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FINANCIAL MANAGEMENT IN THE ENTERTAINMENT AND MEDIA INDUSTRIES
I. Funding and financing strategies in entertainment
1.1 Securing capital for production and distribution
Availability of funds to finance production and distribution is another factor closely connected to
the availability of capital as a factor that SMEs/producers limit in capacity and growth.
According to the positive side of Herguner (2015), capital management as an essential element to
address the cash flow management and business operations. This involves the process of
acquiring funding mechanism which would fit into needs of production and distribution. For
instance, Grece (2016) will speak of the imparting of capital to innovative projects designated for
a right technology and investment. If SMEs can gain adequate amount of capital, it would make
the companies to enhance the manufacturing capacity for product and services and also meet the
demand of consumers. This help to improve the duration in which the produced goods are
featured in the market in order to increase its competitiveness. However, in an attempt to get the
requisite capital that is needed for increased production and distribution, getting different of
fundings such as bank loans, venture capital and crowdfunding would enable SMEs obtain the
required fundings. While bank loans provide the SME‟s with the power to access resources that
we use to purchase equipment and working capitals on the other hand venture capital presents an
occasion for the SMEs to access resources that it needs to undertake strategic developments.
While the crowdfunding platform features a number of people contributing small amounts to
help SMEs with business requirements, the egalitarian platforms allow SMEs to use funds
attracted from many investors to finance specific project or new product creation. However,
management of working capitals with special reference to inventory and account receivables; and
also the management of accounts receivables financing can improve cash flow and thus the firms
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liquidity. In a bid to enhance stoke turnover, SMEs reduce their holding cost for inventories and
also attempt to exert pressure in the customers to pay early enough so as to release capital in the
supply of the products which in turn provide finance for production and distribution. Capital is
significant to SMEs as it will enable them to invest in efficient and effective working facilities,
more production and better delivery systems, more clientele and business expansion in terms of
both size and diversification. Therefore, the SMEs should endeavor to put in place proper capital
structure policies, and harness different sources of funds in order to be able to counter the odds
of facing financial hitches and to maximize on the available window of opportunity to expand or
extend the business and idea to come up with new products.
1.2 Exploring alternative financing methods like crowdfunding
With regard to the Fund, apart from banking channels, option like crowdfunding has thus
become possible for the SMEs to avail. Halbheer and his colleagues (2014) also pointed that it is
also mentioned by Halbheer et al (2014) that through the digital contents crowd fund strategy,
SMEs can obtain capital and fund from a number of categories of supporter and funders. In
addition to the sheer call that it makes an immediate source of funding it also lays down the
premise for the customer base and brand projection. This implies that through crowdfunding,
SMEs are able to engage the public, friends and social acquaintances to finance the physical
production and distribution needs of a business. SMEs can use business ideas and projects on
the crowdfunding platform with the aim to attract funding from particular investors in various
forms: dividends, share ownership and credit finance. Fundraising also plays the role of a market
test where the success of crowdfunding initiatives by small firms proves the need for the
products or services the company is offering. This can used the information provided herein in
describing the business models of the SMEs, which could strengthen their arguments and
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incentives to attract other investors or creditors. However, beside the mentioned above
arguments one has to add the fact that crowdfunding also points to direct communication with
the customers and other stakeholders and, at the same time, creates the community of the SMEs
brand. This applies to engaging supporters in funding since it enables SMEs to build a pool of
the most valuable, loyal relationships, listen to customers, and gain definite assurances from
individuals who trust the success of the specific business. The fact is that placing the idea and
creativity of SMEs in online networks through crowdfunding, the target group can be reached;
media outlets can potentially cover such campaigns and makes the brand more popular with the
public. As the new products and services may be launched through such exposure it also gives
exposure to new market and alliances that leads to sustainable development. It is also have
advantage that is SMEs may get funds from other than banks; moreover it covers
Crowdfunding. Social media presence, and appropriate social support make SMEs to access
funding, increase adoption, and interact with customers which sustains the ambiguity of the
financial decisions made.
