Think of it this way. Instead of paying actors, writer, etc., they use that money for prizes. Instead of paying actors, they pay contestants.
The winner of Jeopardy makes what, $20,000 per episode? The lead stars of a popular show might make $1 million per episode.
In some cases, the shows don’t pay for prizes. On the Price is Right for example, the car companies might be willing to give those cars for free because the show advertises the car. Instead of paying $25,000 for a commercial spot, they give away a $25,000 car for the show to promote it.
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