The Real Reality

Working Conditions in the Nonfiction

and Reality Television Industry in NYC
Report to the Civil Service and Labor Committee
f the Ne! York City Council
"une #$% #&'(
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A Tale of Two Television Industries
The filmed entertainment industry is robust and provides tens of thousands of )obs to Ne!
Yorkers* ne of the fastest+gro!ing segments of that industry is nonfiction television% also
kno!n as ,reality T-.* In many !ays% this is a tale of t!o television industries* ne is high+
budget scripted television / primetime dramas and sitcoms and late+night comedy+variety
sho!s* In this part of the industry% employees earn solid middle+class incomes !ith union
protections and generous benefits* The other television industry is nonfiction / the reality sho!s
that appear mostly on basic cable channels 0although they increasingly fill schedules on
broadcast net!orks% as !ell1* This part of the industry is almost entirely nonunion% and
employees !ork very long hours !ithout overtime pay% !ithout health or pension benefits or
other basic protections* It is very difficult for Ne! Yorkers to build sustainable careers nonfiction
T-* It is this part of the industry that City Council is investigating today*
The Council2s concerns about !orking conditions in reality television are very timely* The
industry is booming* The most visible manifestation of this is the profit bets being placed by
savvy investors and by nonfiction e3ecutives / an unprecedented !ave of ma)or mergers and
ac4uisitions* 5mong the most optimistic companies is IT- Studios% !hich is based in the 67
and !hich has a ma)or nonfiction production entity in 8anhattan* Its year+long buying binge
culminated in its recent ac4uisition of Ne! York production company Leftfield for 9:;& million
0plus another #&< if certain targets are met1% making IT- the largest nonfiction production
company in the 6nited States* Companies don2t make these kinds of bets unless they are
bullish that there are ma)or profits to be made*
These profits% unfortunately% come at the e3pense of the men and !omen !ho !ork so hard to
create the sho!s that generate enormous revenues for the production companies and net!orks
alike* There is no e3cuse for the substandard !orking conditions in nonfiction T-= there is
plenty of money in this part of the television industry% and people have the right to earn a
reasonable living*
TV Production Is Booming in NYC in Particular, Reality TV
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"obs in Ne! York2s filmed entertainment sector 0T-% film% and commercials production1 gre!
#&< from #&&' through #&''* "obs in the rest of the local economy declined $< in the period*
There !ere about :&%&&& people employed in T- production in #&''% representing about
##%&&& >T? 0full time e4uivalent1 )obs / up @;< from #&&#*
5bout '#%&&& of the ##%&&& total T- production )obs 0about '$%&&& people employed1
!ere in unscripted T- production 0reality% talk sho!s% and other1*
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The employment gro!th since #&&# !as driven by a boom in reality and talk sho!s* 5n
estimated '%$&& more episodes of reality and talk sho!s are filmed in NYC today than in #&&#*
Ne! production companies have sprung up% and cable net!orks2 presence in NYC has also
gro!n*
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8ost of these employees are freelance% !orking short+term )obs on a pro)ect basis*
Reality TV Is an Imortant Part of t!e Programming "andscae
Since the first hit reality T- sho! 0Survivor1 appeared in #&&&% the genre has achieved ratings
success that rivals or beats scripted and live programs* Reality is often more profitable for
net!orks% because it is much cheaper to produce% largely due to lo!er labor costs* Since #&&&%
the cable net!ork industry has also gro!n tremendously% taking a big bite out of broadcast
ratings% often !ith reality+based programming* Reality programming has captured a solid share
