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.

Image source: freemake.com

Film

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.

Image source: carmencitta.me

Television

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.

The most disruptive Internet companies today

The world has seen different transformations across several industries for the past decade and it’s all thanks to one important innovation that connected everything and everyone around the globe: the Internet. As it rose to popularity, several Internet platforms have been introduced in the forms of software, websites, and applications that have not only helped improved people’s lives but also given birth to the most disruptive companies that continue to drive the future to greater heights. In fact, many of them have become huge tech brands that they eventually became important components of many investment portfolios, including offshore mutual funds. Take a look at some of the leading Internet-based companies today:

Uber Technologies Inc.

Image source: standard.co.uk

Uber Technologies is a California-based taxi technology company known for its car transportation and food delivery mobile apps. It was founded in 2008 and is currently operating in over 600 cities worldwide. The company’s estimated revenue was reported to have reached 6.5 billion USD in 2016.

Netflix

Image source: iphonelife.com

Netflix is ranked 10th among the world’s largest internet companies in terms of revenue. It was founded in 1997 and started its operations in the United States. Based on a 2017 statistics, it has over 117.5 million streaming subscribers from around the world. This American company provides video and media streaming services both online and offline.

Alibaba

Image source: digitalerra.com

In terms of revenue, the Chinese multinational Internet company Alibaba is ranked the 6th largest in the world. It was a small startup founded by Jack Ma in 1999 from his apartment in Hangzhou, China – the same city where the company’s headquarters is now located. The company is a recognized innovator in the world e-commerce, internet, retail and AI technology. One of the reasons for Alibaba’s success, according to experts, is its unique business model as well as the company’s unconventional profit model.