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Sample Economic Model

Having explored the overall structure of the television industry and the basic parameters of the studio-network license relationship, we can now fully understand the type of basic financial model that studios use to evaluate the financial prospects of a series. Chart 3 is a sample financial model for a typical single-camera broadcast network comedy series, with projections for the economic prospects of the series in an immediate failure case (production of a “broken pilot” that is never ordered to series), a short-term failure case (cancellation after production of a single season consisting of the pilot plus twelve episodes), and two success cases (each assuming cancellation after production of six twenty-two-episode ...

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