Forget TV shows; let’s think TV franchises

Television plays a central role in popular culture. It drives conversation at the workplace watering hole and sparks debates over social media. But besides showing up on your TV, television shows rarely have a presence on retail shelves outside DVD box sets and posters. The big networks make their big money from advertising dollars—which are driven by ratings and the size of TV audiences and are in turn at our mercy, the media consumers.

A problem arises when TV loyalists are empowered to watch their shows outside of the critical primetime premier slots that advertisers pursue for major commercials. For me, my commercial-skipping TIVO does just that. PVRs, Netflix, Apple TV and online pirating have transformed television into an on-demand service. As a result, measurable TV audiences have seen significant declines in recent years. Networks are forced to juggle declines in advertising revenues and audiences who demand high-quality, high-cost shows in exchange for their viewership. Smart television studios know they have to look beyond the small screen if they’re going to successfully mitigate the pitfalls of the $700 billion US television advertising.

Cue the television franchise. I’m not talking about highly successful sitcoms like Friends or Entourage. I’m talking about shows that offer the potential for endless merchandise, sponsorship and licensing deals - a marketer’s dream. Disney’s been pumping these out for years, such as the Hannah Montana franchise which the NY Times estimates drove $1 billion in retail sales in 2008.

Who wouldn't be smiling when you're part of Fox's $500 million cash-cow, Glee.

Fox’s Glee is the most recent wonder to take the industry by storm. Forget that the musical television comedy has won 4 Emmys, 4 Golden Globes and has drawn 10 million+ viewers ever Tuesday night for the last two years. Glee has sold 21 million digital singles and 9 million albums. It has sponsorship agreements with Chevrolet and exclusive retail partnerships with Macy’s and Claire’s. It spurred 2 international concert tours, a 3D concert movie and unleashed countless brand extensions: clothing lines, video games, nail polish, jewelry, iPod apps, and even Hallmark cards.

Contributing an estimated $500 million to Fox’s top line, Glee has become an indispensible part of the network’s programming. Love it or hate it (and I love it!), the franchise is setting the example for shows old and new. NBC has added Smash, an adult Glee knock-off starring Debra Messing, to its 2012 line-up. Even AMC’s always-classy Mad Men has partnered up with Banana Republic to launch a branded clothing line that’s in stores now.

During its gap year between seasons 4 and 5, AMC's Mad Men partners with Banana Republic to debut a Don Draper inspired clothing line.

Going forward, franchises like Glee will not be the exception. The networks realize that they’re no longer producing shows - they’re producing brands. The relished business models of the entertainment industry are being revolutionized by the way we consume media. Hollywood has long understood the value of product placement and merchandising agreements. The music industry is learning from singing super-brands Justin Bieber and Lady Gaga. Inevitably, marketers will play a greater role in the launch of the next big sitcom, movie or superstar.

About the author: Telly Carayannakis

Self-proclaimed Gleek - I've got every Glee album, the Glee Karoake video game and saw the concert tour when they came to Toronto. Going into my 3rd year at Schulich and will be travelling to Paris for an exchange program in January!