Harpo Competition
Now Viewing Harpo's competition in: TV Program Production and Distribution (primary)
Call Preparation Questions
Customers, Marketing, Pricing, Competition
How does the company promote a new idea for a show? - Concept presentations, preview clips, and individual pilots are ways to promote programs and series to funding sources.
How important are executive and professional relationships to the company? - The industry relies heavily on professional relationships among production companies, distributors, and customers, and on public relations coverage.
How does the company publicize shows at various stages of production? - Variety magazine is the industry’s main outlet for information about shows receiving funding, under commission, and in production; pilot pickups; and news of actor commitments and executive changes.
Who are the company's major customers? - Typical customers are TV studios; broadcast networks and stations; cable and satellite companies; syndicates, which are agencies that sell groups of programs directly to stations; and the Public Broadcasting System (PBS).
What distribution method works best for the company? - Large production companies typically distribute their own products and other projects they've invested in, but most small companies use independent distributors.
What types of marketing are most effective for the company? - Major types of marketing for production companies include executive relationships to obtain funding and distribution partners, and a sales force to secure independent distributors, stations, and syndicates.
How significant are license fees, compared to other sources of company revenue? - License fees, the industry’s equivalent of product prices, from secondary releases typically contribute most of a TV production company’s revenue.
How is the company advantaged or challenged by negotiating license fees? - Production companies and distributors negotiate license fees from networks, cable channels, local stations, and other outlets that pay for the right to broadcast programs or produce them on media other than for TV.
How has competition changed in recent years? - Consolidation and joint ventures have concentrated funding and distribution power in a few major companies.
Competitive Landscape
Consumer leisure activity and the general economy drive demand. The profitability of individual companies depends on the marketability of products, mainly their potential to attract advertising revenue for TV networks. 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, niche audiences, or non-mainstream TV channels.
Full Industry Overview For TV Program Production and Distribution
Business Challenges
CRITICAL ISSUES
High Production Costs - Producing TV programs is expensive and costs occur well in advance of revenue. An hour-long network show can cost from $1 to $2 million to produce. Pilots for series are especially risky, as financial backing can cease at multiple stages before, during, and after program development or after one or more episodes airs. In addition to production costs, studios and networks often have financial commitments to key actors, directors, and producers.
High Failure Rate - Despite the larger number of exhibition outlets for TV programs, many productions are financial failures. The major networks combined accept fewer than 25 percent of TV pilots, a large percentage of which never air or run a complete season, due to low ratings by viewers or failure to attract advertisers. Major studios and networks spend large amounts on market research and forecasting models, but the industry has poor ability to predict public acceptance of any TV product.
Industries Where Harpo Competes
- Media
- Television
- Television Production & Distribution(primary)
- Film & Video
- Internet Content Providers
- Publishing
- Television
