- Joined
- Jul 30, 2017
- Highlight
- #11,101
Ok, i want to stress that I am going to use COMPLETELY MADE UP NUMBERS because the exact dollars and cents are less important than the idea for you all to get.I absolutely want you to, yes.
Let me just also say that Hollywood business practices are royally fucked. Really they can only get away with the economies they have because of how much more valuable social capital is than real money. (Basically people will do almost anything to "have their name in lights.")
So one thing to know is that because of old union contracts, basically people get raises the longer projects go on. Let's say I'm Sexy Robot Star of the hit new TV series and in my contract I get $100 an episode for season 1. Well when season 2 rolls around, I'll then get $150 an episode. If we make it to season 3, I'll now get paid $200 an episode and so on.
Where does this really really work? Syndication! So take a show like Friends or Seinfeld or Cheers or The Office or even the Big Bang Theory. Basically these shows are all just collections of stand-alone episodes. Which means they can experience continual viewer growth. Interested in that show all your buddies are watching? Well just flip on the TV and catch an episode! You'll know everything you need from the title song and can enjoy what you're watching. Other stations can also run reruns forever and ever since, again, it doesn't matter which episode you're watching, they all work alone. Did you go on vacation for a week and miss an episode? Doesn't matter, now that you're back home, flip over and resume watching.
But TV is not like that now, is it? Now we're on the Netflix model, where it's not a single episode, it's one part of a 6-10 piece epic (what in the 70s-90s was called "miniseries" on TV). Those series have a problem. Let's say premiere of New Hot Nextflix Show (NHNS) has 1,000,000 viewers. Well not every viewer is going to like what they see. Many came because of the trailer and ads, but not everyone will like it. So you're going to have a drop off. So episode 2 might have something like... 800,000 viewers. Well every episode after that is going to have some steady bleed off. Some people will just give up later on the story than folks who started. Some, while they can devote 1 hr a week to the show, if they miss an episode, now they have to devote 2 hours in the week. If they keep putting it off, it then grows to 3 hours, then 4... eventually they'll not find it worth the catch-up cost and just stop watching. And where are new viewers going to come from? It's not like they can start at episode 8 and begin watching. They've got to start at episode 1 and spend several hours catching up.
This is basically why Netflix has a rule of 2 seasons and done for a show. Because their model means that viewership steadily declines with minimum new viewers coming in, while the price of everybody involved with the show goes up each season.
Why all this extensive background which not even my boi Warren Smith goes over? Because I want you to understand what I mean when I say this pricing model the writers just negotiated into writing teams.

So let's say we decide we're going to make "moviebob, the series." Well how many episodes does it need to be? Let's say we figure we'll start with 6 episodes. (or maybe just 4) Well we need 3 writers (who are also producers - just think of these as "better paid writers). So me, @Ralph Barnhardt and @Positron start working on the series for example.
Oh wait, we find out we're going to need a bit more time to really examine the story of moviebob. Now we need to do it in 12 episodes. Well we can't just keep it to the 3 of us, we have to bring in more writers. So now @Mola Ram and @JayHarrison have to be brought in to help with those. We decide to go over and make 13 or more episodes? Now we're up to 6 writers.
Minimum wage for all of us on this? like over $14k a week (this is a real number from the video). TV shows typically take about 1 week an episode to make. So 6 episodes? That's about 6 weeks. With 3 writers that's a MINIMUM of $252k total for a series. 13 episodes? That's going to be 13 weeks at 6 writers. That's $1.092 MILLION dollars for a series. You want a 14th episode? That's $84k you have to pay. Again, this is just for WRITING the thing. We haven't even begun talking about actors, or other crew, or special effects.
Then every time you want to do another season? All these numbers go up.
Believe me I have a lot of sympathy for hollywood writers (I listen to Rob Long's podcast to be forthright), they were kind of at the shit end of the totem pole with only VFX below them, but these prices are insane and it's going to reach the point nobody can afford to make a show any more because the unions have literally priced them out of any profitability.
Warren also goes over the other basics of economics like having too many writers and the laws of supply of demand.