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To: Man50D; mmanager
My sister works in advertising, and the article is pretty correct.

Air TV is paid for by ads. But most people either are watching cable or the internet. The ad bus is dying a quick and messy death as a result.

No ads, no one paying for free TV. So for that service to exist, someone has to pay for it.

The internet is going the same way. The ad revenue is not near what it was for the old media, and many of the big news and entertainment companies are bleeding money all over the place. They are putting a lot of pressure on world governments to massively restrict free access to the internet.

In short, a lot of huge companies are in trouble, and they are looking for ways to increase cash flow. They also have the ear of the current government.

13 posted on 12/30/2009 4:17:54 AM PST by redgolum ("God is dead" -- Nietzsche. "Nietzsche is dead" -- God.)
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To: redgolum
My sister works in advertising, and the article is pretty correct.

I'm not disputing the accuracy of the article. I'm referring to the laws of diminishing returns. There is a point at which the production of a given unit of a product or service realizes a decreasing profit margin. This principle is exacerbated with an unemployment rate over 10% as we have today. TV stations will be cutting their own financial throats if they raise the rates any higher.
16 posted on 12/30/2009 4:32:50 AM PST by Man50D (Fair Tax, you earn it, you keep it! www.FairTaxNation.com)
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To: redgolum

When cable came to our town, many years ago, it was advertised as “commercial free TV”.

Now, we pay an exorbitant price to watch MORE commercials on more stations, and they are timed so that if you channel switch, you watch another commercial.


39 posted on 12/30/2009 6:35:54 AM PST by wizr (Keep the Faith! Even when it gets tough! Nothing else will do.)
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