Forums: General TV Discussion: how do shows earn money?...

 
  • Avatar of Moon-Knight

    Moon-Knight

    [1]Dec 26, 2005
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    this is somthing i was wondering about in a long time... :
    i understand how things work in the video games industry - people buy the video games , or the movie industry - people pay go watch them or buy them , but i never got this - "how does the tv indusrty earns money?" .

    we don't pay money to watch the shows...(kind of) i meen they can't realy get all of the money from the remants that left from the cable or satellite companies - or from some dvd's of the shows...
    how do the popularity of shows helo the ones who work in (on) it get more money then shows who were less sucsesfull -like i said we don't pay for them...(kind of...) .

    so what is it?... , does anybody here knows?...
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  • Avatar of pursuedbybear

    pursuedbybear

    [2]Dec 26, 2005
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    Advertising makes the American TV world go round.

    Each of those products you see every night pay the network to show their commercials. The network uses that money to (amongst many other things such as salaries, equipment maintainance, all those things you need to run a network) buy shows from production companies whose slates you see at the end of each credits roll. Sometimes they produce a show themselves which of course generates even more money for the network.

    This is why ratings are so important. If a show is pulling in 100 million viewers the network can charge the advertisers much more to run their commercials during that time period than a show drawing 10 million viewers. The Super Bowel draws humungous ratings and so advertisers are charged a humungous rate to show their commercials during the game. The bigger the ratings, the more money a network can charge the advertisers.

    And that's how you pay for "What About Jim".
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    archangelcory16

    [3]Dec 26, 2005
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    Also, they make money back from repurposing, syndicating, releasing on DVD...and now providing shows for legal downloading.
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    timgueguen

    [4]Dec 26, 2005
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    pursuedbybear wrote:
    The Super Bowel draws humungous ratings


    Spelling mistake or deliberate misspelling?
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  • Avatar of MassInsanity

    MassInsanity

    [5]Dec 27, 2005
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    pursuedbybear wrote:
    Advertising makes the American TV world go round.

    Each of those products you see every night pay the network to show their commercials. The network uses that money to (amongst many other things such as salaries, equipment maintainance, all those things you need to run a network) buy shows from production companies whose slates you see at the end of each credits roll. Sometimes they produce a show themselves which of course generates even more money for the network.

    This is why ratings are so important. If a show is pulling in 100 million viewers the network can charge the advertisers much more to run their commercials during that time period than a show drawing 10 million viewers. The Super Bowel draws humungous ratings and so advertisers are charged a humungous rate to show their commercials during the game. The bigger the ratings, the more money a network can charge the advertisers.

    And that's how you pay for "What About Jim".


    Thats about it. Just mention that the networks pay a sum of money per episode and you got it!
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  • Avatar of Moon-Knight

    Moon-Knight

    [6]Dec 27, 2005
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    pursuedbybear wrote:
    Advertising makes the American TV world go round.

    Each of those products you see every night pay the network to show their commercials. The network uses that money to (amongst many other things such as salaries, equipment maintainance, all those things you need to run a network) buy shows from production companies whose slates you see at the end of each credits roll. Sometimes they produce a show themselves which of course generates even more money for the network.

    This is why ratings are so important. If a show is pulling in 100 million viewers the network can charge the advertisers much more to run their commercials during that time period than a show drawing 10 million viewers. The Super Bowel draws humungous ratings and so advertisers are charged a humungous rate to show their commercials during the game. The bigger the ratings, the more money a network can charge the advertisers.

    And that's how you pay for "What About Jim".


    yeah "american"...
    if to that is the case they earn almost nothing ... -
    there must be another reason... i meen take chanels like cartoon network for example - they don't advertise things (usualy...) and still have money ...
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  • Avatar of jekyll

    jekyll

    [7]Dec 27, 2005
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    timgueguen wrote:
    pursuedbybear wrote:
    The Super Bowel draws humungous ratings
    Spelling mistake or deliberate misspelling?
    Sounds like a laxative.
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  • Avatar of jekyll

    jekyll

    [8]Dec 27, 2005
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    MassInsanity wrote:
    pursuedbybear wrote:
    Advertising makes the American TV world go round.

    Each of those products you see every night pay the network to show their commercials. The network uses that money to (amongst many other things such as salaries, equipment maintainance, all those things you need to run a network) buy shows from production companies whose slates you see at the end of each credits roll. Sometimes they produce a show themselves which of course generates even more money for the network.

    This is why ratings are so important. If a show is pulling in 100 million viewers the network can charge the advertisers much more to run their commercials during that time period than a show drawing 10 million viewers. The Super Bowel draws humungous ratings and so advertisers are charged a humungous rate to show their commercials during the game. The bigger the ratings, the more money a network can charge the advertisers.

    And that's how you pay for "What About Jim".
    Thats about it. Just mention that the networks pay a sum of money per episode and you got it!
    But also add that all shows typically air at a loss to the producers unless the show lasts long enough to get into syndicated reruns. A show that costs $1.5 million/episode to make, the networks may only pay a $1 million license fee to air twice, with the producers eating the $½ million difference. If the show lasts long enough to get into the syndication market, it generates tremendous profits, with episode then generating several million dollars. Basically, the shows that make it to syndication pay for the ones that don't, and still leave a huge chunk of money for the producers to share.
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  • Avatar of EranE

    EranE

    [9]Dec 27, 2005
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    And here's another little tidbit of info since the subject of syndication came up.

    In case anyone was wondering, a tv series is eligible to go into syndication when it hits 100 episodes. In dramas that's usually somewhere between the 10th-13th episode of a series' fifth season.