1.3 Evaluating risks and returns of investments
As stated by Hackbarth and Miao (2012), M&As in tapes like oligopolistic industry have to
make regarding with some risks and then the subsequent potential returns. Likewise, Holden and
Biddle (2017 In terms of the contingency perspective, it is found that theory of human capital
can be used to ascertain the return on investment while assessing an education policy. In regard
to SMEs, risks and returns are assessed depending on the obtained data regarding markets,
competitors, sales, as well as the obtained sales and profitability outcomes. In a way, this helps
SMEs to make right decisions on investment that they should undertake so that the monetary
resources they hold jealously are systematically directed towards areas where they would yield
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most returns. Therefore SMBs in accordance with the possibility and possibly loses that could
ensue once invested, actualized the impacts and controverted them to its highest possible degree
on its investment programs in order to create a continuous and long term improvement within the
firms. In addition, formulating financial planning as well as the tools from the categorization of
sensitivity analysis and scenario planning can also help SMEs to plan how to approach
investment. As the advantages are to be highlighted, it would be possible to note that the
specified type of the analytical method assists SMEs in avoiding errors in the overestimation and
underestimation of the risks and returns and, thus, adapt the strategies of the corresponding
investments correspondingly. Also for such tangible financial resources like – return on
investments, net present values they offer more materialistic point of view to SMEs concerning
the evaluation of the efficiency of Investment projects which was unavailable earlier. They
assist the SMEs in comparing one investment opportunity against the other and to make their
investment plans in a manner that is most consistent with the layouts of their development
strategies, and financial objectives. Through the time and effort spent in assessing and
evaluating the risks that are attached to capital investments are matched and weighed against the
probable returns to be generated, business can make satisfactory and wise decisions regarding
capital investments, to ensure that the overall growth of the enterprise is achieved in the best
possible way. It could be seen that macroeconomic factors may influence SMEs but SMEs do not
control the economy and there are also continued changes to the macroeconomic environment
that can affect investment decisions for SMEs, therefore, SMEs should always make sure that
they are paying close attention to their operating environment in order to come up with better
mechanisms for the changes that may help improve their innovation corridors and expansion.
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II. Revenue models and monetization techniques
1.1 Subscription-based models for streaming platforms.
The advertising-based model has evolved over the years to be one of the dominant business
model for subscription video on-demand platforms. According to Dwyer (2015), these models
have stability of revenue and enable a firm availing a large number of programs at a fee as
agreed with the clients. It is not only capable of regularizing cash receipts but also ensuring that
a so-called long−term−say is maintained with the clients. De Silva et al. , (2016) hinted the
importance of subscription as it enables one to penetrate markets such as video game since it
foster continuation of content creation and development of further update. These generate
income directly by providing members with further content, which if all is original, then further
extra investment into the production and distribution of entertainment can take
place. Subscription services offer some potential for streaming networks to cultivate a direct
client relationship and garner some of their valuable viewership data. This real-time decision
making therefore enables the optimization of the content relevance by providing knowledge of
the user and what kind of content will be most appealing to him and therefore increase customer
loyalty and longevity of the client. Thirdly, since the subscription models are more adaptive
than the pay-per-view, the streaming service providers attain the adaption of the customers‟ base
without the proportional increase in the infrastructural costs. This scalability is very
advantageous especially in today‟s world where one can easily take a shot at his/her local or
international clientèle, and he/she only needs to expand in an instance by merely tapping on the
online market, which are easily accessible. Moreover, revenue from subscription services bring
streaming stable and predicted revenue streams and is applicable for strategic long-term planning
to invest in new content and technological lead-in. The invested amount translates into acquiring
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new subscribers and solidifies the standing of the platform within the desired market. Many
advantages come with subscription based revenue models for streaming platforms: It can ensure
properly reliable, rather more constant and steady kind of income sources; raises customer
retention because of mentioned models; Subscription based strategies can be proven to yield
significant and sustainable revenues to fund future investments on contents and facilities. By
these models streaming platforms are able to decode shifting demands as well as changes in
market trends without unequipping the streaming firm or platform‟s finance or stability and
providing a sustainable model while ascending.
