Samm
Snyder
Mr.
Reuter
Economics
29 April
2014
Keeping up with the Kardashians,
Chrisley knows best, 16 and pregnant, Jersey Shore, all of these shows have
something in common—that they are reality tv shows. There is so much
controversy over reality TV, that it is inappropriate or should I say ‘stupid’,
but the truth of the matter is, whether society likes these shows or not, they
help out our economy greatly. The shows that are all about watching someone
live their life with their white Range Rover and millions of dollars mansion,
are what help us out. The show about irresponsible teenagers being teen moms or
16 and pregnant, help out the economy too. As much as people can complain about
how the richer are getting richer with their reality TV shows, we can’t say
much seeing it is helping us even a tiny bit in our fluctuating economy.
Reality TV makes an unbelievable
amount of money which can range anywhere from “between
$200k and $2m per one-hour episode, depending on the format” (Quora). To any
normal person this seems crazy, but to anyone in Hollywood and Beverly Hills it
seems absolutely normal. An article from technorati.com said that “Television
programming executives have many choices of what shows to “buy” and run-and in
the end their decisions must be based upon the ability of the shows to draw
lots of viewers form the right demographic so that pricey advertising can be
sold during the snow. In addition the cost of buying or producing the show must
be taken into account”. This shows us, that they really do take into
consideration whether the show will make money or not and “the different
between the expected revenue generated by the show and the show costs to
produce determines its viability-whether it ever airs or not” (Good). From what
Good stated in his article, it is clear to see that producers, screenwriters
and everyone that partakes in a show have to think about the outcomes. They
have to think about if the cost of producing this show will be less than the
benefit—in other words, the marginal benefit has to be higher than the
marginal cost in order to allow them to air the shows.
When we think
of reality TV shows, we think of the MTV and E! shows likes Jersey Shore and
Real World, but not only are they about having money and getting in cat fights,
but it there are plenty of other shows that are considered “Reality TV’, like
The Biggest Loser and Shark Tank for example. When shows like this come out,
they don’t just benefit our society because of the money that the shows are
making but they have positive externalities to them. Biggest loser—this
causes people to feel motivated and get a gym membership and buy fresh fruit;
Shark Tank—shows us entrepreneurs trying to make success in our economics.
Sure, there are negative externalities to how much some of these shows
make, like the fact that they may have some percentage of helping the inflation
rise if we are paying people and the shows that much but that far outweighs
how it helps the economy. Overall, no matter how much people can say that
‘reality shows are stupid’, they really help our economy even though in some
areas, they may not be helping our society or young viewers.
I never would have thought that reality tv had anything to do with economics! It is really interesting to think about the fact that all of these shows are actually helping us out in the long run. Although I am sure that it helps a little bit out unless you are in the show or a company getting advertised I doubt that this will have much effect on helping us the normal average american out. I think that it is just helping the richer get even more rich with how much each person on the show is getting paid. So even though it may be helping a little I don't believe that there are enough positive externalities for us (the little people who don't have millions of dollars) that this many reality tv shows should be on the air.
ReplyDeletets interesting to see the amount of money brought in by these shiws , however; how much of the money is actually getting out into the economy and not just into some rich persons bank account? Is it really that much of a help to our economy? Sure people like to watch them but that doesn't mean that they are good for the economy. They might help if the money actually trickled down to the lower and middle class, but that doesn't happen too often. Another reason these shows might be making so much Is due to the low production cost. They don't need a set or writers. All they need is a camera and some subjects.
ReplyDeleteSamm, I never really took into consideration of how much those stupid shows actually make. It's surprising to be informed that they make at least $200k just for one bought episode. Just for acting? This is also impressive because you have proved that these pointless shows are actually helping our economy. Who would have thought? I guess we like the drama.
ReplyDeleteI'm not a huge fan of some of the reality TV shows because they seem to be all about money, but you are definitely right by saying that there are reality shows that have their benefits. Although viewers aren't actually participating, just watching The Biggest Loser brings a lot of motivation to the audience to make a healthier lifestyle. I knew these shows brought in a lot of money, but two million per one hour episode is crazy. I feel like that money could be going to something much better. You would think all this money they are bringing in would be a positive thing, but as you said it could lead to the country's inflation.
