| Why do you want to launch a TV channel?
This question is not necessarily a simple one. A well-planned
TV channel can be highly profitable, delivering revenues from
commerce, merchandising, gaming, advertising or subscription.
However, some new channels are launched to communicate religious,
social or commercial messages and their purpose may not be simply
to make profits.
Starting a TV channel may sound like a daunting task, but it
needn’t be. Thanks to digital technology, it has never
been easier to launch a channel.
The key points to consider when you launch a channel
are:
-
What return on investment do I need?
-
What is my target audience?
-
Which is the best TV platform to reach
that audience?
-
What is the best technology solution
for my chosen TV platform/ platforms?
-
What are the regulatory requirements?
Developments in technology and government legislation mean
analogue channels will be obsolete within 10 to 15 years.
Already, analogue cable and satellite services across Europe
have fewer viewers than their digital counterparts and the
gap is widening.
Which business model?
Your required return on investment and target audience will
influence the business model you choose for your channel.
Typically, channels are:
-
free to air (which means that the content
is free to view) subscription
-
pay-per-view (by event rather than annual
subscription)
In the UK most new channels are retail channels or entertainment/information
channels. Retail channels are free to air because they earn
income by selling goods and services to as wide an audience
as possible. Entertainment / information channels earn their
revenues from subscriptions, pay-per-view events, advertising
and telephony tie-ins.
The economic relationship between a channel and the operator is a
little like being a store-within-a-store. You will almost certainly
have to pay to be part of the Sky digital, ntl, Telewest or the
Freeview shop front. Just like traditional retail, what you then do w
ith this prime televisual real estate will lead to the level of return
on your investment.
|
