#Cost of a movie production company full

Methods, programmes, systems, procedures, campaigns, surveys, studies, forecasts, estimates, customer lists, or technical data and Patents, inventions, formulae, processes, designs, patterns, or know-how Ĭopyrights and literary, musical, or artistic compositions §1.482-4(b) defines an intangible as an asset that comprises any of the following items and has substantial value independent of the services of any individual: We will then discuss how these intangibles fit into the intercompany value chain and which factors to consider when determining appropriate compensation for these intangibles from a transfer pricing perspective.įor US transfer pricing purposes, US Treas. While there are many other forms of intangible property that contribute to the success of the media and entertainment businesses, we will focus on intangible property that is most specific to the media and entertainment industry that relate to content creation and monetisation.

#Cost of a movie production company full

All these sources at their core depend on one key ingredient – the companies' ability to attract viewers by creating valuable proprietary content and building popular brands.īecause the profits of diverse revenue streams are often recorded within disparate departments over the course of a long lifecycle, it is often difficult to accurately capture the full returns from proprietary content.

Companies in the media and entertainment space derive their revenues from a number of sources, such as selling advertising space, licensing original content, box office ticket sales, home video sales, on-line subscription revenues, pay-tv, video on demand, merchandising, amusement park admissions, and video game sales. Media company stock has appreciated about 43% over the last year, while one of the best performing stocks appreciated more than 58% since October 2007, according to Industry Group Tracker data published by The Wall Street Journal online on December 2013.ĭriving the media industry's gains is a growing advertising revenue and the fact that digital distribution revenue is proving accretive, rather than, for example, cannibalising revenue from cable distribution.