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?The argument says that selling reruns while new episodes are still airing can reduce the network’s revenues. The evidence is that first-run episodes often suffer a ratings drop when reruns are also available.
The missing link is that lower ratings for first-run episodes hurt the network’s
revenue.
(A) Programs that are sold into syndication early tend to be long-running hits that are likely to decline soon.
This weakens the argument. If the ratings drop would happen anyway because the shows are already likely to decline, then syndication may not be the cause of lower revenues.
(B) A drop in ratings has a negative effect on the network's revenues.
This is correct. The argument moves from “ratings drop” to “network revenues decrease.” That move requires assuming that lower ratings reduce the network’s revenues.
(C) The price of syndication rights includes some compensation for the network's probable losses.
This is not required. The argument is about whether the network’s revenues may decrease, not whether the syndication price compensates for that loss.
(D) The audience of a popular program will usually prefer first-run episodes to reruns.
This does not support the argument. If audiences usually prefer first-run episodes, reruns would be less likely to hurt first-run ratings.
(E) Most programs are never sold into syndication.
This is irrelevant. The argument concerns programs that are sold into syndication while still airing new episodes.
Answer: (B)