Originally Posted by jj20x:
“I never said that "pure income generation is the only aim".
The fact remains that if the channels don't generate enough revenue to cover the costs, the parent company makes a loss and eventually goes bankrupt. I suggest that you work out a suitable business plan for running a channel on freeview without generating income. When you have successfully done that, your argument may carry some weight.
Argos TV is a shopping channel. Obviously, shopping channels generate their income from retail sales.
Religious channels are generally there to seek donations from the viewers, so their costs have to be kept low. How many of these channels are on freeview managing to cover the cost of transmission? please name them.”
You wrote "that if the channels don't generate enough revenue to cover the costs, the parent company makes a loss and eventually goes bankrupt". My point is that's too much of a generalisation and not all channels cover their own costs..
Some channels are not funded directly by the revenue they generate from their broadcasting of that channel. Argos is a perfect example. They don't know and don't care what sales are made by the channel - their aim is for Argos to sell more as a whole. The channel is effectively there for supporting the brand and showcasing products which can be bought from other Argos outlets, online or shops. Evidence for this (apart from internal industry discussion when they launched) can be seen in news reports:
“The move to shut the channel down is in step with its stated goal of placing more emphasis on more affluent shoppers, as retaining an Argos TV shopping channel would be a barrier to widening the brand appeal to such consumers.” (FT) .Nothing about not raising enough to be viable.
Another example, although this one is satellite but illustrates the point, is when steve bennet the entrepreneur sold jungle.com for a packet and used some of the money to start vibe tv for his singer girlfriend Angelle, to promote her career. There was no attempt to generate revenue or expect the channel to fund itself. The business plan - if there was one - was not based on revenue generated from the channel.
Regarding religious channels, I'm afraid I don't really understand your point. On the one hand you state that a company will go bankruprt if a channel can't generate enough revenue to cover its costs but on the other you are asking which channels exist that are covering their costs. Surely, using your argument there should be none because they can't afford it? Maybe I have misunderstood you on this but to answer your question the best I can, Christian TV is on Freeview 228. It comprises programming from Sonlife who are funded from its parent organisation in the states and Revelation TV, a non profit-making charity funded by charitable donations. God TV is on freeview 235. It is funded by international Christian organisations. They would not exist if they relied solely on generating their own revenue from their air time.
For as long as a channel achieves it's intended purpose it will be funded because that will be it's business plan. Business plans are not just for cash-generating businesses. Charities have business plans but the service they deliver does not generate revenue, it comes mainly from donations.
I hope I’ve addressed all your points. Oh, hang on – there’s your implication that I’m not sufficiently informed for my argument to carry weight. I've been involved in broadcasting for 30 years, freeview and satellite channels for 14 years, I've written business plans and I have two business masters degrees - so hopefully my argument does 'carry some weight', at least.