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Idol Riches

A back-of-the-envelope calculation of how much the hit TV show has been worth to all the stars, wannabes, and do-gooders who make money from it.

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American Idol

When Ryan Seacrest asks viewers to vote during the season finale of Fox’s American Idol this month, the winner’s tally could rival Barack Obama’s 67 million in the presidential election. (Last year’s Idol winner, David Cook, amassed 54.5 million votes out of 97 million cast.) No other entertainment property on the globe has that kind of pull. “It’s a community-engaging activity,” says branding expert Martin Lindstrom. “Everyone feels they have a say in it.” But every brand has its peak. Since its 2002 launch, the singing contest has slipped in the ratings: The 2009 season premiere was down 10 percent compared with last year’s. The show’s producers are pulling out all the stops to keep it fresh—adding a fourth judge, a wild-card round, and double elimination. Still, American Idol is doing its part to keep the not-so-idolized economy afloat. We talked to industry experts to come up with an estimate of just how much money the show has generated in its eight seasons.

1. TV TimeAdvertisers pay $750,000 (up from $500,000 a few years ago), on average, for a 30-second spot—and as much as $1.3 million during the finale. According to TNS Media Intelligence, the show has racked up $3.6 billion in ad sales since 2002. The American version of Idol is distributed in 108 countries and territories, bringing in an estimated $250 million a year (about $2 billion overall). Coca-Cola, Ford, Apple, and AT&T have branding deals priced at $26 million each, on average, which have added up to roughly $800 million since the launch. Nielsen Media counts more than 4,000 product placements each season—everything from Old Navy to iTunes.
TV Revenue: $6.4 billion

2. Life After Idol
After the likes of Kelly Clarkson and Carrie Underwood leave the Kodak Theater with the title of American Idol, the ripple effects begin. Sales of albums and downloads from Idol alums have garnered more than $600 million. Summer concert tours by the top 10 finishers have earned an average of $30 million a year. Fremantle Media, which owns all rights to American Idol licenses, has 40 or so licensees a year and has earned an estimated $400 million to date on everything from Dreyer’s American Idol ice cream to McDonald’s Happy Meal toys. Jennifer Hudson’s career epitomizes the Idol success path: After the show, she got a part in Dream Girls, which won her an Oscar, earning her a role in the Sex and the City movie and an Avon cosmetics deal worth $3 million.
Idol Afershock: $1.1 billion

3. Fringe BenefactorsViewers donated more than $135 million during Idol’s two giving-back episodes, in 2007 and 2008, which raised money for a selection of U.S. and African charities, including Save the Children and Malaria No More. The singing match has also reincarnated the talent competition as a reality-TV genre. Advertisers have shelled out $580 million in the past three years for So You Think You Can Dance, America’s Got Talent, America’s Best Dance Crew, and other copycat shows that were spawned in Idol’s wake.
Outlier's Take: $715 million

Bottom LineWho will win in the Season 8 finale? Apparently, everyone.
Total Estimated Idol Riches: $8.2 billion


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