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How Soapies Make Big Money

February 8, 2010 by Phathu  

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television

If there is one thing South African television viewers love, its soapies – whether you like it or not, soapies have become part of our staple viewing diet.

There are currently nine South African locally produced soapies on air,  Generations, Muvhango, Isidingo, Rhythm City, Scandal, Binnelanders, 7de laan, Villa  Rosa and Egoli, which will soon die.  South Africa produces more daily soapies than any other country in the continent, which is a mean feat considering that many African broadcasters are still struggling to produce a mere 13-part episodic drama. However, have you ever wondered how these shows make money for their channels and how lucrative they are? Here is the low down on the big money cows that South African soapies have become.

generations

An average soapie in South Africa, that is your half an hour show that airs five times  a week,  comes with a staggering budget of between 35 million rands to 55 million rands, yes that is how much it cost to produce those dozens episodes of your favourite show per season! Where does the money come from, you may ask.  All soapies are owned by their respective channels, and the production companies are commissioned to produce the soaps. The respective channel will give the production company that much money to go and make the show so that the channel can have something to broadcast come 6:30 pm or 8:00 pm!

How does the channel make its money back? Advertising, this is how channels are able to make back the money they invested in soapies and still make a hell of a profit from them! Contrary to popular belief, television executives are not as stupid as some of you might think; they are probably some of the smartest people in business.

Rhythm City logo_2009

Soapies do not actually play for half an hour, it is usually between 22 minutes to 24 minutes, depending on the show. The remaining minutes are used for advertising, the commercials that come on your screen whenever the show goes to an ad-break – yes, Vodacom, KFC and Pep pay a hell lot of money during Rhythm City and Generations ad breaks.

The more people watch the soapie, the more expensive it is to advertise on that soapie, but since Unilever wants to sell millions of those white Ponds bottles – they will pay! The channel is able to make its money back in that way. The channel can also make its money back by product placements, which is when you see Clover’ Krush juice on every scene of your favourite soapie or Smart Gym becoming a set and every character is suddenly drinking Amstel . All that money goes back to the channel. It is estimated that Generations makes around R500 million for the corporation.

7de laan

The Ratings game:

This simply means how many people are watching the soapie. There is a scientific method used to calculate how many people are watching TV at certain times of the day, a data process that can show you how many people are watching which show and when, I will not bore you with how it is done. The fact is that these channels can be able to determine how many people watch a certain show. So the more people watch a certain soapie, the more advertisers will fight for a spot on that soapie and are willing to pay top rand to have their goods advertised during that soapies’s ad break. However, when no one is watching a particular soapie, the channel executives are not able to demand a higher fee from advertisers; this means the channel starts losing money. Then a show is in a crisis, it becomes too expensive to produce and the smart executives will pull the plug. That is what happened to Backstage and I am assuming it is the same fate that saw the sword fall on Egoli, which started to languish at the bottom of the ratings. There were also fears that the hammer might fall on Isidingo last year, but the show has been revived and its safe, thanks to a brilliant team of writers.

The LSM issue:

LSM means Living Standards Measure, this is one thing soapie producers hate and advertisers worship. This system tells the channel and advertisers what type of viewers watch a specific show. People in the lower income, that is your cashier at Pick n Pay and the 2010-construction worker , are considered lower LSM and the executives at a bank or someone who earns well is considered a higher LSM. Here is where the trick is, it does not matter how many people watch your soapie – it is how much buying power they have.  Advertisers want to get maximum exposure for their brands and they will not go and advertise Skip while Muvhango is playing, because majority of the viewers that watch the soapie are in the lower LSM range, but OMO can advertise there as most of abo-mama use hand wash. Skip is better suited on Scandal or Isidingo, because these soapie appeal to a higher LSM mindset.  The bottom line is your soapie has to have many viewers with buying power – now you are in business. (Calculate your LSM HERE)

MfundiProduction Fee:

