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Concept
Commercial broadcasting
Summary
Commercial broadcasting (also called private broadcasting) is the broadcasting of television programs and radio programming by privately owned corporate media, as opposed to state sponsorship, for example. It was the United States' first model of radio (and later television) during the 1920s, in contrast with the public television model in Europe during the 1930s, 1940s and 1950s, which prevailed worldwide, except in the United States, Mexico, and Brazil, until the 1980s.
Commercial broadcasting is primarily based on the practice of airing radio advertisements and television advertisements for profit. This is in contrast to public broadcasting, which receives government subsidies and usually does not have paid advertising interrupting the show. During pledge drives, some public broadcasters will interrupt shows to ask for donations.
In the United States, non-commercial educational (NCE) television and radio exists in the form of community radio; however, premium cable services such as HBO and Showtime generally operate solely on subscriber fees and do not sell advertising. This is also the case for the portions of the two major satellite radio systems that are produced in-house (mainly music programming).
Radio broadcasting originally began without paid commercials. As time went on, however, advertisements seemed less objectionable to both the public and government regulators and became more common. While commercial broadcasting was unexpected in radio, in television it was planned due to commercial radio's success. Television began with commercial sponsorship and later transformed to paid commercial time. When problems arose over patents and corporate marketing strategies, regulatory decisions were made by the Federal Communications Commission (FCC) to control commercial broadcasting.
Commercial broadcasting overlaps with paid services such as cable television, radio and satellite television. Such services are generally partially or wholly paid for by local subscribers and is known as leased access.
Official source
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