Not necessarily reality just TV shows like Total Wipeout, but TV shows in general.
I saw that Zendaya gets paid 1 mill USD per episode to be in Euphoria, which is INSANE. How do the creators of these shows make a profit? Where exactly is the income coming from?
In: 5
Advertising like product placement in the shows, endorsement or sponsoring from product vendors, and licensing for other marketing material (music, art work, toys, etc).
Creators of shows sell the rights to show the series/movies in TV and streaming services. That’s were most of the money is coming from. Then TV and streaming services show ads, and they get money from there.
Some shows also get money from selling branded stuff, such as t-shirts and plushies.
To quote Zuckerberg “We sell ads”
Every advertisement, commercial, and product placement in these shows is paid for by a company.
If you see an actor drinking a brand name soda for example you can pretty much guarantee that the brand paid a lot of money for that to be there.
When the shows are sold to other networks as re-runs they have to pay for that as well, and they in turn sell there own ads.
How much they charge for ads varies as well. The more popular the show the more they charge for the ads. While older episodes or re-runs charge much less for ads but that revenue keeps adding up for years after the fact.
In the case of streaming networks they charge subscription fees.
$20 a person may not sound like much, but with 700 million users on Netflix that’s 1.4 Billion a month
They still charge for product placements too
Networks and streaming services bid and pay for the show. They base this cost based on the expected revenue from subscriptions or commercials for the show.
Big Bang theory had 5 actors making $1,000,000 per episode. I believe the supporting cast members made up to $500,000 per episode. All for a 1/2-hour show.
The sheer amounts of money networks make on advertising is…well staggering.
Subscriptions.
This is why the people saying Netflix should have every show ever made for 7.99 a month like in 2011 are demanding something that cannot exist.
1 million for an actor is fine when the episode is worth 10 million.
In ads, sales, licensing, whatever it is. They’re not gonna keep making a show that is a loss.
Iirc the simpsons cast made 1M per actor, and shows like Game of Thrones are also up there.
Those shows make way more than their actors cost, even if they’re outrageous for any other standard.
Edit: there’s a movie called Buried, starring Ryan Reynolds. Half the budget went to the actor, iirc.
The way that everything goes back to ad revenue has to be a weakness in our economy. Legacy cereal and beauty (for example) companies are paying big money to shill their products, but big tech gets the insane stock price and prestige. When the economy takes an actual shit, advertising is quickly made redundant.
BTW, what is Zendaya’s last name?
Advertising or subscriptions.
If you have a popular show that means advertisers have a big audience that will watch their commercials and hopefully lead to more sales. It’s why super bowl commercials are such a big deal.
Or for a channel like HBO they’re banking on the fact that by providing a lot of high quality content or airing movies you can’t get elsewhere people will pay to watch that.
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