How Reality Television Shows Earn Massive Profits

4. Global Format Licensing and Adaptation Fees

One of the most powerful monetization strategies for reality TV is the sale of the "format" itself. Unlike a scripted show that must be translated and re-shot with new actors, a reality format (like Survivor or The Voice) is a successful, proven set of rules and dramatic structures that can be licensed to broadcasters around the world. The original production company or network receives massive licensing fees—often in the millions—for the right to adapt and locally produce the show in dozens of different countries. This strategy generates passive, high-margin income long after the initial version of the show has aired.