If you think business executives have money, you have not met soapie television executive producers, those people roll in money and this is how they earn their keep.  Let us say you are the executive producer of a certain nameless soapie, as much as the channel owns the soapies and have commissioned you to produce it, which most of the time is all your idea.  They pay you a production fee for producing the show for them, this is a cut you get from the entire production budget, it is a big cut – but with financial driven channels, you can only get a decent production fee when the ratings are good. Therefore, the more people watch Generations, the richer Morula Pictures’s Mfundi gets! That is also why E-tv’s soapies are always dishing out melodramatic stories to keep you watching, if they don’t – they lose the power to demand more money from the channel – which is the reason they are in the business in the first place , besides they don’t want to be replaced by Debra Patta’s hour long 3rd Degree do they?

Soapies are big money spinners for both channels and creators.

Now you see there is an easier way to become a millionaire in this country and you do not even have to play Power Ball, all you have to do is become a creator of your own soapie – good Luck

Here is how much it will cost to advertise on some of SABC’ S soapies in March 2010:

  • Generations: R 77 000 at 8:00 pm, R 16500 at 9:00 am repeat, R 14000 Saturday omnibus.
  • Isidingo: R 32 000 at 6:30 pm, R 9000 at 11: 00 am repeat, R 13 000 on Sunday omnibus
  • 7DE Laan: R 80 000 at 6: 30 pm, R 18 000 at 15:00 pm repeat, R 21 000 Sunday omnibus. Note that even though Generations has more than double 7de Laan’s viewers, it is still more expensive to advertise on 7de Laan than Generations. The reason is that the viewers who watch 7de Laan have more buying power, higher LSM than those who watch Generations. The Afrikaans market is considered to have more buying power on TV than any other market.
  • Isidingo/ Generations/ 7de Laan: note that these three shows still have cross repeats amongst their own channels. To advertise during Generations’ repeat on SABC 3 at 10:30 am costs R 10 000.00.  To advertise during 7de Laan on SABC 3 at 10:00 am in the morning costs R 14 000.  Whereas to advertise during Isidingo on SABC 1 at 8:30 am costs R14 000, which is more than what the show asks for on its own channel SABC 3’s repeat, because more people watch SABC 1 than SABC 3.

And this was how much advertisers paid in January 2010 to advertise on E-TV’s soapies

  • Rhythm City: R 35 000 at 6:30 pm, R 5000 repeat at 9:00 am, R 14 000 during the Saturday omnibus
  • Scandal: R 35 000 at 7:30 pm, R 5000 repeat at 9:30 am, I wonder why they do not extend the show to five days. They could just milk it for more money.

Hope you enjoyed that bit of education.

  • figures quoted are for 30 second ads.


By Phathu Makwarela ©

Source: SABC Group sales,  Rtv-rates card January 2010.

Comments

56 Comments on "How Soapies Make Big Money"

  1. Sthe on Mon, 8th Feb 2010 12:51 am 

    Wow,wow,wow.Interesting read no doubt.I knew dat advertising costs a lot but 4 that amount 4 a minute long advert is just 2 much,but they pay still.Geez some people have geld neh?…Now,these channels…uhm…SABC shouldn’t be getting in debt now.Nicely done,Phathu!

  2. Brown Shuga on Mon, 8th Feb 2010 1:00 am 

    30 seconds Sthe, not 1 minute

  3. Lela on Mon, 8th Feb 2010 1:25 am 

    Tjo! 30sec pho.

  4. Sbozh on Mon, 8th Feb 2010 1:52 am 

    The most interesting thing I’ve read this morning, thanks Lelz

  5. Brown Shuga on Mon, 8th Feb 2010 1:54 am 

    @ Sbozh, Thank Phathu for the brilliant article.

  6. P.S on Mon, 8th Feb 2010 2:09 am 

    A very informative piece indeed,Tjo! for 30seconds bathong and adverts like “Herbex hlasela mafutha” are still surviving.Just curious:so when paying 4 your advert is it a once off thing or u paying 4 a number of times your product is beeing advertised?

