MN
An EPG space costs:
- £14,000 per annum plus £65,000 'platform contribution charge'
You will also need:
- Uplink facilities (estimated at about £75,000 for the year on its own)
- Space on the satelite (NOT cheap! ~£500,000 p/a at very least)
- Playout facilities (can be bundled with uplink, if not add ~£250,000)
Therefore you're basically looking at about £1m to operate a basic channel for a year. You then also need to consider licence costs; you have to convince the labels to allow you to show their music on your channel. Which could cost if the channel is considered 'niche' by the label.
The saving grace however, is advertising. You can sell a 30 second advertising spot on a small-scale tv channel for around £2,500 - this price is based on a series of 20. Given this cost, and each tv channel is regulated by ofcom to provide no more than 8 hours of advertising per 24 hours, we can do the maths and got £2.4 million of adveritinsg revenue.
But that's the theoretical maximum; the realistic revenue per day has to take in the overnight slot; so in reality you have to lower the price to next to nothing (have heard rumours of slots at 3am being sold for £300 as part of multiple-slot deals). So lets stick with the £2,500 estimate, but only image 10 minutes of advertising per hour from 7am to 12 midnight. This gives us 18 hours per day to sell, meaning you can get around £450,000.
But first you need a good audience, and this is the killer for any new channel on any platform. Unless you're a known name (ABC, ITV) you're going to struggle to attract advertisers because you've no proof of rating; they're basically buying a £2,500 betting slip.
I'd estimate that the average first-month advertising sales revenue for a start-up channel is a meer £50,000. Leaving you with £950,000 to find in 11 months
Tricky!
- £14,000 per annum plus £65,000 'platform contribution charge'
You will also need:
- Uplink facilities (estimated at about £75,000 for the year on its own)
- Space on the satelite (NOT cheap! ~£500,000 p/a at very least)
- Playout facilities (can be bundled with uplink, if not add ~£250,000)
Therefore you're basically looking at about £1m to operate a basic channel for a year. You then also need to consider licence costs; you have to convince the labels to allow you to show their music on your channel. Which could cost if the channel is considered 'niche' by the label.
The saving grace however, is advertising. You can sell a 30 second advertising spot on a small-scale tv channel for around £2,500 - this price is based on a series of 20. Given this cost, and each tv channel is regulated by ofcom to provide no more than 8 hours of advertising per 24 hours, we can do the maths and got £2.4 million of adveritinsg revenue.
But that's the theoretical maximum; the realistic revenue per day has to take in the overnight slot; so in reality you have to lower the price to next to nothing (have heard rumours of slots at 3am being sold for £300 as part of multiple-slot deals). So lets stick with the £2,500 estimate, but only image 10 minutes of advertising per hour from 7am to 12 midnight. This gives us 18 hours per day to sell, meaning you can get around £450,000.
But first you need a good audience, and this is the killer for any new channel on any platform. Unless you're a known name (ABC, ITV) you're going to struggle to attract advertisers because you've no proof of rating; they're basically buying a £2,500 betting slip.
I'd estimate that the average first-month advertising sales revenue for a start-up channel is a meer £50,000. Leaving you with £950,000 to find in 11 months
Tricky!
GC
Except Sky EPG slot, those figures are miles out.
Uplink and Sat space is nearly always sold combined, and IRO £200-250,000 for 2.5-3 M/Bit
Playout is £100,000 max, or a one-off £40,000 investment in equipment.
£30-50,000 fibre connection to uplink site if not hosted by provider.
Remember you need 1 or 2 full time staff for operations, ofcom compliance control, advert trafficing.
Revenue wise, a large chunk of revenue for music tv comes from interactive texts, votes competitions etc. Ad sales wise, you will be lucky to sell more than a 1/4 of your space.
To sell ad space you need to be on BARB audience data, which is an extra cost.
The UK is the most expensive in the world for music rights which is why we have very few true 24/7 channels...most use their 3 hour teleshopping, overnight quiz shows, and other MTV type jackass/newlyweds/pimp etc to make it cheaper to run.
hope that helps.
Uplink and Sat space is nearly always sold combined, and IRO £200-250,000 for 2.5-3 M/Bit
Playout is £100,000 max, or a one-off £40,000 investment in equipment.
£30-50,000 fibre connection to uplink site if not hosted by provider.
Remember you need 1 or 2 full time staff for operations, ofcom compliance control, advert trafficing.
Revenue wise, a large chunk of revenue for music tv comes from interactive texts, votes competitions etc. Ad sales wise, you will be lucky to sell more than a 1/4 of your space.
To sell ad space you need to be on BARB audience data, which is an extra cost.
The UK is the most expensive in the world for music rights which is why we have very few true 24/7 channels...most use their 3 hour teleshopping, overnight quiz shows, and other MTV type jackass/newlyweds/pimp etc to make it cheaper to run.
hope that helps.
JH
There's a deep irony in there somewhere...
MarkNewby posted:
Unless you're a known name (ABC, ITV) you're going to struggle to attract advertisers
There's a deep irony in there somewhere...
JH
Those figures aren't quite right, are they? That would suggest there is 20 minutes of advertising allowed in every hour. That may be nearer the truth in the US, but not over here, is it?
MarkNewby posted:
each tv channel is regulated by ofcom to provide no more than 8 hours of advertising per 24 hours
Those figures aren't quite right, are they? That would suggest there is 20 minutes of advertising allowed in every hour. That may be nearer the truth in the US, but not over here, is it?
LO
sorry for dragging your thread off topic a little, Luke, but i must just ask, given this quote:
what channels have 8 hours advertising per day?
Quote:
Given this cost, and each tv channel is regulated by ofcom to provide no more than 8 hours of advertising per 24 hours, we can do the maths and got £2.4 million of advertising revenue.
what channels have 8 hours advertising per day?
MA
Unless you're a channel 3-5 licensee (which has a max average of 7 mins per hour) then you must not exceed an average of 9 minutes per hour - which is 216 minutes. You can't have more than 12 minutes of spot ads in any given hour.
You can add some teleshopping spots (up to 5% of output) which aren't counted in that window.
You can add some teleshopping spots (up to 5% of output) which aren't counted in that window.
:-(
A former member
marksi posted:
Unless you're a channel 3-5 licensee (which has a max average of 7 mins per hour) then you must not exceed an average of 9 minutes per hour - which is 216 minutes. You can't have more than 12 minutes of spot ads in any given hou.
it seem much longer than 9 mins, although why are sky channel allowed an extra 3mintures?
with all those cost Above, It beggar belief HOW on earth some of those crap SKY channel are able to pay there way sometime!
SU
But in theory the shopping channels have 24 hours of advertising a day. 
:
If it was going to be a music channel, why not open a text line at €3 a text where the broadcast of your message may involve multiple messages being sent? They all do it. Or put cheap internet-style banner ads at the bottom of the screen.
But half of the channels on Sky are really lacking in any form of continuity and original programming. I'm sick of shopping, religion, mock up test cards and cheap imports of home-made documentaries and shows from the sixties (eg. Tne Beverley Hillbillies on "Bonanza")
:
If it was going to be a music channel, why not open a text line at €3 a text where the broadcast of your message may involve multiple messages being sent? They all do it. Or put cheap internet-style banner ads at the bottom of the screen.
But half of the channels on Sky are really lacking in any form of continuity and original programming. I'm sick of shopping, religion, mock up test cards and cheap imports of home-made documentaries and shows from the sixties (eg. Tne Beverley Hillbillies on "Bonanza")