TV Production

1
TV Production
2
Who Owns Shows

• 5 major networks (CBS, ABC, NBC, Fox, CW) own 77
  of prime-time shows
• Few successful independent studios (Sony Pictures
  Television is exception)
• Networks often buy up successful independents

3
Independent production

• Independents need on syndication revenues to
  finance new projects
• Decline traced back to 1995 removal of fin syn
  regulations
• 3/4 of all new shows fail
• High cost of TV production prices independents
  out of the market

4
Production Costs

• Half hour comedies 1.25m/episode
• Hour dramas 2m/episode
• Unscripted costs much lower
• E.g.,Top Model 800,000 per episode
• Heroes cost 2.7 million

5
Ad Revenue

• 200,000 per 30-second national spot
• 20 national spots per 1-hour show

6
Consequences of Consolidation

• Fewer quality shows
• Less originality
• Networks interested in highest margins, safest
  shows
• Networks program primarily for audience (18-49)
  advertisers pay most to reach