eli5 : how do actors working in daily soaps get paid?


I think I’m too dumb to ask this but I genuinely do not know how actors playing in TV programs get paid. or even how the broadcasted content is directly related to no of viewers watching? and how me watching a program will turn out to be a finance for these guys.
I know you pay for your cable and stuff but how does that get processed?

In: 0

Cable companies do know what you’re watching at this point. So they can count how many TVs have that show running. More shows means more advertisements showing, means more money. The more viewers the actors bring in, the more people watch ads, the more money they make.

They get a paycheck into their account like most working people do. Depends on the contract.

Pretty much the same as any other show.

Writers have an idea for a show. They pitch a show to networks until they find a network that is willing to provide funding to that show for their operations. Generally, a pilot is ordered to test out the concept and make sure it reviews well before a full season(s) is ordered. Showmakers find actors to try out for the show, and negotiate payment terms for their acting. Pilot occurs, network orders x number of episodes/seasons based on the reviews for the pilot, actors get paid for their acting according to the terms of their contract. Network gets their money from any subscriber revenue and advertisements.

So money flow goes advertisers/subscribers -> network -> show producers -> actors

TV actors generally are paid on a per episode basis. Their contract will say you get paid $X per episode.

For TV production: A production company makes a show, it sells it to a network, the network then sells the right to broadcast their network to a cable company.

You pay the cable company, who pays the network, who pays the production company, who pays the actors, directors, crew, etc.

For viewership: the more people viewing means the network or show is more valuable (people want to watch it!) and it also means you can sell commercials on it for more, since more people are watching. If a show is really popular, commercials can go for incredible rates. The network takes this money.

Production companies make the shows and pay the actors according to contacts. The actors get $x/week during the season or $y/episode. The production company also pays for the sets, crew, etc.

The production company sells the show to a network who airs it. The network airing the show sells commercials that air during the show, with rates that vary based on size of audience and demographics of viewers. The networks also get monthly fees from the cable and satellite providers that offer the channel to subscribers.

TV shows are typically paid for through advertising.

Every time your show stops and shows adverts for companies and products, those companies have paid the network to show those adverts – the more viewers a show has, the more the network can charge to place an advert during it.

The network then takes all of this money and uses it to pay for and make (or buy from other people) all of the show’s they want to air on their channel.

The actors are paid by the producers of the show’s – there is no set rules here as it will depend on what the actors agree. Some may be paid per hour or per day for the time spent on set, some may be paid per episode, others may get a share of the profits made on the show.