Examples of Variable Costs in the Media & Entertainment Industry?
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Honestly, there aren't many and it does depend on what sector of TMT we're talking about (I'm assuming content production here). When you think about it, what's our unit? A movie or a show? If you treat it that way, actors, production studios, etc. are all variables, but it's an awkward way to think about it!
Licensing and distribution are the 2 that really come to mind.
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Media & Entertainment is a broad bucket.
- If it is content production - then a portion of the crew/cast costs will be variable. There will be some crew who will be the bare minimum required - these would be fixed
- If it is broadcasting - then content rights could have variable components
- And other dimensions to look at Media & entertainment
Any more details you can provide us?
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