TV Hits: thinking outside the box

Reporter: James Thomas
Broadcast Date: July 03, 2009

A hit Australian show will bring in roughly 1 million dollars of advertising revenue per episode for a TV network, and then there are the people who invent the ideas.

Coming up with a winning show could mean being set for life.

Every night, most Australians sit down to watch television. Every day, media professionals rack their brains in search of the next concept or idea which will be of interest to the public, to keep them watching.

Finding that winning idea is not easy, but when a network does get a hit, its big business.

Renowned media buyer Steve Allen says scoring a TV hit can change a network's profile.

This is the reason that Network bosses are eager to commission shows such as MasterChef. Channel Ten executives have endured their share of nightmares. MasterChef is their dream come true.

"It is a runaway hit," Steve said.

"Its audience has been going up and up and up."

Allen is watching carefully. It is his job as a media buyer to purchase millions of dollars worth of advertising space on winning television shows.

Once a hit show is produced, its worth can be commanded more easily.

A hit Australian show may bring anything up to $2 million of advertising revenue per episode for a TV network. For the people who invent the ideas, coming up with a winning show could mean being set for life.

Oprah is widely acknowledged as the most highly paid person in America; worth over $1 billion. She receives hundreds of thousands of dollars a week working for her company.

By any standard, this is huge. But media writer for Crikey Glenn Dyer says there is a new kid on the block.

"I saw a story last week in a London paper," Dyer said.

"The story made the proposition that Simon Cowell could end up being paid more than Oprah."

Last year, Cowell earnt $74 million Australian for judging American Idol. He is reported to have earnt $230 million for his role in creating or starring on Idol, Britain's Got Talent and The X-Factor.

Like Cowell, Nigel Lythgoe is not only a judge. He created the So You Think You Can Dance franchise. He has made millions from his efforts.

"They've done well, but I don't think they've done as well as John De Mol," Dyer said.

John De Mol is the creator of Deal or No Deal and Big Brother, for which he is said to have earned $16 million dollars.

Big Brother was produced by John De Mol's company Endemol. He made a fortune when he sold the show.

"He and his partner sold Endemol to Telephonica I think, for about $US5.2 billion," dyer said.

"There's a couple of producers in AustraliaâА¦Working Dog for example, who do Thank God You're Here," Dyer continues.

"They're a bunch of Melbourne comedians basically who were intelligent enough to see that you can make more money coming up with content than you could actually performing."

If you think you have the winning idea, the first step, according to Dyer, is to "work hard. Go and talk to people at 10, 7, 9."

As history is littered with idea-stealing, Dyer advises to "register a company name, file a provisional patent or trademark if you think itâАЩs quirky. Make sure you get something in writing from them acknowledging your visit, and be prepared to stand up for yourself if they do try and pinch it."

For one prepared to share the risk with the network by selling the rights cheaply to get it made, Dyer suggests to bargain, for a slice of the revenue. If it does succeed, a good profit can be made.