TV Program Production & Distribution
Description
Companies in this industry primarily produce, or produce and distribute, television programs, television commercials, or videos. Major US-based companies include the television production and distribution operations of Disney, NBC Universal, Paramount, Sony Pictures, and Warner Bros. Discovery. Newer, but increasingly significant, entrants in the field include streaming services Amazon MGM Studios and Netflix. Leading companies based outside the US include Fremantle UK and ITV (both based in the UK).
Global TV viewership is expected to reach about 5.5 billion by 2029, according to Statista. Global industry growth is being led by digital home video platforms, including over-the-top (OTT), streaming, and video on demand services.
The US TV program production and distribution industry is part of the motion picture production and distribution industry, which includes about 15,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $67 billion.
Broadcasting of TV programs is covered in the TV Broadcast & Cable Networks industry profile. Cable TV system operators are discussed in the Telecommunication Services industry profile.
COMPETITIVE LANDSCAPE
Consumer viewing patterns and spending by advertisers drive demand. The profitability of individual companies depends on effective marketing. Large companies have advantages in financing, distribution, on-staff creative and technical talent, and multiple-year contracts with key performers and directors of popular programs. Small companies can compete successfully by focusing on special topics or niche audiences. TV program production and distribution is part of the motion picture production and distribution industry, which is concentrated: the 50 largest US companies account for about 75% of industry revenue.
Companies that produce and distribute TV programs may compete with producers and distributors of movies, though many companies deal in both forms of filmed entertainment. The major networks develop their own programs in-house through studio counterparts, which can make it difficult for independent studios to land a series on broadcast television. Internet streaming companies are also producing original content to attract new subscribers and retain existing ones.
The industry competes for consumer dollars spent on other forms of media, including books, magazines, and music, and competes for time spent with other forms of leisure activity, including sports, hobbies, and video games.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major products and services are the production and distribution of TV programs, commercials, and related products, like DVDs. Licensing of rights to distribute audiovisual works account for about 55% of the industry revenue, followed by broadcast television licensing rights (about 40%). Other revenue sources include audiovisual performances under contract and rental of audiovisual works. Program production types (genres) include TV movies; dramas; situational comedies (sitcoms); reality, game, and talk shows; documentaries; and children's, art, sports, and news programs. Most programs are scripted, though some genres are largely unscripted, including talk and reality shows. First-run programs typically earn less than subsequent releases for reruns ("repeats"); long off-network runs (syndication); and DVDs.
Industry revenue mix from major outlets differs for producers and sole distributors. Major sources of revenue for production companies include distribution to TV networks and stations; to cable networks; to various digital formats; and to international distributors and syndicates. For TV sole distributors, DVD and non-TV media are significantly more important, though distributors also receive business from TV networks and stations; international licensing; and cable.
Creation of a TV program, series, commercial, or other product goes through four phases: development, pre-production, production, and post-production. Large studios and networks often prefer to create on a proprietary basis and own the product. Other producers develop a program concept or a sample episode (pilot) to pitch to studios, networks, cable operators, or other potential sources of funding. For a potential series, funding may be only for one or a few episodes. Studios often make lucrative deals with showrunners, or writer-producers that serve as the executive producer, head writer, and script editor. Showrunners may be the creator or co-creator of a TV series and have creative control of the project.
After receiving financing, the program goes into pre-production. The producer secures director, cinematographer, and lead actor contracts; finalizes most details of the script; hires a production crew; ensures development of a detailed schedule that identifies timing and need for cast, costumes, equipment, and other production elements; and monitors rehearsals. The production phase is the actual filming of the program. Once shooting is complete, the program goes into post-production, which includes tasks such as editing, music scoring, audiovisual synchronization, special effects, and titles. The result of the cumulative post-production work is a master negative that will serve as the original source for any subsequent releases or copies.
Few programs and pilots make it to the screen. Backers can kill products at any stage, even after completion, or put them on hiatus for potential future use. After a pilot for a series airs on TV, if the audience is large enough and their reaction is favorable – according to ratings by market research companies like AC Nielsen – the network or station will commit to “pick up” a certain number of episodes. A network typically orders 13 initial episodes of a new series, with pickups usually adding nine more to carry the show through the full TV season. Few aired pilots succeed in becoming an ongoing series.
Distribution of first-run shows includes marketing to networks, stations, and other broadcasters that rent (“license”) programs; obtaining license contracts; advertising; and providing short promotional “clips” and copies of the show. Networks typically specify that broadcasters air a certain amount of network-provided content and commercials. Broadcast stations have more flexibility with non-network content and may contract with producers to shorten the licensed show to run more local advertising, which is more profitable for them on a per-minute basis.
