The $64,000 Question
Why are TV production companies so wealthy? The answer is because they own the rights to their own TV shows, which are unbelievably lucrative – especially when the format is sold to countries like America, where game shows are practically all they watch.
Sale of the Century
Which explains why... companies like Celador, who own the worldwide rights to Who Wants to Be a Millionaire?, sold the idea to American (ABC) for over £100m. This sounds like a lot of money, but it’s not when you consider that ABC syndicate the show all over North America was raking in £420 million from each ad break.
Modern TV shows are designed to appeal to the broadest possible audiences. If the format works in Britain, then it will work anywhere in the world. Shows are sold on, in the following order of profitability: North America, Australasia, Northern Europe, Latin America, Asia and finally Eastern Europe.
Deal or No Deal
It has been an impressive year for UK television exports, with sales to international markets in 2015/16 of £1,326m. The USA remains our largest market (£497m), followed by Australia (£106m) and France (£73m). With an increase in Subscription Video on Demand platforms such as Netflix and Amazon, there is further opportunity for growth in this area.
Who Wants To Be A Millionaire?
• Celador (who own the rights to the show) is valued at £300m.
• The rights have been sold to 106 countries.
• The sale of the worldwide rights to WWTBAM? were sold for £106m.
• The format was sold for £100m.
• £70m is earned from TV ads.
• Format has been sold to 41 countries.
- CBS paid Endemol £14m for the rights.
- The company was sold for £3.8bn.
- Channel 4 make £45m a series from advertising.
I’m a Celebrity… Get Me Out of Here!
- The high-tech set cost £7m (it’s television).
- 450 people live and work on the jungle set.
- It costs £12m to make the 3-week series.
Double Your Money (and get jolly rich)
To conclude: I have a slate of innovative TV formats and access to the right people in the industry to make all this happen. . . for those in the know, small screen is big business.
© Geoffrey Reed
15th August 2017