Distribution windows were numbered as a result of producers reselling original-run episodes to international markets, independent stations and broadcast affiliates to combat the costs of deficit financing.
Studios found that reruns of one-hour dramas did not sell as well as sitcoms, so they were unable to fully recoup the shows' costs using the traditional deficit financing model.
Although the deficit financing system places minimal financial risk on the networks, they lose out on the future profits of big hits, since they are only licensing the shows.
Others argue the rules made the work of independent television production companies much more difficult because smaller companies could never afford the deficit financing required unless they received network assistance.
Television deficit financing also helps to minimize the substantial risks and costs of developing programs for the networks and gives studios initial benefits as well.
Deficit financing minimized the substantial risks and costs of developing programs for the networks while initially affording the studios considerable benefits as well.