Global TV viewership is expected to reach about 5.5 billion by 2029, according to Statista. Global industry growth is being led by digital home video platforms, including over-the-top (OTT), streaming, and video on demand services.
The US TV program production and distribution industry is part of the motion picture production and distribution industry, which includes about 15,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $67 billion.
Broadcasting of TV programs is covered in the TV Broadcast & Cable Networks industry profile. Cable TV system operators are discussed in the Telecommunication Services industry profile.
COMPETITIVE LANDSCAPE
Consumer viewing patterns and spending by advertisers drive demand. The profitability of individual companies depends on effective marketing. Large companies have advantages in financing, distribution, on-staff creative and technical talent, and multiple-year contracts with key performers and directors of popular programs. Small companies can compete successfully by focusing on special topics or niche audiences. TV program production and distribution is part of the motion picture production and distribution industry, which is concentrated: the 50 largest US companies account for about 75% of industry revenue.
Companies that produce and distribute TV programs may compete with producers and distributors of movies, though many companies deal in both forms of filmed entertainment. The major networks develop their own programs in-house through studio counterparts, which can make it difficult for independent studios to land a series on broadcast television. Internet streaming companies are also producing original content to attract new subscribers and retain existing ones.
The industry competes for consumer dollars spent on other forms of media, including books, magazines, and music, and competes for time spent with other forms of leisure activity, including sports, hobbies, and video games.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major products and services are the production and distribution of TV programs, commercials, and related products, like DVDs. Licensing of rights to distribute audiovisual works account for about 55% of the industry revenue, followed by broadcast television licensing rights (about 40%). Other revenue sources include audiovisual performances under contract and rental of audiovisual works. Program production types (genres) include TV movies; dramas; situational comedies (sitcoms); reality, game, and talk shows; documentaries; and children's, art, sports, and news programs. Most programs are scripted, though some genres are largely unscripted, including talk and reality shows. First-run programs typically earn less than subsequent releases for reruns ("repeats"); long off-network runs (syndication); and DVDs.
Industry revenue mix from major outlets differs for producers and sole distributors. Major sources of revenue for production companies include distribution to TV networks and stations; to cable networks; to various digital formats; and to international distributors and syndicates. For TV sole distributors, DVD and non-TV media are significantly more important, though distributors also receive business from TV networks and stations; international licensing; and cable.
Creation of a TV program, series, commercial, or other product goes through four phases: development, pre-production, production, and post-production. Large studios and networks often prefer to create on a proprietary basis and own the product. Other producers develop a program concept or a sample episode (pilot) to pitch to studios, networks, cable operators, or other potential sources of funding. For a potential series, funding may be only for one or a few episodes. Studios often make lucrative deals with showrunners, or writer-producers that serve as the executive producer, head writer, and script editor. Showrunners may be the creator or co-creator of a TV series and have creative control of the project.
After receiving financing, the program goes into pre-production. The producer secures director, cinematographer, and lead actor contracts; finalizes most details of the script; hires a production crew; ensures development of a detailed schedule that identifies timing and need for cast, costumes, equipment, and other production elements; and monitors rehearsals. The production phase is the actual filming of the program. Once shooting is complete, the program goes into post-production, which includes tasks such as editing, music scoring, audiovisual synchronization, special effects, and titles. The result of the cumulative post-production work is a master negative that will serve as the original source for any subsequent releases or copies.
Few programs and pilots make it to the screen. Backers can kill products at any stage, even after completion, or put them on hiatus for potential future use. After a pilot for a series airs on TV, if the audience is large enough and their reaction is favorable – according to ratings by market research companies like AC Nielsen – the network or station will commit to “pick up” a certain number of episodes. A network typically orders 13 initial episodes of a new series, with pickups usually adding nine more to carry the show through the full TV season. Few aired pilots succeed in becoming an ongoing series.
Distribution of first-run shows includes marketing to networks, stations, and other broadcasters that rent (“license”) programs; obtaining license contracts; advertising; and providing short promotional “clips” and copies of the show. Networks typically specify that broadcasters air a certain amount of network-provided content and commercials. Broadcast stations have more flexibility with non-network content and may contract with producers to shorten the licensed show to run more local advertising, which is more profitable for them on a per-minute basis.
Table of Contents
- Industry Overview
- Quarterly Industry Update
- Business Challenges
- Business Trends
- Industry Opportunities
- Call Preparation Questions
- Financial Information
- Industry Forecast
- Web Links and Acronyms
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