world's most colorful screen tv series sector in turkey
TRANSCRIPT
August 2014
World’s most colorful screenTV series sector in Turkey
Methodology, definitions and important notes
Methodology, definitions and important notes
•Alldatademonstratedinthisreportaregatheredfrompubliclyavailablesourcesandindustryexpertopinions.
•AlldatarelatedtoTVseriessuchasnumberofairedepisodes,seriesseasons,seriesnames,broadcasters,productioncompanies,etc.areasofJune30,2014.AllepisodesofallTVseriesandallotherrelateddatafromthisdateonwardsareexcludedfromtheanalysisandthereforethereport.
•Primetimebroadcastingperiodhasbeenconsideredasbetween20:00-24:00inthisreportduetothelongTVviewershiphoursinTurkeycomparedtoothercountries.
•ATV,FOXTV,KanalD,StarTV,ShowTVandTRT-1areidentified,forthisreport,astopTVbroadcastersinTurkey,sinceTVseriestakeplacefrequentlyinsuchchannels’weeklybroadcastingschedules.Thisselectionisindependentfromanyotheraspectssuchasratings,genre,adrevenues,etc.
•Insteadofcalendaryears,broadcastingseasonsaredefinedas2010/2011,2011/2012,2012/2013and2013/2014inthisreport.Eachbroadcastingseasonstartsonthe1stdayofJuneoftheyear(e.g.2013/2014seasonstartsonJuly1,2013andendsonJune30,2014).
•Forthepurposeofthisreport,phraseof“2010-2014”correspondstotheseasonsbetween2010and2013whichare2010/2011,2011/2012,2012/2013and2013/2014.
•Includedproducersandproductionsreflectsthe2010-2014broadcastingseason.
•RatinganalysisaremaderegardingtoTNSdailyTop100totalratingdata.ProductionsoutofTop100areexcluded.Fororiginal,summaryandre-runbreakevenTNSdataareused.
4
Contents
Deloitte TMT contacts
Conclusion
TV series production
TV viewership
Introduction
Foreword 1
2
4
12
34
36
5
Foreword
1
Foreword
FirstventuresintheTV-showindustrysurfacedinthe1970’swhentheTurkishRadioandTelevisionInstitution’s(TRT)needfortechnicalequipmentandstaffforTV-showsarose.Productionteamsusedtobeformedinthecaseofademandbyinstitutionsthatpreviouslyworkedinthefilmoradvertisingindustries.Inthe1980’s,TRTstartedoutsourcingproductionstothirdpartieswhichhelpedcompaniesspecializeinproducingTV-shows.Withtherapidexpansionofprivatebroadcastersafter1989,today’s“TV-seriesIndustry”hasbeenemerged.
Thepastofthe“AdvertisementSector”andadvertisementinvestments,datebacktopre-TRT“radiodays”andconstitutedynamicandmotionlessadvertisementsthatwereshownbeforemoviesinmovietheaters.Althoughitmayseeminsignificantintoday’senvironment,advertisementinvestmentandproceedingsofthepastintothisindustrywereindicatorsoftheimportanceoftheindustry.Iwouldliketofurtheremphasizethesignificanceoftheadvertisementrevenuecollectedfromtheadsinmagazinesandnewspapers.
Kick-offoftransformationoftheindustrydatesbackto1974,whenTRTstartedbroadcastingforeignTVseries.ThesameyearalsowitnessedproductionofsuccessfulTurkishTVseriessuchasDeğirmen,SinekliBakkal,Aşk-ıMemnu,ÖmerSeyfettinHikayeleriandBeşHikaye,whichalsopointedoutthesuccessfulprogressionofthesector.
Despitethec.40-yearhistory,itmustnotbeoverlookedthatTVseriesproductionhasbecometoappearlikeanindustryveryrecently.JustliketheTurkishfilmindustry,thedemandforTurkishTVserieswasconsideredtobelimitedtothedomesticmarketforalongtime.Producersdeferredtorealizetheimportanceofexpandingtointernationalmarkets.Actually,TRTwasthepioneer,who,atonepoint,failedtomarketAşk-ıMemnutointernationalmarketsduetoinexistenceofrelevantregulation,butsucceededlateronwithproductionsindifferentgenres.TRTformedadepartmentcalledForeignProductionsandSalesinpursuitofthismission.