1.2 Advertising and sponsorship revenue generation strategies
Adverting and sponsorship are core sources of product revenues to streaming media companies;
this means other than subscriptions, the companies get cash inflows. Other changes have also
taken place in value chain of music industry as pointed out by Graham et al. , (2004) these
include: marketing of other commodities like music products has remained an added source of
income since people are now selling physical products less frequently. Interaction of advertising
and newspapers: Indeed newspapers have adopted the changes that the digital era has brought
along and as a consequence of this, they have taken the role of an advertising medium with them
in one form or another where they are present. This makes opens opportunities for the
streaming platforms offer the user free and fast accessibility to streaming content in exchange for
delivering targeted advertisement to the viewership . Following the same line of thinking,
Gershon (2001) notes that the other techniques that are employed by management to regulate the
flow of telecommunication services are: Source of funds advertising. Therefore, the proposed
exploitation of plural revenue streams is going to fully safeguard streaming platforms from the
risk of excessive dependence on a single revenue stream and the advancement in the profitability
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agenda will be encountered. Other sources of revenue are advertising and sponsorship; helps the
streaming platform expand its base thus targeting customers who cannot afford to pay for
subscription services or those who would not consider paying for the subscription in the first
instance. This means more people using the platform to access content and vice versa, and also
enlarges the pool of clients for advertisers interested in populations of certain interest. Branding
and Advertising: Advertising and sponsorship with brands is another vital source of funding
considering the fact that they may provide lucrative sponsorship agreements to these streaming
sites. They include the promotion of the product or service in the shows and other shows, events,
sponsorship, and partnership in production of the content all of which creates the basis of the
revenue model or brand recommendation. Thus, advertising and sponsorship can be useful for
the integration of stream business models into the formats in additional roles as potential
revenues since advertising bolsters creative industries and contributes to the creation of related
distribution platforms, and sponsorship raises the competitiveness of media outlets in the digital
environment. Not only is this diversify approach profitable and generates higher revenue but it
also improves the structure and sustainability of the platform regardless of issues that might arise
from subscriptions, and other variables.
1.3 Analyzing pricing strategies for different markets
Different markets employ distinct pricing strategies and the leading players in the streaming
industry may have to strategise on which market to focus in terms of pricing so as to boost
earnings and make their products/cash to the customers. In some sense, Frey and Oberholzer-
Gee argue that price incentives are the cost to consumers which can thus influence the
consumers‟ quantities consumed, when, in fact, one immediately realizes that a streaming service
has to find the best way to prevent overloading the consumers with choices but at the same time,
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generate as much revenue as possible. For this reason, Eisenmann (2021) noted that one of the
main reasons startups fail is because of inability to accurately estimate the market needs and
prices; market positioning is therefore vital. From the existing proof, it is evident that a streamer
may have to ensure that it aligns policy and tariff rates to suit the prevailing conditions in a given
country as well as the demand of the people in that country to attain the maximum level of
grossing. It plays a crucial role in the attainment of the long-run growth, especially in relation to
segmentation, in a process of correcting the right value for the right price in the market. Pricing
strategies are used by digital media technologies particularly the streaming platforms, to
influence the perception of the quality and quantity of the available services, as well as to design
and develop several levels of the same service with different rights and privileges as stated in the
following; The traditional perception of such a tiered pricing system stands in the possibility of
adjusting to the consumer‟s different degree of price sensitivity and providing them with
opportunities to utilize the additional services, that in turn would contribute to the overall
increase in the total revenue and the number of consumers. Moreover, simple price models such
as the pricing sundry which includes the pricing of experiments or A/B also assist streaming
platforms on how they can tend or change price models to meet the user behavior and therefore
revenue collection. In the process, such platforms are capable of obtaining data that relates to the
right price strategies that would boost the overall conversion ratios and the overall turnovers per
particular user category. However, because of such ideas as dynamic pricing where the prices
are fluctuating in response to consumer behavior or any other market conditions in real-time,
such a concept as an intact is feasible. This brings flexibility that can assist the platforms to
amend their prospect by the varying new demand rate as well as the actions of other platforms in
the similar industry in order to optimize the revenues whereas competiting under reasonable
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competitive advantage from the market. Perhaps the most crucial aspect is to identify how it can
vary within premium, mid-tier, and emerging markets so that streaming services can turn into a
source of revenues that ultimately fund their operations. This means that the proper pricing can
be set not without dissecting the consumer taste and trends, which in a way corresponds with
perceived value Hence, more clients are likely to be attracted, and cone-con conversions
realized. Thus, in this manner, this strategic approach contributes to the domination of streaming
platforms and adapts them to the new circumstances of the digital media environment.
