Originally Posted by D.M.N.:
“IF and its a big IF at that, Red or Black stays in the 5m to 6m, I don't think it'll be called a flop, just a very major disappointment, after all any other new show getting 5m to 6m in this day and age and the networks would be jumping from the rooftops.”
I may be wrong (although these calculations have been pretty close to the mark before compared to what is reported in trade magazines) but a while ago I wrote this post about potential advertising revenues for Red or Black and costs:
Quote:
“Yeah, £15m (£2.1m/episode) is one of those "rounded to the nearest 5 million" overestimated by those newspapers - realistically it's looking like it'll cost about £1.5-2m per episode: that's assuming there's no winner in 50% of the episodes so on average about £500k given away in each episode and a further £1-1.5m budget for the actual production as it sounds like it's going to be very big. Each episode is 90 minutes long, so it's probably costing about £1.2m per hour (that could rise or fall depending on how many winners there are, but it's an approximate base level).
To go into details that has been touched on already: reaching a thousand 16-34 viewers costs an advertiser about £42 for a 30 second ad on ITV1 (industry figures). There will be thirty-six 30-second adverts in each episode (24 in the 1st hour, 12 in the remaining 30 mins) so doing the maths ITV will need about 1.2 million 16-34s watching to break even by ad-revenue alone - sponsorship will help a little. The show will most likely skew like other Cowell and ITV light entertainment productions, with the 16-34 audience making up 22-26% of the overall audience. So to break even, the no. of viewers they'll be looking for is about 5m per night. To make a decent profit solely on ad revenue, they'll need 6-7 million viewers, but because ITV co-own the rights I suspect 5-6m viewers will be alright in their view as they'll at least break even and then make more money (and thus an overall profit) through licensing the format in other countries. It's different from the PokerFace situation because ITV didn't own those rights, so made no money from sales abroad. They will with this show, if the show sells, especially to the US market. Also PokerFace was low by Ant & Dec standards back then IIRC.”
Now, if those estimates are right, 5-6m if it can sustain at that level, would make them money given the audience profile of the show (27% and 31% of first 2 shows's audiences were in the lucrative 16-34 bracket). Not a big profit, which they may have been hoping for, given the way they've moved things around such as Corrie, but a bit of profit nonetheless (though nowhere near the amounts TXF or BGT make).
So, I wonder if it does hold up at 5-6m for the rest of the week (and that's a big IF as you say!), if it would get another series, even just to save face? It would be quite embarrassing for Simon Cowel/Ant and Dec/ITV/Syco if the show got axed. Although it's rated below general expectations, even if at 5-6m levels it could be making some money. Let's not forget, that ITV routinely airs some drama series which get 5-6m but probably don't make a (significant or in some cases any) profit from them due to high costs of these shows. But they continue to make some of these dramas for various reasons: they hold up ITV1's % share which is important for CRR purposes (a mechanism which decides how much advertisers pay for ad spots). They could easily spend money on a £100k factual show getting 3.5m than a £700k drama series getting 5m and make more profit with the factual show, indeed increasingly they are doing that, but they still have their fair share of shows which aren't really money makers but are there to pull up the share and for reputation purposes.
The reputation bit doesn't really apply with Red or Black here as it's been panned, but I wonder if it can sustain a 5-6m average, if ITV believe it's something worth doing again (maybe at a reduced cost and rejigged weekly format) because it's been rating better than other shows in the genre and slots (as you'd expect really) but still possibly making them money at the same time, even if it's a small bit? So rather than being a cash cow for ITV like other Syco shows, be the sort of show which pulls up the slot averages, makes a little bit of money (via ad revenue and international sales if another broadcaster is silly enough to buy it), and that's all - similar to a few of their drama series. If it does even worse next time, then bin it.
This, of course, is all under the scenario of it staying above 5m for the rest of the week, which frankly it might fail to do as soon as tonight when it faces EE.