In a recession, people seem to be turning to expensive scripted
fantasy instead of cheap unscripted semi-fantasy, which is not exactly
what the networks want to hear (and now you know why they want to
bring variety shows back):

http://latimesblogs.latimes.com/showtracker/2008/11/tough-reality-a.html

The aging of many of the tentpoles ("Survivor" now 8 1/2 years old,
"Dancing" 3 1/2 years), failure to develop successful new shows
(helloooo, "Opportunity Knocks" and  "Stylista!") and just plain
overexposure (combining network and syndication, up to 12 episodes of
"Deal or No Deal" in any given week--and "...5th Grader?" could be
going to syndication next year?) could be other reasons, although one
would think that the dreams-could-come-true element of most game shows
since "What's My Line?" left network television could keep those shows
alive in a recession.
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