By Richard E. Caves
ISBN-10: 0674018788
ISBN-13: 9780674018785
ISBN-10: 0674029291
ISBN-13: 9780674029293
Media critics perpetually disparage the standard of programming produced via the U.S. tv undefined. yet why the produces what it does is a query principally unasked. it really is this question, on the crux of yankee pop culture, that Switching Channels explores. long ago twenty-five years, the growth of cable and satellite tv for pc platforms has remodeled tv. Richard Caves examines the economics of this phenomenon--and the character and common sense of the printed networks' reaction to the incursion of cable television, particularly the shift to low-cost unscripted online game and "reality" exhibits and "news" magazines. an evidence of those adjustments, Caves argues, calls for an figuring out of 2 very varied sectors: the "creative industry," which produces courses; and the industrial channels, which convey them to audience. His e-book indicates how vendors' judgment of profitability determines the standard and personality of the courses the artistic produces. This decision, writes Caves, depends upon the quantity and kinds of audience that a variety of courses can allure and advertisers' willingness to pay for his or her awareness, in addition to the association of the networks that package deal courses, the vendors that transmit them, and the offers those events strike with each other.
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Extra info for Switching Channels: Organization and Change in TV Broadcasting
Sample text
The suppliers show many traits common to creative industries, along with some distinctive features. One of those is the prevalence of series programs, which require a contractual commitment to keep the coalition of inputs (creative talent) together. Another is the economic durability of successful series. As with any long-term investment, its owner will likely need to endure negative cash flows for years before the series is boosted into profitability by revenues from off-network syndication. The market for prime-time series programs is in truth part of a larger program market.
This could in principle take several forms. The producer might become the studio’s hired hand, with the studio holding all the financial risk. Or the producer might organize and manage production but sell off equity and debt positions in individual series to a studio (or some other body of sophisticated investors and lenders). Actual arrangements are distributed between these ex- 26 • TV PROGRAMS AS CREATIVE GOODS tremes. Some successful producers or partnerships of producers have maintained independent companies over sustained periods of time, often working out joint-venture arrangements with studios that rely on the latter for finance as well as for ancillary services.
8 percent a year). 96 As with the Hollywood studios’ one-time contracts with film actors, such deals may leave large rents for the producer and the network if the show is a success. But contracts cannot compel excellence in performance and cooperation on the set. 97 The renegotiation of a highly successful program hence transfers copious rents to its core talent. Before the sitcom Seinfeld was terminated in 1998 (an aesthetic choice of its talent), its producer-star had been earning more than $1 million an episode, and was offered $5 million per episode to renew for another season.
Switching Channels: Organization and Change in TV Broadcasting by Richard E. Caves
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