The author of that article make a moral judgment on the fairness of this practice, but the idea is entirely rooted in intelligent economic theory. The U.S. television industry is able to produce better programming for less per viewer, specifically because it cultivates these economies of scale. By producing with an audience of hundreds of millions in mind, the U.S. television industry is seeking those economies of scale as a source of competitive advantage. Today, most such programs are produced by media conglomerates that can offset the initial production cost of a new program with profits from other, established revenue streams. This allows them to take more risks with respect to research and development, resulting in more and better programs. When those programs get to market, they are not only more attractive, but the economies of scale in production mean that they are more competitively priced than shows produced elsewhere. In recent years, American television stations have become exported around the world as well. Time Warner, Fox and other broadcasters now have foreign subsidiaries, and bring U.S. programs to those countries to help fill out the schedule. This builds the appeal of U.S. programming in foreign markets.

The wide variety of American television programs also allows for its broad appeal, both internationally and domestically. The U.S. television market is highly specialized, meaning that there is, so to speak, something for everyone. Almost all consumer markets are targeted, and this allows the industry to market specific types of programs abroad where there is significant demographic and psychographic fit, while keeping some programs in the domestic market. Many of the shows that succeed around the world are the same ones that are the most successful domestically. These programs are often centered on broad human themes to which global audiences can relate. As foreign audiences become increasingly Westernized as the result of economic...

Most programs are also tested in the sophisticated domestic audience, with only the most successful being targeted for export. The decades of experience that American audiences have with the hundred-plus channel universe may not make for more sophisticated consumers, but it makes for a more sophisticated market where producers are able to establish quickly those programs that have broad appeal. This shortens the time it takes for a program to be taken to export markets and it increases the odds of success in those markets.
Other nations have built strong export markets for their television programs as well. The UK in particular has developed strong export markets in the English-speaking world and has seen its industry grow rapidly (Allen, 2009). The U.S., however, remains the market leader in television exports. The industry owes this to its economies of scale, the high production value of its product, the well-established channels of distribution and the proliferation of cable and satellite that has increased overall demand for television programming. When these factors come together with the broad societal trends towards economic development and increased interest in Western culture in general, the U.S. television production industry is a primary beneficiary.

Works Cited:

Adler, T. (2008). 'House' set to be most popular U.S. TV export to Europe for 2nd year running. Deadline London. Retrieved October 14, 2010 from http://www.deadline.com/2010/01/house-set-to-be-most-popular-u-s-tv-export-to-europe-for-2nd-year-running/

Hoskins, C.; Mirus, R.; Rozeboom, W. (1989). U.S. television programs in the international market: Unfair pricing. Journal of Communication. Vol. 39 (2) 55-75.

Allen, D. (2009). UK television exports up 25%. Tech Watch. . Retrieved October 14, 2010 from http://www.techwatch.co.uk/2009/12/02/uk-television-exports-up-by-25/