In recent years, reality shows have been one of the biggest money makers for broadcasting networks.Over 20% of primetime television is now made up of programs that are reality shows and game show competitions.Not all reality programs enjoy the same level of success as others.But this genre of programming is big business and major networks, like CBS and FOX, continue to succeed in “reality” alongside cable channels such as MTV, VH1 and Bravo.

 

So, how much money does a successful reality show generate?One of the biggest hit shows ever was “Survivor” on CBS.During one of their season finale’s, “Survivor” attracted more than 50,000,000 viewers.In one night, this was the largest viewership than any other series that year.For three months, “Survivor” brought in an estimated $30 million in profits for the network.CBS also reaped additional benefits from the show because of its affect on other tv shows whose viewership increased by being programmed next to “Survivor”.

The return on investment is phenomenal for networks, which is why they will continue to produce reality shows.When a program is successful, the licensing fee is raised each year.The licensing fee is the amount the network pays the production company to deliver the show. Another potential revenue source is via advertising.Advertisers are willing to pay sizable amounts of money to have their product incorporated into these television programs.This is called product placement.Product placement is a multi-million dollar industry that had been scarcely touched by telelvision (unlike the music industry who within the year or so began incorporating this marketing scheme into videos, commercials, etc).

So for those of you who despise reality tv, hate it!It doesn’t look like the cat fights, sex and gender exploitations, and the alliances aren’t going away any time soon. In fact VH1, one of the main cable stations that center their programming entirely around reality tv, will be bombarding your flat screens this summer with a host of shows.