5. Television Production Flashcards
Why is the production of media content expensive?
Because it involves significant creative labor and specialized equipment, with costs rising over time. Factors like cast size and special effects also contribute to expenses
What is the economic relevance of the first copy in media production?
The first copy requires substantial investments, but subsequent copies can be produced at lower costs. This understanding influences business strategies and revenue models in media production firms
Define deficit financing in television production
It occurs when producers invest their own funds to cover the remaining costs of a TV show. They risk losing money if the show fails to generate revenue
Describe the cost-plus system in television production
It’s when the broadcasters cover the entire production budget and pay producers a small fee upfront. This shields producers from financial risks but limits their ownership of secondary rights
Explain the concept of windowing in television production
It involves strategically releasing TV programs across different distribution channels or “windows” to maximize profits, considering factors like price discrimination and timing
How can windowing be interpreted in the context of the global market?
Producers target multiple distribution channels and territories to capture the most value from each viewing opportunity, considering audience preferences and willingness to pay
Why is international trade important in the media market?
Because it allows broadcasters to meet the demand for programs, save costs, and offer viewers more variety, especially with the rise in important shows due to increased channel availability
What is the strength of US producers in international audio-visual trade?
They dominate the global exports due to factors like English being an international language, a well-funded industry, a large viewer base, substantial financial resources, and a talented workforce
What are the key advantages of the large US television audience?
It contributed to higher revenue for TV content production, enabling the creation of high-budget shows, and attracting advertisers
How is the European TV market different from the US market?
It faces language barriers, distinctive cultural differences, and a focus on local audiences due to the origins of many networks in public broadcasting
How does the quota system support the European TV market?
It promotes indigenous production and protects against US domination by requiring European broadcasters to air at least 50% of European content
Compare and contrast protectionism and free international trade
Protectionism aims to shield local industries from foreign competition, while free trade encourages competition and innovation. This debate influences trade policies balancing economic interest with cultural concerns