IwouldliketothankDeloitteTurkeyforconductingthisstudy,andhopethatthisstudywillleadinvestorstostartfocusingontherelationshipbetweentheTVseriesindustryandadvertisementinvestments.IwouldliketoemphasizeonceagainthatifTurkishTVseries’competitiveedgeweretoincreasewithintheinternationalmarket,oureconomywouldprosperandTurkey’smarketrecognitionandpopularitywouldincrease.
Dr. Tekin Özertem
Introduction
2
3
ThisstudyisaboutTVseries,whichhavebecomealargepartofourdailylives.ThehabitsofTurkishTVviewers;theeconomic,industrialandartisticdevelopmentsof
theTVseriesindustrysincetheearly2000sandtheincreaseinproduction,consumptionandexportsasaresponsetothesedevelopmentsareassessedbyusinganalysis,examples,comparisonstoothercountriesandthedatafromproducersandthebroadcasters.
Mainobjectiveindraftingthisreportistheneedforqualifieddataandintelligencereckonwiththerapiddevelopmentoftheindustry.Whileconductingthisstudy,adatabaseofTVserieshasbeenbuiltforthelastfourbroadcastingseasons,onwhichanalysisareperformed,industryexperts’commentsweretakenandbenchmarksweresoughtfromglobalexamples.
Additionally,challengesoftheindustryhavealsobeenevaluatedandsuggestionsforenhancingcompetitivenessintheinternationalscalearemade.
Introduction
Introduction
TV viewership
4
5
TV viewership
TV viewership
Althoughthefirstbroadcastingtrialwasrealizedin1952,theoutreachofTVpublicationwasstillthe28%oftheTurkishland,andthe55%oftheTurkishpopulationasof19741.Penetrationincreasedinthelate70sandacceleratedbythefirstcoloredTVshowingsin1984;particularlybytheestablishmentoftheprivatebroadcastersinthe90s.ThisprocessmadeTVanirreplaceablepartofthedailylivesofTurkishfamilies.
Turkishbroadcastingmarketseemsquitediversewith293satellitechannels,139cablechannelsand219terrestrialbroadcasters2inlinewith(i)intenseTVviewinghabitsofTurkishcitizens,andcorresponding(ii)dominantshareofTVinadvertisingbudgetsofcorporations.
Turkish people spend around 3.9 hours / day watching TV on average
Average Daily TV Viewing (2011)
1RTÜK(RadioandTelevisionSupremeCouncil)2 Assomebroadcastersaresatellite,cableandterrestrialbroadcastersatthesametime,totalnumberofbroadcastingchannelsisnotequaltothesumofthesethreecategories.
8.5
4.8
4.4
4.2
4.1
4.0
4.0
4.0
3.9
3.8
3.7
3.5
3.4
3.2
3.2
3.1
3.0
2.8
2.0
0
1
2
3
4
5
6
7
8
9
ABD
Mac
aris
tan
Yuna
nist
an
İtaly
a
Kana
da
İngi
ltere
Polo
nya
İspa
nya
Türk
iye*
Japo
nya
Port
ekiz
Alm
anya
Fran
sa
Avu
stra
lya
Çek
Cum
h.
Hol
land
a
Kore
Avu
stur
ya
İsve
ç
Saat
Source:OECD,Turkey:2012RTÜKData
USA
Hun
gary
Greece
Italy
Canada
UK
Poland
Spain
Turkey*
Japan
Portug
al
Germany
France
Australia
CzechRep.
Netherland
s
Korea
Austria
Sweden
Hou
rs
6
Media investments and rating system in Turkey
Althoughtherehasbeenapproximately10%declinefrom4.4hoursmeasuredin2008to3.9hoursofdailyTVviewingonaveragein2012,TurkeystillranksaboveOECDaverageofapproximately3.5hoursperday.Declineismainlythoughttobeduetoanincreasingonlinevideoconsumptiontrend,alongwithrisinginternetpenetration3.
