Originally posted by: Sphexi
Originally posted by: mwmorph
Originally posted by: shilala
Originally posted by: Sphexi
K, doesn't quite work that way.
Cable TV companies are paying the networks to carry their channels. On average they pay about $1.50-$3 per month per subscriber, based on popularity of that channel. Obviously they get lower rates on some channels and not others, so for a 50 channel package they do pay around $30 or so, most likely. They have to charge you at least that much just to break even, which is why basic cable tends to run from $35-$50 depending on which company you have. Most of them are making their money off of broadband and digital services now, not basic cable.
The networks are the ones showing the ads, because they have to pay for show production. They don't tend to make much charging the cable companies, their owners do, companies like Clear Channel make buttloads off of that stuff.
I sure hope the cable companies aren't paying for MTV.
they do but it's minimal. wouldnt be worth the money to drop it since mtv is a low cost network. all it's content is mainly sponsered by companies(TRL/M$ xbox event, free(music videos sent in by artists hoping for some publicity[though some artists probabyl pay MTV to play their videos), or very low cost(how much does a dating show take to produce?)
They don't have a choice, really. That was a problem Dish Network had last year, Clear Channel wanted them to carry a few new channels that they didn't want, and they have limited space on their satellite system, and so Clear Channel threatened to simply yank all their channels if their pricing demands weren't met. They comprimised by Dish carrying a few new channels and not paying an increase of like 75% per channel that CC wanted, but that's what happens a lot.
Whoever owns MTV probably requires it to be shown in the basic package, that way advertisers get the most bang for their buck. That's why packages tend to be in order of popularity or viewing ratings, the most viewed channels show up in the basic packages, the least viewed ones show up in the "specialty" packages, which cost more per channel than the basic ones usually do.