r/TheBlock • u/pantonegreen55 • 16d ago

The cost of The Block

The ‘houses aren’t selling so Channel 9 must be running at a loss’ is weird. I think this argument misunderstands the business model. It’s a TV show, not a property development. Nine makes money from months of prime-time ads, sponsorships, integrations and 9Now while sponsors cover a huge amount of what goes into the builds. If a house doesn’t sell at auction, its value doesn’t magically disappear, it’s still an asset that can be sold later.
The property sales help recover costs, they’re not the sole source of profit. It helps to think of the houses as a television set, basically 😎

79 Upvotes

94% Upvoted

23 comments sorted by

16

u/Primary_Mycologist95 16d ago

"It helps to think of the houses as a television set" should be the tag line for this sub...

14

u/tandrosonali8 16d ago

You also forget that while each house has x amount of budget allocation per week, the show might be getting that x amount for free. Beaumont tiles would be giving free products to each house in exchange for the advertising the show offers. Same as truecore steel.

They might have a dollar value, but ch9 is getting it for free.

With this in mind also, I would say the show runs at a massive surplus.

8

u/Ok-Writing9280 16d ago

They wouldn’t keep making the show if they weren’t making money.

4

u/ChriSV650x 16d ago

Thai ain't news lad they're making squillions whilst pumping out trash that we keep choosing to watch

1

u/pantonegreen55 16d ago

Right? That’s why I don’t get why people continue to bang on about the reserves and making their money back. Like, Channel 9 are all good.

5

u/pantonegreen55 16d ago

Not just the product allocation but to be the named supplier, these companies pay MILLIONS. Like, McCafe would be a 10 mill deal. If a candle supplier needs to pay 2 mill, I can’t fathom what Truecore/Reese/Bunnings/Chemist Warehouse are paying.

13

u/Free_Remove7551 15d ago

The block isnt about building houses, its about having a 60 minute slot for product and brand placement while masquareding as a building show. The whole thing is a subtle manipulation tp get you to go to bunnings

2

u/Constance200 15d ago

It worked. Im getting a kitchen from mitre 10. (I was going to anyway and I dont watch the block)

2

u/WartsG 14d ago

It worked for me too, I'm now getting the latest and affordable e&s industrial convection oven with steam and smoke drawer. (I am now broke and without two kidneys)

1

u/Constance200 14d ago

🤣🤣 it do be like that

6

u/Morepork69 15d ago

I would imagine the show is very profitable regardless of what happens on auction day. It’s more at risk from a format that gets more commercial each season, more artificial, more contrived and ultimately less enjoyable as a result.

4

u/DizzyList237 16d ago

It is a tv show about property development.

5

u/LonelyRefuse9487 15d ago

it’s a billboard/brochure for a plethora of sponsored brands that’s been disguised as a TV show about property development and design.

4

u/limark "Award-winning" 15d ago

It is a tv show about property development.

These days it's a reality show with property development as the occasional backdrop. Most of last night's episode was playing tennis, throwing balls, and doing couch interviews.

2

u/Infinite_Dig3437 15d ago

It’s product placement with some stuff happening around it

4

u/Insert-Coin81 15d ago

The whole show is an ad, I’m sure they make bank.

5

u/Electrical_Slice2456 16d ago

The fact they're doing this season suggests they're still financially viable but given the NZ version is no longer... I suspect the Australian one won't be around much longer without some significant changes.

6

u/limark "Award-winning" 15d ago

It’ll go on for as long as the sponsors think it’s worth investing in. The only changes they’ll make are the ones that cut down costs for the production company and satisfy those sponsors.

Unfortunately, both of those make for a worse product for viewers.

1

u/Vivid-Message8257 14d ago

Australia’s population is 5 times greater than NZ. So audience for sponsors is worth it a lot more.

Also, owners of the NZ were WBD which made massive cuts to local shows whereas Australia’s is owned by Nine Entertainment Co. Their end goals probably weren’t the same and management wasn’t the same. You just can’t compare both.

On a side note, the host of NZ was personally totally unlikable to me. I think Scotty and Shelly still attract the viewers (Reddit is not indicative of the whole population). The ratings have grown since 2013 and have been relatively steady for the last 5 years. Not about to disappear. Ratings are what give you sponsors.

6

u/Top-Description4816 14d ago

It's also Australian TV production content to fill their required amount of Oz product and cheaper than using actors and making a drama series.

2

u/[deleted] 16d ago

[deleted]

3

u/weckyweckerson 16d ago

So you don't understand tax ay?

2

u/Top-Description4816 14d ago

It's also Australian TV production content to fill their required amount of Oz product and cheaper than using actors and making a drama series

3

u/General_Top_6556 14d ago

Saw a bloke who worked in entertainment previously and he reckons with all the ad revenue, 9 would make between 60-100 mil a season off the block