  7. pinana on Mon, 8th Feb 2010 2:20 am 

    @P.S… i think it says per month.

    Great article, Phathu, as usual. You left Muvhango out altogether.

    For a minute I thought to myself.. “oh, maybe its not a soapie” but then I scrolled up and you had mentioned it on the first paragraph.

    Shem maybe bona its only R6000 for a minute-long advert, and for the omnibus on Saturday its R1500. Coz they surely dont have much viewership, or do they?

  8. P.S on Mon, 8th Feb 2010 2:24 am 

    k Pinana

  9. Kem Moc on Mon, 8th Feb 2010 2:33 am 

    Ive always thought of Phathu as 1 of duz dulllll people like bo Thembi or Zwai mara nt anymore.. nw I feel i can write an Advertising exam & get an A. Im impressed

  10. pinana on Mon, 8th Feb 2010 2:46 am 

    lol

  11. Makgotso on Mon, 8th Feb 2010 5:49 am 

    Impressive information there Phathu,thanks

  12. Phathu Makwarela on Mon, 8th Feb 2010 7:09 am 

    @ Pinana – cant i write an article on JC that has nothing to do with the show i write for? You’ll be suprised by the ratings of that show – the last time i checked it was the second most watched local soapie after Generations, and if you really want to know how much it costs to advertise on that show..here are the rates:38 000 @ 21:00 PM, 12 000 for 15:30 repeat, 17 000 for the saturday omnibus. I hope this helps.
    LOL@ Kem Moc – what gave u the idea that i was boring?

  13. blu on Mon, 8th Feb 2010 7:53 am 

    Thanks Phatu

    most of the thingsm entioned here i knew

    can you please write one about how the ratings are calculated
    thats one thing i need to understand

  14. Arthur Charles Van Wyk on Mon, 8th Feb 2010 8:20 am 

    I’ve actually timed Backstage at one point and I got a full 18 minutes of soapie if you minus the advertising.

  15. Lahvee on Mon, 8th Feb 2010 8:23 am 

    Thanx Phatu! Great writing, especially when you explain stuff. Like I wondered why it costs more to advertise during 7nde laan than it is ko Generation, but you were quick to explain in the next line. Wow.. Thanx for the info. Now I’ll watch TV to see which companies are paying big bux :)

    So tell me, how much are the Booths getting paid by LG during desperate housewives. And why there is 10 ads during MNET shows, clearly ppl with DSTV have more “buying power”, so how much do they pay to advertise during the very popular shows?

  16. Lahvee on Mon, 8th Feb 2010 8:25 am 

    Yah Muvhango and Clover man!! Generations and Woolies, Amstel & Strongbow. Yes we notice :)

  17. NiccY on Mon, 8th Feb 2010 8:25 am 

    thanx, very informative.

  18. Lahvee on Mon, 8th Feb 2010 8:27 am 

    Tjo.. Im high LSM :) Thanx for that too Phatu ;)

  19. Hotazhel on Mon, 8th Feb 2010 8:31 am 

    I’ve noticed that 7de Laan has Clover products doing product placements. How much does that cost?

  20. Sasha Fierce on Mon, 8th Feb 2010 8:34 am 

    WOW!!!Brilliant piece Phatu and u did mention Muvhango when talking about the Clover Krush…hahaha!!!Its on every table…from etwatwa to the chiefs place..and u just had to say “the cover krush IN YOUR FAVOURITE SOAPIE”…i beg to differ

  21. Brown Shuga on Mon, 8th Feb 2010 8:41 am 

    LOL @ favourite soapie…Sasha Fierce you’re so observant…Ya uthanda kabi Phathu, favourite soapie my a$$

  22. Sasha Fierce on Mon, 8th Feb 2010 9:02 am 

    now i feel bad!!!!I gues i can have a red pen when i want to !!!!!

