As we can see, broadcasting involves the possession and use of a large number of specialized equipment, which must also be correctly maintained to ensure its longevity and optimal performance for years to come. Servicing such devices is a demanding task and involves employing experienced and qualified personnel. A substantial amount of equipment also means hiring a lot of workers, which significantly raises the overall cost of employment. Broadcasting companies
face a lot of capital expenditures
like creating a studio, purchasing lights, cameras, decoders etc. Of course, at the same time, there is no guarantee that they will be able to sign a deal with cable TV or digital platform. On top of that, significant investments in broadcasting lead to arranging long-term contracts with service providers which offer not much flexibility. All these features of the broadcasting industry create a very high entry threshold for newcomers.