent making upwards of $500,000 and more 
the cost of air time, sold or not, is substantial. Aren't you even 
including the engineering salaries and maintenance? My last few 
stations were 50Kw. The power bill, alone, bumps the cost.

The value of the time is determined by the client. If the ratings are 
high and the spots fill the store with customers, the value is 
extremely high. If the numbers of that same station are very low, the 
value is reduced accordingly.

Rich 




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