How Do TV Shows Make Money? Things You Never Know!

How Do TV Shows Make Money? Things You Never Know!

It’s safe to say that television fundamentally changed how we consume media. Unlike the movie industry, where you can easily track the profit each movie generates, television shows are different. Most people don’t understand how TV shows are paid for because Box Office calculations don’t apply to them. Continue reading for more information if you’re curious about how TV shows are funded.

How Television Shows Work

Stage 1: Pre-production

A television series is never produced on the first day of filming.

  • How to Write a Shooting Script: The screenplay must be finished and transformed into a shooting script before you can begin filming. Just like it is for the actors, the shooting script needs to be simple enough for the director, cinematographer, and camera crew to follow.
  • Acquisition of Storyboards and Shot Lists: Scripts for filming go hand in hand with this. For the director and cinematographer, the storyboards and shot lists are meant to translate the shooting script into visual form.
  • Auditioning the Crew: Collaboration, not just shooting, is the key to successful filmmaking. An audition is necessary to select the best cast for the series.
  • Searching for a Location We advise hiring a professional location scout who knows how to find unique locations that are ideal for your script or already has locations in mind if you want to get the best shot.
  • Creating your Budget: This is not an interesting part of the pre-production but it is very important. Budgeting is necessary, and you must make sure to follow it.
  • Choosing the Cast: You need to find the right cast regardless of how many actors are involved in a role. To find the ideal cast for the series, you can use a casting agent.

Stage 2: Production

Filming a movie is production for TV shows. The TV show’s filming is done during the production stage, one of the three stages of making a movie. Additionally, stand-ins and background actors work during the production phase.

If you want to include things in your video like motion graphics, animation, or voice-overs, the content will be created during the production stage.

Stage 3: Postproduction

The project will enter post-production after the filming is complete. Editing, sound mixing, and any additional special effects the project may require are all part of this phase. The director might reshoot a scene or add another one while editing the various TV episodes.

At this point, the various post-production teams contribute their knowledge to the undertaking. The film will leave the distribution post-production phase once the director determines it is suitable for the audience.

How Do TV Shows Make Money

Commercials

The main source of revenue for TV programs is commercials. However, a TV program needs to have a large audience in order to profit from a commercial. In general, how many people watch the TV show will affect how well the commercial or advertisement is received.

Companies and brands pay to have TV advertisements for their goods and services run. Depending on the length and content, each TV network charges a different amount to air these commercials and advertisements.

Furthermore, the TV station will profit from the viewership in the form of money. For the TV network to be profitable, there must be enough viewers for the advertisement.

Ads

Some TV networks, as opposed to others, use advertisements to fund their programming. By doing this, they are able to air advertisements from businesses willing to contribute money to their television project.

Consider the free and premium versions of some TV networks. More targeted advertisements are delivered to free subscribers than to those of the premium version. The TV network’s original TV series is made possible by the money from these advertisements.

Additionally, it makes room for collaboration between different TV networks to stream the most recent episodes of a show a day or a few hours after they air on the original network.

Subscription

Similar to streaming networks like YouTube, Netflix, HBO, and others are subscription services. these networks charge a set monthly and yearly rate for people to use their streaming platform, thereby making money from the subscription.

The streaming network can afford to produce original shows and movies because of the subscriptions to these platforms, which helps it gain more subscribers. These TV networks generate revenue based on their subscriber and viewership numbers.

Syndication

A TV network and a producer/studio will work together through syndication. It entails a TV network paying a producer or studio a certain sum of money in exchange for the right to continuously air episodes of their show.

TV shows can set the price for each episode, which is a great way for them to generate income. Additionally, they have the option of selling this right to the highest bidder. Additionally, the TV program will keep making money every time viewers watch it with advertisements.

Investors

There are always investors willing to contribute money to TV shows they think are deserving. Producers frequently approach media investors to secure funding. They make a pitch for the TV show idea to the investor and include information about the cast, crew, budget, and any other aspects that might interest the investor.

How Do TV Shows Make Money? Things You Never Know!

In this scenario, both the TV network and the investor profit from the deal. After the TV show is produced and broadcast, they occasionally split the profits. Other times, the investor receives credit for the show and any network-related royalties.

Merchandise

The majority of TV programs and series generate revenue through product sales. T-shirts are the most popular item sold by most TV programs. Some people continue to dress inappropriately, though. A certain amount may be required to purchase items like TV show props, character statues, and other trinkets.

Typically, some TV programs sell these items through a bidding process, particularly for limited editions. It’s a good thing that TV shows can sell their goods online without a physical location.

Bidding

The producer of a TV show approaches numerous TV networks with a show as part of the bidding process. Before approaching these networks, the producer needed to build interest in the proposed show and get lots of people excited to watch it.

This will give the producer an advantage in attracting bidders and pique the interest of the TV network.

Once the bidding is open, each TV network will compete with the others to win the right to air the program. The show will air on whichever TV network makes the highest bid. Depending on how much the TV networks bid, TV shows can earn a lot of money this way and even earn more than their budget.

Sales Of DVD

We frequently don’t want our favorite shows to end. But when they do, rewatching the hows will help us keep our memories of them alive. With DVDs, this is feasible. Despite the gradual decline of DVD sales brought on by technological advancement, they are still a significant source of revenue for TV shows.

TV shows can generate income through the sale of DVDs. The popularity of DVD sales is due to the fact that viewers enjoy the idea of binge-watching their favorite shows in the comfort of their own homes.

Sponsorships

The majority of TV show sponsorships are targeted because the TV production looks for sponsorships from particular businesses. While in other situations, some corporations typically go after the producers. Investment is similar to sponsorship. Sponsorship, on the other hand, only gives the sponsor credit at the end and no other recognition during the show.

However, sponsorship is a great way for TV shows to make money because they always choose the sponsor who is willing to pay the most.

Crowdfunding

A more recent method of generating revenue for TV shows is crowdfunding. In this scenario, a show would be sponsored by the contributions of a sizable group or several different groups.

This method is typically used to produce independent TV shows. Additionally, some websites permit TV shows to raise money through crowdsourcing while disclosing the storyline, the cast, crew, and any other information that might be of interest to viewers. These websites include Kickstarter, Indiegogo, Rockethub, and others.

Because the producer typically posts an open budget, crowdfunding is a great way for producers to make money.

Conclusion

One of the largest media industries in the world is television. Everyone wants to watch their favorite TV shows, and for a very long time, television was one of the best mediums for doing so. However, because viewers dislike the idea of commercials interfering with their entertainment after every few minutes, making money from TV shows is already very difficult.

Useful? Share Now!

Leave a Reply

Your email address will not be published.