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Ad Revenue Calculator Current 2007 Base Scenario 1

The document contains revenue and expense projections for a television network under different scenarios. Scenario 1 projects a modest increase in viewership and advertising revenue compared to 2007. Scenarios 2 and 3 further increase viewership and adjust advertising rates, projecting the highest revenue but also additional programming expenses. Across scenarios, revenue increases while expenses remain steady, improving the projected net income and profit margin each year.

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Malini Rajashekaran
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138 views2 pages

Ad Revenue Calculator Current 2007 Base Scenario 1

The document contains revenue and expense projections for a television network under different scenarios. Scenario 1 projects a modest increase in viewership and advertising revenue compared to 2007. Scenarios 2 and 3 further increase viewership and adjust advertising rates, projecting the highest revenue but also additional programming expenses. Across scenarios, revenue increases while expenses remain steady, improving the projected net income and profit margin each year.

Uploaded by

Malini Rajashekaran
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Exhibit 4: Ad Revenue Calculator

Ad Revenue Calculator
Current 2007 Base Scenario 1
TV HH 110,000,000 110,000,000 110,000,000
Average Rating 1.0% 1% 1.2%
Average Viewers (Thousand) 1100 1100 1320
Average CPM* $2.00 180.00% $1.80
Average Revenue/Ad Minute** $2,200 $1,980 $2,376
Ad Minutes/Week 2016 2016 2016
Weeks/Year 52 52 52
Ad Revenue/Year $230,630,400) $207,567,360) $249,080,832)
Incremental Programming Expense

* Revenue/Thousand Viewers
** Calculated by multiplying Average Viewers by Average CPM

2006 Actual 2007 Base Scenario 1


Exhibit 5: Financials
Revenue
Ad Sales $230,630,400) $207,567,360) $249,080,832)
Affiliate Fees $80,000,000 $81,600,000 $81,600,000
Total Revenue $310,630,400) $289,167,360) $330,680,832)

Expenses
Cost of Operations $70,000,000 $72,100,000 $72,100,000
Cost of Programming $55,000,000 $0 $0
Ad Sales Commissions $6,918,912 $6,227,021 $7,472,425
Marketing & Advertising $45,000,000 $60,000,000) $60,000,000)
SGA $40,000,000 $41,200,000 $41,200,000
Total Expense $216,918,912 $179,527,021 $180,772,425

Net Income $93,711,488) $109,640,339) $149,908,407)


Margin 30% 38% 45%
Scenario 2 Scenario 3
110,000,000 110,000,000
0.8% 1.2%
880 1320
$3.50 $2.50
$3,080 $3,300
2016 2016
52 52
$322,882,560) $345,945,600)
$15,000,000) $20,000,000)

Scenario 2 Scenario 3 Assumptions

$322,882,560) $345,945,600) Insert scenario results from revenue calculator


$81,600,000 $81,600,000 Grows 2% per year with population
$404,482,560) $427,545,600)

$72,100,000 $72,100,000 Grows 3% per year with inflation


$15,000,000 $20,000,000 Add incremental programming expense
$9,686,477 $10,378,368 3% of ad sales revenue
$60,000,000) $60,000,000) Reflects increased spending of $15M
$41,200,000 $41,200,000 Growing with inflation 3%
$197,986,477 $203,678,368 Spreadsheet calculates automatically

$206,496,083) $223,867,232) Spreadsheet calculates automatically


51% 52% Spreadsheet calculates automatically

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