The difference is that He-Man and shows of its ilk weren't primetime shows. They were typically aired at a time when kids would be in front of the TV while their parents were either at work or making dinner, thus not in prime-time and not when families were deciding what show to watch as a group.Matel was a pretty good size, but it wasn't till the late 70's and early 80's with the likes of He-Man and such that toys and TV got their acts together. I can't see any reason that advertisers couldn't have made the connection earlier in the 60's with a show like LiS and the many other kids shows then on TV. They simply didn't think of the shows themselves as an hour long commercial.
I've read contradictory information about Lost In Space's ratings. Most sources claim it was moderately successful, but not a hit, whereas other sources claim it was a hit.
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