If you’re on the network, starring in a successful show, then your personal profits are up.
Shares in Seven West Media slumped as much as 23 per cent today, after investors reacted to the company’s profit warning two days ago.
Seven West, which owns Network Seven and The West Australian, said a lacklustre advertising market will see earnings for this financial year fall to between $460million and $470million.
Brokers are also unhappy with the underperformance of shows like Dancing With The Stars and Australia’s Got Talent when you compare them with their respective 2011 ratings.
Only last week, Network Ten also blamed a soft advertising market for a 70 per cent drop in half year profit.
But as traditional media stuggle to grow profits, the reality is, others are growing their bottom line.
One of the biggest bottoms in the business, and I can say that because she trades on her curvy figure, is Kim Kardashian.
Forbes has reported, the Kardashian clan has just signed a $40million three year deal with America’s E! Network, to continue with the show, Keeping Up With The Kardashians.
At that price, it is the most profitable deal in reality television history.
It’s interesting because a number of US media outlets have been predicting the decline of the Kardashian conglomerate, most noticably, the New York Post which attempted to point out cracks in their empire.
But the new deal cements the Kardashian’s place in pop culture, whether you like them or not.
If the family is smart enough to grow their own personal empire and businesses on the back of their television exposure, then well done to them.
However, let’s not forget though, that what really triggered the Kardashian’s rise to fame, was Kim Kardashian’s sex tape. Moral much?
But as they say, sex sells, and Americans are buying in to the Kardashian story in droves.
In fact, 3 million Americans watch the show every week and season 7 is about to premiere across the Pacific next month.
The new deal, doesn’t include current spin off shows like Kim and Kourntey Take New York and Khloe and Lamar, so there’ll be extra cash coming in there.
And get ready for more spin off shows, because the deal reportedly allows E! first look privileges at any unscripted projects by the family.
The irony of all of this, is that while the show is broadcast on FOXTEL in Australia, Seven also runs it on its digital channel.
I wonder if there’s a market for “Going with the Goncalves’”