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The stations you watch have ads because that's how they make money. The cable or satellite provider you pay charges you monthly because, in addition to other fe
by coderdude 16y ago
The stations you watch have ads because that's how they make money. The cable or satellite provider you pay charges you monthly because, in addition to other fees and services, that's how they make money. I have a feeling that Hulu's business model doesn't quite work like that.
- WiseWeasel 16y agoThe cable/satellite companies also pay the networks directly, using the money from your subscription, as the ad market is too volatile for the networks to rely on alone. Obviously, Hulu is also going to have to work in a similar way, paying the networks to gain access to their content, to attract more subscribers.
- coderdude 16y agoI did some reading here: http://en.wikipedia.org/wiki/Cable_television_in_the_United_States#Subscriber_Fees http://en.wikipedia.org/wiki/Cable_television_in_the_United_... It states: "To support themselves, some cable channels charge "subscriber fees" in addition to airing commercials. These fees are collected directly from the cable service provider, who passes the cost onto the customer." So you are correct, at least about some portion of the stations.
- WiseWeasel 16y agoFurthermore, there are both network ads and cable/satellite provider ads mixed together in commercial breaks, so both the networks and the cable/satellite companies are making money on ads as well. On my cable TV service, the first block of ads is the network's ads, followed by a few local commercials sold by my cable provider.