HBO, ESPN, MTV: How the top TV channels stack up
Most TV channels have two principal sources of revenue:
2. Advertising from companies like GM, P&G and J&J
Unlike broadcast networks (ABC, NBC, CBS, Fox) which depend primarily on advertising, pay TV channels like HBO, ESPN and MTV earn significant revenues from fees. As a result, these channels tend to be more insulated from fluctuations in the TV ad market.
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Rankings by Monthly Subscriber Fees
|
Channel |
2009 Monthly Fee per Subscriber |
2009 (mil) |
2009 Est. Revenue |
Owner |
|
HBO* |
44 |
$3.7 |
Time Warner |
|
|
ESPN |
100 |
$3.8 |
Disney |
|
|
TNT |
93 |
$1.0 |
Time Warner |
|
|
Nickelodeon |
100 |
$0.5 |
Viacom |
|
|
MTV |
98 |
$0.4 |
Viacom |
* All the channels listed are Pay TV channels that cable/satellite TV subscribers pay monthly package fees to access. HBO is a premium channel meaning that cable/satellite TV subscribers pay additional fees to access it
Source: Trefis.com
Despite having only 44 million subscribers, which represents less than 40% of cable/satellite subscribers, HBO will earn nearly as much in fees in 2009 as ESPN due the $7 fee per subscriber that HBO commands for its premium programming.
On the advertising front, the key parameter is Ad Pricing. Pricing of Ads on TV channels is primarily a function of the demand within the ad market and the attractiveness of the primary demographic for a channel.
Which of these channels do you think has the highest Ad Pricing?
A. HBO
B. ESPN
C. TNT
D. Nickelodeon
Make a selection above to see the answer. You can then use compare button on chart to plot Ad Pricing rates for other channels.