The Profitability of Each Season of Game of Thrones

Estimating the profitability of each season of Game of Thrones involves complex financial considerations, such as production costs, advertising revenue, merchandise sales, and subscription increases for HBO. Let's break down the analysis step by step to understand the potential earnings for each season.

Production Costs

Over the later seasons, the production costs skyrocketed. For instance, the final season, Season 8, had an average budget of approximately $15 million per episode, totaling around $90 million for the season. This figure represents a significant investment compared to earlier seasons.

Revenue Streams

Advertising Revenue

While HBO primarily generates revenue through subscriptions, it also earns revenue from advertising during special events and promotions. This additional stream can contribute significantly to the overall revenue picture.

Merchandise Sales

The sale of DVDs, Blu-rays, and merchandise like clothing, collectibles, and props also generates substantial revenue for HBO. Fans eagerly purchase these items, contributing to the show's commercial success.

Subscription Increases

Each season of Game of Thrones often results in an increase in HBO subscriptions. For example, in 2017, HBO reported a notable increase in subscribers following the release of Season 7. This growth in subscriber numbers directly boosts the revenue from subscription charges.

Estimated Profit

While specific profit figures per season are not publicly disclosed, it is widely believed that Game of Thrones was one of the most profitable shows in television history. Estimates suggest that HBO gained millions in subscriber revenue alone. In 2019, for instance, HBO's revenue was estimated to be around $1.5 billion, with Game of Thrones contributing significantly to that figure.

Some analyses suggest that the show could have made upwards of $500 million in profit over its entire run, factoring in all revenue streams. This rough estimate underlines the show's financial success.

Breakdown of Seasonal Earnings

Expenditure

The average cost per episode is around $6 million. The Battle of Blackwater Bay episode cost around $8 million. For a season with approximately 10 episodes, the budget would range between $60 million to $70 million. This is the expenditure made by HBO for each season of Game of Thrones.

Income

HBO subscription charges are about $10 per subscription per month. With around 30–40 million subscribers, the monthly income for HBO is estimated at $300 million to $400 million. This figure corresponds to just the subscription income.

Each season of Game of Thrones runs for approximately 10 weeks, or 2.5 months. To watch the entire season, a subscriber would need a minimum of 3 months of subscription. Therefore, the income for one season of Game of Thrones would be around $900 million to $1.2 billion from subscription charges alone.

A notable portion of the income comes from the sale of DVDs, show merchandise, and collectibles. Each season DVD on HBO's website sells for $60. If 1 million people purchase the complete series, it would generate $420 million in revenue. Piracy does occur, but according to HBO, promoting the show through merchandise does help in driving sales.

In conclusion, looking at the numbers, we can estimate that HBO earns at least $500 million per season of Game of Thrones, and probably even more.

With such significant revenue streams, it is clear that Game of Thrones was a financial success for HBO, contributing substantial profits through various channels.