Core Media Group, the company responsible for the hit show American Idol, has filed for Chapter 11 bankruptcy protection citing deterioration in its financial performance. This comes on the heels of the show concluding its 15th and final season. Core is also responsible for So You Think You Can Dance. Some may find it hard to believe that a company responsible for two shows with such a strong television presence could be struggling financially, but profits have decreased for some time.
Loss of Earnings and Sponsors
According to USA Today, earnings for Idol fell $15 million in 2014 and total earnings for Idol and other shows produced by Core decreased by $35.6 million in the first half of 2015. Also, Idol’s airtime decreased to 42 hours from 56.5 hours. Peter Hurwitz, the president of Core Media Group, stated that this decrease caused Core to spread their costs over fewer production hours. Idol also lost large sponsors and had a sharp decrease in merchandise sales.
Replacing the revenue produced by Idol will be extremely difficult and there are many individuals that face the same problem. When a family has a steady source of income, and that income one day disappears due to job loss or decreases, they often find themselves unable to pay their creditors. This is not due to poor financial planning, but is instead the result of unforeseen circumstances over which they had no control. When this happens, formal debt relief through a chapter 7 bankruptcy or a chapter 13 personal reorganization is sometimes needed.
If you have recently lost a source of income or find yourself unable to pay your creditors for any reason, we can help. Our experienced attorneys will analyze your case and guide you through the many available options to get you on track to financial stability.