1. TV Production

2. 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

3. 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

4. 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

5. Ad Revenue ~$200,000 per 30-second national spot 20 national spots per 1-hour show

6. 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