The Town with Matthew Belloni
How Much Money a Hit TV Show Can Make (and How It’s Changed)
Nov 6, 2024
John Mass, President of Content Partners and expert in media finance, joins the discussion on how TV revenue generation has transformed over the last decade. He reveals the complexities of financing and distribution in today's streaming era, highlighting how it affects profit sharing and creator compensation. They reminisce about the golden days of syndication and debate potential shifts in the industry. The conversation wraps up with predictions for the highly anticipated box office showdown between 'Wicked: Part One' and 'Gladiator 2,' analyzing audience engagement and competitive dynamics.
43:18
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Quick takeaways
- The financing of TV shows has shifted from deficit financing models to upfront investments due to the rise of streaming platforms.
- The traditional syndication model that generated long-term revenue for successful shows has diminished, complicating financial prospects for new content.
Deep dives
The Evolving Landscape of Television Financing
The financing of television shows has undergone significant changes over the past decade, transitioning from traditional pilot seasons to direct-to-series orders. Producers used to rely on network pilot testing, but now, many shows are ordered without testing, affecting how studios manage their risks and investments. Previously, deficit financing was a common model, where the cost of producing a show often exceeded the license fees paid by networks. Today, streaming services have changed the dynamics, requiring upfront investments that shift financial risk away from the producers, complicating how profits are realized over time.
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