Television Production in Transition: Independence, Scale and Sustainability

Lead Research Organisation: University of Glasgow
Department Name: School of Culture & Creative Arts

Abstract

This project is about crucial transformations in the structure of ownership of the UK television production industry characterized by increasing consolidation and the growing controlling presence of non-domestic parent groups and related socio-economic, strategic management and policy implications. It breaks new ground by, focusing specifically on TV production, investigating the relationship between, on the one hand, expansion, scale and differing sorts of corporate configurations (whether owned by a multinational parent company; vertically integrated or not) and, on the other, economic performance and capacity to engage in business strategies that sustain growth in a TV landscape increasingly characterised by globalisation and digital multi-platform distribution.

Television production is an important sector of industry both for economic and cultural reasons. Two variables that strongly affect the success of production businesses are, first, the effective management and exploitation of IPRs and, second, scale of activities. Over the last decade, adjustments in UK public policy that enhanced the position of production companies vis-à-vis broadcasters on ownership of IPRs have substantially improved the position of producers and boosted their sales revenues. But, as organic growth has contributed to scale and greater commercial success, this has triggered a recent wave of takeovers of many of the UK's leading independent producers, often by US media conglomerates. A central concern here is to build understanding of the challenges faced in nurturing the development of UK production companies that achieve scale but, at the same time, remain independent.

A further concern is to investigate empirically how a re-structuring of ownership may affect content. Against a background of increased investment interest from multi-nationals in indigenous UK-based players, this project will extend knowledge and theory by interrogating the association between corporate configuration, creative decision-making and cultural content.

Using key case studies, the scope of the investigation will cover:
- the role of changing digital distribution technologies in encouraging consolidation and strategies of horizontal, vertical and transnational expansion in the TV production industry;
- the relationship between, on one hand, size and corporate configuration and, on the other, the ability of production companies to maximise the value of their IPRs and to achieve sustained economic success;
- the conditions that govern creative decision-making and content in the TV production industry and how these are affected by differing corporate configurations;
- implications for public policy and regulation.

At a time of concern about how incumbent TV production companies can adjust successfully to advancing technology and how public policies ought to change to ensure that UK independent production continues to flourish in the global arena, this project and its outputs are intended to deepen and enhance public understanding of creative and business strategies in the context of a rapidly evolving media ecology. Analysis of configuration, strategy, performance, content decision-making and output will provide an empirically-based foundation for the final stage of the research which addresses the challenges posed for regulation and policy by the current re-structuring in ownership of the TV industry. To what extent are market and technological changes threatening the sustainability of a domestically-based independent production sector? How does public policy need to change? Thus, not only will the project contribute to social scientific knowledge and deliver a significant critical and cross-disciplinary contribution to theory in the areas of industrial organization, strategic media management and cultural analysis but also it will provide a valuable resource for television industry professionals, strategists and policy-makers.

Planned Impact

A central concern is to build understanding of how the ability of TV production entities to achieve sustained success may be determined by size, vertical structure and corporate ownership configuration. This project will benefit UK production companies by creating new knowledge about how the differing configurations adopted in the sector may affect (a) ability to exploit IPRs across new platforms and international markets and to build sustainable businesses and (b) conditions of creativity and content. At a time when deeper understanding is needed of how technological and market transformations can best be negotiated, UK production companies will benefit from an improved understanding of how adjustments in corporate strategy are likely to affect their efficiency, outputs and economic success.

Another set of beneficiaries is policy-makers. At a time of transformation in distribution technologies and in the economic organization of the TV industry, bodies including Ofcom, BFI, BBC Trust, PACT, ACTE, BIS and DCMS who are involved in making, shaping and implementing policy need improved knowledge to better inform the design of interventions intended to support the development of an economically sustainable and internationally competitive indigenous sector in the UK. The knowledge which this project will generate about the relationship between corporate ownership configuration, economic success and outputs will provide a timely and substantive contribution to policy debates on ownership and on public support for the UK production sector. It will improve the quality of policy debates by increasing understanding of the interplay between ownership structures in contemporary TV industry settings, content and cultural identity. We aim to contribute specific benefits by innovating methodologically in relation to measurement of 'national' content. Little research exists in this area, despite its obvious relevance for policy-making and despite acknowledged deficiencies in existing mechanisms such as the cultural test for 'British' qualifying film and drama.

With regard to how exactly benefit and engagement will be ensured, the project team will use its extensive existing contacts and establish new links with TV production industry participants and policy-making communities to create a dedicated network of stakeholders with a shared interest in the effects of changing technologies and ownership strategies. Regular communication and exchange will be conducted via active participation in novel as well as more traditional arenas for discussion and debate, including internet fora and social media plus newspapers and trade press. The project's website will serve as a primary focus and access point for information. Target beneficiaries in industry and policy-making circles will be proactively alerted to key findings as they emerge (using Twitter and other online fora and emails) in order to encourage engagement, reflection and feedback and to ensure impact is maximised. The project team will foster dialogue with target users via participation in consultations and public debate. CCPR seminars on key emerging themes will be used to ensure productive engagement with target users within industry. Engagement will also be achieved through targeted dissemination of published outputs, attendance at conferences and industry meetings, and an End of Project symposium. We intend to produce a major research monograph (book) and several refereed international journal articles (at least five) by project end in 2019 and will make sure our work is available in Open Access and through relevant online databases such as Glasgow's Enlighten repository and Researchfish. Accessible summaries of main outcomes will be posted on the project site and a Final Report targeted to non-academic beneficiaries will be disseminated as a support resource at the final symposium.

