PR5 Commercial Finances

Negotiated production budgets.

When the radio advert is in the pre-production stages people who are making the advert and the ones funding it have to go through everything and what the most effective ways that they can fund the advert without becoming bankrupt in the proses. With that in mind they need to decide what the best way to go forward with the production financially, deciding what they should and shouldn’t provide for the production.

Music royalty payments.

when a radio company puts any kind of music on air to the public it could catch the attention of the artist or the company that made it and they will want to know why their music is being used on a radio station with no financial transactions provided by the very people who broadcasted the song so it could result in a court case, to avoid this, before all this gets aired to the public terms need to be discussed with the music or production company that designed the song or the product and exchange funds that are acceptable for the rights to the song to be transferred. It is this method which stops many issues accruing in the radio industry.

Voiceover artists’ fees. when a person who does voice overs comes to your studio for a certain amount of time they will be requiring a fee for every hour that they spend in that studio otherwise it won’t happen the artist would just leave and find another station that will pay, it is the same with any performance job such as voice actors, singers or screen actors.

Trafficking costs.when the product is released it is going to be put up for sail to other radio stations who would want to buy the advert and so fees are discussed to determine what the advert is going for and depending on how new the advert is, for instance when the advert gets a few years old then the pricing for it will drop and the advert will either get more and more common or just get taken of air all together.

Rate cards

rate cards are documentations containing placements for the radio adverts and how much it will cost for the establishment to broadcast the advert and the price may vary on how public the establishment may be, whether it is a hotel or a shopping center.