Can't Stop, Won't Stop?

"This is our Country!"

Words.

"Can a television show with a shrinking audience actually increase its revenue?

In the case of “American Idol,” the answer is yes, and the manner that the show’s creators are going about it could change the way that producers and broadcast networks think about the longevity of reality television programs.

Despite losing viewers in each of the last three years, “American Idol,” still the top-rated series on television, is generating ever-growing profits for its creators and, it appears, for Fox Broadcasting through brand extensions, marketing arrangements and licensing fees.

...Advertising revenue, which primarily benefits Fox Broadcasting, has grown in each of the last three years, according to TNS Media Intelligence, to $903 million last year. That is nearly double the level of three years earlier. Those figures do not include Fox’s ancillary sponsorship deals and other income, like royalties it receives from the sale of music performances by “Idol” contestants.

Even though “American Idol’s” ratings have declined, Fox has put more hours of the show on the air and has been able to charge a higher rate as its ratings lead over other shows has grown.

The revenue and profits of 19 Entertainment have grown even more quickly, according to the financial statements of CKX. Its revenues from “American Idol” alone grew to $96 million last year from $67 million two years earlier, with gross profit margins expanding to 77 percent from 69 percent in that span.

Including revenue from “Idol” programming in other countries, from music sales related to all the “Idol” shows and from “So You Think You Can Dance,” also on Fox, 19 Entertainment produced revenue of $223 million last year, up from $151 million two years earlier.

...Even though the overall audience is declining, “American Idol” appears to be in little danger of losing its crown as the top-rated television series...Mr. Sillerman cited that jump as evidence that “American Idol” could run indefinitely.

“If you only had a 10-year-old, you would probably say the impact of ‘Sesame Street’ has diminished, because it’s not on in your house anymore,” Mr. Sillerman said. “But they’re making new 5-year-olds every year.”"

THE NEW YORK TIMES: Despite Lower Ratings, Cash Flow Rises for ‘Idol’