Publications

10 25 50
 
Description The central focus of this project was the relationship between independence, scale and economic sustainability in the television production sector - vital component of the UK creative industries and a sector whose performance has significant economic and cultural resonance - and related implications for policy.


Using case studies, the scope of the investigation covered:

• the relationship between, on one hand, size and corporate configuration and, on the other, the ability of production companies to maximise the value of their IPRs and to achieve sustained economic success;

• the conditions that govern creative decision-making and content in the television production industry and how these are affected by differing corporate configurations;

• the role of changing digital distribution technologies in encouraging consolidation and strategies of horizontal, vertical and transnational expansion in the television production industry;

• implications for public policy and regulation.


The main objectives for the research were to contribute to improved strategic business knowledge in the television production industry and to find out how the UK policy environment can better support the success and competitiveness of UK independent production businesses.

Our key findings suggest that ownership configuration strongly affects business performance in the television production sector and that advantages associated with three areas - scale, vertical integration and international reach - have been particularly influential in encouraging recent trends towards acquisition and consolidation. With regard to how creative processes and content are affected by changes in ownership configuration, contrary to standard assumptions, our findings suggest that takeover has little or adverse affect on content outputs, at least in the short term.

In summary, the key findings which emerged from the research are that:

• Enlargement and takeover by a larger TV company typically brings significant benefits for acquired companies through scale economies, improved financing, access to distribution, wider international reach and informational advantages.

• Changes in ownership have a limited immediate impact on the character of content made by case-study companies.

• A sustainable 'independent' production sector is still seen as an important policy objective.

• Despite globalisation, domestic policies remain key to the sustainability of the television production sector.

• Renewal within the production sector is heavily dependent on: commissioning strategies of PSBs; terms of trade and control of IPRs.
Exploitation Route By contributed to improved strategic business knowledge concerning the production sector and to improved understanding of the policy measures required to support the success and competitiveness of indigenous television production companies in an increasingly globalised and competitive distribution environment, project findings may provide value and utility for two categories of non-academic beneficiaries: television production companies and policy-makers.

Outcomes also benefit and will be taken forward by researchers and scholars working in fields including media economics and management, media and cultural sociology and policy analysis. In examining how size and corporate configuration are related to performance in the UK television production sector, this study has advanced theory by combining economic analysis of factors that incentivise expansion and re-structuring with relevant insights from other areas, including strategic management, dynamic capability, theories of industrial renewal, globalisation and inter-organisational advantage which, in the context of the contemporary re- structuring of ownership in the UK TV production sector, are highly relevant. In addition, academic researchers can draw on a rich, original and extensive body of empirical data - contained in the project's two databases - concerning how the performance of television production companies (in terms of business and in terms of content outputs) may be related to scale and corporate configuration.
Sectors Communities and Social Services/Policy,Creative Economy,Government, Democracy and Justice,Culture, Heritage, Museums and Collections,Other

URL https://www.gla.ac.uk/schools/cca/research/ccpr/researchinccpr/televisionproductionintransitionindependencescaleandsustainability/
 
Description The research-related knowledge which the project has generated about the relationship between, on the one hand, expansion, scale and differing sorts of corporate configurations (whether owned by a multinational parent company; vertically integrated or not) and, on the other, economic performance and capacity to engage in business strategies that sustain growth in a TV landscape increasingly characterised by globalisation and digital distribution, are intended to feed into better informed and therefore improved corporate strategic decision-making in the UK production sector. Some project publications are still in press but, broadly, impact is being achieved by - through dissemination of published findings - sharing knowledge with UK TV production companies about the potential advantages of differing sorts of corporate ownership configuration, thus deepening their understanding of how best to adjust to ongoing technological and market changes and to develop economically robust businesses, to the benefit of the UK creative economy. The project focused not only on economic performance but also on how changes in ownership in the UK production sector may affect content and impact on 'British' content. By producing and sharing innovative and original research-based knowledge about the links between corporate configuration, creativity and national content, the project's findings contribute to improving the design and the effectiveness of public policies intended to support indigenous production. Thus, impact has been achieved by disseminating knowledge to relevant policy-makers. Drawing on project findings, in particular concerning the role of PSB commissioning in supporting sustainability and renewal in the production sector and concerning the efficacy of measures such as terms of trade (e.g. invited contributions from the PI to Ofcom's 'Small Screen Big Debate' consultation on the future of PSB in the UK in 2020; the appointment of the PI as a Member of the Future of Media in Ireland Commission in 2020-21), impact has been achieved by shaping and informing formulation of relevant aspects of current media policy.
First Year Of Impact 2020
Sector Creative Economy,Digital/Communication/Information Technologies (including Software),Culture, Heritage, Museums and Collections,Other
Impact Types Cultural,Societal,Economic,Policy & public services

