I’ve never understood it. Is it based off of viewership? If so how does that work? I’m not paying a fee to watch individual episodes. Does it comes from Advertisements? If so, why would it matter how many people watch the show?
In: Economics
TV production studios make shows and sell them to networks, and also make money selling the streaming rights, DVD sales, and syndication as reruns.
The networks who bought the show then sell advertising that runs during the show. Also networks get fees from cable and satellite providers who carry their channel.
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