Increasinginternetandelectronicdevicepenetrationalsoallowedpeopletoview,TVseries,newsprogramsandentertainmentshowsetc.viaPCsandmobiledevices,inadditiontoTVs.
TVstillpreservesitsover50%shareintotalmediaspendinginTurkeyeventhoughglobalaveragesarearound40%,andEuropeanaverageis25%.LongviewinghoursandtheTV’sefficiencyinreachingbroadsegmentsofthepopulationaretwomajorfactorsthatencouragecorporationstoallocateasignificantportionoftheiradvertisingbudgetstotelevision.EvensomewebsitesarepromotingthemselvesinTVchannelstoreachalargeportionofcustomersthattheycannotreachbyutilizingonlinemedia.
52%56% 57% 56% 58%
0
1,000
2,000
3,000
4,000
5,000
6,000
2009 2010 2011 2012 2013
3AccordingtoComscoredata,inthesameperiod,onlinevideostreamingperviewermorethandoubled,frombelow10hourspermonthtoabove20hourspermonth.
2009-2013CAGR
28.4%
10.1%
10.8%
15.1%
8.6%
19.2%
TV advertising has a significantly higher share among media spending in Turkey compared to Western countries
Turkey - Media Investments by Channels (TL mn)
Source:TurkishAssociationofAdvertisingAgencies
Digital
Radio
Movies
OutdoorPrint
TV
7
RTÜK’s Ad Broadcasting Guidelines for Broadcasters
•Maximumdurationfor“inner-programadslots”is6minutes.•Therehastobeatleast20minutesbetweentwoseparate“inner-programadslots”withinaprogram.•Maximumaddurationis6minutesfor“pre-programandprogrambreakadslots”.•Therehastobeatleast10minutesbetween“inner-programframed/banneredads”thatareplacedinaprogramseparatelyandindependently.
•Itisforbiddentoopennewadslotsotherthan“inner-programadslots”and“pre-programandprogrambreakadslots”.AlsoitisforbiddentoopenBBR/Advertorial/separatoradslots.
•Virtualadsandvirtuallogoscanappearinevery5minutesfor8seconds.•Totaladbroadcastingdurationcannotsurpass20%ofthetotaldailybroadcastingdurationofachannel.•Telemarketingbroadcastingdurationscannotsurpass5%oftotaldailybroadcastingdurationofachannel.•Adssuchas“liveadvertorials”and“specialinformativespots”canbeairedonceinanhourfor60secondsduringoff-prime-time.
•Adssuchas“liveadvertorials”and“specialinformativespots”canbeairedbetween19:00-23:30for60secondsontheconditionthatbeingincludedtotherelevantadslot.
•Pre-programadscannotbeairedincasetherelevantprogramdurationisshorterthan12minutes.•Alladslotshavetobeopenedandendedwithscreencreditsthatclearlyindicatetheadslots.•Therehastobeaminimum5minutesofadslotbetweentheprogram’slastadslotandthenextprogram’spre-programadslot.
•Forsportscompetitionbroadcasts,virtualadsandbottombannerscanappearinevery2.5minutes(maximumfrequency)foramaximumdurationof8seconds.
Rating Systems History
•TheratingsysteminTurkeyhadoftenbeenseverelycriticized.Forinstance,betweenmid-1990s-2012,ratingssystemwasmanagedbyAGBNielsen,onwhichallmediainvestmentsinTVreliedupon;andstate-runTurkishRadioandTelevisionCorporation(TRT)refusedtobeapartoftheprevailingratingsystembetween2009-2012.
•HistoryofratingsystemsinTurkey.
•InDecember2011,TVViewingsResearchCompany(TIAK),whichwasresponsiblefortheratingsystem,cancelledthecontractwithAGBNielsenandsignedanewcontractwithanotherratingagencyTNS,whichhadalreadywonthetenderheldin2009buthadbeenwaitingforlegalapprovals.BetweenDecember2011andSeptember2012therewasnotanyofficialsystemthatmeasuredorkepttheratingsinceTNShadtodesignanewpanel.AsAGBNielsenandTNShaddifferentmethodsinsamplingsizesandstructures,theoldratingdatacouldnotbecomparedtothenewratingdata.TRTwasnotapartoftheratingsystemuntilFebruary2013.
