Here's Why A Hit TV Show Is Worth Millions Less Than It Used To Be | Forbes

The Nugget

Developing successful TV shows is worth hundreds of millions less than it used to be due to the shift from traditional TV syndication to streaming platforms. This change in the TV industry has significantly impacted the earnings of both the talent and creators involved.

Make it stick

📺 Streaming platforms like Netflix now serve as studios and networks, making profit participation for talent obsolete.
🌟 The shift to streaming has led to a higher volume of shorter, highly produced shows, affecting the earning potential of creators and actors.
📉 The economics of successful TV shows have worsened for talent due to the lack of profit sharing and the rise of streaming platforms.
💰 The new compensation models in the TV industry have led to a decrease in earnings for talent, impacting both showrunners and actors.

Studios producing shows and TV networks distributing them were separate entities.
Shows like Friends made substantial profits through syndication, with actors negotiating profit shares.
Syndication allowed for reruns on various platforms, leading to significant profits for the studios.

The rise of streaming platforms like Netflix has disrupted the traditional TV industry.
Streaming services pay for original programming but lack the profit-sharing model of traditional TV.
Streaming's focus on subscriber growth has altered the economics of developing hit TV shows.

The earnings in the TV industry have plummeted due to the transition to streaming.
Talent no longer benefits from profit participation, affecting their earning potential.
Successful shows like The Bear illustrate how even acclaimed shows may not translate to significant financial gains in the streaming era.

The compensation models for TV talent have shifted, with fewer opportunities for profit sharing.
The careers of showrunners, producers, and actors are affected by the reduced earnings potential in the current TV landscape.
The new models emphasize high production volume over profit-sharing for talent.

Changes in how audiences consume TV content have impacted the industry economics.
The shift to streaming has altered ad revenue models, leading to the resurgence of commercials on streaming platforms.
The audience's consumption habits have influenced the business strategies of streaming services and traditional TV networks.

"There's essentially no upside for a hit show on streaming platforms in terms of additional profits beyond attracting more subscribers."
"The economics became significantly worse for talent in the TV industry with the rise of streaming, affecting earnings and profit-sharing."
"The disruptions in the TV industry have led to a major contraction, with fewer shows being ordered and budgets decreasing."
"The new compensation models in the TV industry have shifted, impacting the earning potential of both showrunners and actors."
"The shift towards streaming platforms like Netflix has disincentivized profit sharing for talent, leading to reduced earnings in the industry."

This summary contains AI-generated information and may have important inaccuracies or omissions.