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Edited on Thu Jun-30-11 10:17 AM by 4lbs
renewed or cancelled.
It's also why some shows a person thinks "sucks" get renewed while those one "likes" are not.
Some shows, especially Sci-Fi, have a pretty high cost-per-episode compared to others.
This cost requires higher commercial ad sales, which in turns require a higher viewership, and thus, Nielsen rating, to make it profitable to continue.
For example, if a show costs $3 million per episode to make, some network number cruncher may determine that they would have to sell the 30 commercial ad spots (15 minutes worth) during the one-hour program for at least $100,000 each to break even. Then they compute viewers-per-dollar that they can advertise. For $100,000 per 30-second ad spot, the show might need to attract at least 10 million viewers each week to justify the cost figure to a prospective advertiser. If the show doesn't regularly reach 10 million viewers then they can't sell enough advertising to match the cost of the show, and the network starts losing money. When a network loses money on a relatively new show, or even established one, it cancels it.
Back in the 1990s, when "Friends" was the top-rated show, all six main characters were earning $1 million PER EPISODE during the last two seasons. Add in the cost of shooting the episode, the writers' costs, etc, and it adds up. That means the show's cost was probably around $8 million per episode. For 20 minutes of show, and 10 minutes of commercial, that means about 20 commercial spots lasting about 30 seconds each. Thus the 20 or so commercial spots needed to sell for $400,000 each to break-even on cost. However, it was profitable because it was the #1 show and brought in approximately 20 to 25 million viewers per week. With that high viewership it was easy for NBC to sell those ad-spots for $500,000 or more and bring in a profit of at least $2 million per episode.
One reason why the networks are inundated with reality shows is that they have extremely low per-episode production costs. Where a one-hour drama program may cost 3 or 4 million per episode, reality shows often have costs in the $250,000 to $500,000 range. So, where a drama might have to regularly draw 10 to 12 million viewers each episode, a reality show can justify it's cost with only 2 to 3 million viewers each episode.
"One Tree Hill" got renewed over V or some other shows because of two things:
1.) Lower per-episode production cost
2.) Lower per-episode viewership requirement because of #1, making it easier to sell advertising, and maybe even turn a profit before syndication.
While V probably needed 10 to 12 million viewers per week to justify the cost, being a sci-fi show with lots of special effects, OTH probably had 1/4 the episode cost, and thus only needed 2.5 to 3 million viewers per week.
It's almost always about the bottom-line with TV programming.
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