Network revenues will be significantly reliant on advertising at launch, however in the long-term it is expected that revenues will move progressively toward a subscription and services based model, as the Broadcast Industry as a whole works to identify new revenue streams not susceptible to ad-blocking, pre-recording and ad-skipping. Subscription based services are seen as being enhanced by the inclusion of exclusive content, replacing advertising.
The approach to the calculation of potential revenues for AVTN – Aviation Television News and NewsNet24⁷ has been cautious and conservative, when compared to advertised rates of competitors, and in general averages have been applied from available data. The overall strategy for the Network is based on economies of scale: The more markets presence is achieved in, the greater the potential revenue stream, while demands on average slot revenues vs. costs are significantly reduced. Consideration of the profitability of markets is also made in both near-term and long-term. The basis of Revenue calculations is detailed within the Proposal. Full accounts and revenue tables are found with the accounts for each Budget Tier. For calculation of Revenues by CPT, see Section on CPT/CPM’s.
Thirty-second slot revenues vary considerably across region, nation, outlet and channel type, time-slot, weekday and weekend. Network forecasts are based upon the most accurate regional or national data available. Higher advertising rates tend to apply to premium entertainment programming and sport, but also to peak periods on a weekly or seasonal basis as well as for special events. Sponsorship of segments such as the Weather is likely, but this area is subject to regulatory conditions. The Network aims to attract premium brands, and relevant advertisers to any offering.
In previous versions of the Proposal Revenues have seen relative equal division between Regions based on Broadcast time-shared distribution principles. However, with the need to introduce an EU base within the European theatre of Operations in addition to London, and the converse need to maintain access to the UK from Europe, it has become necessary to allocate revenues as generated by region.
Revenues have been projected for the following forms of advertising:
- Satellite, Cable and IPTV Television Services
- IP Radio Services
- VOD/SVOD Services
- Online & OTT Services
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