III. Intellectual property rights and royalty management
1.1 Protecting and monetizing copyrights and trademarks.
This aspect acts as part of stopping piracy of the contents falling under the copyrights or
trademarks to enable the streaming platforms protect the worth of the contents and the revenue
that comes out of the contents that are posted on the platforms. Choi, Stahl and Whinston
(1997:29,) where they clarify on the economics of e-commerce and touch on the importance of
IP in digital markets. Online streaming firms like Netflix, for instance, further understand extra
investment on copright protection systems that denies the paying subscribers access to the
unauthorised copies (Daidj & Jung, 2011). Since copyrights and trademarks restrain distribution
rights and reproduction rights, additional platforms can obtain profits through subscription fees
and advertisements to accommodate platform users‟ demand. In addition, copyright protection
enables streaming business to practice negotiation concerning distribution rights with regard to
movies, TV shows, and other related media because the copyrights will protect the business
when they distribute material that they should not even distribute because it is protected by
copyrights. These agreements also sealed not only accesses to the above better quality contents
for the company but also form a steady supply of subscription and advertisement income.
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Besides, encouraging the recognition of IP means eliminate the unfair confrontation of users,
which is important to form recognition of the brand and credibility among people. It is in this
respect that consumers are in a better position to subscribe to a Streaming Service that has much
credible and legal content devoid of theσης of pirated items. Moreover, as the streaming
platform has to comply with the laws, it uses digital rights management (DRM) technologies to
scramble Android mobile content and to regulate the access to such content because it is
forbidden to copy and distribute digital information. Through the DRM technologies, the
platforms are also able to control subscription of terms and conditions as a way of checking
whether the user is legally compliant with “fair use” policies. The copyrights, and the
trademarks require protection for these streaming platforms to combat for the attention of the
viewer, and secure the subscriptions it requires to generate the revenues needed to finance itself
and those that generate content or create content in the webspace. As far as the issue of content
ownership is concerned, the legal frameworks like ITPR and copyright protection may be
pursued to protect content asset of the platforms and for avoiding legal hassles in future which is
also beneficial for the sustainable improvement of the digital streaming business models in the
long run.
1.2 Negotiating licensing agreements and royalty rates
Licensing offers and the royalty rates play a significant role in enabling the streaming platforms
to acquire the music content and equally putting down the costs in a proper way. Crandall and
Furchtgott-Roth (1996) seemed to discuss competitiveness and cable TV that showed how the
licensing terms allow for fair determination of whether or not a certain cable operator deserves to
be licensed. Most streaming companies wade in and negotiate deals with content producers and
providers to purchase contracts to distribute movies, shows, and exclusive in-house
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content. Similarly, in the same context, Daidj and Egert (2018) argue that determination of
reasonable royalty rates is important because organisations finding itself in the business of
preservation and distribution of AV assets has to balance the Business costs and ensure its
financial sustainability. Subscribers achieve the desired positioning connected with download
popularity as well as having a wide audience and a high rate of subscription; A large audience is
invited, and the platform receives a considerably various content for subscription, thus
guaranteeing the popularity among subscribers. This makes it easier for platform to offer the top
solutions for content since they are in a position to offer most of the preferences which are
expected to exist within the platform. What is involved in the process of licensing includes two
great factors that are the cost of the content and subscription as well as the percentage of the
advertisements. The platform seeks the substance in the cheapest manner possible, while the
content is good for the platform to augment its content bank as well as the viewers. One must set
a fair remuneration for content providers for the use of their content and/or distribution to ensure
economic profitability of a collaboration to develop a content. Remunerating creators fairly,
ecosystems instill motivation that propels humans to improve on the content produced –
something that sustains viewership. Employment of licenses is helpful in efforts to gain market
share in the streaming industry streamers may employ leveraged licensing agreements. Tabens
can be utilized for program contents which are very popular among many consumers who wish
to subscribe to them in order to access such programm contents. Licensing negotiation is
another dynamic and essential strategic area that can not only provide streaming platforms with
diversification, but also help to address the fee structure and royalty issues, and enhances the of
the industry position. It is possible to provide proper protection of the rights of such content
producers, several platforms may develop the qualitative base and expand the audience and thus
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to predict the stable work in the sphere of digital streaming services, which is constantly
evolving.
