Surviving the ad downturn.

You have to hand it to the more acute merchandise suppliers in the US - they are quick when it comes to figuring out the latest "new thing". Undoubtedly, the latest mass merchandising prospect could be the developing enthusiasm for "reality TV". That's because, not only is there a huge potential for a large variety of spin-off sales, but the captive audiences are all over the world.

The hit series, "Survivor", is a case in point. CBS has already sold the first series to over 40 countries - with top buyers like Canada's Global TV, Ireland's TV4 and Australia's Nine Network among the many beaming the series - and developing identity with the goods - for diverse audiences.

On-line shops and book stores are carrying "Survivor" desktop calendars and board games. And other hit shows are picking up the marketing baton. "Who Wants To Be A Millionaire", is also launching its own paraphernalia. The board game, under the auspices of ABC TV, sells for US$40 online, and a game boy set related to the TV show is on sale at online auctioneer, eBay.

There is little reason to doubt that retailers will carry the products relating to a number of these "reality" hits, particularly since shows like "Survivor" and "The Australian Outback" frequently out rate longtime favourites, such as NBC's "Friends", in prime time positions.

Millionaire moves for product placement.

As studio executives are quick to point out, the reason why "reality" shows are appealing to them is straightforward enough. The shows are cheap to present, appeal to identifiable audiences and bring in the required revenues.

ABC and its parent, Disney, are prepared to acknowledge that "Who Wants To Be A Millionaire", which is a quiz show lumped with the "reality" genre for its powerful depiction of ordinary people, is the most lucrative programme in television history. It has earned almost US$1 billion in a little more than 18 months, sold the CD-ROM, the clothes, and has even become an attraction at Disney World.

Advertisers are making the most of the current "reality" craze. Retail giant Target has a highly visible tie-in with the "Survivor" series. There is little wonder, since "Survivor" has no less than eight corporate sponsors, and none of the products appearing are anything like subliminal, or even discreet. Logos of running shoes, towels and beer are just some examples, showing that reality TV is here to stay, with maximum opportunities for product development.

from Lawrence Chang, New York Office