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5 Proposed Model for Assessment of Financial Performance in Television Industry

In this chapter we intend to propose and present a model of organizing financial information not only able to respond to current needs of managing the sector, but also new challenges faced by organizations with a view to a dynamic and effective management of the business, geared to value creation.

Based on the theoretical and conceptual framework introduced in Chapter 1, the traditional characteristics and trends of the business submitted proposals will be the basis of the information system of accounting, identifying the segments most suited to the reality of business, defining methodologies to be adopted in the tabulation of income and expense allocation models and defining the multiple segments.

Not being the organizational model the first object of this paper, some proposals are introduced to the organization for companies in this sector in order to orient its structure to the new paradigm of this market to leverage the ability to respond to identified trends and value creation in the new environment.

Based on the proposed model is intended to meet the objective of the project, presenting a model that can enable an effective assessment of financial performance in the television industry, future-oriented and prepared for new challenges in the sector.

5.1 - The organization model

We summarize the scenario outlined in the previous chapter, as follows:



Traditionally, television companies are organized around the distribution channels, ie, its television broadcast channels, which were, until very recently, the exclusive means of distributing their content. With the new context, where there are many ways and platforms for content distribution, the need arises for a new model of organization, content-oriented and not for distribution channel. So it goes in the direction of the organization in business units of content (UNC), putting the focus on content, assuming responsibility for their management and planning of distribution on various platforms.

The traditional model of organization driven solely, or mainly, the issue does not show proper respect to the new multi-platform. With this new approach will be possible for businesses to take advantage of the characteristics of each platform, ensuring the presence of their content platforms where consumers and also where advertisers want to be.

In television companies there is usually a direction to a television channel with an annual budget for its program schedule to be transmitted. Assuming a channel called TVG1 - which correspond to the direction of programs TVG1 - the new model would be converted into the Business Unit Contents TVG1.

The names of the TV channels are generally strong brands, recognized by the public, identifying the characteristics of their contents and with high affinity with its audience. Thus, it would make sense to keep the organization around the brand, changing, however, guidance for the distribution of its multi-platform content. In this context, no longer makes sense only a budget-oriented grid emission broadcast, to make way for UNC's budget - Business Unit - Content contemplating the acquisition, production and distribution of multi-platform content.

Initially, the main attention of the UNC will continue to focus on the traditional broadcasting channel, given the lower weight on the incomes of other platforms. However, other platforms and modes of consumption of video content will continue to grow, it being ensured a strategic capable of responding to new challenges and consumer trends. The organization proposed strategy aims to make the most of the force that usually have the marks of broadcast channels and presenting themselves as a major competitive advantage for their content in the new context, not just as a brand, but also as a fundamental element for projection of the contents. This model also seeks to guide the manager for a multi-platform design and distribution of content so that it can thus identify and exploit potential in a way that would not be facing possible new platforms as secondary and only with a view to the replacement of contents issued.

The organization of the UNC will not necessarily correspond to each broadcasting channel may be organized in accordance with the content managed, for example, information or a set of channels, their characteristics and aims to make sense an integrated content management. Moreover, there may be broadcast channels where content is distributed to several UNC.

To implement this change, the definition of other structures in the core process and its relationship with the UNC would be essential:







 
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