How Much Money a Hit TV Show Can Make (and How It’s Changed)
Nov 6, 2024
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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.
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.
The Role of Syndication in Profitability
Syndication has historically played a crucial role in a show's long-term profitability, with successful series like 'Seinfeld' and 'CSI' generating substantial revenue years after their original airing. The traditional model allowed shows to become lucrative after reaching a certain episode count, particularly benefiting established franchises that continued to be re-licensed across platforms. However, the rise of streaming has altered this paradigm, diminishing syndication deals for new shows and limiting their chances for residual income. As broadcast viewership declines and digital platforms claim viewing rights, many shows now struggle to replicate the financial successes of their predecessors.
Navigating Licensing and Distribution in Streaming Era
The way shows are licensed and distributed is evolving, particularly with the growing prominence of streaming platforms that retain exclusive rights to their content. Studios often bundle rights, pushing shows onto their platforms while limiting syndication opportunities that could have generated additional revenues. As platforms like Paramount and CBS manage their libraries, they are grappling with how to maximize the value of content that often does not benefit independent creators or the original talent involved. The competitive landscape mandates that studios must be strategic in how they distribute shows to effectively monetize them across multiple viewing avenues.
Finding Financial Success in Modern Television
Achieving financial success in today's television landscape requires navigating complex deals and understanding the shifting waters of content ownership and profitability. Producers now aim for lucrative overall deals with streaming services, which can provide substantial earnings if a show resonates with audiences. Alternatively, low-cost productions focused on niche markets and procedural formats may yield steady returns in a crowded space. As the industry evolves, aligning content creation with viewer preferences and maximizing revenue potential will remain essential for anyone looking to thrive in this complex environment.
Matt is joined by John Mass, president of Content Partners, to talk about how making money in TV has changed in the last 10 to 15 years. John walks us through how a TV show is financed, how the market has changed because of the streaming model, and how it has upended the way participants make money. They also talk about the bygone days of producers owning shows, the heyday of the syndication era, and if a correction is coming (02:29). Matt finishes the episode with a prediction about the upcoming battle between ‘Wicked: Part One’ and ‘Gladiator 2’ (34:38).
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