of airtime on both broadcast and cable net!orks*
In the summertime% !hen many scripted sho!s are on hiatus% reality sho!s can account for as
much as (&< of primetime broadcast net!ork programming*
:
ver the past fe! years% reality
and game sho!s have typically ranged from about '# to 'A< of broadcast primetime sho!s
year+round*
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8ean!hile% the mi3 of ratings and buBB has shifted to cable* 5C? garnered huge ratings for a
recent episode of the docudrama Duck Dynasty% !hich% at the time% beat every broadcast reality
series since the #&'# American Idol finale*
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,?valuating NYC media sector development and setting the stage for future gro!th%. Doston
Consulting Eroup report% 8ay #&'#*
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Ibid*
:
Writers Euild of 5merica study% #&'#*
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SNL 7agan report% #&'(*
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,WhatFs Dehind the Droadcast Reality ?3ec GurgeH.% Lacey Rose% Iolly!ood Reporter % JK#$K':*
:
The ma)ority of top cable net!orks 0$@<1 rely on reality sho!s for a siBable part of their
programming schedules*
:&< of the top net!orks / including Liscovery% Dravo% and TLC / rely heavily on reality
programs% in some cases almost '&&<* 5nother #@< + including Syfy and CNN / air reality
programs for something like #& / $&< of primetime programming* The other (:< of top cable
net!orks% !ho air fe! or no reality programs / including ?SGN and 5DC >amily + are primarily
ne!s% sports% or scripted*
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Reality and Ca#le TV Are Profita#le and $rowing
Profits
5nalysts describe the profit margins in this industry as ,eye+popping%. causing investors to ,flock
to the sector*. 0Liscovery2s stock !as up more than $&< in #&':*1 The average margin is
almost (&<*
Reality sho!s are so much cheaper to produce that even sho!s !ith relatively lo!er ratings and
income than mega+hits and sports programming% they can return a higher percentage of
revenue to the bottom line 0as profit1*
TLC and Liscovery rely heavily on reality programming* In #&'#% the TLC net!ork% ranked M#(
in ad revenue% led all cable net!orks in profit margin% !ith a lofty ;&<* The Liscovery net!ork%
ranked M'& in ad revenue% !as right behind TLC in profit margin% at $A<*
There are% of course% many cable net!orks* Io!ever% the top :& net!orks are the big money+
makers* In #&'#% the top :& net!orks took in about 9'J billion in gross advertising revenue*
The ne3t #& net!orks rounding out the top $& only brought in another 9:*: billion*
@
;
SourceN SNL 7agan% Top :& Cable Net!orks by gross ad revenue% #&'#*
@
SourceN SNL 7agan% Top :& Cable Net!orks by gross ad revenue% #&'#*
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?ven much lo!er+rated reality+focused net!orks% belo! the top :&% had high profit margins* >or
e3ample% National Eeographic 0ranked M:A1 at $#<% and Investigation Liscovery 0ranked M:@1
at :$<*
Revenue $rowt!
Cable net!ork industry revenue is also enormous% and has gro!n steadily over the years% as
cable net!orks took more and more audience from broadcasters* The industry2s total revenue
0advertising plus license fees1 !as 9$#*: billion in #&'#% up $*:< from #&''*
A
Revenue has
gro!n nearly '&< per year on average% every year since #&&$*
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T!e Britis! Are Coming, and T!ey %ee Profits A!ead
5 ma)ority of the top reality production companies are o!ned by foreign conglomerates*
5ccording to a recent article in the Los 5ngeles Times% Dritish media giants IT-%
>remantle8edia and Tinopolis are doing much of the buying of 6S companies
'&
* IT- spent
9:;& million 0plus another #&< if certain economic targets are met1 to purchase Ne! York
company Leftfield ?ntertainment* In the past 'A months IT- has also ac4uired Los 5ngeles+
