Brian Damage
10-17-2010, 04:33 PM
Executives: Executives of 20th Century Fox’s TV division (pre-Murdoch)
Background: No one at Fox expected much from M*A*S*H when it debuted on TV in 1972. Execs simply wanted to make a cheap series by using the M*A*S*H movie set again – so it was a surprise when it became Fox’s only hit show. Three years later, the company was hard up for cash. When the M*A*S*H ratings started to slip after two of its stars left, Fox execs panicked.
Decision: They decided to raise cash by selling the syndication rights to the first seven seasons of M*A*S*H on a futures basis: local TV stations could pay in 1975 for shows they couldn’t broadcast until October 1979 – four years away. Fox made no guarantees that the should would still be popular; $13,000 per episodes was non-refundable. But enough local stations took the deal so that Fox made $25 million. They celebrated …
Impact: … but prematurely. When M*A*S*H finally aired in syndication in 1979, it was still popular (in fact, it ranked #3 that year). It became one of the most successful syndicated shows ever, second only to "I Love Lucy." Each of the original 168 episodes grossed over $1 million for local TV stations; Fox got nothing.
http://www.neatorama.com/2008/04/15/the-stupidest-business-decisions-in-history/
Background: No one at Fox expected much from M*A*S*H when it debuted on TV in 1972. Execs simply wanted to make a cheap series by using the M*A*S*H movie set again – so it was a surprise when it became Fox’s only hit show. Three years later, the company was hard up for cash. When the M*A*S*H ratings started to slip after two of its stars left, Fox execs panicked.
Decision: They decided to raise cash by selling the syndication rights to the first seven seasons of M*A*S*H on a futures basis: local TV stations could pay in 1975 for shows they couldn’t broadcast until October 1979 – four years away. Fox made no guarantees that the should would still be popular; $13,000 per episodes was non-refundable. But enough local stations took the deal so that Fox made $25 million. They celebrated …
Impact: … but prematurely. When M*A*S*H finally aired in syndication in 1979, it was still popular (in fact, it ranked #3 that year). It became one of the most successful syndicated shows ever, second only to "I Love Lucy." Each of the original 168 episodes grossed over $1 million for local TV stations; Fox got nothing.
http://www.neatorama.com/2008/04/15/the-stupidest-business-decisions-in-history/