Sunday, 11 September 2016
FINANCIAL IMPACT OF COMMERCIALIZATION ON THE DEVELOPMENT AND SUSTAINABILITY OF BROADCAST STATIONS IN NIGERIA
1.1 Background to the Study
Media Finance is considered as a safest mode of media development and sustainability. This avenue of investment provides greater flexibility in making financial agreements and contracts, easily adjustable with the media objective and principles.It is noteworthy that media finance is not simply a matter of funds transfer from lender to borrower; it has multi-dimensional aspects. There are several related sources of income generation by media practitioners/organization these includes income generate from advertisement, public service announcement, airtime/airspace sales, and government subvention e.t.c
Therefore, for broadcast organizations to make money and to survive in the long run, they must have constant sources or streams of revenue. Revenues come from sales, and the various categories of sales of a service or manufacturing firm are known as revenue streams. While measuring and reporting revenue is the domain of accounting and finance departments in organizations, determining new sources or streams of revenue is the responsibility of top management, strategic planners, and marketing forecasters. Ademola, (2009).
Meanwhile, competition is driving down advertising rates of broadcasting media especially in Nigeria. The number of channels is increasing while there is no infrastructure to support the presence of these channels. The audience has a shorter span of attention and they are fragmenting. Under reporting of subscription fees have been a traditional problem and the advertising revenues are growing at slower rates every year. When faced with such a scenario broadcasters are looking up for various avenues to increase revenues.
Commercial may refer to advertising which is paid classified messages in newspapers, magazines, flyers, billboards, and paid announcements over radio and television to sell a product, item or service. Commercial broadcasting is the practice of airing radio and television advertisements for profit making.
Radio advertisement, paid announcements over the radio to sell a product, item or services. While television advertisement is another paid form of announcements over the television to sell a product, item or services. Wikipedia.com.
The five new or alternative funding options for public broadcasting stations include: television advertising, radio advertising, retransmission consent fees, paid digital subscriptions and digital game publishing. Molokwu and Obiaku, (1997).
The existing sources from which public broadcasting already draws include: merchandise licensing, digital online advertising, education and state government fee-for-service arrangements, events, renting donor lists to direct marketers, tower leasing, production services. Some of the major source of revenue for broadcasting media are: Commercials, Sales of Air, time to Freelance Presenters, Donations, Grants and Sponsors.
Commercialization is therefore any kind of dourness of fund from sales. Where money in generated from something in form of sales. A situation whereby the broadcast media generate income from the news by selling air time for news instead of broadcasting the news based on accepted news values. Ajala (1996).
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