Profitable DVD sales saving some TV shows from the axe

We all have know of a television show that we really liked, only to see it cancelled due to poor ratings. Maybe it was on at a bad time, or possibly it was up against competition like "Who wants to be a Millionaire". Star Trek is a good example of fans developing campaigns and petitioning networks to keep the show going. But now, there is a new barometer, the very hot and profitable DVD season series.

In the past, such efforts typically failed if the show's ratings didn't generate enough ad revenue to cover costs. But the cancellation calculus is starting to change. Fox's "Family Guy," axed in 2002, is getting another chance on the air because sales of DVD collections of the show have been so hot. Indeed, fundamental shifts in how TV companies make money are starting to complicate cancellation decisions _ and small but dedicated groups of viewers are gaining newfound clout.

Of course, audience size still matters a lot in prime-time network television. But now other factors are influencing the cancellation decision. DVDs have become such a gold mine _ profit margins reach 50 percent _ that broadcasters are increasingly open to the idea of keeping a ratings-challenged show on the air, especially one with a fanatical core of fans, in order to generate more episodes to sell later on DVD. Other nascent income streams _ on-demand services, and downloadable episodes sold on the Internet like songs _ also are giving consumers more direct power in programming decisions.

According to the article,the DVD sales "show how far you are willing to open your wallet" and if it opens wide enough, the show may get a new lease on life.

In the case of "Family Guy" this is exactly what has happened. Fans of the show have purchased nearly three million "Family Guy" box sets, which retail for $49.99. With a 50 percent margin, we can see that this show has a future!

Source: Post Gazette

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