The Trend of TV Shows Being Canceled After One or Two Seasons: A Deep Dive

The television landscape has dramatically shifted in recent years, with the rise of streaming services. One of the most notable changes is the trend of TV shows being canceled after only one or two seasons. This phenomenon is not just a result of changing viewer habits but is also rooted in business practices that have evolved with the industry. In this article, we will explore the factors contributing to this trend, with a focus on traditional TV models versus streaming service practices.

Profit Potential and Episode Counts

The way television has traditionally worked is that production studios license shows to networks, where they generate a significant portion of their revenue from advertising. For the studios, the real profit comes from syndication, where they earn royalties from the sale of episodes that have already been produced. The benchmark for syndication is around 100 episodes, as this allows the series to be aired multiple times a year.

For studios, creating a show with fewer episodes, such as 13 to 22 episodes, poses a lower profit potential compared to shows that have been in production for three seasons with around 66 episodes. As a result, studios are highly motivated to keep shows on the air, often cutting their salaries to the bone and even accepting financial losses to sustain deeper series.

The Rise of Streaming Services

With the emergence of streaming services, the traditional model has been disrupted. These platforms do not generate revenue from traditional advertising. Instead, they rely on subscription fees. To attract and retain subscribers, these platforms have introduced innovative financial incentives for showrunners. This means that the early seasons of a show can offer much smaller financial rewards, with the promise of substantial bonuses for successful later seasons.

According to a Vulture article, one such incentive includes a structure where a showrunner could receive a $100,000 bonus for the first season, $250,000 for the second season, $500,000 for the third, and $1.7 million for the fourth season. The catch is that many seemingly successful series have vanished after just a couple of seasons. Platforms are essentially tricking showrunners into believing their show will reach the payday, only to cancel it before the larger bonuses need to be paid.

Netflix, a prominent streaming service, is often highlighted as an example of this aggressive practice. They have a strict emphasis on creating standout content that qualifies for prestigious awards, which further fuels the pressure on showrunners to create content that can generate significant returns.

Why Streaming Services Cancel Shows Early

The streamers' rationale for canceling shows early is that they do not want to pay out the promised bonuses until the show is proven to be a hit. Most shows are not hits from the start, and even those that show promise may falter later on. By canceling shows early, streamers reduce their financial risks and can reallocate resources to develop other projects that are more likely to succeed.

One example provided in the Vulture article is a scenario where a showrunner might achieve a miraculous feat of reaching 20 episodes, which is almost an act of superstition. Shows that do not meet this mark are often canceled, either due to low viewership or a change in platform strategy.

However, this trend is not universally accepted. The competition to produce award-winning content and the desire for consistent engagement with subscribers mean that some streaming services are willing to take more risks on shows that show early promise. But for the majority, the financial realities of the industry often lead to the cancellation of shows after one or two seasons.

Conclusion

The trend of canceling TV shows after one or two seasons is a complex issue driven by a combination of business practices and economic realities. While traditional TV models have always focused on long-term financial sustainability, streaming services have embraced a more dynamic and high-risk approach. This has led to a significant shift in how shows are developed and funded, often at the expense of the shows themselves.

Investors, showrunners, and viewers all have a stake in this evolving industry. As streaming services continue to shape the TV landscape, it will be interesting to see how this trend evolves and whether it will eventually lead to a more sustainable model for both creators and audiences.