Question:
Wouldn't you think it would be a good idea to use product placement during the cooking shows? It seems to me that they are missing an opportunity there to make some extra $$. There must be a reason why they don't. Can anyone speculate?
Answer:
Here's the obvious answer. If you use product placement, you limit the number of businesses competing to advertise in your air time.
If you limit the number of busiesses (food product businesses)competing for your advertising air you'll reduce the amount you can charge per minute of advertising air time.
So, I'd speculate they are making the wise business choice of letting competition keep their advertising prices at a higher premium.
They don't need it. Besides, product placement can get cheesey, and that's not the reputation that the food network is going for. They want to be, and are, a reputable network. Using product placement could degrade that status.
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