1.3 Managing rights across multiple distribution channels
As a result, the ability to manage rights across multiple channels in an interconnected
environment is one of the difficulties facing streaming platforms aiming to broadcast content to
their audiences in all possible outlets although exercising control over such process. Dalborg
(2015) in their study on „Demutualization in insurance an insight into insurance business
management‟ strongly pointed out that demutualization indicate the importance of managing
insurance business effectively across functional areas of operations. For instance, the rights
management of original product for Netflix involve the ability to broadcast the product in various
platforms such as streaming, DVDs, and in other regions (Fland, 2015). The situation means that
their best security model is the one that will ensure that to any part of the world, the end-users
will be able to access friendly content and, at the same time, meet the licenses provided within
those regions. Distribution rights can be defined as the legal rights granted to the platforms for
distribution of their content in given geographical areas which make them capable of earning
from multiple directions which, in turn, raises their stakes in the field of digital
streaming. Alone, the remit of distribution management entails the processes of purchasing,
sustaining and avoiding the relationships with the content provider, distributers and the
authorities. In other words, the major issues that platforms experience are problematic license
agreement circumstances as the rights holders do not have confidence that the content is legally
and safely delivered to various platforms and geographical segments. Further, another popular
use in copyrights is the management of distribution rights through DRM techniques, this is
because content is protected by a code controlling its usage. DRM brings the option of letting
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the platforms approved under the license manage the rights granted under the license effectively
thwart piracy, and protect revenue sources and content. Moreover, concerns arising from the
globalization of content can be overcome by the strategies like the use of localized content
techniques like subtitle translating in other languages, the process of dubbing, etc. , and launch of
marketing campaigns with specific preferences in different areas. As a result, it does this while
enhancing content access and users‟ engagement; important attributes that are necessary for
growth in the worldwide markets. The core strategy of streaming platforms concerning to the
management of distribution rights acquisition and utilization concerns the discharge of providing
content audibility reach, licencing criterion fulfillment, and revenue production from several
distribution channels. As obvious from rights management and its implication, work and by the
application of the technologies as well as the localization platforms, one is in a place to make the
right changes aimed at balancing out competition and truly achieve growth in the area of digital
streaming in a span of long-term basis.
