Its prob really simple- I just dont get it.

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blue eyes

Thu, Nov 03 2011, 2:21 pm

How does the media tv shows etc work. How do they make money. the expenses it costs to make a movie- the script - actors you hire- stage set.. the time. how does it all pay back? do they sell it to the movie theaters? and for that much that its worth it for the theaters to host it?
and mostly TV shows- we all pay a couple of dollars for the channel how is it that celebs are still making soooo much?

Take kim Kardashian for exapmle- they said she maid 138K every day that she was married- who sponsored it?? who actually paid for that??

mynameismom

Thu, Nov 03 2011, 2:27 pm

take a couple of tv shows and multiply them by the millions of people watching. Then they also get money from media outlets such as gossip magazines who they give interviews/pictures to. believe it or not they also get paid for showing up at events.

zaq

Thu, Nov 03 2011, 2:37 pm

The money that TV/radio stations and newspapers make from subscriptions barely keeps them in paper clips, relatively speaking. V/radio/newsapers make their big money from advertising. The more people watch a show, the more the station can charge for an ad. A 30-second spot on a top-rated show goes for $350,000. 30 seconds on the Super Bowl--about $3 MILLION. (Compare that to $40,000 for a full-page ad in the Sunday NY Times. But I guess many more people watch the Super Bowl than read the Sunday Times.)

And that, my friends, is why there is so much trash on TV: because audiences love it, and the more trash, the more people are going to watch. The more people the advertisers will reach, the more the station can charge for ads. It's all about the money.

blue eyes

Thu, Nov 03 2011, 2:40 pm

still doesnt answer my question- its not coming a full circle- so best buy has an ad and pays 3 mil but their profits from the entire store wont be that much ( just saying) ads is a big chance dont u think? I know all of geico's and progressive insurance commercials by heart and still didnt call them for a qoute.... maybe Im just not getting it

Britmummy

Thu, Nov 03 2011, 2:56 pm

Advertising develops familiarity with brandnames.

So whilst you don't go calling up insurance firms after seeing their ad on TV, the next time you look up quotes with a view to switching providers, you're more likely to trust a well-known brand than one you've never heard of...

zaq

Thu, Nov 03 2011, 3:06 pm

The advertisers are betting that the ads will bring in more business. If that doesn't happen, they advertise elsewhere. Yes, it's a gamble, but all of business is one giant gamble. You order hot pink T-shirts assuming all the teenagers will buy them. If they don't, you're stuck with 2 million fuchsia T-shirts that you sell to a jobber for bupkes or donate--for a nice tax write-off--to Fashion Rescue or the Peace Corps or something.

You also don't understand big business. 3 million dollars is a fortune to you and me, but toilet-paper money to a huge corporation. Best Buy is a huge corporation. It's not the local store placing those $3 million ads--it's Corporate. Nationwide. And the $6 million-a-minute is only for the Super Bowl.

At the bottom line is you, me, and the other schmoes who get suckered into buying a product because we've seen the ads and remember the name. This great land of ours has a population of 350 million and growing; that's a lot of buying power for companies to court. And that's an awful lot of the price of many of the high-priced things people buy.

Don't worry. If the companies overrun their advertising budget and the ads don't bring in enough business to offset the cost, they advertise less expensively, raise their prices, cut costs elsewhere, change their product line or go out of business.

Anyway--you didn't call GEICO for a quote--but millions of other people did. Maybe you're less susceptible to advertising than most. But have you never bought an acne remedy, pantyhose, moisturizer or candy bar because the name was familiar to you? You may not recall the ad, but the product name or packaging rings a bell. Would you buy a car whose name you didn't recognize? name-brand recognition is a huge factor in buying decisions. Bottom line is advertising works, otherwise companies wouldn't do it.

gp2.0

Thu, Nov 03 2011, 3:14 pm

Quote:

Bottom line is advertising works, otherwise companies wouldn't do it

Exactly what I was going to say.

And I'll add that sometimes you lose (money or other things) sometimes you gain, sometimes you break even. It's always a calculated risk. That's life.

auntie_em

Thu, Nov 03 2011, 3:55 pm

Don't forget they sell stuff to go along with popular television shows and movies.
Dolls, action figures, bags with images, t-shirt, dvd season sets, fees they charge Net*flix or whoever to stream, (used to be) lunch boxes.. the list goes on-and-on.

blue eyes

Thu, Nov 03 2011, 4:00 pm

auntie_em wrote:

so what ur all saying is that its not necessarily the stage, movie or episode taht makes money rather the popularily and line of clothing toys etc etc everything else that comes with it

auntie_em

Thu, Nov 03 2011, 4:17 pm

For stage productions it is different. But television and movies, the show itself earns money through the advertising you see during commercial breaks. That is a large amount of money, depending on the popularity of the show. American Idol ads=$$$$

That is also why when people are offended by a show's content (recently Playboy Club, ended after only 3 weeks) they call for a boycott of the advertisers. If Proctor and Gamble know people will not buy whatever it is they are advertising during a show that upsets enough people, they will pull their ads. Therefore..there is no money to pay for the show.

Then they also sell all the "stuff" to bring in more money. DVD sales, streaming...etc.

The might also sell the show to be shown overseas. Or they could license the "idea" of the show to be filmed in another country, say Japan or the UK. Simon Cowell is very good at this part.

They also sell the show to B-networks or cable networks to show reruns. That is why you can watch Law and Order nearly any time..day or night. Lol

Mash and I Love Lucy have been earning money for decades already.

auntie_em

Thu, Nov 03 2011, 4:21 pm

They also make money through product placement. So when you see a tv show character drinking Diet Coke or something, the Coke company paid big bucks to have their product in the show.

M and M's were supposed to be the candy E.T. ate, but the company passed on the offer, not knowing what a huge mega-hit E.T. would be.

E.T. was the impetus behind the success of Reese's Pieces. Everyone saw ET eating those little peanut-butter candies and the rest is consumer history.

blue eyes

Thu, Nov 03 2011, 10:36 pm

So.. how did Kim Kardashain make "profit " on her wedding?

auntie_em

Fri, Nov 04 2011, 12:30 am

Hmm...yeah, I heard that too. Apparently people are upset about it.
I don't really know what they mean though. I don't really pay attention to things like that.
Lol.. I just found out she is Bruce Jenner's daughter.

I think they put her wedding on TV, so she was paid for that. I'm sure she was paid well, if they did.
Then I know (from reading) that there were sponsors for her wedding, but I don't know if they paid her or
just paid for flowers or whatever.

The pictures, I'm pretty sure, were sold to the tabloids for a hefty price as well.

Then there were lots and lots of gifts given to the couple. I don't know if they were corporate "gifts" (like product placement) or her family/friends, or if strangers who were enamored with this couple sent them money and gifts as well. Do people do that? Send wedding presents to celebrities they don't ever have a chance of meeting? I don't know..lol.

zaq

Fri, Nov 04 2011, 10:21 am

auntie_em wrote:

Do people do that? Send wedding presents to celebrities they don't ever have a chance of meeting? .

Yes. Crazy, no? The more menschlich celebs give those gifts to charity, ditto all the flowers they're showered with when they make an appearance somewhere.

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