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TV Production. 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. Independent production.
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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
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
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
Ad Revenue • ~$200,000 per 30-second national spot • 20 national spots per 1-hour show
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