Just when you thought that it could only happen in radio, TV Guide reported that Fox told the voice actors who star on The Simpsons that they either take nearly a 50% pay cut or the network will cancel the show. (They ultimately settled for a reported 30% reduction.)
Why is this happening? At $440,000 an episode for the voices of Homer, Marge, Bart, etc., Fox claimed that the show was no longer profitable. After nearly a quarter century, the network is somehow struggling to generate enough revenue for an incredible show that has always generated buzz. Here was their statement:
“23 seasons in, The Simpsons is as creatively vibrant as ever and beloved by millions around the world. We believe this brilliant series can and should continue, but we cannot produce future seasons under its current financial model.”
Or, “It’s not you – it’s us.”
How many times have PDs and consultants heard this line in the past couple of years: “There’s nothing wrong with our ratings – you guys are doing a great job. We just can’t sell it.”
And there must be many DJs, mornings shows, and personality teams who have been asked to take a financial haircut during these past few years.
Now I know there are going to be many different reasons that some of you will offer that may explain why this is happening – an increasingly competitive marketplace, the recession(s), a struggling advertising economy, the impact of digital content, etc. And some would say that the old model is broken – that “the new normal” dictates lower salaries, smaller contracts, and less sharing of the media wealth.
Although my bet is that the corporate staff at 20th Century Fox Television is still very much in the 1%.
Doh!
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Great thoughts! It’s funny how media has forgotten that we can influence the consumer in both positive and negative ways. We are what we believe and therefore control our own destiny. Project passion and inspire. Or lie their and flop around in your excuses you will die soon enough, oh BTWyou are already smell!
Dave out!
Thanks, Dave. It often comes down to strength of belief and championing what got you to the dance.
Could it be the 80% of us that DVR our way by the commercials have reduced the value of Simpson TV spots? Or, the negative impact of those who prefer to watch the Simpsons on NetFlix, Hulu, or on Demand programming? How about the BILLIONS of Facebook page ads now available that can immediately deliver any target audience, any time for $.25/CPM? Or, the 700-group coupon businesses that local merchants can use for FREE? The supply of advertising vehicles opportunities had grown enormously in the last 23-years. The demand for advertising has not grown as much. Therefore the price goes down. The Fox TV staff is part of the 1% burden. $440k for voices and writers just got market adjusted with a 30% haircut. But, the pricing issue seems to be market forces at work. I’ll bet the sales guys are working just as hard. Not everybody is Greek.
Steve, thanks for the comments. I expected some push-back regarding the new realities of media advertising – from increased competition to the flood of avails. But doesn’t that cut both ways? Doesn’t Fox now have more ways to make money with its franchise besides selling spots in the show? What about all those avails on the web, mobile, and beyond. Or the rampant merchandising of “The Simpson’s” from lunchboxes to Halloween costumes. While the marketplace may be more cluttered with avails, brand extensions allow for more revenue streams. Thanks for starting up a conversation that I hope will continue throughout the day, and thanks as always for reading our blog.
Kudos, Fred. Sales in ad-supported media is a critically important issue. What’s significant to note here is The Simpsons enjoys five big advantages. First, the show, as you’ve said, is well-established, in fact it’s iconic. Second, it’s run in prime on TV’s most-viewed night (HUT). Third, perhaps key here, it remains one of the most expensive Sunday spots. According to Brian Steinberg (Ad Age)here are the rates as of October 24th. Sunday Night Football leads at $512,367, Family Guy is second at $264,912 and then The Simpsons at $254,260. CSI Miami may be considered cheap in that crowd at the bargain of $98,027 per spot. Fourth, it retains a competitive audience. Finally, it’s a great second-run vehicle.
No matter those advantages the producers must still deliver a show in first-run that is priced to enable the buyer profit. Increasingly, the shows commanding significant live viewership are the few able to produce premium rates.
To put this into perspective. Compare and contrast with show pricing on Saturday, TV’s product ghetto and lowest-watched night of the week. Fox’s Cops leads at $49,735. Friday which is quickly becoming the second dumping ground for reruns is the second lowest-watched night. CBS leads with first-run Blue Bloods priced at $76,133. The dirty little secret here is available audience, the median age of the Blue Bloods viewer is 61, younger viewers aren’t watching TV on Friday nights.
Broadcast sales continues to be stress tested daily. While broadcast has a strong value proposition, more attention needs to be dedicated to sales innovation and revenue development. The spots and dots game is a commoditization trap and that makes it a perfect candidate for buyer optimization. That signpost up ahead reads “No salesperson need call. Machine trading only.”
Thanks so much for the perspective and the hard numbers. As you say, when you let a show like “The Simpsons” become commodtized, you’re in trouble. As you say, it’s about “sales innovation and revenue development” – common themes in posts this year. Appreciate, as always, you participating in this conversation.
Hi Fred,
This is part of a trend.
First identified by Bob Garfield in ‘The Chaos Scenario’.
The Chaos is – too much inventory everywhere. It pushes prices down.
So far, TV has defied gravity but it can’t last.
I interviewed Bob a while back and he is so right.
More at http://www.gomediafix.com/2009/09/the-chaos-scenario/.
No question that the glut of inventory is part of the explanation. But smart sales packaging on the part of Fox could overcome the problem. It’s one thing when you’re “Mike & Molly.” But “The Simpson’s?” That’s like KROQ or WTOP. Thanks for joining in the conversation and for bringing up that mastermind Garfield.
A quick check of the ratings shows in 2009, The Simpsons averaged at an 18-49 rating of 3.4. Last year it was a 3.3 and this year is trending up.
I’m surprised that no one yet suggested that this is pure posturing – just a negotiating tactic. If this was the real reason, I doubt they would be hashing it out so publicly in the media. There is no good reason why a 3.3 would bring in significantly less ad revenue than a 3.4. FWIW, as TV viewership dwindles, The Simpson’s share of it is actually going up.
If they would hack your voicemail, they would certainly lie in the media to get what they want.
Maybe “sales” is tired of the show. We’ve seen the same movie before in radio, haven’t we? A venerable institution like “The Simpsons?” C’mon! Thanks, Bob.