    That's a big reason why making it to 100 episodes is always a huge cause for celebration in tv shows. 100 is not just a symbolic number here, it means a substantial pay rise.
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  • Avatar of jekyll

    jekyll

    [10]Dec 27, 2005
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    EranE wrote:
    And here's another little tidbit of info since the subject of syndication came up.

    In case anyone was wondering, a tv series is eligible to go into syndication when it hits 100 episodes. In dramas that's usually somewhere between the 10th-13th episode of a series' fifth season.

    That's a big reason why making it to 100 episodes is always a huge cause for celebration in tv shows. 100 is not just a symbolic number here, it means a substantial pay rise.
    There's really no "eligible" number. It's not so much that 100 is some "written in stone" requirement, but that local stations don't want to cycle through the available episodes too fast. Since syndicators know this, they don't bother getting shows until they near that mark. 100 episodes is enough to last roughly 4½ months, if aired one/night, Monday-Friday. They used to never go into syndication until after 5 seasons, but with the rush to get money, shows often enter the market after 4 full seasons as long there's a 5th season coming and the show is strong enough that it should last the whole season, at minimum.
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    pursuedbybear

    [11]Dec 27, 2005
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    And of course there are other models as well.

    PBS is supported by corporate donors who get their names attached to the show they sponsor, as well as donations by "Viewers Like You". The BBC, CBC and other national broadcasters receive government support in exchange for presenting content reflecting the native culture and concerns. Cable broadcasters get a share of subscriptions. And let's not forget pay-per-view.

    But for the most part, advertising makes up the lion's share of TV income.
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  • Avatar of MassInsanity

    MassInsanity

    [12]Dec 27, 2005
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    I think he also wants to know how basic cable channels like the disney channel make money. The disney channel isn't a pay channel anymore and doesn't air any commercials.
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  • Avatar of jekyll

    jekyll

    [13]Dec 28, 2005
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    MassInsanity wrote:
    I think he also wants to know how basic cable channels like the disney channel make money. The disney channel isn't a pay channel anymore and doesn't air any commercials.
    Like all cable channels, they still get subscriber fees from cable/satellite companies. And since they probably own everything they show, they can keep costs down by not paying others money to get things to show, plus their shows have kids, who are very cheap to employ.
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  • Avatar of IndianaMom

    IndianaMom

    [14]Dec 28, 2005
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    Many of the companies that own networks own lots of other companies, too. Our buying light bulbs and appliances from General Electric may be keeping NBC on the air.
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  • Avatar of MassInsanity

    MassInsanity

    [15]Dec 28, 2005
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    jekyll wrote:
    MassInsanity wrote:
    I think he also wants to know how basic cable channels like the disney channel make money. The disney channel isn't a pay channel anymore and doesn't air any commercials.
    Like all cable channels, they still get subscriber fees from cable/satellite companies. And since they probably own everything they show, they can keep costs down by not paying others money to get things to show, plus their shows have kids, who are very cheap to employ.



    Nicktoons Tv, MTV hits don't have commericals either. Not to mention Nick GAS and a few other networks I forget.
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  • Avatar of archangelcory16

    archangelcory16

    [16]Dec 28, 2005
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    jekyll wrote:
    EranE wrote:
    And here's another little tidbit of info since the subject of syndication came up.

    In case anyone was wondering, a tv series is eligible to go into syndication when it hits 100 episodes. In dramas that's usually somewhere between the 10th-13th episode of a series' fifth season.

    That's a big reason why making it to 100 episodes is always a huge cause for celebration in tv shows. 100 is not just a symbolic number here, it means a substantial pay rise.
    There's really no "eligible" number. It's not so much that 100 is some "written in stone" requirement, but that local stations don't want to cycle through the available episodes too fast. Since syndicators know this, they don't bother getting shows until they near that mark. 100 episodes is enough to last roughly 4½ months, if aired one/night, Monday-Friday. They used to never go into syndication until after 5 seasons, but with the rush to get money, shows often enter the market after 4 full seasons as long there's a 5th season coming and the show is strong enough that it should last the whole season, at minimum.


    And then there's Sci Fi who picks up tons of shows with as little as 10 episodes.

    And SoapNet has picked up several very short-lived shows.
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  • Avatar of NiDKiD

    NiDKiD

    [17]Dec 28, 2005
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    jekyll wrote:
    EranE wrote:
    And here's another little tidbit of info since the subject of syndication came up.

    In case anyone was wondering, a tv series is eligible to go into syndication when it hits 100 episodes. In dramas that's usually somewhere between the 10th-13th episode of a series' fifth season.

    That's a big reason why making it to 100 episodes is always a huge cause for celebration in tv shows. 100 is not just a symbolic number here, it means a substantial pay rise.
    There's really no "eligible" number. It's not so much that 100 is some "written in stone" requirement, but that local stations don't want to cycle through the available episodes too fast. Since syndicators know this, they don't bother getting shows until they near that mark. 100 episodes is enough to last roughly 4½ months, if aired one/night, Monday-Friday. They used to never go into syndication until after 5 seasons, but with the rush to get money, shows often enter the market after 4 full seasons as long there's a 5th season coming and the show is strong enough that it should last the whole season, at minimum.


    Today there's an even faster turnaround.

    The USA Network has already announced that they will begin airing the first season of HOUSE beginning on January 6th. HOUSE isn't even in the middle of its second season yet. Most recent episode that aired was #31 - "Deception." By the end of this season, they'll have 46 episodes total.
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