We can say that TV has changed the way people consume entertainment. Long before TV was discovered and introduced, people oftentimes go to cinemas to watch shows or has to have their own projectors, which were pretty expensive back then. When TV came however, it paved way for people to watch shows without having to leave their homes. As years go by, numerous things have changed to how we are using TVs for media consumption.

DVR for TV

In 1999, DVR was introduced. It is so good among customers that it is widely accepted. However, the same thing can’t be said among providers for it enabled viewers to skip commercials, creating negative effect on revenue stream.

For consumers, all of these are dream come true. But for broadcasters and content creators, this is a complete nightmare. This is because commercials are the only method that they can make money, which keeps their business alive. Similar for towing companies, without trucks and cars breaking down on side of the road, they will be out of business. It is the basics of supply and demand.

How TV Shows are making Money?

So as for broadcasters and TV series, are commercials the only way they can make money? If you’re a casual viewer, you can easily know that there are countless commercials played in an hour.

Because of this, many people prefer DVR as it allows them to skip ads. Thus, any cable provider that doesn’t have DVR services will probably struggle in the long run.

According to experts, 20 minutes of commercials are shown for every hour of TV program. Based on statistics, every view generates a dollar of revenue. Therefore, if you have like, 20 million viewers, it’ll bring a total of 20 million dollars in revenue. Of course, this isn’t the overall amount for revenue. There are other things that must be factored in like the time slot when the commercial was scheduled and so forth.

This is why content creators and broadcasters are so careful on placing their commercials to be able to make the most out of every minute.