Our Media Group is committed to keeping up to date with industry activity, as well as issues and challenges within the media sector. As part of our ongoing pursuit to keep abreast of industry issues we decided to identify one of the sectors we work closely with and conduct research into the challenges facing that sector.
Vantis' Media Group commissioned a research project involving independent TV production companies (Indies). Our research team spoke to owners and directors of London based Indies to ask them about:
- The challenges affecting them and their business - what is keeping them awake at night?
- The role of their accountants in resolving these issues - are they happy with the advice they receive?
Our research findings showed that there were five key challenges that were concerning owners and directors in the independent TV production sector. These challenges are as follows:
- Increasing competition for a diminishing number of commissions - TV production companies are particularly vulnerable to the competitive landscape even though there are more opportunities to exploit their content across a variety of media
- Production funding is increasingly problematic and complex - there is clear evidence of discounting by broadcasters in the sector causing increased pressure on cash flow and profitability
- Finding suitably skilled staff and retaining them is proving difficult -Indies are finding it increasingly hard getting the right development teams in place including executive producers
- Funding growth and development - of the companies Vantis spoke with, 80% are looking to grow but with a lack of funds for overall development and difficulty in raising capital to grow online businesses, TV companies are finding growth management a major concern
- Regulation within the industry is increasingly complex - many TV production companies are facing a strong challenge when it comes to regulation as broadcasters continue to increase the burden of compliance and regulation.
Our research team discussed these issues at length with those people who kindly took the time to be interviewed. They also spoke with the research participants about the role of their accountants and advisers in helping to address these challenges.
For us understanding these issues is integral in identifying where we, as accountants and advisers, can offer our services to companies in the sector.
Below is a selection of some of the services we offer to address the challenges identified above:
- A team of media accountants and advisers on hand who have extensive experience of helping TV production companies to grow and prosper
- Business planning advice and strategic reviews
- Outsourcing services including payroll and accounting
- Devising strategies for growth; raising finance and deal structuring
- Planning exit strategies and preparing your business for sale
- UK and International tax planning
- VAT consultancy
- Employee Incentive Schemes, Interim Managers & Placement Services and training
The advice and guidance we provide also takes into account our experience of working with both producers and broadcasters.
If you would like to discuss any of the issues raised in this research or any of the services we offer to media clients please contact us.