Producing TV Content in a Globalized Intellectual Property Market: The Emergence Of The International Production Model

Abstract

This is the accepted version of the paper.This version of the publication may differ from the final published version. Permanent repository link The Emergence of the International Production Model AbstractThis article focuses on the production of transnational TV formats, and argues that a new business model has emerged over recent decades. Whilst many formats are still sold and produced under licence by a third party, leading TV production companies prefer to adapt their own shows in as many markets as possible, a strategy that has led to their internationalization. This article traces back the model's origins and shows how it was pioneered by game-show producers, and adopted by British independent TV production companies and a few European broadcasters, then eventually by several Hollywood studios. This led to the formation of today's 14 international TV production super-groups. This paper then argues that this model emerged in response to the globalization of the intellectual property market that was created by the TV format revolution. It was this revolution that spawned a market for intangibles such as programming concepts and production expertise, which today cross borders as much as finished programmes. This paper shows how the market has expanded a TV format's value chain, and how TV production companies have needed to develop their international capabilities in order to retain control of the chain. An international production network enables them to generate, exploit and protect intellectual property on a global scale.2

Television production: configuring for sustainability in the digital era

“…Recent data shows that the proportion of income which the UK independent television production sector earned from international sales and commissions grew from 19% in 2006 to 30% in 2014 (Mediatique, 2015: 16). Albeit that the production sector has tended to draw on international markets and coproduction deals to finance production of content for a long time (Chalaby, 2012), the current situation of heightened competition between broadcasters and digital service providers such as Netflix has fuelled demand for 'big statement' and often expensive programmes and, in turn, increased reliance on international sources of finance (Ofcom, 2015;Doyle, 2016). For Wayne Garvie, the most significant advantage for a production company of being 'allied and part of a larger company [is that] you can play immediately on an international field' (Garvie cited in Sweney, 2014).…”

Can a GVC-oriented policy mitigate the inequalities of the world media system? Strategies for economic upgrading in the TV format global value chain

“…In turn, Britain has developed a strong reputation as a place to develop, exploit and protect IP in the TV industry, attracting considerable foreign direct investment. Many European or American media firms have invested in the UK production sector, or established a British base, in order to take full advantage of the UK rights position (Chalaby, 2012(Chalaby, , 2016c; see also Andrea Esser's piece in this issue). Most other European countries do not seem to be following suit, and until they are willing to confront the narrow interests of the chain's lead firms, they will continue to carry a multi-billion dollars deficit vis-à-vis the USA in the audiovisual sector.…”

“…If the ratings are good, the producer will write a production bible and will make the format rights available through a distributor. Global TV production majors like to produce their formats in as many territories but also sell the remake licences (Chalaby, 2012). Each segment -production, distribution and aggregation -is carried by specialized businesses that interact continuously in the making and broadcasting of TV formats.…”

The advent of the transnational TV format trading system: a global commodity chain analysis

“…Whenever feasible, they opt to produce their shows in order to prolong their stay in the commodity chain. This strategy has led to the international expansion of TV production companies, and today about 14 supergroups have production capabilities in up to 30 territories (Chalaby, 2012b). Once a concept shows potential, these groups keep the format rights and produce it in territories where they have facilities (A/A/A/B).…”

“…(Chalaby, 2012b). These groups have three options: they can sell the licence locally (A/A/B/B or A/A/B/C), they can (preferably) produce the format for (or co-produce with) a local broadcaster (A/A/A/B), or in the few countries where they own a TV channel that matches the format's requirements, they can air their own show and achieve full vertical integration in the TV format commodity chain (A/A/A/A).…”