The article attempts to explain the apparent discrepancy between strong opposition to the minimum quota for Australian domestic drama and the regular supply of domestic drama in excess of the quota. The article examines the relative profitability of domestic and imported television drama programs in the Australian market. It finds that, although successful domestic drama series are popular with audiences and are profitable to broadcasters, the high risk associated with production of new series acts as a powerful disincentive. Consequently, it is likely that without regulation fewer domestic drama programs would be produced in Australia.