based Eurney Groductions 0Duck Dynasty1% Thinkfactory 8edia 0Marriage Boot Camp1 and
LiEa -ision 0Celebrity Home Raiders1% as !ell as Lenver+based Iigh Noon ?ntertainment
0Cake Boss1% in the 6S% as !ell as 67 producers So Television% The Earden and Dig Talk*
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The IT-+Leftfield deal !ill make IT-2s 6*S* production arm% IT- Studios 6*S* Eroup% the largest
independent unscripted producer in the 6*S* It !ill also put Leftfield% one of the largest and
most successful locally+o!ned production companies in Ne! York% under a foreign banner*
Last month LiscoveryKLiberty 8edia purchased Dritish production conglomerate 5ll:8edia for
O$$& million* The Liscovery+5ll:8edia deal !ould affect operations at Ne! York subsidiaries
ptomen Groductions and Lion Television* Doth companies !ere 67+based before the
Liscovery ac4uisition% but both have agreements !ith the Writers Euild for their Ne! York
operations*
It is critically important that the non+6*S* corporations that are coming to dominate reality T-
production understand the importance of abiding by 6*S* labor la!s% of respecting employees2
right to organiBe and to bargain collectively% and of offering the men and !omen !ho create the
A
,Cable Net!ork Revenue 6p $*:< In #&'#% Cash >lo! -irtually >lat%. Lerek Daine% SNL 7agan %
(K:&K':*
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SNL 7agan% Cable Net!ork Comparison% #&'#*
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,Reality T- Groduction Leal Grices ?scalate 5mid Consolidation Wave%. "oe >lint% Los 5ngeles
Times% "une :% #&'(*
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,6*7* Droadcaster IT- to Duy 8a)ority Stake in PGa!n Stars2 Groducer Leftfield%. Leo Darraclough%
-ariety% $K;K#&'(*
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sho!s the ability to build sustainable careers* Thusfar the track record of reality T- employers
has not been good% as !ill be discussed further belo!
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*
The IT- and 5ll:8edia transactions are part of an enormous escalation in mergers and
consolidations in nonfiction television production* Last month #'st Century >o3 reached a
tentative agreement to combine its reality company Shine !ith ?ndemol 0the largest global
independent reality production company1 and Core 8edia% !hich are controlled by the private
e4uity firm 5pollo Elobal 8anagement* If that deal closes% it !ould create an unscripted global
)uggernaut* >remantle8edia recently picked up (J$ Groductions 0Jersey Shore1* Tinopolis has
ac4uired L5+based 5* Smith 0Hells !itchen1 and 8agical ?lves 0"op Che#1*
What this merger mania demonstrates is that producers are bullish on reality T-* Savvy
investors and production company e3ecutives are betting heavily that profits in nonfiction T- !ill
continue to skyrocket*
r to put it another !ay% there is absolutely no economic reason for reality T- production
companies to shortchange their !riter+producers* There is plenty of revenue / and profit / to
provide reasonable !ork schedules% health and other benefits% paid time off% and other basic
protections*
&!o Are t!e &riter'Producers of Reality TV(
Writers Euild research sho!s that about '$< of a typical reality sho!2s staff are !riters and
producers*
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Not everyone !ho !atches nonfiction% reality sho!s recogniBes that they are !ritten* In fact
each episode is carefully structured% !ith a narrative arc and story beats created by !riter+
producers 0most of !hom are classified by their employers as ,producers. or ,associate
producers.1* These employees also craft intervie! 4uestions and !rite narrator voice+overs*
5nd sometimes even the dialogue is !ritten out in advance* 5s !ith ,scripted. police
procedurals and comedies% there !ould be no reality T- !ithout !riter+producers*
In a given year% about #%#&& people are !orking as !riters and producers in the reality sector in
