Strengths and Weaknesses of Commercial Broadcasting

Commercial broadcasting
Name:
Course:
Professor’s Name:
University:
City (State):
Date:
Commercial broadcasting
In media broadcast, the main objective is to generate profit, most media organizations are profit-oriented, therefore in commercial broadcast, and competition is the main feature. Organizations strive to compete for audiences with sales and advertising as the main source of income (Kelly, 2016, p 1). In a free market economy, consumers determine how much profit one can generate. That is why commercial broadcasts tend to keep their prices low, but produces quality contents to give consumers what they want because consumers choose from a variety of goods in the market. Theoretically, in a free market, both buyers and sellers determine what to produce, sell and how resources like capital and labor can be used and rewarded hence, affecting how much an organization gets (Wall, 2012, p 173).
Commercial broadcasting's strengths lie in producing programs and ensuring quality standards are maintained, combined with meaningful content to the audience. They also produce economically valuable contents. Commercial broadcast business is profitable because revenue comes from two sources, one is directly from the consumers and payment made for web access, broadcasted program and subscriptions, especially for radio, television and newspaper production (Jacobs, Meeusen & d'Haenens, 2016, p 13).
The tricky part is that for media products, there are no repeat purchase once a copy has been purchased the commodity is used up. The major challenge is how to balance revenue from advertising and revenue from direct consumers. For larger companies, it is about getting revenue from advertisement to offset that of sales that might not be enough to cover the overall cost of production. For publications, covering for prices less that the cost of production can result in losses, especially when the circulation does not generate enough revenue (Wall, 2012, p 178). For air broadcasting, many programs are free to viewers and listeners unless people pay for ...