If Reality-Based Programs Are Cheaper to Produce, Why Might Television

question 4

Short Answer

If reality-based programs are cheaper to produce, why might television production companies continue to make more traditional programs like dramas and comedies?

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Definitions:

After-Tax Cost of Debt

The net cost to a company for borrowing funds after accounting for the tax benefit derived from interest expense deductions on its corporate income tax.

Coupon Rate

The interest rate that a bond issuer will pay to the bondholder on the face value of the bond.

Market Price

The live market price at which an asset or service can be bought or sold.