Hi! Thanks for the question.
Unlike newscast, sitcoms or other types of network original
programming, infomercials are more like advertisements that you see in
between the programming. Both infomercials and advertisements are
sources of revenues for networks unlike original programming in which
they shoulder production cost. The only difference is that
advertisements go on only for 30 seconds while infomercials will
usually have 30 minutes or seems like the whole program itself. So
with infomercials, networks have found another source of income.
In fact infomercials are now such big business and is estimated as a
$6 billion industry!
“Currently, infomercials and home shopping networks generate $6
billion annually.”
“Content Providers”
http://www.metatv.com/vision/opp_cprev.htm
The following page meanwhile from an infomercial production company
packages a program for a company in the range of $75,000 - $200,000
Plus Royalties.
http://www.1-infomercials-as-seen-on-tv-infomercials.com/30comm.html
Production costs for infomercials meanwhile ranges from $150,000 to
$600,000.
“If your budget does permit forging ahead with direct-response
television, it's best to hire an advertising agency to produce and
place your spot. Production costs range from $150,000 to $600,000 for
infomercials of two minutes or more, and $50,000 to $75,000 and up for
a typical 30-second spot. But anything less than two minutes may not
be enough to sell your product on television, according to Steven
Dworman, publisher of the Infomercial Marketing Report newsletter, who
says an advertiser must leave a toll-free number on the screen for 40
seconds in order for it to be effective.”
“Getting Screen Time”
http://www.entrepreneur.com/Your_Business/YB_SegArticle/0,4621,284838-----,00.html
In terms of cost comparison, such costs figures from infomercials
cannot still be compared to the costs of producing television shows.
“Networks were originally drawn to reality shows because they enticed
elusive young viewers -- at a discount. The programs require no A-list
actors, coveted writers or superstar producers, who demand high
salaries that wildly inflate production costs and programming license
fees. The series typically film at a single location (such as the
various houses in Real World) with inexpensive props and sets (and, in
Survivor, insects in lieu of catering).”
“But these days, the sets and storytelling are becoming ever more
exotic, from CBS's upcoming African Survivor to WB's No Boundaries,
which tracks 15 pioneers marching toward the Yukon. As production
costs rise, the networks ultimately pay more for programming – and
suddenly, prime-time reality shows are no longer a bargain. "It costs
about $800,000 for an hour, where a drama could cost from $1 million
to $1.5 million on average," said Scott Sassa, West Coast president of
NBC, home to the reality shows Fear Factor and Spy TV. ‘So, it's not
dramatically less that we're spending on these shows.’”
“Of course, even the priciest reality shows haven't gotten anywhere
close to the cost of hit scripted programs. NBC pays $5 million for an
episode of Friends, while ER costs $13 million per show. According to
one Hollywood agent familiar with producer deals, on a hit show,
producers can earn six figures per week; reality shows deliver about
$20,000 per week along with a small percentage of any back-end profits
such as foreign sales (syndication hasn't been an option for such
shows due to their relatively few episodes.) "Costs are definitely
going up but it's still on a cost-efficient basis," says the agent.”
“Once a Cheap Date, Reality TV Bites Into Network Budgets”
http://wjcohen.home.mindspring.com/insideclips/reality.htm
Search terms used:
Infomercials TV Programs “production costs”
I hope these links would help you in your research. Before rating this
answer, please ask for a clarification if you have a question or if
you would need further information.
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Regards,
Easterangel-ga |