  23. Tshego on Mon, 8th Feb 2010 9:20 am 

    Hi Pathu

    Thanx again for the amaizing article, the info is invaluable to those of us interested in TV and have no contacts willing enough to be so candid about the ins and outs of the industry.

    Thanx, looking forward to your next offering

  24. Kiki on Mon, 8th Feb 2010 9:32 am 

    wow,interesting

  25. Minky on Mon, 8th Feb 2010 9:52 am 

    Thank you Phathu!

  26. Makgotso on Mon, 8th Feb 2010 10:19 am 

    Great stuff Phathu,dankie.

  27. Afro Samurai on Mon, 8th Feb 2010 10:54 am 

    7DE LAAN at R80 000?!Hayi khona,there must be some delusional people there.Isn’t it the least watched soapie at 18:30 timeslot?

  28. Enkosi on Mon, 8th Feb 2010 11:02 am 

    mama ka Gundi, Phathu is the legengary Harambe24? Hayi yithi uyaxoka. Anyway I love both of you :)

  29. Silvio on Mon, 8th Feb 2010 11:37 am 

    very informative!

  30. Monchooza on Mon, 8th Feb 2010 11:46 am 

    nice one….very informative…Now Phathu…how about telling us How much the actors in soapies get..lol

  31. Godfrey Nekuvule on Mon, 8th Feb 2010 11:48 am 

    Thanks for the information Mr. Makwarela…….

  32. Sabz on Mon, 8th Feb 2010 11:53 am 

    So since these big soapies rollng big bucks, are the actors and actress payd very well???

  33. sponono on Mon, 8th Feb 2010 12:17 pm 

    Phathu is Harambe….LOL..well das inneresin…Thaks for another very informitive article…I’ve also noticed teh product placement is abit all over from Ruby’s shebeen amstel to Move-an-Go’s Krush…

    Kem Moc…i wonder what gave you that idea..coz if harambe and Phathu are the same..the word dull does not apply…capiche!!LOL..

  34. Lu on Mon, 8th Feb 2010 12:25 pm 

    LOL @ naming & shami..I mean faming

  35. Lahvee on Mon, 8th Feb 2010 12:25 pm 

    Yes, I second Moonchoza..how much do actors/actresses take home, you dont have to be specific (i.e. Connie Ferguson earns R75 000 a month)… just give us estimates :)

  36. Nogs on Mon, 8th Feb 2010 12:29 pm 

    How much is katlego Danke taking home…I love my little Dinny bathong!!!

  37. Bee on Mon, 8th Feb 2010 1:06 pm 

    Mr Makrwele jst ignore stupid comments. Fact is you are good at what u do. @da article. I always look forward to yo articles and this one no man is killa. First tym i saw Foundry, amstel and strongbow ön Gene-gene i asked my sele WTH bt now u made it clear. Nice article and much appreciated.

    @Miss BS can u extend Phatu’s weeks plz!

  38. Johnlegend on Mon, 8th Feb 2010 1:12 pm 

    Oooh Phathu you are the best….I certainly enjoyed reading this, thanx

  39. pinana on Mon, 8th Feb 2010 1:26 pm 

    kwa kwa kwa kwa @ move-an-go… lol Spopo

    First time I saw Strongbow on Genrubbish I was like, WTF is this? strong whaaaaaa??? I even thought its referring to a certain private body part….

    …then i saw its actual adverts and I still don get the product. Its still looks and sounds like a cheaper version of Carling Blacklabel, only sold in mines.

    But Phathu.. your articles are always good and informative… dont mind what we all have to say. You are a good writer, qha…
    And by the way, when I spoke about Move-an-go earlier on, it wasnt a personal attack, I was just interested in knowing how much the show is doing yona advertising-wise…coz you didnt mention it up there…. well, i thought you didnt, until my attention was drawn to the Clover part.. and yha, favourite show se foot…

  40. Cleve on Mon, 8th Feb 2010 2:01 pm 

    then i saw its actual adverts and I still don get the product. Its still looks and sounds like a cheaper version of Carling Blacklabel, only sold in mines.