ReplyDeleteI agree with you that reality tv shows are what keep the economy going, I would have never guessed that the two things would be interrelated. All those that star in reality tv shows do nothing to get their money besides live their lives with cameras watching them almost 24/7 which isn't the ideal way to live. If you work with any reality tv star, it's almost guaranteed that they are helping you out one way or the other in the economy. The tv shows aren't doing anything to help out the middle class and there aren't enough positive externalities that come out of this.
ReplyDeleteNot only do the advertisements during the commercials bring in revenue for the show, but also when somebody famous is wearing a certain type of clothing or going to a certain restaurant, those businesses are also going to bring in more money because of the publicity they get from people either wearing their clothes, or going to their businesses. With every T.V. show and movie, there are also DVD’s that they produce to make even more money off of the shows along with sometimes fan gear and other things for people to spend their money on.
ReplyDeleteIt is interesting to see how much revenue “reality” TV actually brings in. However, it also is interesting to see how much of the “realty” on the shows really isn’t the real reality. Although, some of these shows bring in a lot of additional revenue and some may encourage healthy lifestyles, others have more negative effects. For some shows, people believe that if they do some of the controversial things as on the reality TV shows, they will too become famous. Therefore, instead of promoting what the consequences are of some actions, people chose to do these things just to become famous. This trade off is one our society needs to deeply consider—is the additional revenue worth the increase in people willing to do controversial things just to become famous. In other words, does the marginal benefit outweigh the cost? However, on the other end, reality TV is trending in our society, therefore there is more demand than before, and more revenue in this area, therefore it is helping our economy.
ReplyDeleteThis comment has been removed by the author.
ReplyDeleteGreat topic Samm! I agree that reality TV shows help to encourage spending and production and overall a rise in the economy but I also think that the amount of money that the actors/people make for this is unreasonable. They are that 2% that is receiving money they don't know half what to do with it. I agree with Kayla when she states that the middle class and lower class do not receive enough positive externalities from these shows. Also, I believe that the whole "reality" part of the show is mostly scripted to keep viewers watching which defeats the whole purpose of reality TV and its financial outcomes.
ReplyDeleteThis was a great article! I don't watch a lot of TV but I completely agree that celebrities have a positive affect on Economy. If Kim Kardashian does an add for Mcdonald's new salads there's a great chance the company will sell more of that product. It was also interesting to hear that all the money reality tv shows are making could possibly lead to the country's inflation.
ReplyDeleteI completely agree with you that reality tv shows are a part of what keeps the economy going. Although I don't watch much reality tv anymore ever since Jersey Shore stopped, I for one don't like watching reality tv anymore because the people on these shows just get to live their lives in expensive mansions and drive their million dollar cars and get payed millions for doing just that. But we don't actually know how much money from these shows are being put into the economy. A lot must obviously go into producing the show, then money must be given to the cast and sponsors. So we don't actually know how much is actually helping the economy. But I do agree that these shows are indeed helping the economy, how much is it helping is the question.
ReplyDeleteI agree with Joel-- seeing as most reality shows are about (generally horrible) rich people in the first place, giving them such huge amounts of money so that they can contribute little to society seems kind of counterproductive. I feel like most of this money just ends up going into a bank account somewhere in Sweden. Meanwhile, old-school screenwriters (who are often not paid nearly as much as we'd expect) are losing their jobs because of the decrease in network demand for serials; since it's cheaper to produce a reality show than a sitcom, for example (since reality shows really only require a few obnoxious people, a camera, and a good editor), reality shows are quickly replacing series with plots. I don't have a problem with people watching and enjoying reality shows (even if I do personally hate them), but I do have a problem with seeing my favourite shows getting cancelled because they supposedly don't bring in as much profit as a reality show would.
ReplyDeleteThis was a really unique idea and definitely a perspective that I had never even thought of. I see your points about how these shows generate money which is good for the economy, but what I wonder is if having all this money in the hands of so few people is actually helping or not? Your point about the advertisements was interesting, considering that with the right show certain products will be sold which does help the economy. I am not sure if reality television can truly be thought of as an economic benefit but your argument for its validity were quite interesting. It was a really great article and perspective to read.
ReplyDeleteWow, I never thought of it like that! I always thought reality TV was just a guilty pleasure of mine after finishing up homework on a school night. When I was reading the numbers that came in from each episode I was astonished by how much each episode made. I guess if you really think about it with memorabilia and seasons on DVD to seeing the perfect outfit on the people they are really bring in a lot of money in a bunch of different areas.
