[BC] Absurd markups!

[Cowboy]

On Thursday 25 October 2007 09:44 am, Rich Wood wrote:
>  ------ 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.

 No. I'm considering those to be sunk costs, which will remain static
 whether inventory is sold, or not.

>  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.

 And it doesn't matter if it's "live and local" or a juke box running
 someplace else and piped in.
 
 As I said, it's about value, not markup.

-- 
Cowboy