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Ratings Analysis, 4th Edition by Lawrence Lichty, Patricia Phalen, James Webster

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CHAPTER 9

Audience Research in Financial Analysis

While the most obvious uses of audience data are in sales and programming, ratings are also helpful to financial managers and economists who analyze media markets. In effect, media analysts cannot estimate future revenues without estimating future audiences.

The value of the audience commodity should be apparent by now. Audiences are a critical component in the media’s ability to make money, and they frequently determine whether a particular media operator succeeds or fails. As the principal index of the audience commodity, ratings data are often used in day-to-day financial planning, as well as in more theoretical studies of industry economics. In these applications, audience information is used ...

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