 
Description Invited expert contribution to Small Screen: Big Debate review on the future of PSM organised by Ofcom on September 9th.
Geographic Reach National 
Policy Influence Type Contribution to a national consultation/review
Impact Doyle's research-based contribution has promoted a more accurately calibrated approach to future policy support for small indigenous television production companies, thus strengthening a culturally significant sector, and an important contributor to the UK creative economy
 
Description Submission on Rise of Data Economy to UK Independent Expert panel looking at Competition in the Digital Economy (led by Prof Jason Furman).
Geographic Reach National 
Policy Influence Type Contribution to a national consultation/review
 
Description 'Industrial Re-configuration in the Television Production Sector, Performance and Content:Knowledge and Information as a Source of Advantage', presentation (Doyle and Barr) at the European Media Management Association (EMMA) Conference 2019, Limassol, Cyprus, 5-7 June 2019 
Form Of Engagement Activity A talk or presentation
Part Of Official Scheme? No
Geographic Reach International
Primary Audience Professional Practitioners
Results and Impact Participation in Scientific Meeting
Year(s) Of Engagement Activity 2020
 
Description 'Television Production in Transition: Patterns, Systems and Leadership in UK television Drama Production', presentation (O'Neill) at the European Media Management Association (EMMA) Conference 2019, Limassol, Cyprus, 5-7 June 2019 
Form Of Engagement Activity A talk or presentation
Part Of Official Scheme? No
Geographic Reach International
Primary Audience Professional Practitioners
Results and Impact Participation in Scientific Meeting
Year(s) Of Engagement Activity 2019
 
Description 'Television Production: Changing Industry, Corporate Ownership and Content', Presentation (Barr, O'Neill, Doyle and Paterson) at Media Industry Studies Conference, KCL, 18-20 April 2018. 
Form Of Engagement Activity A talk or presentation
Part Of Official Scheme? No
Geographic Reach International
Primary Audience Other audiences
Results and Impact Participation in Scientific Meeting
Year(s) Of Engagement Activity 2018
 
Description 'Under the Hammer: Collective Licensing and Music Copyright in UK Television Production', presentation (Barr) at the European Media Management Association (EMMA) Conference 2019, Limassol, Cyprus, 5-7 June 2019 
Form Of Engagement Activity A talk or presentation
Part Of Official Scheme? No
Geographic Reach International
Primary Audience Professional Practitioners
Results and Impact Participation in Scientific Meeting
Year(s) Of Engagement Activity 2019
 
Description Invited Keynote Presentation: TV Distribution in the Digital Era: PSBs, SvoDs, Content and Sustainability at Screen Industries in East-Central Europe held in Prague, Czech Republic in May 2018. 
Form Of Engagement Activity A talk or presentation
Part Of Official Scheme? No
Geographic Reach International
Primary Audience Professional Practitioners
Results and Impact Keynote on 'TV Distribution in the Digital Era: PSBs, SvoDs, Content and Sustainability' at Screen Industries in East-Central Europe held in Prague, Czech Republic which was attended by media and TV industry professionals and policy-makers as well as academics and which sparked discussions, exchange and questions afterwards.
Year(s) Of Engagement Activity 2018
 
Description Invited address on 'Ownership, Data, Power and Content' at the international symposium on Private Television in Europe organized by Vrije Universiteit Brussel, SMIT/imec and the Association of Commercial Television in Europe (ACT) in Brussels in June 2017. 
Form Of Engagement Activity A talk or presentation
Part Of Official Scheme? No
Geographic Reach International
Primary Audience Other audiences
Results and Impact Presentation to industry, policy-making and academic communities at European-wide private television industry / scientific symposium.
Year(s) Of Engagement Activity 2017
 
Description Plenary presentation at Creative Arts / Creative Industries Symposium, MoLI Dublin 
Form Of Engagement Activity A talk or presentation
Part Of Official Scheme? No
Geographic Reach International
Primary Audience Professional Practitioners
Results and Impact Plenary presentation to audience of senior media industry practitioners, policy-makers and academics at Creative Arts / Creative Industries Symposium, MoLI Dublin on February 28, 2020
Year(s) Of Engagement Activity 2020
 
Description TV and the Rise of the Data Economy: Analytics, Power and the Public Interest', Plenary address (Doyle) at World Media Economics and Management Conference in Cape Town, South Africa, May 2018. 
Form Of Engagement Activity A talk or presentation
Part Of Official Scheme? No
Geographic Reach International
Primary Audience Industry/Business
Results and Impact Participation in Scientific Meeting
Year(s) Of Engagement Activity 2018
 
Description Value Creation and Sustainability in the Television Production Sector', presentation at the European Media Management Association (EMMA) Annual meeting 2017 at University of Ghent on May 11-13, 2017. 
Form Of Engagement Activity A talk or presentation
Part Of Official Scheme? No
Geographic Reach International
Primary Audience Other audiences
Results and Impact Participation in Scientific Meeting
Year(s) Of Engagement Activity 2017