American Idol host Ryan Seacrest?s fat contract with CKX -- the quirky company that owns the rights to the show -- seems to have done a number on Idol?s profits. Despite all the upbeat talk about Idol?s ratings resurgence so far this year, the show?s 1Q operating profit for CKX of $13.6 million was down 17% vs. the same period last year on revenues of $28.4 million, down 2%. Publicly traded CKX breaks out results for Idol because it accounts for about 53% of the company's revenues, which also include licensing income for Elvis Presley and Muhammad Ali. The report is as good a barometer as you?ll find for Idol's economic performance: CKX collects a license fee from Fox, as well as revenue for Idol-related syndication, sponsorship deals, merchandise and its concert tours. But CKX?s 48% operating profit margin for Idol in the three months that ended in March was the lowest 1Q result for the show since 2006, when CKX began reporting the show?s finances. CKX says that its Idol-related expenses came to $14.8 million. That?s up 17% from last year -- and 260% from two years ago. The biggest change appears to be the $45 million employment contract that CKX struck with Seacrest in 2009 that locks him in through 2012. CKX has already paid Seacrest $33.5 million; Fox, in turn,�pays CKX $5 million a year for Seacrest. Another change: Fox used to pay $5 million ... Read More »
Tuesday, May 10, 2011
Ryan Seacrest's Huge Salary Contributes To 'American Idol' Profit Swoon At CKX
American Idol host Ryan Seacrest?s fat contract with CKX -- the quirky company that owns the rights to the show -- seems to have done a number on Idol?s profits. Despite all the upbeat talk about Idol?s ratings resurgence so far this year, the show?s 1Q operating profit for CKX of $13.6 million was down 17% vs. the same period last year on revenues of $28.4 million, down 2%. Publicly traded CKX breaks out results for Idol because it accounts for about 53% of the company's revenues, which also include licensing income for Elvis Presley and Muhammad Ali. The report is as good a barometer as you?ll find for Idol's economic performance: CKX collects a license fee from Fox, as well as revenue for Idol-related syndication, sponsorship deals, merchandise and its concert tours. But CKX?s 48% operating profit margin for Idol in the three months that ended in March was the lowest 1Q result for the show since 2006, when CKX began reporting the show?s finances. CKX says that its Idol-related expenses came to $14.8 million. That?s up 17% from last year -- and 260% from two years ago. The biggest change appears to be the $45 million employment contract that CKX struck with Seacrest in 2009 that locks him in through 2012. CKX has already paid Seacrest $33.5 million; Fox, in turn,�pays CKX $5 million a year for Seacrest. Another change: Fox used to pay $5 million ... Read More »
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