[opendtv] Re: Analysis: Broadcast TV Faces Struggle to Stay Viable

  • From: "Manfredi, Albert E" <albert.e.manfredi@xxxxxxxxxx>
  • To: <opendtv@xxxxxxxxxxxxx>
  • Date: Tue, 3 Mar 2009 17:57:24 -0500

Craig Birkmaier wrote:

>> Why should that surprise anyone? Do you ever compare today's
>> prime time TV shows to those of a couple of decades ago?
>> There is no comparison. The acting and actors, the special
>> effects, and even the plots are right up there with those of
>> Hollywood movies.

> What a riot!
>
> So you think that the high cost of network shows is due to
> production values and hiring better talent in supporting roles?

Yes in part, of course. Compare these high cost TV episodes with the
price of half a Hollywood movie, and they're still coming in very much
less.

> What's the difference between a CEO getting a bonus for
> cutting costs and firing a bunch of employees at a failing
> company, and an actor getting paid millions for a movie that
> sucks and loses money? 
>
> The answer is that the Hollywood business model is based in
> risk taking. They know that only a small percentage of the
> stuff they make will make money, but they make certain that
> they get paid well, even when the product sucks.

That's absurd. Movies that flop still cost many millions to make.
Whether it's in the theaters or on TV, a flop stays out there very
little time, and almost certainly loses money. I'm not interested in
your political agenda, Craig. Just the economics of movie making. If
even the good shows need to cost less, due to advertizing recession,
that's what will have to happen.

If a production company takes out a big loan to produce a flop, which
will not make that money back and more at the box office, someone does
lose out, Craig. That company won't stay in business very long.

> It is not the "advertising recession" that is causing this
> business model to break. The number of new shows has been in
> decline for as long as network ratings have been in decline,
> which is now bout two decades. As with other monopolies and
> oligopolies that have been milked for all they are worth
> throughout history, the folks in Hollywood have been pushing
> the limits - in terms of compensation - as they ride the
> Network TV ship down.

I read the article that started this thread, and that was not its point.
Certainly, if Hollywood actors are demanding too much, they may have to
start asking less. The car companies pulled much of their advertizing.
Didn't you ever wonder why just about every ad on TV was about cars? I
did. Many times. Well, if that ends, something has to give.

The "model is broken" is drama queen talk. Standard hyperbole from the
trade press. The supply-demand model continues to operate as always.
Demand for storytelling ain't going away, even if the compensation for
the storyteller will become flat or even decline some. Advertizers HAVE
left the scene, Craig, in spite of what you claim. They aren't paying
more for less, some big ones are dropping out. The networks will have to
adjust, e.g. by producing more shows like "The Outer Limits," which
always had no-name actors and seemingly simple sets. It's entirely up to
them.

Craig, you have a way of posting an article that explains things, but
don't bother reading what it says. Just use it as a spingboard to
forward your own agenda.

Bert
 
 
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