    Isn’t Strongbow like a the new Crossbow???

  41. Kem Moc on Mon, 8th Feb 2010 2:05 pm 

    Phatu nna i wanna knw Ace’s surname..

  42. Kabzan on Mon, 8th Feb 2010 2:16 pm 

    Nice article Phathu, so next time we want rough ideas on how MUCH these actors get paid!!! SALARIES!! yes we want to know!!

  43. Tommy on Mon, 8th Feb 2010 4:10 pm 

    Great piece of info and writing – making me more depro about my job!!!

  44. Jozi Outsider on Mon, 8th Feb 2010 4:15 pm 

    Phathu, thanks for a great read. You have just educated my “just cutious” mind. We appreciate your effort. Keep writting baba.

  45. Jozi Outsider on Mon, 8th Feb 2010 4:18 pm 

    I meant “just curious” mind.

  46. LEBERA on Mon, 8th Feb 2010 4:19 pm 

    Phathu man i do respect you for sharing this information for free with us , cause if u ask those people on top they wont tell us

    love u man

  47. PNI-girlz on Mon, 8th Feb 2010 4:22 pm 

    nice article Phathu, thank you!

  48. Cheesa on Mon, 8th Feb 2010 4:32 pm 

    Eish I didn’t have time to read this interesting article. I’ll read all at home. Great one again Phathu. I like the info. Tjeer Generations makes a lot of moolah maan. I wonder if the actors are paid that much . Please do a piece on that too. I heard Menzi Ngubane and Sonia Sedibe are paid more than abo Sophie Ndaba who have been with the soapie for years. I don’t want to say the salaries coz they might be not true lol.

  49. Phathu Makwarela on Mon, 8th Feb 2010 6:02 pm 

    I just want to thank each and everyone that enjoys reading my articles, thank you – its a good pat on the back. It takes a lot of hard work for me and Lelo to decide what articles should be published and what contenr would be relevant for you guys, sometimes we get it right, sometimes we dont – we learn as we go along. So thank you so much for the love and support.
    As for how much actors earn – eish, I would love to tell you who is the highest and lowest paid in soapieland but I will have to think about it coz i work in the same building as most of them,….BS: can i dish the 411? LOL

  50. Lela on Mon, 8th Feb 2010 8:08 pm 

    The best way 2do dat wud b sayn d highest paid person on gen n d average njalo njalo cz nami i wudnt take kindly 2 a fellow collegue who goes publishing my salary.

  51. Mntungwa on Mon, 8th Feb 2010 9:20 pm 

    LOL @ LSM, nice on Phathu!! Thanks for the education.

  52. Bongza on Mon, 8th Feb 2010 11:51 pm 

    Awesome, awesome, awesome! actually a nice follow up on last month’s article on TV production. Thanks Phathu, Now i cant wait to sound intelligent to those who are not yet rolling with JC, lol. Keep up the 411, we’ll keep browsing and spreading the word. B.

  53. Tweets that mention How Soapies Make Big Money | Just Curious -- Topsy.com on Tue, 9th Feb 2010 12:58 pm 

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  54. Chris on Tue, 9th Feb 2010 3:39 pm 

    very interesting article – had to look up programme specific cost on the dstv platform, and not surprising that kyknet is probably the most expensive channel to advertise on! check it out: http://www.oats.co.za/Portals/0/rate%20cards/march_2010_dstv.pdf

  55. setshego Chiziza Nyambe on Wed, 19th May 2010 3:53 pm 

    I like what i read, Eish thiz is dip, So these is hw money is made` Yo!

  56. Nicholus Ernest Vilakazi on Tue, 15th Jun 2010 3:30 pm 

    i never thought advertising on tv can cost such money,i’ve learnt so much from the readindgs.

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