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Question:

Selling syndicated reruns of a popular network television program while the program is still running on the network can lead to decreased revenues for that network. The show's producers do earn a great deal of money from the sale of the syndication rights because the stations rerunning the program are assured of a successful show. However, a recent study shows that over 80 percent of the programs that are made available as reruns and as first-run episodes during the same season suffer an immediate ratings drop for their first-run episodes.

The argument depends on assuming which one of the following?

Deconstruct the argument:
1. Selling rights to rerun a TV program while the program is running --> leads to Revenue decrease [Conclusion]
2. Earn great money from sale of rerun rights
3. If Reruns are available, First run face an immediate ratings drop [premise]

Pre-thinking:
I see that There is a conclusion of revenue decrease due to rerun but the premise only talks about the ratings drop of the first run episodes and nothing about revenue.
We have to find something which connects Revenue to Ratings. One assumption could be, the money earned from reruns is less than the money earned from losses that first runs might be facing and hence, an overall revenue loss.

Options Review:

(A) Programs that are sold into syndication early tend to be long-running hits that are likely to decline soon.
-It only tells us about long running hits but no information about the revenue drop or the connection to revenue to first run or re-runs. Hence, skip it.

(B) A drop in ratings has a negative effect on the network's revenues.
-Ratings drop = Revenue decrease. This is what we were looking for. If the ratings drop leads to reduction in revenue of the first runs, the overall revenue of the company has a negative impact leading to revenue decrease. Keep it for now(we haven't found something which tells the comparison of rerun earn vs first runs loss)

(C) The price of syndication rights includes some compensation for the network's probable losses.
-The discussion is about losses here but the conclusion is talking about the Revenue. Reject it.

(D) The audience of a popular program will usually prefer first-run episodes to reruns.
-Audience preference can be anything, it does not tell the connection of the preference to revenue. Reject it.

(E) Most programs are never sold into syndication.
-We are not interested in what most programs do, we are interested in the revenue drop of this specific program. Reject it.

Hence, correct answer is (B)
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when shows producers sells syndication rights, they make great deal of money because the stations rerunning the program are assumer of successful show.
but recent data shows that over 80% of the programs that are made available as reruns and as first run episodes during same season suffer an immediate ratings drop for the first run episodes.

conclusion= selling syndicated reruns of popular programs can lead to decreased revenue.

passage jumps from rating drops of first run episodes to decrease revenue for networks. we need to look for missing link that bridges this gap.

A this talks about what types of shows are being sold into syndication deal and what happens to those shows afterwards. but thats not the point of discussion here as we dont need to assume this to make conclusion about revenue drop. out.
B if rating drop affect the revenue then it definitely make sense to conclude that stations will have decreased revenue. if the rating drop has no impact then conclusion breaks down. so keep.
C this is way off the topic. we dont care about whats being included in their contract for any such losses. out.
D this talks specifically about popular programs and audiences preference for first run episodes. if thats the case then it violates the info given and weakens it. moreover we are not told what kind of programs are being sold. so this is not helping as well. out.
E who cares? irrelevant.

choice B
yc168
Selling syndicated reruns of a popular network television program while the program is still running on the network can lead to decreased revenues for that network. The show's producers do earn a great deal of money from the sale of the syndication rights because the stations rerunning the program are assured of a successful show. However, a recent study shows that over 80 percent of the programs that are made available as reruns and as first-run episodes during the same season suffer an immediate ratings drop for their first-run episodes.

The argument depends on assuming which one of the following?

(A) Programs that are sold into syndication early tend to be long-running hits that are likely to decline soon.

(B) A drop in ratings has a negative effect on the network's revenues.

(C) The price of syndication rights includes some compensation for the network's probable losses.

(D) The audience of a popular program will usually prefer first-run episodes to reruns.

(E) Most programs are never sold into syndication.
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