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March 20, 2006

Do the Math, download fees alone don't cut it

Dick Wolf, the producer of the Law and Order series, said the following in Variety:

Let's say five years from now the 'Desperate Housewives' of 2010 gets downloaded a million times per episode. (At $1.99 a download), that's a gross of $44 million per season. On the current two-thirds split, that's $30 million for ABC for 22 episodes.

That doesn't include profit participants or the studio, of course, so let's say ($30 million) is cut 50-50 with the studio and everybody else. To the network, that's a grand total of $15 million -- and 22 episodes of a hit like that are worth a lot more than that.

"Housewives" might average $250,000 for a thirty-second commercial spot. With about 20 thirty-second spots an episode for ABC to sell, that comes to $5 million for just one episode. Over the course of a season, that's $260 million in average gross revenues ABC pulls in.

That is way more than one gets from downloading fees.

Posted by Martino Mingione on March 20, 2006 03:51 PM

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