The entertainment industry is a billion dollar industry. A ton of money flows into our favorite movies and TV shows. There are a couple ways that TV shows make money. In this article we will discuss the main ways how TV shows make their money.

Syndication

Syndication is leasing the right to broadcast television shows. Many TV producers main goal is to land the right spot for the TV show, because that’s where they can cash in. Broadcast syndication usually occurs based on the analytics of the TV show. Depending on the contract, syndication is believed to bring in the most money. This can be up to 7 digit numbers per episode.

Commercials

Companies pay for ad spots during commercial breaks. The better the time slot (or show), the more the advertisement will be; resulting in more money for the TV show. We all see commercials every day while watching TV, those advertisements have a far reach. To put things into perspective, look at quality of advertisements during Monday Night Football compared to Maury.

Merchandise/DVD

Series can make money from selling their full seasons on DVDs. Many collectors and super-fans like to collect box set DVD collections. If you’ve been to Walmart you’ve seen that for every popular TV show, they will sell the full season(s) DVD. Merchandise for the TV show(s) also brings in money for the shows. The cash continues to flow when companies license out your show. You receive royalties off of every sale, and are able to control the terms you agree on.

Crowdfunding

Some TV shows get money from Crowdfunding. This means that they start a fundraising campaign. The most popular crowdfund that I know about is Kickstarter. On that platform, indie filmmakers can raise money by assigning roles, giving special BTS tours, and giving random gifts to supporters for funding. As of now, the website says that people have funded $6,256,813,484 towards creative work.