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business newsIdol Worship
Fox's amateur hour still raking in profits.
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But despite this slight downturn, the television juggernaut responsible for bringing us Clay Aiken could potentially help a hurting economy come back.
Any panic surrounding the Idol ratings dip is largely exaggerated. For one thing, Fox's (NWS) season premiere still drew over 30 million viewers, experiencing only a slight drop in the coveted 18-49 age demographic and beating ABC (DIS), NBC (GE), CBS (CBS), and CW (TWX) combined. Considering that more than 2 million American jobs have been lost since the last season of AI ended in May, TV's most popular show couldn’t have come at a better time.
Of course, the idea that American Idol could help resuscitate the economy isn’t entirely new. The last US recession, in 2001, lasted a single quarter. The next year saw the series premiere of American Idol and the economic rebound - though, to be fair, it did have som help: The iPod also debuted in 2001.
Since then, the show has become an absolute monster, leading to mammoth partnerships with corporations ranging from Cingular (T) to Apple (AAPL) to Coca-Cola (KO). Even the beleaguered Ford (F) thinks the show is worth some $328.5 million in advertising - $78 million last year alone. That’s a lot of money for a talent show.
This season has already created one new job: A new judge, songwriter Kara Dioguardi, was added to the AI jury this year. And AI's producer Simon Cowell (who reportedly earns over $30 million a year) called one contestant’s former boss to beg him to give the Idol hopeful her job back.
More recently, the show’s producers have collaborated with the team behind the hugely successful Now That’s What I Call Music series, opened an AI-themed attraction at Disney World, and launched a mobile video game with publisher EA (ERTS). All on the heels of season-7 winner David Cook’s debut album being certified platinum.
The show has also helped a sluggish music industry. Since the show’s debut, American Idol artists have sold more than 19 million albums and 4.5 million singles worldwide. Additionally, artists appearing on the show get a sales boost: Queen, for example, saw album sales improve almost 500% in the week following their 2006 appearance.
But even more vital than the money may be the show's spirit. With season-1 winner Kelly Clarkson having risen from complete obscurity to superstardom, the show proves that hard work, free enterprise, and well-placed judgmental barbs can still secure the American dream, even in this frosty economic climate.
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