PrepTest 91+, Section 2, Question 15
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. The show's producers do earn a great deal of money from the sale of the syndication rights because the stations rerunning the program are assured of a successful show. However, a recent study shows that over 80 percent of the programs 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.
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. The show's producers do earn a great deal of money from the sale of the syndication rights because the stations rerunning the program are assured of a successful show. However, a recent study shows that over 80 percent of the programs 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.
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. The show's producers do earn a great deal of money from the sale of the syndication rights because the stations rerunning the program are assured of a successful show. However, a recent study shows that over 80 percent of the programs 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.
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. The show's producers do earn a great deal of money from the sale of the syndication rights because the stations rerunning the program are assured of a successful show. However, a recent study shows that over 80 percent of the programs 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.
The argument depends on assuming which one of the following?
Programs that are sold into syndication early tend to be long-running hits that are likely to decline soon.
A drop in ratings has a negative effect on the network's revenues.
The price of syndication rights includes some compensation for the network's probable losses.
The audience of a popular program will usually prefer first-run episodes to reruns.
Most programs are never sold into syndication.
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