NEW YORK (TheStreet) -- Twenty-First Century Fox (FOXA) shares are up 0.18% to $32.83 in trading on Monday after the company announced that it will be canceling its seminal talent search reality show 'American Idol' following the conclusion of its 15th season next year.
The Simon Fuller-created show debuted on Fox in the summer of 2002 and immediately became one of the most watched shows on American broadcast television. An episode of the show has been the highest ranked broadcast program in terms of viewership eight times during its run, peaking in season five when the show averaged 30.6 million viewers per episode.
However, rising production costs tied to enormous salaries paid to judges and hosts combined with falling viewership have doomed the once extremely profitable show.
American Idol allegedly pays host Ryan Seacrest $15 million per season, while Jennifer Lopez is also reportedly paid $15 million per season to judge talent for the show. Despite rising costs, the show brought in $578 million in revenue during its previous season, according to calculations by the New York Daily News.
However, that total is well below the $836 million in ad revenue the show brought in during the 2012-2013 season. This year's season has failed to reach 10 million viewers at any point so far, guaranteeing the show's weakest performance since it debuted 13 years ago.
TheStreet has further coverage of American Idol here.
TheStreet Ratings team rates TWENTY-FIRST CENTURY FOX INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation: