Television: The High Cost Of Doing Business

Published 5 years ago by , Updated May 13th, 2013 at 7:36 am,

networklogos Television: The High Cost Of Doing Business

In this article, I’m chatting a bit about advertisers cutting costs and how this might be relating to shows like Heroes and Day One.  That, and I’ve got an off-subject bonus paragraph that just might make your jaw drop!

Advertiser Revenue Down

This year, my sympathies go out to the networks struggling to survive in this economy.  The economy has caused purse strings to be tightened and advertisers to be more frugal.

The reason networks have fewer dollars to spend is because ad revenue for the upcoming season of television has declined by 22% from the year before.

If I lost 22% of my income, I’d be pretty distressed, but what a 22% decline means here is that the networks only brought in a mere $7.2 billion (that’s with a “B”) in primetime ad sales.

My heart really pours forth.

Network, Primetime Ad value Sold:

  • ABC – $1.9 billion
  • CBS – $1.9 billion
  • Fox – $1.6 billion
  • NBC – $1.5 billion
  • CW – $300 million

It would appear to cost a lot for networks to actually air the shows we enjoy watching, and though in the past I’ve written about the curse of extra loud TV ads and we’ve all touched on ways to get around them, the bottom line is that it’s the advertising dollar that make our favorite shows possible.

So, despite my ragging on ads most of the time, supporting sponsors is a good way to help your shows stick around.

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Network Shows Hurt By Reduced Ad Sales?

day one 00 Television: The High Cost Of Doing Business

For instance, the new show that NBC has yet to air, Day One, looks like it’s going to be a single season effort.  In a statement that confuses me, NBC said that it was a big event for them, but because serialized shows are tougher to sustain, that they weren’t necessarily looking for it to return for a 2nd season.  Huh?

Why start a show if you’re not planning to support it?

Day One will be directed by Alex Graves (Fringe, Journeyman) and stars Julie Gonzalo, Derek Mio, Addison Timlin, Adam Campbell, Catherine Dent, David Lyons and Carly Pope.

Details about the show have been kept under wraps until recently and now I know why – because it sounds awfully familiar.

NBC President of Prime Time Entertainment Angela Bromstad let it out that it’s about aliens and an alien invasion.  So it’s just not about a disaster, but a disaster related to aliens. Wow, hop on the alien invasion bandwagon people!

Day One is expected to debut in March.

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Is Ad Revenue Also Hurting Heroes?

heroes mohinder peter volume 4 Television: The High Cost Of Doing Business

Ad spending plus ratings may be contributing to the budget cut that Heroes is seeing for their upcoming season.

The budget, per episode, for Heroes is being reduced by $300k.  Ouch!  (Is that the excess money burning in the picture?)

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Off Subject Eye-Opener!

Every now and then, I find something I just have to share with you, our Screen Rant readers, because I think you’d find it interesting.  So since I’m talking money, this article I came across just dazzled my senses and sounds like it would fit right in.

When you think hot dog cart in New York City, have you ever pondered how much it costs to operate in certain locations?

Nah, Me neither.

But I read that the hot dog vendor in front of the Metropolitan Museum of Art in New York got booted from his spot because he was overdue on his monthly rent for the spot.

The rent for that street space comes to $53,558 MONTHLY!  And here I thought hot dog carts were just a fun little business fling!

Sources:  Media Week, Airlock Alpha, NY Daily News, Sci-Fi Wire

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TAGS: day one, heroes

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  1. Heroes is on life support. The fan base has dropped and the NBC knows it. I doubt it will get picked up after this season. Maybe on Sy-fy ???
    NBC may be loosing revenue on ad sales but that doesn’t mean they’re about to shut down. These cutbacks are show specific and I don’t think this is going to be a trend across the board. (IMO)

    The broadcast networks need to consider that reality tv shows have 0 shelf life on Dvd and its tough to support the endless pharmaceutical ads that make up more than 50% of commercial face time.
    I certainly don’t feel bad for NBC. They don’t have long term faith in any of they’re shows…
    The network seems to be run by the cast of 40 Rock.

  2. I’m just totally amazed at the billions spent on advertising… and the fact that it works, so it’s worth it!

    BUT, despite 0 shelf life, reality brings the viewers to the show when it airs and is rich for advertiser fodder and incredibly cheap to create.

    It’s like having a job that pays you $100 / hr for doing very little at all! Wouldn’t you take that route if it were there?

  3. What they’re saying about Day One is that they’re open to continuing it IF it’s a hit, which is, I think, how all shows should be! If the audience (ie. ad revenue) is there the show will live. Personally, I think Day One will do very well, and we’ll be seeing more of it than the network is currently letting on!