How does TV channels earn money


Everyone has a doubt that how does tv channels earn a lot of money. It’s quite simple, they earn from the advertisements they showing between each show or serials.  
How does tv channels earn money
How does tv channels earn money
They not only earn by advertisements, but also many ways. We may think that how a channel can run by only the advertisement money, but it’s not like that. There’s a certain calculation for an advertisement like if an advertisement is 2 minutes and if a unique person watches that ad fully the advertising company would give a certain amount to that tv channel. 
So, let’s read it fully to know about the full concept. I am sure that after reading this article fully you will be able to understand the full concept. 

How does TV channels earn money

Allmost every TV channel earn by showing advertisements between shows. But we can’t say that all channels get a fixed amount for displaying theri advertisement. 
Each channel has a different ammount for showing an advertisement which depends on the users come to their channel. This is the concept of TRP
If suppose a cricket match is displaying in a channel means, most of them will be watching that channel alone. So, when an advertisement displayed on that channel means, many people will be watching that advertisement.
Hence the advertiser will pay a high amount to that TV channel. 
Not only TV channels earn from advertising, but also they earn from their social medias. Even they can earn from their own channel apps by adding a premium paid features. 

How do TV channels earn money other than advertising

If we think that advertisement is the only way to earn from a TV channel means it is completely wrong. I already told that they also earn using theri social medias.
Now if you ask me a question that how do they earn from social media means, it’s quite simple. There are many ways to earn from social medias like,
  • Uploading videos on youtube
  • Facebook monetization
  • Website
  • Premium applications
  1. A TV channel may have youtube channel and so they can earn from two different ways. One from youtube monetization program. And the other ways is by promoting products inside the video by showing banner or posters of the product or advertisement. 
  2. If the TV channel has got approval from facebook with monetization program like youtube, they can earn from facebook by showing Facebook advertisements. And they can also promote other products inside the video or pictures and earn money.
  3. If the channel has a website, it can show advertisement and earn from it. They can also provide affiliate links and earn a little from it.
  4. The best alternative way to make money from a channel is providing premium applications. For this the best example is the trending apps like, hotstar, Netflix, amazon prime and so on. Where the will earn by adding series and movies which we can watch only by paying money to them. 

What is TRP

Television Rating Point is shrinked as TRP. It’s simple that how much people does a channel is viewed per second. The higher the TRP is the higher profit they get.
TRP is the main cause for advertising since each advertisement depends on the TRP of the show or channel. Most probably the serials and shows will get more TRP since it’s being trending now with people. 
One of the best example to understand about the TRP is the bigg boss show which is getting very huge TRP daily. If the channel gives ₹1 crore for the winner means at the same time the channel would have earned 200 times greater than the loot price.

DTH cable operators

DTH cable operators is one the best source of income for every TV channels. Since we need to subscribe to some channels for an amount, the total amount will be given to the channel.
We may think each channel subscriptions is around ₹5 to ₹10, how can this will be a profit to them? Suppose your subscribing a channel for ₹8. If the channel was subscribed by 3 Crore people then, the channel could earn 24Crore easily. 


TV channels earn a lot of money since they show some seconds of ads and earn a much profit by the TRP rate. Even every local TV channels would earn atleast 1 crore per month. 
If you have any doubts regarding the article you can ask it in the comments section.
Stay tuned for more information.