Where do game shows get their prizes (money in particular?

How do game shows get their money for prizes?

• i don't get how they can afford million dollar prizes and prizes like that.

• Answer:

  In response to a previous poster's implied question, if a quiz show you're on is not aired, you get nothing. *Most* shows get their prize money from selling airtime to sponsors. Compared to scripted programming featuring highly paid actors, even a hundred thousand dollar payday is peanuts to them. *Some* shows are insured. The Regis Philbin "Who Wants to be a Millionaire?" for example, was insured, most likely by Lloyds of London. That means the producer pays a fixed premium to the insurance company for each episode. The primary consideration is, I'd suppose, that each question pass a certain metric. For example, the $25,000 question should be answerable by not more than 45% of a group of randomly selected people and the $50,000 question by not more than 40%. Understand that this is my hypothesis and should not be taken as the gospel truth. I also suspect that "Are you Smarter than a Fifth Grader?" is insured. I say this because the top prizes are $100k, $175k, $300k and $500k? Why an odd amount like $175k for third prize? It really screams "actuarial adjustment" to me.