NYC* The Writers Euild did a survey of !riter+producers in #&':% !ith a sample of #:A taken
from our database of more than #%&&& !riters and producers in the sector* Iere is a general
snapshot from our survey of !hat that !orkforce looks like*
(:< are #$+:(
('< are :$+((
'&< are ($+$(
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5nd see the WE5? !hite paper% ,The Real Cost of Reality T-.% November #&':*
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ther titles include editor% production assistant% talent 0host% )udge% contestant% business o!ner%
family member% etc1% director% camera operator% audio tech% makeup% gafferKgrip% logger* ?3cludes upper
management% legal and accounting staff* We estimate there are appro3imately '$%&&& Ne! Yorkers
!orking in reality television% in total*
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$< are $$Q
The !orkforce is slightly more female than male% $#< to (@<
A@< are !hite
&!at )o &riter'Producers %ay a#out &or*ing Conditions(
The long days and long !eeks of !ork are difficult enough* Groducers and 5Gs often !ork '#%
'(% '; hours or more per day* A+hour days are rare* They often !ork !eeks or even months
!ithout a day off* $+day !eeks are also rare* 5nd AA< of producers and 5Gs said they !ere
,never. paid overtime on their current )obs*
When coupled !ith periods of unemployment bet!een )obs% and no paid time off 0vacation or
sick leave1 allo!ed !hile on a )ob% these e3hausting !ork schedules lead to severe burn+out*
Working under these conditions simply isn2t sustainable over the long term*
8ost of these !orkers are young% and find it hard to imagine combining these !orking
conditions !ith raising a family* >or older !orkers% the lack of retirement benefits is crippling*
The lack of employer+paid health insurance is a serious problem* Some higher+paid !orkers
pay huge amounts of money for very limited coverage on the individual market= others )ust go
!ithout*
In spite of the demands placed on them% and the ever+gro!ing revenues and profits the industry
en)oys% the !orkers have to fight to even maintain their current pay levels* 8any !orkers say
they not only have trouble getting raises or increased pay !ith promotions% they are offered less
than !hat they made before !hen signing ne! contracts* There is a !ide range of pay levels
for the same )ob title from company to company*
Iere are some 4uotes from !orkers !ho took our #&': survey*
,Last month% I !orked 'A days straight !ithout a break* ?ach of these days averaged about ':+
'( hours% including one day !here I !orked from '&am on >riday until A am on Sat% and !as
back at !ork from :N:&pm Sat until midnightR* It !as one of the most miserable e3periences of
my life and I felt lucky !hen I got paid regular time for the t!o !eekends I !orked straight
through* If I had to drive to !ork% I probably !ould have fallen asleep at the !heel at some
point*.
,I had a child this past year and do not feel I can !ork in the field as there is no )ob security% no
benefits% and basically the hours are too long* I feel I !ouldnFt be hired unless I could be
available #(K@ and !ould be discriminated against as a mother% or !ould have to be available
#(K@*.
@
,8y first producing )ob I !orked ''' hours in one !eek* When I drove home one night it felt like
I !as driving drunk because I !as so tired*.
,I have been fired from a )ob after not eating for over A hours and refusing to drive% fearing I !as
not in a condition toR When I told my coordinator that I had a vision issue she attempted to say
that I !as Sslo!S in generalRI have !orked every type of production and kno! that if I can
handle 'A hour days on an Indie film and not be told I am slo!% !hat she !as saying !as DS*.
,I donFt have a life* I !ork all the time* When I donFt !ork I donFt get paid* Deing a field producer
you travel all the time* You donFt live in your o!n apartment% you donFt see family and friends* ItFs
a tough )ob*.
