Broadcast as Business Flashcards
Principle of First Copy Costs is also known as
“The cost of producing the first copy of something is much higher than the cost of the second or any subsequent copy.”
First copy bears all the costs first. It bears the brunt of everything.
Economies of Scale
How Do Consumers Pay for Media Services/ Content
Buy the actual products directly - as in the case of print media.
DIRECT COST
BEFORE: Mostly ___________ cost; we only see the messages we want to hear.
NOW: More ___________ cost; we receive messages that are already paid for by advertisers.
direct;
indirect
THE WHEEL OF FORTUNE
- _______________ – wants to persuade you. Retailers na gustong may ibenta.
Advertising agency – craft ____________________ for retailers; look for media. Look for an advertising agency.
Advertisers;
persuasive messages
THE WHEEL OF FORTUNE
2. _________ – broadcast, OOH, traditional media, digital; we see on media to entice us. Create ads & buy ads time/ space (make message).
Media
THE WHEEL OF FORTUNE
3. _________________: san natin ilalagay ito? Sino ba dapat ang maabot nito?
MEDIA PLAN
THE WHEEL OF FORTUNE
4. _______________: persuaded to buy the product; a portion of the money we buy..
Audience
Books, movies, recordings, and computers are supported almost entirely by ________ costs to the consumers.
direct
REAL PRODUCT = ?
the audience it promises to bring to advertisers
With TV and radio, there is no _________ cause for exposure to a program, but there is a high __________________ the means to receive a program.
direct; cost for purchasing
With magazines, newspapers and cable TV, the costs are split between ___________ and __________.
direct; indirect
How Do Consumers Pay for Media Services/ Content
You can contribute to a product’s advertising budget when you buy their product.
INDIRECT COSTS
How Do Consumers Pay for Media Services/ Content
You are indirectly contributing to a media company. You buy a product that is actively advertised. Purchasing/ supporting a product.
INDIRECT COSTS
How Do Consumers Pay for Media Services/ Content
Subscription, paying access to movies, buying a magazine, book, recording, etc.
DIRECT COST
How Do Consumers Pay for Media Services/ Content
We pay and receive something physical; directly pay for something.
DIRECT COST
_______________________ – TV and radio are different from other media products because they have ______ variable costs, _______ fixed costs.
1 movie : many audience
Broadcast products;
no; only
Goal: reduced _____, high _________. maximize the production cost.
cost; audience
There is no cost to the station for ___________________________ viewer to the audience.
adding an additional
With no variable costs and with a very high first copy fixed cost, broadcast stations work on ________________________________ with each additional audience member added.
dropping their average total costs
2 Kinds of Costs Incurred by Company
These expenses are not related to the level of goods or services produced by the business.
FIXED COST
2 Kinds of Costs Incurred by Company
These expenses are associated with the amount of goods produced or services rendered. It can increase or decrease depending on the producing volume.
VARIABLE COST
2 Kinds of Costs Incurred by Company
Examples of these are raw materials, labor, distribution cost. Nagbabago depende sa dating ng panahon.
VARIABLE COST
2 Kinds of Costs Incurred by Company
Production cost – can decrease or increase
Raw materials, labor, etc.
VARIABLE COST
2 Kinds of Costs Incurred by Company
Common examples are: lease & rent, utilities, insurance, salaries & interest payments, equipment use, talent fees. Any cost; lease, rent.
FIXED COST
