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UK channel tries to cut the fee for Don’t Stop Believing

What if a network declined to pay a producer because a TV show didn't rate?

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What if a network declined to pay a producer because a TV show didn’t rate?

That’s what’s going down between Channel Five in the UK and Shine TV at the moment as new channel boss Richard Desmond tries to trim the bill for Don’t Stop Believing.

Desmond is understood to be questioning a seven-figure invoice submitted by Elisabeth Murdoch’s production company after it attracted dismal ratings.

Industry sources say Desmond’s executives are asking Shine to dramatically reduce the overall bill for Don’t Stop Believing. Murdoch is said to be furious about the request.

Most series are financed in stages, with production companies receiving money throughout the development of a show. Final payments are usually made on completion and often not until after shows have been broadcast.

Five’s new owner is still going through the accounts and is understood to be seeking to renegotiate contracts with suppliers. Rival production companies who have made shows for Five claim that it has refused to pay the final instalments for several shows.

One industry source said: “Channel Five have refused to pay the final instalment for several programmes because they’ve rated poorly.”

Desmond is also publisher of newspapers and magazines that are rivals to those owned by Murdoch’s father, Rupert Murdoch.

PACT, the industry body which represents independent producers, is considering taking legal action against Five.

TEN will air the Australian version of Don’t Stop Believing, produced by Shine Australia, in 2011.

Source: Guardian

12 Responses

  2. @Todd, hardly the same thing. masterchef UK is a big hit. and MC UK is produced by a different company to MCaus.

    if you watched the show the poduction values were not the issue, looks like they were a bit too good. but the Australian version is being made by the same company as the UK version anyway.

    The whole genre is on its last legs. X factor is in an uphill battle to keep decent figures DSB might not get aslucky.
    i think ten need to make the tough decision. bit like what 7 did after they saw The Marriage Ref.

  3. I don’t think people should be worried about TEN. They claim that comparing Don’t Stop Believing UK to the Aus version is like comparing Masterchef UK to the Aus version, the shows are going to be completely different. It also sounds like it will have a much bigger budget and be better produced. Also, I wouldn’t be surprised if TEN bring the Glee cast over to help launch it etc, which can only help it further.

  4. well, not much on five in the UK rates well, its something of a wasteland, Neghbours is probably its most successful show, and it sits around 1.2m…you cant just go deciding not to pay for shows that dont work….that argument will never stand up….particularly when Im sure water tight contracts are signed with the production companies….sounds to me like Fives balance sheet might be in worse condition than with Mr Desmond thought when he bought it, and @ Josh, do you work in PR for Channel 7? Beat the star was pulled after 2 episodes and X-factors ratings are luke warm at best and Iron Chef hasnt even premiered yet.

  5. @Josh: “looks like 7/Prime is now kicking ass with Minute to Win It, X Factor, Beat the Star, and Iron Chef Australia”

    Sorry, what? X Factor has been doing underwhelming ratings, Beat The Star failed and was immediately axed, and Iron Chef hasn’t even been screened yet. That’s hardly “kicking ass”.

  6. Channel Five better be careful. If they refuse to pay the final bill or ask for it be reduced they could face a boycott from production companies for any future shows they want.

    They package the show and sell it to a network on faith – if it doesn’t rate as well as the network hoped it’s not their fault.

    A lot of hard work goes into creating these shows – whether they’re good, bad or indifferent – and all involved deserve to be given what’s properly owed.

  7. hopefully ten learn a lesson out of this and either give it a budget cut before the show is made or just cut the show altogether.

    its one thing for a network to come up with a stupid idea for a show, but it is taken to a whole new level when a network remakes another networks stupid already failed idea. x factor and AGT already allow choirs to audition and only a handful are deemed good enough to just get their faces on tv. i think the lack of talent was the major killer of the UK version and if they can’t find talent i doubt we can.

    seems like an obvious flop to me with little chance to surprise otherwise. i wonder if shine will put their foot down first? they are still a budding business down here and they already have The Boss Is Coming To Dinner against their name it’s not going to look good for them if they have another expensive flop. They have no shortage of other work to keep them occupied.

  8. I didn’t think TEN could have gotten any more stupid by axing Australian Idol and So You Think You Can Dance Australia to try and make a combination of the two in Dont Stop Believing Australia, but I guess they can get dumber if they still want to go through with it when the orginal version has died in its first season. It was only last year when they were known as the network when it came to reality TV, but looks like 7/Prime is now kicking ass with Minute to Win It, X Factor, Beat the Star, and Iron Chef Australia. If TEN dont re-think their future plans they may become broke all over again.

  10. ten are still going ahead with this? sounds like its the laughing stock of the year over in the UK. what’s next a UK adaption of the spearman experimant?

  11. What a horrible way to do business. Even if a show doesn’t rate it still requires the hard work of hundreds of people.

    If paying according to ratings was applicable then MasterChef would have cost 10 hundreds of millions.

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