The revenue generating model for radio and television stations

Abstract

The primary inventory of radio/television stations is airtime. Radio/television airtimes are used for adverts, paid announcement, sponsored programme, etc. Airtime on radio/television stations is subdivided into three subunits; prime time, fixed time and normal time and the total revenue generated per day by the radio/television station is the sum of revenue from all three subunits of airtime. In this work, we derive the revenue function for each subunit of time and thereafter derive the revenue generating function for the radio/television station. A numerical example is given to demonstrate the use of the model.