Must-read exposé on how The CW runs!

Dizagaox

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http://www.broadcastingcable.com/article/446735-Q_A_The_CW_s_Dawn_Ostroff_on_Growing_Up_Fast.php
http://www.broadcastingcable.com/article/446733-How_The_CW_Stays_Undead.php


In a nutshell, The CW Network is a shell-company that exists only to help kick-off new series that (hopefully) become internationally successful and sell well on DVD and in syndication. TBL wasn't cancelled because it was a ratings flop, it was cancelled because nobody outside the CW had any interest in it.

It looks like The CW purposely makes a loss on most their series, with the hopes their parent companies (CBS and WB) make it back later. So basically, it doesn't even really matter if a series is getting 2 million viewers or 4 million viewers in the USA, just as long as it sells well internationally, on DVD/Blu-ray and goes into syndication.

Smallville is pretty safe then, as WB still make $$$ off of it. It's their No. 3 highest rated series, so it must recoup most of its costs from the US broadcast, but more importantly it's the CW's biggest series internationally and on DVD/Blu-ray, and once they get round to it, a potential syndicated behemoth.

And as the report highlights, The CW's new objective is to start turning a profit (as a TV network) in the coming year. There is absolutely no way they'd even risk losing Smallville, Supernatural and One Tree Hill, otherwise they'll have an even steeper hill to climb.
 
Forgive my ignorance--but assuming WB isn't just making excuses for the CW's poor ratings performance, is this really such a bad business model?
 
Oh I see...so basically CW is saying "No really. We are sucking ON PURPOSE"
=P
 
Forgive my ignorance--but assuming WB isn't just making excuses for the CW's poor ratings performance, is this really such a bad business model?

Doesn't seem like a bad business model to me. Basically, the CW will take a loss as long as the parent companies make money in the long run.

Obviously, optimal would be CW makes money AND there's a healthy secondary market. But it's probably a better business model than what NBC trotted out there this year with Jay Leno on 5 nights a week, losing money with absolutely no secondary market.
 
Doesn't seem like a bad business model to me. Basically, the CW will take a loss as long as the parent companies make money in the long run.

Obviously, optimal would be CW makes money AND there's a healthy secondary market. But it's probably a better business model than what NBC trotted out there this year with Jay Leno on 5 nights a week, losing money with absolutely no secondary market.

I think a good comparison might be a few NHL hockey teams. I know alot of them work at a loss, but when the owner of the team owns the arena as well, they make it all back on ticket sales(ie they get 100% of ticket sales and consessions). In a few cases the owner of the team own the Cable station the team is shown on so they get profits from that to cover any loss(ie the station doesn't have to pay a penny for tv rights)

Alot of shows on cable work under the same premise. They sell the show to a cable station at a loss for the company producing it, but they turn around and sell it to foreign markets, DVD sales and it's a success(Battlestar Galactica was a series I know that relied on many different revenue streams to make profit from a show).
 
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Hmm, do all networks rely somewhat on DVD sales?
 
Hmm, do all networks rely somewhat on DVD sales?

It's not networks, its the company that produces the show. If they make money on DVD sales(or other revenue) to cover alot of expenses they can sell it to the network at a cheaper price.

In the case of the CW, since WB has partial ownership in the network, it can use the Cw as one of many revenue streams for producing the show
 
yea and we know on wb side of things alot of the big wigs love the show, and it makes alot of money on merch sales domestically/internationally 9 yrs going.
 

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