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  • tigerpac tigerpac Dec 21, 2011 6:33 PM Flag

    great news - The Roys Sign Production Deal With ValCom Studios

    Valcom actual owns only one station, a 45% interest in a Palm Springs station.

    They do have a couple of hundred affiliates, mostly the the MyFamilyTv network. If you search thru those affiliates, owned by other broadcasting companies, you'll find that they are low powered stations that don't reach a wide area on an individual basis.

    Here is link to one such affiliate in Fresno, CA:

    It was actually 100 spots for $500. Some of you guys are so used to network ad rates that you can't fathom how bad it is in bottom end of the market where no one watches these stations.

    Not sure how or if the TV station splits ad revenue with Valcom. If it doesn't , you still can see how little revenue a low power station generates. more research is needed to determine how much revenue the affiliates pay Valcom for the programming. But based on previous financial statements, apparently not that much, at least for an initial production run of shows. If they can move The Roys beyond thirteen episodes and into more mainstream networks, then we can revisit the numbers.

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    • Interesting link, but..

      About half of those stations are home shopping and/or jewlery sales. Don't those vendors normally pay for air time?

      One of the networks was on both Dish and direct, not much to worry about there.

      The other two did sort of resemble FamilyTV.

      I think your take on advertising rates is wrong!

      If you see an ad stating "Season golf pass for after 9:00 pm tee-off times for only $250.00", would you infer that the you can golf there for $1.40 a round or would you concluded that someone is smart enough to try to create a market where one does not really exist?

      Certainly you can expect your discount package ad to air at the very worst times, but if you want it to air when the majority of viewers are awake, then you'll pay considerably more, just like in golf!

      • 1 Reply to harlodasshon
      • Harlo,

        You have to look at the demographics where these stations are located...usually the population is below middle class. Not much disposable income. They have such low power that not many households pick up the stations, fewer actually realize they get that station, and even fewer watch the station once they do find it.

        Hence the really low ad rates. It's a very localized ad market...a car dealership or a furniture store for example.

        For the station itself, it's license is it's most valuable asset.

        Enough about ad rates...looks like the stock is having a good day but the volume is still low for such a big % move. I'm guessing you'll see some iHub board members flipping their shares again...nothing wrong with that...a profit is a profit.