17. "Star Trek: The Next Generation": The Show That Saved A Genre

In the 1980s, hour-long action shows were designed to lose money in their early seasons.

Many lost as much as $600,000 per episode before recouping the shortfall with nine-figure syndication deals. But by 1987, action reruns had stopped matching the ratings of their comedic counterparts. As rich syndication contracts dried up, so did networks’ enthusiasm for dropping big money on explosions and gunfire.

Given that climate, even surefire hits like Paramount’s Star Trek spin-off couldn’t generate interest from the major channels. Undeterred, Paramount produced the series anyway and cobbled together its own group of local affiliates who agreed to broadcast the show.

When Star Trek: The Next Generation debuted in October 1987, more than 50 ABC, NBC, and CBS affiliates preempted their networks’ programming to air the two-hour premiere. Cash motivated this unprecedented defection. When local affiliates preempt their networks’ programming, they get to keep all of the ad revenue from the show rather than share it with the network. Paramount gave episodes of The Next Generation to the affiliates for free, but with a catch. Each hour-long show included 12 minutes of ads. Stations could sell five of those minutes and keep the loot; the remaining seven belonged to Paramount.

The deal was incredibly profitable for everyone involved. At a time when most 30-second commercials sold for $30,000, The Next Generation’s strong ratings let Paramount and its affiliates command $115,000. The studio responded by investing more heavily in the show to keep it at the top of the pile. By 1992, each episode had a $2 million budget—nearly double that of a normal network drama—yet it was still one of TV’s most lucrative shows, pulling in $90 million a year in ad revenue for Paramount alone.

Other studios noticed Paramount’s 40 percent return on investment from its network-bypassing model and quickly jumped into the fray with shows like Renegade and Xena: Warrior Princess. By boldly going where no show had gone before, Star Trek: The Next Generation made TV safe for action again.