The Netflix Effect? TV Networks Introduce Most New Shows Since 2004
The four biggest U.S. television networks are introducing the most shows in seven years as subscription services like Netflix Inc. (NFLX) make spending on new programs less risky.
This week, CBS, Fox, ABC and NBC presented advertisers with 39 new programs for the TV season that starts in September, the most since 2004-05, according to data compiled by Bloomberg.
Web-based services are providing a new market for older shows, vying with local stations and cable outlets, Jack Myers, chairman of Media Advisory Group in New York, said in an interview. Foreign demand for U.S. programs is rising and networks are now collecting fees from pay-TV systems, he said. With new revenue sources, shows such as CBS Corp. (CBS)’s “Hawaii Five-O” can break even or make money in their first season.
“Ratings are less and less of an important barometer for whether a show will stay on the air,” Myers said.