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The broadcasting business depends on advertising and thus an improvement in the ad market has direct impacts on margins.
FORBES: Better Broadcast Margins Support News Corp Stock Price
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Jeremy Hunt, the shadow culture secretary, who is highly regarded by the Tory leadership, supports the licence fee as part of a mixed economy for broadcasting, along with advertising and subscriptions.
ECONOMIST: The future of the BBC
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The structure of the current deal, originally signed in 2004, allows NBC to air NHL games without paying a fee for broadcasting rights and requires only a share of advertising revenue.
FORBES: NHL Keeps Growing In Face of Uncertain Economy
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Last year I wrote about a study conducted by Innerscope Research and Fox Broadcasting which revealed among other things that television advertising is thirty eight times more emotionally engaging than digital advertising.
FORBES: Television Is Alive, Television Is Dead, Let The Debate Begin
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As such, the NCAA and its broadcasting partner, CBS, likely will see no limit to their advertising revenue generating potential.
FORBES: Viewership And Social Media Help March Madness Beat The Super Bowl In Ad Revenue Generation