Profit models: Television vs. Film

Movies and T.V. series are two of the most popular and extremely profitable entertainment sectors today. However, because of the dynamic trends that easily captivate audiences and viewers around the world, one sometimes dominates the other in terms of revenue.

The important question to ask here is, which is generally more profitable? To be able to answer this, this article will try to discuss the profit models and related business strategies that eventually shape the fate of these media commodities.

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Producers of the biggest films today usually take huge financial risks when they spend millions of dollars to create a single movie. You may be wondering, can filmmakers earn from these huge investments?

One of the ways that filmmakers make money is through domestic and overseas box office sales. On the other hand, popular movies like Star Wars, for instance, have earned a huge profit on toy merchandise alone. Another income-generating strategy is selling media franchising rights to companies outside of the entertainment industry in order to promote their own products.

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The popularity of a TV brand will always determine its earning potential. For instance, one of television’s most successful money-maker is HBO. The hit TV series Game of Thrones saw soaring profits for their home brand, and even if the series is nearing its end, experts predict huge earning channels from the show’s merchandise, media franchising and even streaming rights from domestic and overseas companies.

Most television shows turn to DVD sales to earn the biggest percentage of their profit, raking hundreds of millions of dollars, but advertising streams are their major advantage. In fact, advertisers pay a huge amount of money just to appear on the same screen time with a popular television series.