Television deficit financing is the practice of a network or channel paying the studio that creates a show a license fee in exchange for the right to air the show, and in which the license fee is less than the cost of the show. A major broadcast network will ask a program producer to share in the financial risk when considering adopting a new program to its schedule; at least for the first season of the series. Deficit financing is often the norm for scripted television, this came during the Post Network Era. Deficit financing however, does not cover the cost of product, which leads to a deficit for the studio. [1]
Television deficit financing also helps to minimize the substantial risks and costs of developing programs for the networks and gives studios initial benefits as well. The studio bears the difference between production costs and licensing fees, but recoups significantly more money if the show is sold in syndication. The main benefit of deficit financing comes from syndication, this offers different windows for the program, i.e. first run syndication, second run, cable, etc. There is both good and bad to deficit financing, it gives the studios the opportunity to gain major rewards, but they are also taking most of the risk. For networks, they are minimizing most of their risk, but they risk losing out on most profit. If the network orders enough episodes of a show, the studio can then sell the series to other markets. Deficit financing minimizes risks and costs of developing programs for networks. [2]
A rerun or repeat is a rebroadcast of an episode of a radio or television program. There are two types of reruns – those that occur during a hiatus, and those that occur when a program is syndicated.
The United Paramount Network (UPN) was an American broadcast television network that launched on January 16, 1995. The network was originally owned by Chris-Craft Industries' United Television; Viacom turned the network into a joint venture in 1996 after acquiring a 50% stake in the network, and subsequently purchased Chris-Craft's remaining stake in 2000. In December 2005, UPN was spun off to CBS Corporation when Viacom split into two separate companies. CBS Corporation and Time Warner jointly announced on January 24, 2006, that the companies would shut down UPN and competitor The WB to launch a new joint venture network later that year. UPN ceased broadcasting on September 15, 2006, with The WB following suit two days later. Select programs from both networks moved to the new network, The CW, when it launched on September 18, 2006.
The Fox Broadcasting Company is an American commercial broadcast television network owned by Fox Corporation and headquartered in New York City, with additional offices at the Fox Broadcasting Center in New York and the Fox Television Center in Los Angeles. Launched as a competitor to the Big Three television networks on October 9, 1986, Fox went on to become the most successful attempt at a fourth television network. It was the highest-rated free-to-air network in the 18–49 demographic from 2004 to 2012 and 2020, and became the most-watched American television network in total viewership during the 2007–08 season.
A television film is a feature-length motion picture that is produced and originally distributed by or to a television network, in contrast to theatrical films made explicitly for initial showing in movie theaters.
Broadcast syndication is the practice of leasing the right to broadcasting television shows and radio programs to multiple television stations and radio stations, without going through a broadcast network. It is common in the United States where broadcast programming is scheduled by television networks with local independent affiliates. Syndication is less widespread in the rest of the world, as most countries have centralized networks or television stations without local affiliates. Shows can be syndicated internationally, although this is less common.
Television is one of the major mass media of the United States. As of 2011, household ownership of television sets in the country is 96.7%, with approximately 114,200,000 American households owning at least one television set as of August 2013. The majority of households have more than one set. The peak ownership percentage of households with at least one television set occurred during the 1996–97 season, with 98.4% ownership.
In the U.S. television industry, 100 episodes is the traditional threshold for a television series to enter syndicated reruns. One hundred episodes are advantageous for stripped syndication because it allows for 20 weeks of weekday reruns without repeating an episode, and such shows can be sold for higher per-episode pricing.
CBS Studios is an American television production company which is a subsidiary of CBS Entertainment Group unit of Paramount Global. It was formed on January 17, 2006, by CBS Corporation as CBS Paramount Television, as a renaming of the original incarnation of the Paramount Television studio. It is the television production arm of the CBS network, and, along with AT&T subsidiary WarnerMedia through its Warner Bros. Television Studios, it is also the television production arm of The CW.
