New and upcoming TV channels tend to face major financial challenges. This is due to the fact that new and upcoming TV channels don’t attract as much advertising revenue as the well-established TV channels. Thus, the new and upcoming TV channels have to figure out ways to keep their operating costs down, as they try to build up their revenue bases. How, then, do they (the new and upcoming TV channels) manage to keep their operating costs down? I posed this question to a fellow who has taken advantage of the digital TV migration to set up a number of new (and increasingly successful) TV channels. I wanted to know how they manage to keep their operating costs down.
It turned out that one strategy used by new and upcoming TV channels to keep their operating costs down is that of utilizing office space in the most efficient manner possible. Hence the open plan offices you see at these stations’ headquarters.
Another strategy used by new and upcoming TV channels to keep their operating costs down is that of utilizing their human resource in the most efficient manner possible. Thus, for instance, the news anchor can also work part-time in the editorial department. Furthermore, the upcoming TV channels also tend to offer their people modest pay packages and benefits (with promises to improve things as soon as the revenue bases improve). Indeed, while asking for a job at a small, new and upcoming TV station, one doesn’t expect to get benefits akin to those that Hilton offers its workers through the Hilton.com/tmtp program.
Yet another strategy used by new and upcoming TV channels to keep their operating costs down is that of buying ready-made programming, as opposed to preparing programs in-house. The same approach is used when it comes to news: where an effort is made to buy ready-made news stories from the news agencies, as opposed to the TV channels retaining and having to facilitate their own reporters.