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Segmentation Fashion Channel

In: Business and Management

Submitted By baratus
Words 511
Pages 3
Ad Revenue Calculator

Exhibit 4: Ad Revenue Calculator
Current 2007 Base Scenario 1 Scenario 2 Scenario 3 110,000,000 110,000,000 110,000,000 110,000,000 110,000,000 0.8% 1.0% 1.0% 1.2% 1.2% 1320 1100 1100 1320 880 $2.00 $1.80 $1.80 $3.50 $2.50 $2,200 $1,980 $2,376 $3,080 $3,300 2016 2016 2016 2016 2016 52 52 52 52 52 $230,630,400 $207,567,360 $249,080,832 $322,882,560 $345,945,600 $ $ $ 15,000,000 $ 20,000,000

TV HH Average Rating Average Viewers (Thousand) Average CPM* Average Revenue/Ad Minute** Ad Minutes/Week Weeks/Year Ad Revenue/Year cremental Programming Expense

Grey = student input area

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

Exhibit 5: Financials

2006 Actual

2007 Base

Scenario 1

Scenario 2

Scenario 3

Assumptions

Revenue Ad Sales Affiliate Fees Total Revenue

$230,630,400 $207,567,360 $249,080,832 $322,882,560 $345,945,600 $80,000,000 $81,600,000 $81,600,000 $81,600,000 $81,600,000 $310,630,400 $289,167,360 $330,680,832 $404,482,560 $427,545,600 $70,000,000 $72,100,000 $72,100,000 $72,100,000 $72,100,000 $55,000,000 $ 55,000,000 $ 55,000,000 $ 70,000,000 $ 75,000,000 $6,918,912 $6,227,021 $7,472,425 $9,686,477 $10,378,368 $45,000,000 $60,000,000 $60,000,000 $60,000,000 $60,000,000 $40,000,000 $41,200,000 $41,200,000 $41,200,000 $41,200,000 $216,918,912 $234,527,021 $235,772,425 $252,986,477 $258,678,368 $93,711,488 30% $54,640,339 19% $94,908,407 $151,496,083 $168,867,232 29% 37% 39%

Insert scenario results from revenue calculator Grows 2% per year with population

Expenses Cost of Operations Cost of Programming Ad Sales Commissions Marketing & Advertising SGA Total Expense Net Income Margin

Grows 3% per year with inflation Add incremental programming expense 3% of ad sales revenue Reflects increased spending of $15M Growing with inflation 3% Spreadsheet calculates…...

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