ReplyDeleteI was completely unaware of how much money was made off of these shows! The one thing that is very debatable is if these shows are actually helping our economy or not. While yes, the shows are generating large amount of money, the majority of this money is put right back into those 'stupid' reality TV star's pockets. On the other hand, they are generating money which is obviously something to think about. Either way, this was a very interesting topic to think about
ReplyDeleteI had no idea that reality television brought in so much revenue! Normally when we watch a reality show, we always judge them based on how they act, but we still watch them anyways and like Maya said, They bring in a lot of extra money from DVD series and clothing or make up lines based on the "characters" of those on reality TV. I really liked this topic and how it puts a different perspective on the lives that these people lead.
ReplyDeleteI would definitely argue strongly that reality TV shows help the economy! As mentioned, advertisements during the show (if it is popular) generate unlimited numbers of sales through TV or just psychological marketing which will in turn, sell products on the shelves. People are also able to buy seasons of these shows on DVD, pay their cable bill and even buy fan apparel thanks to a show and any number of these purchases will go back into the economy to better our economic growth. I do wonder how much of the money that goes directly to the company which produces the show/people on the show and how much of that money goes back out into the economy directly.
ReplyDeleteI felt the need to comment on this, because I'm guilty of watching many different reality television shows. And yes, I do have to agree that the majority of them are stupid, mind-numbing and staged, but they're also very entertaining, thus they generate a great deal of revenue. I don't think many of us consider how much money these reality tv stars are making, but it is an absurd amount. For example, the jersey shore beach house can be rented overnight for thousands of dollars. Although that's a crazy amount of money and I'm not sure who is crazy enough to spend money on that, there can be no doubt that it's helping the economy. Cool topic, thanks for sharing.
ReplyDeleteIt is really cool to see that even mindless TV can bring in revenue and help boost our economy. Even though people argue that these shows lack educational value, people want to be entertained. I think it's great that these shows are aired because they are helping our economy, and no one is forced to watch them. I never really considered the positive externalities that these shows could bring, but after reading this the profit totally makes sense. I love reading about how seemingly economic-irrelevant things actually do help our economy. If these shows become super popular, (jersey shore, kardashians, etc.), there are so many by products that can come from it to not only market the show/characters, but to contribute to our economy as well.
ReplyDeleteI felt the need to comment on this article simply because Reality TV shows are just absolutely dreadful. You are living your own life by just watching someone else's life, and there just making money from it and with that much money they're making is just absolutely dreadful. Reality TV shows just disgust me and it's bothering to see how some people get so much enjoyment out of watching these shows. I wish you would've showed more numbers in your article to back up my point instead of just an average of what they all make, because reality shows just disgust me.
ReplyDeleteI never watch reality TV, simply because I don't find it that interesting but i do know the basics of the programming. This article really surprised me because I didn't understand the impact of our attention to these mindless TV shows because of our interest in them and our time being invested in to their affairs, Reality stars are making so much more money then any of us will most likely ever see in our lives. But it keeps money flowing (even if we don't like who its going too) and is just another part of the economy.
ReplyDeleteI never thought about how even the stuff produced can motivate people to spend money and help the economy in other areas. For example, watching Biggest Loser may help the local farmers if people start buying fresh produce at a market to lose weight. This is just one example but I didn't think much of how much of a benefit these shows can be because I have always seen them as purely for entertainment purposes. Not all reality TV shows have this effect but the economy is definitely has an advantage by being aired.
ReplyDeleteReality TV is such a powerful thing. It is hard not to get sucked into it even though most claim to hate is. Shows like Keeping up with the Kardashians are completely pointless but addicting. Because they are so addicting, people are willing to do anything to watch the latest episode in order to keep up with the show. I never really think about the affects of watching certain shows, I just watch them. Without some shows, our economy would be in a totally different place.
ReplyDeleteWhether we like it or not reality tv shows are extremely addicting. I think it's somewhat ironic that we love to watch how others live, and by doing so we end up helping how they live. I think it's crazy that reality tv and other things like the Grammy's can really help out our economy tremendously. It's funny that we are so interested in these show's that don't affect us in the slightest, but because we're so interested in them we end up helping the economy in the long run. I wonder what the next huge reality tv show will be that sweeps through the nation and ends up helping the economy.