IV. Budgeting and cost control measures
1.1 Developing comprehensive production and marketing budgets.
Budler et al. also pointed out that budgets in manufacturing and trading departments together
with production and marketing plans are crucial factors that determine how any of the financial
resources are to be spent in the media businesses. These budgets offer a guide to working out the
exact arrangements of passing cash out within the firm concerning other areas like creating
content, distributing the content, and marketing. Bagwell, in a study in 2015 sought to observe
that there where some economic and financial challenges in the minority owned media
enterprises and hence the call to stress on documentation of their budgets. These include
particular budgets which are regarded as a plan of the expenses and arriving at sources of money
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in the course of a period in order to effect consolidation and expansion. It assists in highlighting
where there is need for increasing the available resources and capital which enables
organizations to focus on where they need to work hard in order to achieve their stated
managerial aims and objectives (Benner & Tripsas, 2012, p 202). Costs of production are
defined as the expenses made in media companies during the creation and development of
content of a program or a program unit, for example script writing, shooting and editing among
others. It is in these areas that more emphasis has to be placed to guarantee that funding is
eqitably fairly distributed in an attempt to enhance the quality and competitiveness of the
content. Second of all, marketing cost plays a critical role in relation to the totality of getting
content provided by media to targeted consumers. These budgets‟ encompass certain costs of
advertising, public relations, marketing campaigns and promotional activity and event local
budgets . Marketing budgeting targets clients so that it can bring value by sale to get the
maximum number of results hence revenues. Furthermore, preparing elaborated budgets for
finances offers the chance to determine subordinate revenue drawn from subscribers, advertisers,
sponsors and generally those revenue that accrue out of license agreements. This assists in the
management of the budget since the business person expects to receive certain amount of income
within a given time than he or she can use to plan his or her budget accordingly; fourth the
changes that may be foreseen in the market are also managed since the business person would
have planned his or her budget basing on the receipts expected. The basic reserve for any media
organisation hence has to involve the preparation of detailed production and marketing cost
estimates as part of financial planning and control to bury high risks and help realise effective
growth strategies. In relation to these budgets, it assists the organization in aligning the for
casted expense, revenues, and key opportunities in the development of the organisation and the
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investment on areas that can offer high impact and visibility in the over arching organisation in
achieving greater heights when placed within a highly competitive media environment.
1.2 Implementing cost-effective strategies for talent acquisition
Efficacious and efficient procedures in the hiring services of talent for media and entertaining
firms are a vital key strategy in the hiring services of talents. Thus, Berman, Battino, and
Feldman (2011)notes that at this stage it is proposed to admit that the original talents recruitment
strategies and the employees retention are also shifting together with the new business models in
frames of media becoming phenomenon. For instance, the author shows that the advancements
in technological factors like Web 2. The authors of the article pointed out that by using a new
media like the 0 and social networking, firms can reduce the costs of recruitment at the same
time increasing the reach of the job adverts to a wider market. Applying this strategy ensure that
one is able to cut expenses as well as identify talents that would work in conjugation with the
strategic plan of the company (Besen & Kirby, 1989). Some strategies that media and
entertainment companies can use to actively employ talent include: Employer branding:
Employer branding refers to the process through which an organization tries to sell itself to the
talent in the job market with the aim of the intention of getting the talent to apply for
employment with his/her organization. Positive employer brand is the image that an organisation
portrays to its employees which is of immense benefit to an organisation in regard to talent
attraction, without having to seek help from various employment agencies. In the aspects of
manpower recruitment, Big data analytics does its part together with artificial intelligence since
it assists in singling out possible candidates for a particular position given particular
specifications such as cultural assimilation among other factors. When analysing the aspects of
the approach – as discussed above- one can be certain that this not only saves time but also
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assures the company that the right employees shall be hired and placed in the right positions.
Also gains the media and entertainment industry must offer attractive wages and flexible bonus
packages, in a way to attract great and professional workers. Employers are eager to compare
salaries often to time they have to provide reasonable remunerations equal to the current
competitive and attractive market rates to the employees. The measures of utilizing talent
acquisition in Media and entertainment companies are the measures that assure that the company
gets organizational cost efficiencies and these measures include:jerne These strategies are hence
beneficial in the sense that, they help to cut on the costs of recruitment, and most important,
enhance the organisations ability to attract and retain talented people, which is a fundamental
ingredient for the success of any firm, particularly in the current competitory economic
environment.