&!at Are t!e "argest Reality Production Comanies(
The $& largest reality production companies account for nearly @$< of all the reality sho!s on
the ma)or broadcast and cable net!orks*
While the si3 largest media conglomerates% such as CDS% do o!n ma)or production companies%
those companies are primarily in the scripted T- and feature film businesses* The reality
production companies are relatively independent% and not o!ned by the big si3 0CDS% >o3%
-iacom% Lisney% NDC Comcast% and Time Warner1* That2s not to say they are all small
companies* 8any are outposts of ma)or foreign media conglomerates% many head4uartered in
the 67 or else!here in ?urope*
The Top $& in terms of o!nershipN
$#< are o!ned by foreign+based media conglomerates
:&< are 6S+based independents% mostly in Los 5ngeles
'A< are o!ned by 6S+based media conglomerates
The Top $& in terms of locationN
?ighteen companies 0:;<1 have a location in Ne! York City
Nine companies have locations in Ne! York only 0in the 6S= they may have
locations outside the 6S1
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NYC companies are a mi3 of local% independently+o!ned companies and outposts of foreign
media conglomerates*
In the lists belo! $e% &ork Market Companies do a significant amount% or all% of their
production in NYC= and $on $e% &ork Market Companies do some production in NYC% but !ith
the ma)ority of their production being done else!here*
New Yor* +ar*et Comanies ,listed al!a#etically-
Some key sho!s made by each company listed in parentheses* >oreign+o!ned companies are
marked !ith an asterisk*
5tlas 8edia 'Hotel Impossible(
Ialf Yard 'Say &es to the Dress()
Iot Snakes 8edia 'Breaking Amish(
IT- Studios 'Rich !ids o# Beverly Hills* +our ,eddings()
LeftKRight 0Mob ,ives1T
Leftfield GicturesKLeftfield ?ntertainment '-a%n Stars()
Lion Television 'Cash Cab()
8agilla ?ntertainment 'Moonshiners(
NorthKSouth 'Say &es to the Dress. Atlanta and Bridesmaids1
ptomen Groductions 0,orst Cooks in America1T
riginal 8edia 0S%amp -eople* Dual Survival* Ink Master()
Geacock Groductions '/verest Jump(
Sharp ?ntertainment 'Doomsday -reppers(
True ?ntertainment 'Real House%ives o# Atlanta()
Uodiak Ne! York ',i#e S%ap()
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Non New Yor* Comanies ,listed al!a#etically-
Cinefli3 0American -ickers1T
>remantle 8edia N 5merica 'Americas 0ot "alent()
Iigh Noon 'Cake Boss()
There are also doBens of other% smaller% production companies in NYC* 5t least eleven of those
had at least one reality sho! on the air in the #&':+'( season*
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Recommendations
Geople should be able to build sustainable careers !orking in nonfiction basic cable television*
5s this report documents% cable net!orks generate rapidly increasing revenues producing and
broadcasting more and more hours of nonfiction content*
If basic standards can be established across the industry% men and !omen can earn a
reasonable living !ithout burning out on '$+hour !orkdays% and can en)oy the health and
retirement benefits everyone needs to live a healthy% productive life and to raise a family if they
choose*
This is not )ust a fundamental human right= our e3perience representing !riters and !riter+
producers else!here in the television and film business suggests that it is also good business*
Iaving a stable% e3perienced% committed !orkforce !ould enable the net!orks and production
companies to produce 4uality content that vie!ers !ant to !atch% so audiences !ill e3pand and
deepen and revenues !ill continue to increase*
The net!orks must agree to more reasonable budgets and production schedules* This isn2t
rocket science= there must be enough money to hire enough people to do the !ork% and they
must have enough time to accomplish it* The pressure to burn people out !ith insane hours%
over!ork% lo! pay% and no benefits begins at the top*
Iistory demonstrates that the sure !ay to build a floor of reasonable compensation%
benefits% and !orking conditions is !ith collective bargaining* Collective bargaining
empo!ers the employees themselves to come together to figure out !hat !orks best and
!and !e anticipate that% )ust as the Euild and other unions have done !ith decades of !ork in
the broader entertainment industry% !e can raise standards to the point that people can
make a living doing the !ork they care about*
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Therefore% !e call upon the net!orks and production companies to agree% at the minimum% to a
Code of Conduct that !ould provide for
- Reasonable production budgets and production schedules
- 5de4uate staffing levels
- Euarantees that employees !ill not be re4uire to !ork e3cessive hours% and that all
!age and hour la!s are honored
- Gaid time off
- Dasic benefits including company+paid health coverage
- 5 commitment to honor the right of employees to select representatives for
collective bargaining and to negotiate reasonable agreements
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