•TNSratingpanelconsistsofapproximately3,000householdsandaimstomeasureTVviewingbehaviorofindividualsovertheageof5yearsinsettlementscontaining20,000people.
Source:RTÜK
Source:ExpertInterviews,DeloitteAnalysis
1992 1994 1995 .… 2009 …. 2011 2012 2013
Establishment of TİAK
TNS started to measure ratings
TRT turned back to the rating system
FebSept
No rating data
Panel Design
TRT started using SBT Rating System
TİAK signed agreement with TNS
Agreement with AGB Nielsen
8
Turkish viewing behaviour
BasedontheresearchconductedbyRTÜK,domesticTVseriesviewershipisonacontinuouslyrisingtrend,mainlyduetoincreasinganddiversifyingseriesportfolioofTVchannels.
Practically,thisisachickenortheeggcausalitydilemma;itispartiallydemanddrivenpartiallysupplydriven.Forthelast3-4years,localTVserieshavebeendominantinprogramtypes,itisatrendfollowedbyalmostalltopbroadcasters,whodonotwanttolosegroundtorivalbroadcasters.Ontheotherhand,asstatedinRTÜK’sresearch,entertainmentshowviewingisalsoonanincreasingtrendalongwithbroadcasters’newprogramintroductions.SomeindustryexpertsclaimthatmoreandmorerealityshowswillbeairedduetotheirlowcoststructurecomparedtoTVseries.
Assessingleadingsixchannels’schedulesforthe2013-2014seasonintheTNSdata,first-runs,re-runsandrecapsofdomesticTVseriesconstituteapproximately60%-65%ofprime-timeschedules.
We love TV series...
Turkish Viewing Behavior, by genres
Top 6 Broadcasters- Prime Time Program Distributions – 2013-2014 Season
Source:RTÜK(amongTVviewers).
TVSeries-Domestic
News EntertainmentShows
DomesticMovies
ForeignMovies
Source:DeloitteAnalysis,generatedbytheanalysisof2013-2014broadcastseasonratingsandbythelengthoftheirstayonair.Primetimehasbeenconsideredbetween20:00-24:00.(includingads).
%0
%20
%40
%60
%80
%100
2006
2009
2012
2006
2009
2012
2006
2009
2012
2006
2009
2012
2006
2009
2012
İzlemiyorum Ara Sıra İzliyorum İzliyorum
51% 57% 53%37%
28%47% 45%
15%21%
13%
21%
12%
21% 17%
14%4% 21%
20%40%
4% 17%
11% 10% 5%11% 9%
13%10%
3% 2% 6% 7% 8%%1
4%
7% 6% 1% 5% 3% 15% 6%
Kanal I Kanal II Kanal III Kanal IV Kanal V Kanal VI Toplam
Yerli Dizi Yerli Dizi - Özet & TekrarYarışma - Eğlence Yabancı SinemaYerli Sinema Diğer
Donotwatch
0%
20%
40%
60%
80%
100%
Occasionallywatch Watch
DomesticTVSeries DomesticTVSeries-Reruns,summary
EntertainmentShows ForeignMovies
DomesticMovies
ChannelI ChannelII ChannelIII ChannelIV ChannelV ChannelVI Total
Others
9
Similarly,thefivemostratedshowsareanalyzedbyusingthedailyratinglogdataofTNS,andonecanseethatTVseriesarethemostpreferredprogramtype.Evenre-runsorrecapsofTVseriesarealsoplacedintop5andaccordinglyTVseriesconstitutearound50%-55%oftop5programs.
%0
%20
%40
%60
%80
%100
1. Sıra 2. Sıra 3. Sıra 4. Sıra 5. Sıra
Yerli Dizi Yerli Dizi - Özet & Tekrar
Yarışma - Eğlence Yabancı Sinema
Yerli Sinema Diğer
Distribution of the Top 5 Programs- 2013-2014 Season
Source:Deloitteanalysis,hasbeenpreparedbyusingTNSdata,topfiveprogramsoftheleadingsixchannelsprogramsareevaluated.(basedonunits,noton-airtime.)
