The show format was taken from the UK format Pop Idol. American Idol is screened on the Fox Network in the United States and on CTV in Canada. It was created by Simon Fuller (manager of the Spice Girls and S Club 7) and developed by Simon Jones of Thames Television. The directors are Bruce Gowers (director of Queen's original "Bohemian Rhapsody" video), Nigel Lythgoe (a judge on So You Think You Can Dance), Simon Fuller (creator) and Ken Warwick (Gladiators and Grudge Match).
the format is all around the world and in every country it produced by other people. check out all idol series link. and about the costs, I have no idea.