[quote name=\'Robert Hutchinson\' date=\'Jun 23 2003, 02:16 AM\'] The $8.32 Pyramid: "CHEAP!!" AOPVs run away in droves.
The $5,000 Pyramid: "They used to give away $10K and $25K in the '80s. Kinda cheap of them." A significant number of AOPVs tune out.
The $10K-$25K Pyramid: "Ooh, nice, round, familiar numbers. Wish I had that much money."
The $25K-$50K Pyramid: "Ooh, nice, round numbers. Wish I had that much money." (Producers: "The ratings only ticked up a hundredth of a point? Time to sell more blood.")
The $500K Pyramid: "Holy crap, that's cool! Too bad it never made it to air because the sponsors couldn't begin to cover the cost."
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Robert makes EXACTLY the point I was going to respond to JW with: you make the bonus game harder to win, you are going to alienate potential viewers, which means lower ratings, which means less revenue, which means you need to cut your prize budget for next season (if there is one), which means A) the bonus has to get even HARDER or B) the prize has to lower. Either way, it means lower ratings....
To maximize profits, you have to maximize the simple ratio of (Ad Revenue) / (Prize Budget). Which means you have to find a number for that prize budget, along with a frequency of payout, that gets the most people to watch, because the number of viewers DIRECTLY drives Ad Revenue.
For the sake of argument, let's say that my 10K payout for a :60 Alphabetics and JW's 25K payout for a :45 Alphabetics end up working out to an identical total prize budget. (Because a :45 Alphabetics is harder to win, it wouldn't pay out as often.) You have to ask yourself if the extra viewers you turn on with your Big Money Jackpot is going to make up for the viewers you lose because you can only afford to pay out on it once every two weeks. I'm suggesting it doesn't.
But, the chances are we'd have more successful runs of Alphabetics with the $10,000/:60 set-up, but I'd also bet that less money would be spent overall on prizes with a $25,000/:45 set-up.
The only way this can happen, using your proposed progressive system, is when the 25K pot hits whatever ceiling you assign to it and nothing more is added to it for a while. Consider: 5K is paid out each time you both play, no matter what ('cuz that's the increment, it will be paid EVENTUALLY), and your seed value (which kicks in when someone wins) is two and a half times bigger than Brandon's, which means you has to go all the way to 50K (or whatever, God help you if it's more) without a winner that much more often to keep the two budgets close. Granted, it only takes you six plays (or more) to get there, but the point is that means that you can pay out on it even less often than you think, or you have to pull in that many MORE viewers to alleviate the added expense. By and large, a game show that can only afford to pay out their grand prize at MOST once a week isn't gonna be on very long.)
Also, to supplement Robert's point about setting the prize too low...frequency of payout works into this too. If the jackpot were $5K in 90 seconds, you'd turn viewers off as well. In fact, this seems to be one of the the big knocks on the new Pyramid, that the jackpot is given away too often. Certainly it's a big part of why I don't watch it.
But, I'll also point to the $100,000 Pyramid, which did not reduce the Winner's Circle for \"regular\" wins and added the grand prize for the Tournament of Champions.
Noted. But also note that a) during tournament weeks, there were no 7-11 or Mystery 7 prizes available, much less given away, and b) the Winner's Circle had freakin' impossible categories like \"Things That Are Etruscan\", which meant the Big Fella (if I may Cosby momentarily) wasn't gonna be given away without a fight. So if you figure the prize budget for the regular show was 50K a week in the WC and another $15 in bonus prizes (remember, they frequently gave away cars for the Mystery 7), then assuming the Tournament lasted a week (and that seems to me to be about right), then the prize budget that week only jumped about 35K. Now spread that over a six-week tournament cycle (I think I remember Dick mentioning that was roughly the frequency) and you're looking at a modest kick of 5K a week in prize budget - more than reasonable for a nighttime syndication of a daytime show. Hell, Match Game PM had that ten or twelve years before.