Do radio stations get money off the government or do they earn it?

Answer 1

Every radio station is a business. It sells a product and experiences profit and loss, just like any

other business.

The product it sells is: Ears. It sells ears to department stores, fast food restaurants, telephone

companies, companies that manufacture cars, sell cars, rent cars, insure cars, paint cars, or fix

cars, plus furniture stores, soft drink bottlers, banks, clothing companies, breweries, shoe stores ...

anybody who has anything to sell you, and wants to tell you about what they're selling. They pay

the radio station, and the radio station lets them borrow your ears for 10 seconds, 30 seconds,

60 seconds ... depending on how much time they pay for ... and they use that time to tell you

all about what they're selling and why you really need it.

The more ears the radio station controls, the more they can charge for each minute of "commercial"

time. And that's the reason that the radio station wants everybody to think they're the best one,

and wants to have the most ears listening to them.

They don't get a dime from government. They paythe government big bucks for the license

they need before they're permitted to operate a radio station. The reason they're willing to

pay for it is that once they have a radio station, they can make so much more money off the

commercial advertisers ... as long as they can round up enough ears to sell.

The exact same story goes for TV stations. The only difference is: They sell eyes, not ears.