In the past, creating a hit TV series like The Bear could lead to immense riches for its creators and cast. However, in today’s entertainment landscape, the value of producing groundbreaking shows has significantly decreased. Labor strikes in 2023 led to a contraction in the industry, resulting in budget cuts, layoffs, and fewer shows being ordered. As a result, profit participation is almost non-existent, leaving talent representatives and studio executives to negotiate over a shrinking pie of profits.
For series creator Christopher Storer, creating a hit show like The Bear on Hulu earns him around $5 million per year through an overall deal with FX. Instead of owning a percentage of the show’s profits, Storer and co-showrunner Joanna Calo receive bonuses based on achievements like season renewals and award nominations. While this places them in the upper echelon of modern TV creators, it still falls far short of what older showrunners like Dick Wolf and Shonda Rhimes earn in a year.
The rise of streaming platforms has changed the traditional TV syndication system, where shows could run continuously and generate profits for years. With fewer ways to capitalize on a breakout hit in the streaming era, creators and actors are unable to ask for true profit participation. Despite the allure of high up-front fees and buyouts, the fragmented streaming landscape has made it difficult for shows to reach the status of syndication.
Companies like Disney have introduced new compensation models for TV talent, such as the “Series Bonus Exhibit” which ties compensation to show performance. However, this model pays out less guaranteed money but eliminates the potential for large profits that profit participation could bring over time. Streaming giants like Netflix and Amazon are exploring new bonus models for talent as they move towards a more traditional TV approach.
The future of television is beginning to resemble its past with companies like Warner Bros. and Disney forming streaming bundles and licensing shows to other platforms. However, the value of individual TV shows is unlikely to increase. Advertisers on streaming platforms target individual viewers algorithmically, and the advertising revenue is intended to broaden reach rather than make a profit. For actors, earnings remain at seven figures per-episode despite changes in season orders and inflation.
The disconnect between commercial and artistic interests is at the heart of the issue. While a show like The Bear may not have the traditional longevity of a 22-episode season show, its modern storytelling and intense energy make it a standout in today’s TV landscape. As the industry continues to evolve, the challenge lies in finding a balance between creating commercially successful shows and maintaining artistic integrity in a changing era of television.