Universal Television LLC is an American television production company that is a subsidiary of Universal Studio Group, a division of Comcast's NBCUniversal. It serves as the network television production arm of NBC; a predecessor of the company previously assumed such functions, and a substantial portion of the company's shows air on the network. It was formerly known as Revue Studios, Universal Pictures Television Department, Universal-International Television, Studios USA Television LLC, Universal Network Television, Universal Domestic Television, NBC Universal Television Studio, and Universal Media Studios. Re-established in 2004, both NBC Studios and the original Universal Television are predecessors of the current Universal Television, formerly known as NBC Universal Television Studio and Universal Media Studios.
The term managed care or managed healthcare is used in the United States to describe a group of activities intended to reduce the cost of providing health care and providing American health insurance while improving the quality of that care. It has become the predominant system of delivering and receiving American health care since its implementation in the early 1980s, and has been largely unaffected by the Affordable Care Act of 2010.
...intended to reduce unnecessary health care costs through a variety of mechanisms, including: economic incentives for physicians and patients to select less costly forms of care; programs for reviewing the medical necessity of specific services; increased beneficiary cost sharing; controls on inpatient admissions and lengths of stay; the establishment of cost-sharing incentives for outpatient surgery; selective contracting with health care providers; and the intensive management of high-cost health care cases. The programs may be provided in a variety of settings, such as Health Maintenance Organizations and Preferred Provider Organizations.
An independent station is a type of television station broadcasting in the United States or Canada that is not affiliated with any broadcast television network; most commonly, these stations carry a mix of syndicated, brokered and in some cases, local programming to fill time periods when network programs typically would air. Stations that are affiliated with networks such as The CW, MyNetworkTV or to a lesser degree, even Fox, may be considered to be quasi-independent stations as these networks mainly provide programming during primetime, with limited to no network-supplied content in other time periods.
Film finance is an aspect of film production that occurs during the development stage prior to pre-production, and is concerned with determining the potential value of a proposed film.
DreamWorks Television was an American television distribution and production company based in Universal City, California, that was a division of DreamWorks. It folded into Amblin Television in 2013.
For the application of engineering economics in the practice of civil engineering see Engineering economics.
The Financial Interest and Syndication Rules, widely known as the fin-syn rules, were a set of rules imposed by the Federal Communications Commission in the United States in 1970. The FCC sought to prevent the Big Three television networks from monopolizing the broadcast landscape by preventing them from owning any of the programming that they aired in prime time. The rules also prohibited networks from airing syndicated programming they had a financial stake in.
Schurz Communications v. Federal Communications Commission and the United States of America, 982 F. 2d 1043, held in the United States Court of Appeals for the Seventh Circuit, was argued on October 2, 1992 and decided on November 5, 1992. The case dealt with the justification of the FCC's regulation of the way television networks are allowed to distribute and produce programs into syndication. Judge Richard Posner was the Circuit Judge for the case. This case challenged Syndication and Financial rules imposed in the 1970s, as broadcast television changed with the popularity of cable television, the rise of the FOX network, and the discrediting of the leverage theory.
A television show – or simply TV show – is any content produced for viewing on a television set which can be broadcast via over-the-air, satellite, or cable, excluding breaking news, advertisements, or trailers that are typically placed between shows. Television shows are most often scheduled for broadcast well ahead of time and appear on electronic guides or other TV listings, but streaming services often make them available for viewing anytime. The content in a television show can be produced with different methodologies such as taped variety shows emanating from a television studio stage, animation or a variety of film productions ranging from movies to series. Shows not produced on a television studio stage are usually contracted or licensed to be made by appropriate production companies.
In American television terminology, a fourth network is a reference to a fourth broadcast (over-the-air) television network, as opposed to the Big Three television networks that dominated U.S. television from the 1950s to the 1980s: ABC, CBS and NBC.
Repurposing refers to a television industry practice in which content providers negotiate deals that allow a series to earn additional revenue during its original run. This is made possible by airing the series multiple times on the broadcast network which licensed it, or airing it concurrently on a cable network. As a result, the window between original run and syndication is shortened dramatically. Repurposing was the first significant adaptation of industry distribution practice since the advent of cable.
Ion Mystery is an American free-to-air television network owned by the Katz Broadcasting subsidiary of the E. W. Scripps Company. It focuses primarily on mystery, true crime, and police/legal procedural programs.