Actually it's closer to $10,000,0000. CBS probably has to book about $300,000,000 in advertising revenues to realize $10,000,000 profit. Since it will result in $0.0 ad revenues it's pretty much a total loss. From a business prespective, a lot of heads should roll. Like really firing someone.
Since this turkey was aimed at sweeps week, it was probably a loss-leader anyway. They never expected to recover production costs from first run ad revenues, if ever. (A lot of network products only begin to turn a profit in syndication and foreign distribution.)
Right now CBS is carrying this on their books as an asset. Someone is going to have to eat a $10,000,000 loss. High ranking executives, like the head of ShowTime, make most of their compensation on performance based incentives. I doubt Sumner Redstone expects him to swallow a $10,000,000 loss. More than likely, CBS will "sell" this turkey to ShowTime for like $500,000 (or whatever they can internally negotiate) and Moonves will have to eat a $9,500,000 loss meaning his bonus this year will be like, $0. There is some justice in this world.
Precisely. It was to run at a loss as a vehicle to run tons a promos for other shows they hoped to upwardly spike. Each two-hour installment would contain 82 minutes of actual program, 24 minutes of advertiser spots, and a whopping 14 minutes of promos or various lengths. SeeBS is prone to the multi-promo - three quick 10-second show promos, then a 20-second promo, then another 5-second promo (then a 5-second station ID). The amount of promo clutter they planned to cram into this miniseries was the real reason they had it scheduled.
And, yes, it will doubtless affect Les Moonbeam's year-end bonus.
Michael