TV Show Budgeting

Abstract

One of the methods in operations management of a media company is television production budgeting, including individual program budgeting. It is an assembly of the planned revenue and expenses allocated to a given project. The main aim of this study is to present the television production budgeting process in the perspective of costs and revenues, as major determinants in the decision making process concerning launching new projects or continuing the started ones. The paper explains the idea of budgeting and the significance of this tool in making decisions about launching television projects. It presents the main sources of revenue and the essential cost components. The analysis is based on the examples of TV production projects completed by Polish television stations and data concerning the Polish television market. The cost sheet analysis shows that the main items on the side of category costs are fees and cost of technical equipment, while the primary sources of revenue are TV commercials. Other revenue sources include sponsorship, product placement and provision of TV production services.

DOI: http://dx.doi.org/10.5755/j01.ss.85.3.8410