Nate Rau, and Cindy Watts

The Tennessean

"Nashville" will return for a fifth season that will be broadcast on CMT and streamed on Hulu thanks to a unique deal that was reached on Thursday after weeks of negotiations.

An $11 million incentive package with funds from the state, Metro, the Nashville Convention and Visitors Corp. and Ryman Hospitality is also in place as part of the deal.

The show was canceled by ABC after a four-season run, but fans of the show banded together and launched a social media campaign to save the country music-focused drama.

Lionsgate began pitching the show to other networks and ultimately found a home on Nashville-based CMT.

In a press release Friday, CMT confirmed that it had picked up the show, which will have a 22-episode run this season. Under the deal, Hulu will have streaming rights to episodes the day after they air.

“CMT heard the fans. The wave of love and appreciation they have unleashed for ‘Nashville’ has been overwhelming,” said Brian Philips, president of CMT. “‘Nashville’ is a perfect addition to our evolving lineup of big music specials, documentaries and original series. We see our fans and ourselves in this show, and we will treasure it like no other network. 'Nashville' belongs on CMT.”

Charles Esten, one of the biggest stars on the show, spoke in front of a crowd of hundreds Friday morning at CMA Fest, confirming what he called "one of the worst-kept secrets in Nashville right now."

"I'm very, very grateful to say that 'Nashville' will have a season five," Esten told the euphoric crowd, which erupted into cheers.

The incentive package was crucial to the deal. Under the agreement, the state will give $8.5 million, an increase of $500,000 from what was allocated in the new budget. Metro will contribute $1 million, subject to Metro Council approval. The CVC will give $1 million and Ryman Hospitality will add $500,000.

The state and Metro have justified incentives for the show, which have been more than most film or television productions, because they view “Nashville” as a tourism magnet.

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“Landing this fifth season of ‘Nashville’ helps push the show into syndication and allows it to live on for decades. The show has been a terrific marketing tool for the state and our musical heritage. We are also excited to support CMT, a company with real Tennessee roots,” said Tennessee Economic and Community Development Director Randy Boyd.

Nashville Mayor Megan Barry said the salvaging of the show by CMT is great news for the city.

“Not only will hundreds of film production workers be keeping their jobs, we will also be keeping the greatest advertising tool for Music City that we have ever seen,” Barry said.

Barry joined Esten during a previously scheduled set at the music festival's Riverfront stage Friday afternoon to celebrate the news. The set became a de facto victory party, with co-stars Clare Bowen and Chris Carmack joining Esten on stage for a song to the delight of thousands of giddy fans in the audience.

The entire cast is expected to return for the show, which will be under the direction of a new creative team of Marshall Herskovitz and Ed Zwick. The show is a joint venture between Lionsgate, ABC Studios and Opry Entertainment, a division of Ryman Hospitality.

“‘Nashville’ has long been a fan favorite show on Hulu, and we are so proud to continue to make new episodes available for fans to stream the day after they air,” said Craig Erwich, senior vice president and head of content at Hulu. “We look forward to bringing even more episodes of this acclaimed series to its passionate and devoted audience.”

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"Nashville" was conceived by Ryman Hospitality and developed by Lionsgate. The show's ratings were inconsistent in its fourth season, but a loyal fan base has remained. And "Nashville" has additional revenue streams than the typical television show because of its music licensing component.

In fact, the show's stars have been on a tour in recent weeks. Some observers have said that no scripted show has licensed more original music than "Nashville."

In its season four 4f finale, “Nashville” saw its ratings eclipse 8 million total viewers.

“The partnership forged with Hulu and CMT represents the best of both worlds for Nashville, and we are thrilled to have played a role in bringing it to fruition,” said Colin Reed, chairman and CEO of Ryman Hospitality Properties. “Nashville has been a driving force for tourism to our city and state since its inception, and season five will continue that momentum by allowing millions of people around the world to get a glimpse of what goes on in Nashville that makes it different from anywhere else on the planet they could visit.”

The show has also taken local film production to another level, providing steady employment for hundreds of workers behind the scenes. The local payroll was in the neighborhood of $21.2 million for season two, according to the most recent numbers released by the show's representatives.

“The social media demand to bring the show back has been overwhelming, and we are thrilled to be able to get to 100 episodes, which has always been the goal to help give the show longevity in syndication,” CVC President and CEO Butch Spyridon said.

Reporter Adam Tamburin contributed to this story. Reach Nate Rau at 615-259-8094 and on Twitter @tnnaterau.

'Nashville' incentives

Season one: $14.4 million

Season two: $13.25 million

Season three: $8 million

Season four: $10 million

Season five: $11 million