Posted on 04/28/2016 2:48:16 PM PDT by SeekAndFind
Core Media Group, the company behind "American Idol" and "So You Think You Can Dance," has filed for Chapter 11 bankruptcy in New York.
According to court papers, the company says it owes $398 million. That includes money owed for loans, back payments to former employees, and investors, according to The Hollywood Reporter.
"American Idol" was the company's biggest breadwinner. And now that the show has ended at Fox, the company is unable to find a similar source of revenue.
The company has been seeing losses from a decline in "American Idol" ratings for several years now, however. In 2014, "Idol" earnings decreased by $15 million. And in just the first half of 2015, "Idol" revenue decreased by $35.6 million.
Simon Fuller, the creator of "American Idol," is currently owed $3.37 million. The company's biggest unsecured creditor, Fuller left the company in 2010, but was then given a profit share in his shows and a consulting fee. Its second biggest unsecured creditor is former president Marc Graboff. Currently overseeing Discovery's studios, Graboff is owed $1.32 million in severance pay.
Creative Artists Agency, Dick Clark Productions, and Fox Broadcasting also have profit shares in Core Media shows.
Core Media is currently trying to recoup some loss in a suit against Sony Music over revenue from sales and distribution generated by "Idol" artists.
(Excerpt) Read more at businessinsider.com ...
The mighty have fallen. It was great from seasons 2-8. Should have quit doing the show when Simon left.
Swan Song....
How does a company like that get 400 million in debt to begin with?
Apparently golden parachutes, and maybe a company jet or two.
“So You Want To be A Millionaire” Not their show.
Seriously. What’s American Idol?
That would be me in 1984.
That's spelt
A W!
in most of the country.
Not having a least one judge allowed to speak critically, as Simon did, makes shows like these sugary hype, ripe for fast-forwarding through the schlock. I am a fan of The Voice, but can watch a two-hour performance show in less than half an hour, easily.
It was a money making machine. I bet those in charge are very very rich. Must be some sort of fraud going on.
This is what Hollywood does best. A great show comes out, a dozen imitators follow, and they completely burn out a genre of programming. It took them 25 years to burn out westerns. They killed the live talent-show in about half that time.
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