REPORT: PROFIT MARGINS AT CABLE CHANNELS USUALLY BEAT LOCAL STATIONS

[gregg75]

REPORT: *A large amount of the fees we pay to cable/satellite go to less popular rated networks.
Profit margins listed in the report:

*Nickelodeon 64%
*Food Network 60%
*CNBC World & CNBC 59.9%
*VH1 59.3%
*TLC 58.7%
*Disney Channel 57.7%
*HGTV 57.1%
Discovery Channel 57%
AMC 55.4%
CABLE AVG. 41%
BIG 4 AFFILIATES TOP 20 MARKETS AVG. 42%
MARKETS 21-50 37%
MARKETS 51-100 35%
MARKETS BELOW 100 34%
ESPN 25.3% (makes almost 15% of industry revenue) COMMENT: They could also be big spenders
COMMENT: Some networks are probably also better ran than others.
http://www.tvnewscheck.com/article/2011/12/02/55785/uncovering-the-truth-about-retrans-value

 

[TexasTom]

No great surprise.

The cable networks get to double dip, collecting revenue from both subscriber fees and from advertising. On top of that, some of these channels either have a lot of reruns or rely heavily on cheap to produce reality shows. Or both.

What's interesting about this list is the absence of the top tier cable networks from the list. Note that ESPN, USA, TBS, and TNT are all absent from the list. That's because those networks have higher programming costs...and while those high programming costs are offset by higher subscriber fees, the net result is still a lower profit margin, although I'm sure they're still quite profitable.

 

[nomadcowatbk]

I guess kids don't mind reruns since Nickelodeon and Disney are on this list. Nickelodeon ran the one season show "My Brother and Me" for years after it was cancelled.