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Unformatted text preview: betting turn out in a specific way. Potential Risks TFC Susceptible to From Implementation of Scenario 3:Risk Outcome Average Viewer Rating Continues to Hold at 0.8%, rather than increasing to 1.2%. Drop in Ad Revenue and viewership, thereby affecting our net profit margins and ability to sell more ad time at premium prices Going average CPM continues to hold at $1.80, versus rising to $2.50. If we increase our viewership due to an increased Average Viewer Rating, yet still achieve an average CPM of less than $2.50, our ad revenues will be less than that achieved through Scenario 1. Some Risks are: Drop in ratings (0.8) as the viewership will decrease because of targeting a particular segment. There will be need to spend $ 20 million on programming . Strengthen the pricing ability due to rise in CPM . There will be need to spend $ 15 million on marketing annd advertising . Very hard to convince the leadership team ....
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This note was uploaded on 02/10/2012 for the course MKT 500 MKT 500 taught by Professor Harris during the Spring '11 term at Strayer.
- Spring '11