A TV series lasts for around 150-180 minutes on average including ads (and episode recaps), which is considerably higher compared to Western standards.
DomesticTVSeries
100%
80%
60%
40%
20%
0%
DomesticTVSeries-Reruns,summary
EntertainmentShows ForeignMovies
DomesticMovies
First Second Third Fourth Fifth
Others
10
Average Breakdown of the TV Series First On-Air Times per Episodes in 6 Leading Broadcasters- 2013-2014-Season
Source:DeloitteAnalysis,timeanalysisareperformedtaking95TVseries,whosenewepisodeshavebeenbroadcastedwithin2013/2014season.Adtimesareincluded.
TVserieshaveasignificantshareinprimetimeprograms;aTVserieslastsforaround150-180minutesonaverage(includingrecapsandads).Broadcastersfacefiercecompetitioninattractingviewers;inordertobeatcompetition,theyoptforfamousactors/actresses,scriptwriters,leadingproductioncompanies,whichescalateTVseries’productioncosts.However,numberofadslots,frequenciesanddurationsarelimitedbyRTÜK;accordinglybroadcastersencourageproducerstolengthenTVseries’durations.Almostallproductioncompaniesandactors/actressescomplainaboutthisissue,butgiventhedemandsituationinthemarket,achangeintheshorttermisnotenvisaged.
Broadcastersalsohaveadifferentsolutiontorisingproductioncosts;re-runsconstituteagreatsignificanceforbroadcastersintheirweeklybroadcaststream.
Re-runswhicharesourcedbythebrandvalueofTVseriesandpowerofviewersgeneraterevenueforbothbroadcastersandproductioncompanieswithoutrequiringanadditionalproductioncost4.Sinceproductioncompaniesactasiftheywerepartiestowhombroadcastersoutsourceseriesproduction,withsomeexceptions,broadcastersdonotpaytotheproductioncompaniesforthere-runs.Additionally,ascopyrightsofproductionsaregenerallyownedbybroadcasters,evenafterTVseriesarecancelled,broadcastersmayairoldepisodeswithoutincurringanyadditionalcost.
60-mins3%
60-90 mins
90-120 mins23%
120-150 mins37%
150-180 mins23%
180+ mins1%
13%
4Whileinsomecases,theremaybesomeclausesaboutlimitingnumberofairingsofepisodes,generallynoadditionalfeeispaidtoproductioncompaniesforre-runs.
11
Top 5 Program Breakdown – 2013/2014 Season
Source:DeloitteAnalysis,top5programsinleadingsixbroadcasters,onaunitbasis
Althoughre-runsandrecapsmaybeperceivedasrepetitionofpreviousepisodes,theymaystillattracthigherratings,especiallyreputableTVseries,andatthesametimeenablebroadcastersimprovebottom-line.Forinstance,accordingtotheTNSratingsdata,14%ofthetop5programswasconsistedfromre-runsandre-capsinthe2013/2014season.
38 14 25 54
14Top 5
0% 20%
% % % % %%
40% 60% 80% 100%
DomesticTVSeries DomesticTVSeries-Reruns,summary
EntertainmentShows ForeignMovies
DomesticMovies Others
TV series production
12
13
TV series production
Production Companies According to Number of Broadcasted TV Series during 2010-2014 Broadcasting Seasons
Source:DeloitteAnalysis
Many producers of various sizes which have not been fully institutionalized are competing for the limited number of broadcasters and the limited schedules of broadcasters, which are the main obstacles to the sustainable development of production companies.
TV series production
Therewereabout85productioncompaniesthatbroadcastedatleastoneTVseriesonleadingTVchannelsbetween2010-2014broadcastingseasons;themarketisquitefragmentedsinceabout50%ofthesecompanieswereabletobroadcastonlyoneTVseriesintheperiod.
V20 – 11.07.2014 - TASLAK
15
Kaynak: Deloitte Analizi
Yan Mesaj: Yaync kuruluşlarn yapm şirketlerine karş kuvvetli bir pazarlk gücü bulunmaktadr.
