Sony TV, which has newly picked-up ABC comedy series is engaging in similar conversations with broadcast networks around a pre-existing half-hour project it has in the marketplace.
The broadcast model, created when broadcast TV was the only game in town, is based on the studios taking the risk and reaping the rewards in success. Today, with the rise of vertical integration and streaming, it has evolved into studios taking the risk with very little or no reward to be had, especially for indies, which explains why they have been calling for changes to the antiquated financial formula.
Additionally, the once-hot basic cable and broadcast syndication markets for broadcast comedies have also significantly weakened as local stations and cable networks are not buying like they used to. Meanwhile, with some exceptions, the international marketplace has not been very receptive to broadcast comedy.
That has been a driver on the hourlong side, as broadcast dramas for the most part continue to do well internationally, with series turning profit around three seasons in, split between the outside studio and its network partner. But, because of the low interest in U.S. broadcast comedies abroad, I hear it takes twice as long, about six years, before studios see any profit, which in many cases is minimal.
Is there a solution? Industry observers point to cable — primarily premium — networks, which pay a significant license fee for half-hour comedies that amounts to almost 100% of the production cost. That makes the risk smaller for the studios which can supplement the domestic network license fee with modest off-network and international sales and still come out ahead.
Cough, cough...here's a show that cost a fraction of network TV to produce.