RBC Capital Markets analyst David Banks raises that intriguing question in a report today based on some back-of-the-envelope calculations. He says Fox has been hamstrung by a 17-year-old deal that limits syndication to local TV stations. “At the time, cable was a relatively insignificant contributor to major off-network syndication revenues; but over the ensuing years, cable grew to be as big an opportunity as (if not bigger than) local broadcast,” Banks says. But if the show is cancelled, then the restriction evaporates and Fox can offer re-runs to additional markets — especially cable or an online service such as Netflix. Banks figures Fox can score $1.5M for each of 506 episodes. That delivers $750M and with a cash flow (EBIT) margin of 60%, and a tax rate of 35% it adds 10 cents in earnings for each News Corp share. The company still wants to keep The Simpsons going but is playing hardball saying yesterday that it “cannot produce future seasons under its current financial model.” The cast has offered to take a 30% pay cut, but Fox wants 45%. Meanwhile, COO Chase Carey has said that the company is thinking about the possibility of launching a Simpsons cable channel. “We haven’t drawn up any plans for a Simpsons Channel. But there are a lot of Simpsons fans out there. … It’s a real opportunity for us to do something truly unique,” Carey told analysts last month.

http://www.deadline.com/2011/10/would-the-simpsons-be-worth-more-dead-or-alive/

http://www-deadline-com.vimg.net/wp-content/uploads/2011/10/The-Simpsons111005021457.jpg

No wonder Fox is doing their best to kill this show by asking the voice actors to take an unreasonable pay cut. It's in Fox's best interest for this show to go off the air! :rolleyes:

I'll be honest, the show isnt the same but I dont think it should be cancelled. If anything, a show like The Simpsons should make its own rules. You may think thats too much but it is The Simpsons. The show has been on for 23 yrs. They deserve to leave on there own terms. Look at what happened to Married With Children. They moved the show to Saturdays, ratings dropped, moved it to Mondays I think and they were abruptly cancelled and didnt even tell the cast. I remember watching the closing seconds of the series finale and all FOX said was something to the effect of "Thanks so much for the memories". That was it.

Sorry for the rant but back to The Simpsons. I dont think The Simpsons should be cancelled unless The Simpsons want to leave the air. I mean this might sound hokey or corny but what would I do without The Simpsons? Im 29 yr. old and I have watched The Simpsons my whole life.

No wonder Fox is doing their best to kill this show by asking the voice actors to take an unreasonable pay cut. It's in Fox's best interest for this show to go off the air! :rolleyes:


Yeah, for $750 million dollars I guess loyalty goes out the window!