Americans Should Not Pay For Commercials

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This article represents everything that the public views as spending money on commercial are getting vey expensive, and companies are having trouble competing for time slots for their product. Tom Peyton who is the vice president of American Honda says “a day of reckoning is coming for the sports networks who continue to charge brands higher and higher prices to advertise during games, even as the audience for those events has plateaued” (businessinsider.com). The article goes on to point out that the only real time sporting event that is being watch is the NFL, and the price for advertisement during the super bowl has risen from three million dollars to four million dollars in just one year even when the number of viewers has stayed the same. Furthermore, with the ability to record shows to avoid commercial, viewing events on the internet, and illegal watching programs has driving the price for commercial during live events way up. Networks are taking advantage of this by having bidding wars between NBC, CBS, and FOX to win time slots to advertise products. …show more content…

Eventually the asking price for a television ad slot will out way weather or not to participate during commercials. Already there are several companies that do not pay for advertisement any more due to the cost. FedEx after nineteen years no longer has commercial air time during sporting events because of the bidding wars. If all companies like FedEx refuse to pay the ridiculous amount of money for air time, than networks would have to reconsider the asking price. The amount of money that companies are charged to pay comes from the networks who have to pay for broadcasting rights. This why the cost is so high for commercials because if one goes up so does the

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