I was recently in LA talking to friends in the episodic market and we were discussing the move to digital production. In an article on fxguide in June we commented on a Hollywood Reporter article reported that 66 of 70 pilots this season was shot digital. The reason we recounted was that the possible SAG strike had put a threat may be over film production. The theory was that if a television show shoots on film it falls under SAG jurisdiction but if it is shot on any digital format the show moves to AFTRA jurisdiction. In talking to people on the front lines that is only part of the truth. They claim anecdotally that this was the public reason but producers have just come under such cost pressure and on a major network show you can lose say $150,000 an ep from the budget by moving from film to digital.

Why are these shows under such pressure ? Well the economy of course, … but also have you seen star salaries lately ? Quoting from AFR/TVguide, Kiefer Sutherland makes US$550,000 an ep, – yes an episode – for 24. Hugh Laurie (House) or Mariska Hargitay /Chris Meloni (Law & Order SUV) US$400,000, while comic actors like Charlie Sheen end up via salary and ownership banking US$875,000 an episode. Yes $875,000 for an episode for Two and a Half Men. The popular press has been reporting on how much worse it is over at reality TV recently. Ryan Seacrest (American Idol) is pocketing $15,000,000 a year. Even Jeff Probst gets US$150,000 an ep for tabulating those results on Survivor. Of course these are modest compared to feature film salaries.

As a Channel 4 Doco in the UK reminded us, “If anyone is going to be foolish enough to offer me one million dollars to do a movie, I’m not going to be foolish enough to turn it down’, was once remarked Elizabeth Taylor back in the 1970s. Today, $1m would just about get you a reasonable TV name, but not a film star. Hanks, Pitt, Gibson, Carrey and others are able to start negotiations at $US25 million per picture.

I know that a film star can open a feature and opening weekends drive box office, but back to TV for a second: the network viewership is splintered, the revenue from advertising fractured by online, direct, ad skipping, and time shifting. Even with increased revenue from TV shows on DVD, – do we really think Zach Braff on Scrubs is worth US$350,000 an episode? Clearly society does, but the by-product of this has to be smarter, tighter production. So if Julian McMahon wants $175,000 an episode for Nip/Tuck – you better not waste money in post !