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"The credits alone for the show were the most costly and timely to make. HBO allowed for $4 million per episode which gave the show much room for a comparably large main cast, filming on location, and developing story, plot depth, and atmosphere. This budget was considerably more than what most television shows receive. After a two-thirds decline in season two compared to season one, HBO's president Chris Albrecht stated that the network would have considered keeping the show if the producers had been willing to lower the price of an episode to US$2 million; but the running costs for the sizable cast, the all-on-location shooting and the number of episodes per season were too enormous for them. The show did see a large spike in ratings for its final episode of season two but this was evidently not enough to stave of the cancellation of the series."

I found this info about Carnivale and many other shows that have been cancelled from:

http://www.cannedtv.com

They have lots of news and info on cancelled television series.

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Q: Why was the series Carnivale cancelled?
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