I don't personally have a TV so I'm basing this more on what I hear from my friends.
There's only one national TV station, called RUV. You can check the listings of shows here (just the first column- the second and third are radio listings): http://dagskra.ruv.is/dagskra/. Many American shows, and plenty from other Scandinavian countries too. All foreign media is subtitled, not dubbed, except for cartoons for children which usually play on Saturday morning.
Iceland does produce shows too. Some crime dramas, some comedy skit type shows, quiz shows, and news shows. The news and current events show Kastljós is very popular, for example. There are some reality shows too- Iceland has a top model show and there is of course a lot of hype around the selection process for Eurovision.
there are also several stations that you must pay a monthly fee to view and those generally show a lot of foreign media too, again with the occasional locally produced show. You can check out the listings for one of those channels here: http://www.skjarinn.is/einn/
Finally, there's a channel that shows UK football, and that's also extremely popular.
Given that I didn't watch much TV before kreppa and I still don't watch much, I don't think I can help you with the tv production question though. Hope this helps anyway!
Surviving Iceland
