Originally Posted by AlexiR:
“A few points here
1 – Arguing that people don't understand the economics of Mad Men whilst also pointing out that Sky subscriber rates have been slowing is somewhat contradictory. Part of the point of Mad Men (or more accurately Sky Atlantic in general) is to in crease the subscriber base. They want to lure Virgin Media customers over for example and Freeview and FreeSat etc. etc. viewers over to Sky. And by their own numbers that isn't working so now we have to endure this nonsense of 'rewarding' customers to justify the poor viewing figures the channel is bringing in.
2 – The problem with the 'economics of Mad Men' argument is that it relies on the notion that people are subscribing or aren't unsubscribing because of Mad Men. Its all well and good to say that Sky need to retain x number of subscribers for Mad Men to be a good purchase but actually if x number of subscribers would have been retained regardless of Mad Men then its a moot point and wasted expenditure. The only way you can justify the economics of Mad Men is to produce statistics that directly attribute a rise in subscribers (or people renewing their Sky contracts) purely to Mad Men and I suspect you'll struggle to do that.
3 – In general people aren't failing to understand the economics of Mad Men. They're failing to understand why Sky brought a niche series that very few people actually watch in the first place. They also failing to understand why the media continues to harp on about Mad Men and why the Guardian just published a piece of unadulterated spin from Sky that (very poorly) tried to defend Mad Men's terrible ratings.
4 – Regardless of the economics of Mad Men its ratings are terrible. There really is no escape from that and given that this is the ratings thread understandably people have zeroed in on said terrible ratings. The argument you're making is in fact remarkably similar to those ITV/Titanic fans who keep parading out the idea that actually the fact that people didn't watch Titanic is absolutely fine because ITV Studios sold it to 100 markets and thus made money from it. Your argument is that it doesn't matter that nobody is watching Mad Men (which has been promoted as the flagship purchase of Sky Atlantic since before the channel even launched) because Sky is still making money.
5 – I think somebody might want to tell Sky that Mad Men's ratings don't actually matter. Maybe then they wouldn't have partnered up with the Guardian on ridiculous articles spinning Mad Men's ratings.”
You raised a point about subscriber growth since 2008 being a relevant factor to the change in viewing figures. I demonstrate that it is in fact trivial. So what do you do? Forget that point and move on to make some other points!
And, of course, you don't answer my question. Again!
Everyone knows (as I said above in post 965) that nobody can ever attribute specific joiners / leavers to any one programme. Two reasons:
1) There is no way of knowing
2) People don't subscribe for one programme - the subscription decision is based on whether people want the overall package
But what we can do is look at the cost and see how many subscribers, theoretically, would be needed to justify the cost. Something nobody on here has done. I wonder why?
The figure I have for the cost of Mad Men is £2.5m per year. (NB. If that's wrong, please correct me).
At an ARPU of £544, that equates to the revenue from 4,600 average subscribers.
Not let's put that figure into context. CONTEXT!!! During calendar year 2011:
- 1,120,000 new subscribers joined Sky
- 960,000 subscribers left Sky
(Net growth = 157,000 subscribers)
Now, given all we know about Mad Men is it unreasonable to think that it's likely to have covered its costs? Even if it has only had an absolutely miniscule effect on joiners and leavers it would have done so. Especially bearing in mind all the publicity generated.
Certainly I can't see that anyone has any basis for saying with any confidence that it hasn't covered its costs.