ReplyDeleteI knew that all of these reality t.v shows gave the specific people from the show lots of money but I didn't even think about what it would do for the economy. From just one episode it can bring in lots of cash, ranging from 200K to 2 million. As much as people think these kinds of shows are "stupid", some people really like them and that's how they do so good for the economy. Keeping up with the Kardashians have many different seasons and because people are so interested about their life, I don't think they are going to quit the series any time soon. The three Kardashian sisters have clothing lines, make-up lines, perfume lines, and so many more different things that they have created. Making this very good for the economy. Because these shows are so entertaining, they bring in a great deal of revenue. By putting a series on DVD or just seeing what these people on t.v are wearing, brings in a good amount of money for the economy. These shows are so addicting and they can easily set examples for people. Like, maybe if someone really likes a certain reality t.v star, they might go out and buy something that they have or something from their clothing line. People may think that these things are stupid, they do very well for the economy.
ReplyDeleteWow! It is insane how much those kinds of TV shows can make! I completely agree with you. These shows are very controversial, but if they are bringing in money to our economy, I say who cares! If people don’t like the show then they don’t have to watch it. If the people that do watch it are contributing to the economy, that’s great. I also like how you said there are positive externalities that come from these shows. It is true. Some of these reality TV shows encourage others to buy things from the market, which also helps to stimulate the economy. Great job!
ReplyDeleteI think this is a really good discussion, as this is a topic that is part of our everyday lives. I never really thought about how much these actors can put back into our economy, which we all know they do. I think this is one of the best ways that we can all put back into our economy, because just from watching it, we are able to enjoy what we are doing, but at the same time we are somewhat helping improve the economy. Although most actors spend their money on "stupid" things, they are still helping regardless.
ReplyDeleteMany of this "Reality" television shows are fake, well okay most of the stuff that you see is a scripted and they just do it so that you want to watch it to find out what happens next. I was one of those people that watched reality tv shows but that was a while ago. I think that most of them are dumb and don't even need to be on television because of how pathetic they are; for some reason though they do bring in a lot of money and this is why they are all on the air still.
ReplyDeleteEven though we all know that reality TV shows cost a lot of money and are giving these people who are already fairly wealthy more money. Everyone continues to watch these shows because we are interested in other peoples lives. It gives us something entertaining to watch. Without these TV shows, people might not watch as much TV. This could stop people from purchasing more or new televisions. Which would greatly affect the economy right there. Keeping up with the Kardashians is such a popular show because everyone is interested in their life and how they live, all of their problems, everything with them is a scene and dramatic. I myself am one of those people, that when i get a chance to sit down and watch TV I put on Keeping up with the Kardashinas. These TV shows have a lot of positive externalizes, not only could it keep people buying televisions, but these shows could influence people to buy certain clothes that they see or go to certain restaurants.
ReplyDeleteI never really saw any good in there reality TV shows. I guess if these shows are helping our economy then they are good. I don’t understand why we can’t find other ways to help our economy other than showing peoples messed up lives on TV. I think that these shows do help our economy but the bad part is that they have a band influence on people. If teens are going to be watching 16 and pregnant then they will most likely follow the ways of the people that they are watching on TV. I guess if these shows help the economy they are fine but how much are they really helping the economy? Are they helping it enough to keep these shows running every week or could we find something else more positive to help the economy? I guess there is a good side and a bad side to anything in this case it just depends what people do with it.
ReplyDeleteI am a huge reality TV fan, so this article was very interesting to me. I agree with Jordan, these reality shows are extremely addicting and after starting to watch a new reality show, we don't want to miss a week's episode. I really liked this article, I had no idea that each episode was that much money! I do think there are too many reality shows though, there's a reality show for just about every topic! Great article Samm!
ReplyDeleteI've never really gotten into watching reality TV shows and I've always been one to think that they're stupid. I also have never thought about how they have an impact on the economy. I always thought that it was crazy that regular people got paid so much to basically do nothing, but it's crazy to think that all of this has a positive affect on the economy. As much as people complain about how they're stupid, they need to keep in mind that it's actually helping the economy.
ReplyDeleteReality TV has never been one of my favorite things, or even something that I'd like to watch. People that are getting paid for just being normal people and not really doing anything with their lives don't really interest me. After reading your post about how much it actually affects the economy it's crazy. I've never really thought about how much TV would help or hurt the economy. I really enjoyed reading your blog post and learning about how much these TV shows actually help the economy!
ReplyDeleteI honestly watch a lot of reality TV, but I have never considered the fact that it could potentially help our economy. But come to think of it, reality TV shows do make a ton of money. And though it seems to only help the characters in the show, these shows actually can help the economy. With all of the new shows, there is the endless possibility of new jobs at all of the companies creating the shows.
ReplyDelete