Did 'Tim & Eric' Find The Answer To TV Fragmentation?

Fans of Time Warner Inc (NYSE: TWX)’s late-night Adult Swim programming are likely well-aware of the offbeat comedy of Tim Heidecker and Eric Wareheim, but a new story by Bloomberg’s Max Abelson sheds some light on the business behind “Tim & Eric.”

Heidecker and Wareheim have amassed a cult comedy following for their creative and chaotic shows like “Tim and Eric Awesome Show, Great Job!” Certainly their approach to comedy will never appeal to the mass market, but their content generates consistently solid ratings from a very loyal fan base.

The pair’s production company, Abso Lutely, managed a production budget of about $26.6 million in 2015, up 14 percent year-over-year. Business chief David Kneebone told Bloomberg that Abso Lutely has generated a steady flow of profits in the past two years and has even drawn the interest of a potential buyer.

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“The misconception is always that, based on our work, we’re lunatics who are complete acidheads, who just go around with underwear on our heads,” Heidecker said, “But we’re very responsible—very responsible to the work.”

"The Simpsons" executive producer Matt Selman believes that Tim and Eric’s model is a perfect fit for the fragmenting world of modern TV.

"There's no one in a better place right now for where TV is going than them," Selman told Bloomberg.

In the past year alone, Abso Lutely has produced Viacom, Inc. (NASDAQ: VIAB)’s "Nathan for You," Adult Swim’s "The Eric Andre Show," AMC Networks Inc (NASDAQ: AMCX)’s "Comedy Bang! Bang!" and Netflix, Inc. (NASDAQ: NFLX)’s "W/ Bob & David."

According to Heidecker, Abso Lutely’s independence has allowed the duo the creative freedom to hone their unique and original style.

“The outside world is scary to us. You carve out your own world? You can live a wonderful existence.”

Disclosure: The author holds no position in the stocks mentioned.