The Three Budget Buckets Running TV in 2026
A quiet financial reset now determines who gets an order and who gets cut
I laid out 5 burning Qs about Dana Walden’s plans in her new Disney role, and interviewed Fox TV Network president Michael Thorn as well as Universal book guru Jordan Moblo about the IP wars and Heated Rivalry phenomenon. I’m lesley.goldberg@theankler.com
“You don’t want to be so high it lessens your chances for a renewal.”
These are the sage words of a veteran showrunner currently working with a top studio and streamer to hammer out a budget for an upcoming series. It’s also a mantra for success in television circa 2026 as budget cutbacks continue to ripple through the industry after the Peak TV bubble burst.
“Everyone is feeling the budget crunch,” another showrunner tells me as he awaits a renewal decision on a show that broke out in its first season. Despite this show’s value to its platform and multiple press releases touting its performance, the drama has seen its budget slashed in the seasons that followed. “Everyone is looking for ways to do it cheaper,” the showrunner adds.
This is the new math of television: It’s not just about whether your show works — it’s about where it lands on the cost spectrum.
How did we get here?
At the height of Peak TV, production spending ballooned as streamers competed for soundstages, directors and top-tier talent. The pandemic drove costs even higher, from lumber spikes to Covid protocols. Then the 2023 strikes brought production to a halt just as Netflix pivoted from subscriber growth to profitability — what FX chief John Landgraf described to me as the “inflection point” that popped the Peak TV bubble. Other media companies, still building scale, were suddenly forced into austerity mode.
Just for good measure last year came President Trump’s tariffs, which — you guessed it! — also added to the costs of making television.
Now, with buyers consolidating and leverage shifting to platforms, making programming for less isn’t optional — it’s essential. HBO Max’s The Pitt — which costs $4-5 million per episode — has inspired a new wave of development that adheres to the former broadcast model. Canadian breakout Heated Rivalry, produced for the low end of a broadcast drama budget (blame Canada) and licensed by HBO Max, has also illustrated that sometimes less can actually be more.
“Spending foolishly is a good way to go out of business,” one top literary agent tells me.
Today, I’ll break down the three budget buckets — with exact dollar ranges — that have emerged to meet today’s realities, and the current series that fall into each bucket:
Budget Bucket #1: The cost ceiling that keeps bubble shows breathing
Budget Bucket #2: The mid-range number platforms are quietly steering everything toward
Budget Bucket #3: The prestige price tag that now requires near-flawless performance
