Selling syndicated reruns of a popular network television program while the program is still running on the network can lead to decreased revenues for that network.
Conclusion
Selling syndicated reruns of a popular TV show while the show is still running can hurt revenues for the network that airs that TV show.
Evidence
A recent study shows that over 80% of the shows that are made available as reruns and as first-run episodes during the same season suffer an immediate ratings drop for their first-run episodes.
Evaluate
We do have a New Term in the conclusion, “decreased revenues”. The evidence never talks about decreased revenues; it only talks about a ratings drop.
So there is definitely a missing link assumption that .
For anyone unfamiliar with these concepts and struggling to follow the argument, take a show like The Simpsons, which I believe still runs new first-run episodes on Fox on Sunday nights. Let’s say that 15 years ago, you could only see Simpsons episodes on Fox, and each episode had a ratings share of like 5 million viewers.
When Fox sells syndicated reruns of Simpsons to other channels (let’s say Hulu or TBS or something like that starts to carry syndicated reruns), the producers of the Simpsons (the people who created the show and paid for it) make a ton of money from selling those intellectual property rights. But since people can get their Simpsons fix by watching reruns on TBS, they stop tuning in Sunday nights to Fox for first-run episodes. And the argument is saying that this change ends up hurting Fox’s revenue.
We seem to be assuming that the network does not get to partake of the huge payout the show’s producers get from syndication.
Goal
Look for an answer saying , or look for the idea that “when ratings drop, revenue decreases”.