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The State of TV Production: Dominance of Major Networks and the Struggles of Independents

Major networks CBS, ABC, NBC, Fox, and CW control 77% of prime-time shows, reflecting the decline of independent studios in the TV landscape. With the removal of fin-syn regulations in 1995, independents face challenges in securing funding through syndication revenues, resulting in a high failure rate for new shows. Production costs are skyrocketing, making it difficult for independents to compete. As networks prioritize high margins and audience appeal, the result is fewer innovative and quality shows, ultimately shaping the future of television.

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The State of TV Production: Dominance of Major Networks and the Struggles of Independents

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Presentation Transcript

  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

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