Quote:
Originally Posted by martyh
the way i see it is if the beeb doesn't get license fee money they will have to advertise like the other channels efectively meaning the end of the bbc ,and there's only so much advertising revenue to go round so i would say that the beebs revenue will fall through the floor and leave them no choice but to show repeats and trashy reality shows if they survive a tall
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The BBC would almost certainly survive the transition to commercials. ITV, Channel 4 and Channel 5 probably would not.
Why? Simple. When demand outstrips supply, prices go up. Demand for advertising space is pretty much fixed. However, the supply of advertising space has increased exponentially, thus driving prices (and therefore income for the commercial TV companies) down.
Think about it. A lot of people seem to consider the 80s and early 90s as the hey day for quality ITV drama. ITV, at the time, had an awful lot of money to spend on that quality drama. Mainly because there were only a few channels that had advertising, so the cost for each 30 second slot was astronomical. Now, we have over 300 channels, so the cost has gone through the floor. Adding the significant amount of advertising space that forcing the BBC to take advertising would would drive those prices even lower.