[quote name='lordwow']In the new TV system, there are basically only 3 ways to get a show produced if you're not a top tier producer (like Dick Wolf or Jerry Bruckheimer):
1) Remove costs like actors, writers, etc (reality TV)
2) Use product placements in-show to defer the cost of the program.
3) Sell advertisements before the show is even made. So, like, you would say "hey Ford, we're going to make this show, so cool, pay us up front for the ads, and you'll be the primary sponsor." That can get messy of course if the show gets canceled, but it's part of a risk they take.
The classic analysis is Survivor vs ER in 2000 or so. ER was the most expensive to produce show on TV, and its ad time was the most expensive (it wasn't still #1 in ratings, but it had the huge 18-49 share). It cost NBC about $11m/ep to make, and brought in about $10m/ep in ad revenue. (So it lost money, which the networks recover with syndication and DVD sales)
Survivor on the other hand cost CBS $0/ep, and brought in about $8m/ep. That's right, Survivor cost CBS nothing to make. Mark Burnett productions could not get the show made without having it fully funded by advertisers. So his initial deal was, "we'll give you the show for free, and split the ad revenue with you." So Mark Burnett made Survivor I which was a huge success, and that increased the cost of the ads and product placements, and he renegotiated a silent contract with CBS on what share of ad revenue each would get.
So in review:
- ER - cost (NBC) $11m/made $10m = -1m/episode for NBC
- Survivor - cost (CBS) $0m/made $8m = 8m/episode split between CBS & Burnett Productions.
TV has never been made the same again.[/quote]
Holy shit. No wonder the networks have boatloads of reality tv shows
I honestly thought that Reality shows were dirt cheap compared to full production shows.