1.3 Monitoring expenses and identifying cost-saving opportunities
Every media business hence has to ensure that has set mechanisms which enables them to control
on their expenses and also ensure that they have always got hint on the ways they could be in a
position to cut more expenses. Through formulas too, the ratio analysis of financial figures also
enables one to pinpoint and assess on the extent of where huge can be cut without necessarily
compromising on quality. Byers et al. (2016) have an implication that thinking about
entertainment media from the millennials perspective closely associated with the elements of
value and cost. In lean management, and the use of technology that brings efficiency, the cost of
overhead is brought down. For instance, Production spaces and storage spaces which may
require massive infrastructural investment can through cloud services drastically low down the
infrastructure cost alongside redesigning the modularity of operation (Cassia, Plati, & Minola,
2021). These Cloud services offer utility computing where the computing resources can be hired
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from CISCO, IBM and many other eCloud service providers without any need to construct its
own plant. Furthermore, media assets managed through the DYAM can be combined in a single
place, which will also help to avoid a situation where its members spend a lot of time searching
for the desired media asset. This promotes efficiency of the organizational procedures as most of
the valuable items will not be lost due to disorganization. Moreover, having support in IT and in
the Payroll and so on as an outsourcing services that have outside companies can prove useful in
this aspect to cut costs when having such activities inside the firm while freeing the
administrative as well as the managerial employees to manage more important tasks. Moreover,
giving the energy efficiency works and practices in the production as well as the office
infrastructure for better usage of energy, charged low in bills and eco-friendly as a company
makes effort to adopt sustainable business strategies. This way, aspects such as watching the
costs and installing cost controlling measures are some of the things that can not be overlooked
when any Media enterprise intends to continue being profitable. Creating an understanding of
such operational costs , the implementation of lean management , increased use of tendered
technologies such as cloud services and the adoption of digital asset management systems, a
company may offset overhead cost and, potentially even enhance its general financial outcomes
amidst stiff market competition within the media industry.
V. Financial reporting and regulatory compliance
1.1 Adhering to industry-specific accounting standards.
Many media companies failed in realizing that it is essential for them to adhere to their industries
set accounting rules for them to prepare good reports. As it has rightfully noted by Akdoğu
(2009), systematic enactment and financial management of the projects are one of the essential
conditions enabling a competitive advantage within the framework of film production industry.
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Huge benchmarks have been set by the Financial Accounting Standards Board (FASB) and the
International Financial Reporting Standards (IFRS) are present in this concern, which media
organizations should follow in order to keep the financial statements of diverse organizations
comparable. However, it is also important for adhering to such principles of management in
control of costs of productions and in enhancement of reliability of the financial statements that
is of benefit to the potential investors and the stake holders (Aliber & Smiley, 1984).
Furthermore, specific requirements of accounting for certain industries provide information on
how it is possible to control the recognition of revenues, cost assignment and management of
assets based on the conditions pertaining media organizations. For example, FASB guidelines
nascent manufacturing policies for film and similarenzymes faecal manufacturing cost,
distribution rights and timeliness in recognition of revenues to ensure that reporting of films
promises the reality of films economics. In addition, it recognises those standards that can be
used to benchmark the finanacial reviews of media companies with other like companies hence
offering a faster tool for the analysis of the company‟s performance. Another aspect of financial
reporting that is sustained to correspond with the regulations include Legal compliance it
therefore reduces the likelihood of legal violations, lawsuits and penalties. The thing is that
specific legal requirements have to be fulfilled in order to apply some of the most suitable
standards for media enterprises stating that such standards may be much different in terms of
their effectiveness depending on the enterprise but in any case, it is important to maintain the
financial reporting rather accurate, control the cost of production, and make it more credible.
There will be a lot of benefit for the media firms to follow FASB or IFRS since this will enable
the financial statements to be more comparable and very accurate in presenting the sufficient
measures of financial reporting that is important for the future growth and profitability in the
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media business where most of the investors prefer their consolidated reporting to be similar to
the reporting standards of companies they invested in.
