Postby freerock1 » Tue Nov 15, 2005 11:43 am
FUNi's level of success will probably depend largely on whether they're trying to make it as an advertising-driven network. Most new networks these days aren't really going the ad-driven route, at least not initially. A lot of channels get some kind of a financial kickback from cable and satellite providers that carry their network, so a lot of media outfits that have large libraries launch cable networks so that they can make some money off their libraries, rather than just letting them set (case in point, Nicktoons, and from a few years ago, Turner Classic Movies). If a channel becomes popular enough, they may start to take on some advertising (as Nicktoons and Anime Network are starting to do), and eventually go in more of an ad-driven direction (i.e., AMC. I believe TV Land and Game Show Network (now GSN) took that approach as well.)
The whole reason ratings are important (besides bragging rights) is that ratings drive ad rates. Most of the new up-and-coming networks know they don't have the viewership yet to charge too much for advertising, so they're not going to put too much effort into it until they start building a solid viewer base.
My guess is that this will be FUNi's approach. They're probably hoping they can start pulling in advertising at some point, but until then they'll probably be happy to get a little extra income from the cable carriers that take on the network, in addition to what they're getting from DVD sales and licensing agreements.
Just my $.02...
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