Sunday, September 3, 2017

Killjoys renewed, Dark Matter canceled - It's just business

Fans are scratching their heads because the Syfy Channel has announced the cancellation of Dark Matter, but the renewal of Killjoys.

This is a perfect example of the disconnect between how the fans see entertainment TV, and how the networks are actually run.

The simple truth is that every TV network, cable channel, and streaming service exists to make money.  Decisions about programming are always driven by considerations of profit.  Serving the audience with good programming is HOW they make money, but the business GOAL is making money, not serving the audience. It's just business.

I have been looking through the ratings information at tvseriesfinale.com and trying to understand the Syfy decision to renew one series but cancel the other.  Both were promoted in 2015 as the cable channel returning to its roots of space-based science fiction.  Both were outside acquisitions, not projects developed internally by Syfy.

Dark Matter averaged 614,000 viewers this season compared to 676,000 viewers last season. Killjoys averaged 627,000 viewers this season, down slightly from 644,000 last season. Industry-wide, declines of 25% are not unusual, as more and more people "cut the cord."

Those totals seem pretty close together, and it may seem bewildering that Syfy has renewed shows with considerably fewer total viewers, like The Expanse (562,000), Channel Zero (543,000), and Wynonna Erp (499,000).

But when we look at ratings from the 18-49 demographic, it makes a lot more sense. Advertisers love the 18-49 demographic because they are most likely to spend money. It's just business.

Killjoys captured an average of 17% of all television households in its timeslot this past season, which is down 5.56% from the previous season. Dark Matter got 15% of television households, down 12.67%, compared to the previous season.

Dark Matter WAS getting high viewership in online and time shifted viewing via DVRs and trackable (non-pirated) streaming views, sometimes doubling its audience or more, compared to the "live" cable feeds.  But such additional viewers may not be as valuable to the Syfy revenue stream.  

Syfy has renewed every current show getting 17% or higher of television households, and canceled every show with 16% or lower.  There is obviously some sort of threshold above which they consider a series to have profit potential, and below which there is not enough return on investment.  It's just business.

Television IS a business (broadcast, cable, and streaming). They spend money to develop and air series, or to purchase outside productions, and they need a return on investment from those expenditures. They make money by selling advertising. Advertisers spend their money on shows that will give them the best audience for their specific products, at appropriate cost. It's just business.

If the ratings of a show are too low, meaning not enough people watch, Syfy can't sell enough advertising in the program, because it's not a good enough deal for the advertisers. Or they have to charge less, meaning Syfy makes less money.  When Syfy makes less money, the investors also don't make as much money, and they consider firing the executives who didn't make enough money.  It's just business.

Syfy is owned by NBCUniversal, which also owns NBC, The Weather Channel, E!, Oxygen, Bravo, and the USA Network, among others.  Each one provides advertisers with a different demographic, not just in terms of age, but also in terms of interests that advertisers can match with their products.

Note that the network and advertiser analysis of ratings includes online viewing within a week of the cable broadcast (via legal DVR and streaming services).  But if your plan is to wait a few months and then binge-watch a series, your viewing is NOT part of the calculation about whether to renew or not.

Consumers generally to not understand these business considerations.  Cost versus revenue, and return on investment, however, are the primary considerations for which series are picked up and renewed, and which are not.  It's just business.

If you are interested in more about the Dark Matter decision, read this blog post from executive producer Joseph Mallozzi.


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