1.2 Ensuring transparency in financial reporting practices
This means that accountability is required and proper procedures to adhere to when dealing with
the financial disclosure processes as one of the corporate governance principles of the media
enterprises. Regarding the pricing of equity shares for superstar artists, Alves and Treme (2019)
explicate the attributes for performing equity shares for artists with respect to stock prices and
the costly state architectures concerning the artist contract and royalties . This makes it easier
for the stakeholders and investors to have confidence in the overall financial reports as per their
ability to dissect it and know for real the position and standing of the company. Additional field
notes to support the argument are also shown below: It made it clear that media enterprises that
do not indulge in the preparation of the financial statements through other means are in a better
position to manage risks and position themselves to respond to forces in the market since such
practices subject the company to various dangers (Benner & Tripsas,2012). However according
to the super vention agenda of the G 21it defines transparent financial reporting as the actual
report of the financial transaction, concern and profitability of an organization in an
understandable term. It is beneficial in a way that numerous parties who may include the artists
themselves, investors, and regulatory bodies, may from time to time seek to access the financial
position and the governance framework of the business. The conclusion demonstrates that for
corporations and their corporate governance, financial reporting transparency is also a plus since
it assists the boards of directors and managers in monitoring and evaluating corporations‟
financial activities and outcomes. It ensures prudency and has a significant place in the
avoidance of wastefulness and more so, embezzlement of fund as well as its utilization in ways
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that would be financially more efficient and productive for all the shareholders. Furthermore, its
media enterprises are transparent and do not engage in misleading or undisclosed operations,
which makes them accessible to investors and potential partners. When transparency rises
credibility is earned and that reduces uncertainty with recourse to funding and hence a potential
decreasing of cost of capital. In this case, it is viable that there is need to increase the
interpretability of the information on the media enterprises with respect to the financial reporting
so as to enhance trust and stewardship, sound corporate management and clear risk
management. Building upon confidence and decision making on all books, company and media
related stake holders by providing analysis and simple financial information helps the
organizations to manage the faced challenge by undertaking proper company decisions and the
continuously competitive media world.
1.3 Complying with tax and regulatory requirements
Media firms that are engage in the provision of content should then ensure that they pay for the
tax and the regulatory bodies so that they do not fall prey to the various legalities, and the legal
suits and penalties inclusive. Allying with Bagwell (2015), it is desired to note the fact that the
minorities have some economic and financial issues in their media companies, including tax
issues. Thus Media firms can be in a position to go through the legal structures of the country
and its tax provision, hence position themselves to minimize their tax obligations and gain the
maximum of their operational financial needs. This comprises declaring right income levels, for
allowed losses and it concerns for compliance of tax deadline. For instance, legal taxation rules
that media enterprises have to adhere to include corporate taxes, entertainment expenses, taxes
specific to media firm‟s geography and media content such as Intellectual Property Rights. The
handling and administration of revenue collection/ fiscal affairs heavily contributes to the
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welfare/prosperity of the business entity and in addressing the legal constraints. Furthermore,
the changes is non-restrictively talking about responsibilities that stem from the regulatory
compliance bodies. Media enterprises are also mandated to adhere to these regulations on issues
concerning the rights to inventions, trade-marks, and designs, and on delivering content in media
industries. These regulations are rather helpful especially so for the media and entertainment
industries which encounter significant difficulties when it comes to protecting the copyrights and
trademarks as issues of intellectual property rights (Choi, Stahl & Whinston 1997). This way, a
good IPM allows the consumers to get hold of its product from other distribution channels as it
allows those in the media industries to safeguard their investment and content on what they
produce. This asserts that for media enterprises to implement this important mandate there is a
wave of legal demands and hurdles which makes them move in with compliance legal approach
that could prevent further legal mishaps and fines because problems are seen as an impediment
towards the company‟s success (Gershon, 2001). Essential lesson: For this reasons since the
media organizations‟ products involve sharing of information, they are forced to maintain the
highest levels of data privacy standards that will assure their consumer‟s freedom of data from
third party intrusion and the organizations themselves never fall prey to legal suits for non
compliance measures that can lead to a lot of cash outlays (Doyle, 2017). As tax and regulatory
authorities, the government expects and enforces compliance from media enterprises which must
meet these standards and conduct themselves accordingly. To minimize risk and to maintain
sound financial and business viability in this highly competitive sector one has to adhere to
and/or establish certain business norms and regulatory frameworks such as standard policies with
relation to tax laws, regulations of rights over inventions, broadcasts, and scrupulous mode of
operation together with data protection laws.
Page 22 of 27
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