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Microcap & Penny Stocks : FAMH - FIRAMADA Staffing Services -- Ignore unavailable to you. Want to Upgrade?

To: Omnichrome who wrote (14087)	4/28/1998 12:40:00 AM
From: Stuart Lloyd	Read Replies (2) \| Respond to of 27968

Regarding Morton Downey: I sold television time on a national basis for several years. Here's how it works for a syndicated talk show in general terms: If the show is an hour long, then about 12 minutes will consist of commercials. (Cut in half for a thirty minute show) 12 minutes of commercials equal 24 units of :30 second avails. Usually half of these 24 avails are given to the local station or cable system that airs the program. These spots will be sold and air on a local basis only and FAMH would see no revenue from these individual spots regardless of ratings, but FAMH may see license fees paid by the station each time the program airs. The other half of the 24 avails is retained by the national syndicator to sell on a national basis. The syndicator wants to get the show cleared to air in as many markets as possible, because then the syndicator will be able to justify a higher rate per :30 second national spot based on the number of television households the show reaches. This is where FAMH really makes the money. If the show airs in 105 markets, we can assume that all of the major markets are included which will effectively deliver 90% of the households. Of course if this show is syndicated on cable rather than regular TV, then we would reduce this percentage to 55% of households to account for cable penetration since everyone does not have cable. The 6 household share that Morton achieved in the past was from regular TV. I think someone posted that the new Morton show was going to be syndicated on cable. If that's the case, then the anticipated shares will be much lower this time around because cable shows simply cannot deliver a 6 share. Regardless, a share point is a valuable commodity and is worth millions of dollars per year on a national basis. The rates charged for television commercials are 100% directly tied to ratings and shares. Revenue increases are linear in nature to share increases. The return is not exponential. A 2 share should in theory garner twice the ad revenue as a 1 share program. Of course, if you are the number one show, advertisers are willing to pay a premium for "ratings". I hope this explanation helps Stuart