Reyting verileri incelendiğinde televizyon pazarnn oligopolistik bir yaps olduğu görülmektedir; yapm şirketleri az saydaki TV kanalna ürünlerini pazarlamaktadrlar. TV kanallar, reytingler ile reklam gelirleri arasnda kuvvetli ilişki nedeniyle yeni yapmlar için ince eleyip sk dokuduklar bir sürecin ardndan karar vermektedirler.
Yeni projelerin değerlendirilmesinde yapmc firmann geçmiş performans ve itibar en önemli kriterler arasndadr. Bilinen/ünlü yapm firmalar ksa zaman içerisinde daha çabuk onay alrken bilinirliği düşük olan yapm firmalar TV kanallarndan onay almak için uzun bir onay sürecinden geçmektedirler.
Yapm şirketleri ile TV kanallar arasnda sözleşmeler genellikle 13 bölüm için imzalanmaktadr5; fakat birçok örnekte olduğu gibi TV kanallar istediği an projeyi iptal edebilmektedir. Yeni bir dizinin ilk bölümlerdeki reyting performans yakndan takip edilirken dizinin ilk 5‐6 bölümündeki reytingi projenin başars için en kuvvetli göstergelerden birisi olarak kabul edilmektedir. Eğer yaync kuruluş diziye karş kuvvetli bir güven duymuyorsa, düşük reytinglere sahip bir dizi hzl bir şekilde yayndan kaldrlmaktadr.
İlk 6 bölümlük kritik eşik aşldğ durumda dahi 13. bölüme kadar reyting performans çok yakndan takip edilmektedir. Bu süreçteki düşük performans da yine yayndan kaldrlma ile sonuçlanmaktadr. Yaync kuruluşlar prime time olarak nitelendirilen yüksek reklam geliri potansiyeline sahip dönemde düşük reytinglere sahip bir yapma müsamaha göstererek kanaln genel olarak reytinglerinin düşmesini, dolaysyla da genel reklam gelirlerinin düşmesini riske etmeyi istememektedirler.
5 Dizilerin uzun yayn süresine sahip olmasndan ötürü, 13 bölümün, 26 bölümlük paketler halinde yurt dşna satlma ihtimali bulunmaktadr.
0123456789
1011121314
Yayı
nlan
an D
izi S
ayıs
ı
Yapım Şirketleri
41 Yapım Şirketi 1 Dizi
22 Yapım Şirketi 2-4 Dizi
21 Yapım Şirketi 5 ve Üzeri Dizi
21ProductionCompanies5andmoreSeries
22ProductionCompanies2-4Series
41ProductionCompanies1TVSeries
Num
berofAriedTG
Series
ProductionCompanies
14
Basedontheratingdata,theTVbroadcastingmarkethasanoligopolisticstructure;productioncompaniesselltheirproductionstoafewbroadcastingchannels.Duetothestrongcorrelationbetweentheratingsandtheadvertisementrevenues,broadcastersassessnewpropositionsmeticulouslybeforemakingadecision.
Productioncompanies’previoustrackrecordandreputationarethemaincriteriaforbroadcastersinevaluatingprojects.Well-knownproducerscangetapprovalforaprojectinaveryshortperiodoftimewithbriefdocumentation.Ontheotherhand,lessreputable/newproducersmayhavegreathurdlesingettinganapprovalforaproject,whichmakesthedecisionmakingprocessrelativelylonger.
Broadcastingcontractsaresignedgenerallyfor13episodes5,butinmostofthecasesbroadcastershavetherighttocancelprojectsatanytime.Initialperformanceofnewseriesiscloselytracked;theratingscoreofthefirst5-6episodesindicatewhetherornottheprojectwillsucceed.Ifaseriesdemonstrateunsatisfactoryperformance,generallytheproductionendsupbeingcancelledunlessit’saprojectthatisstronglytrustedbythebroadcaster.
Evenafter6thepisodethresholdispassed,asecondthresholdis13thepisode;ratingperformanceperepisoderemainsimportantuntilthe13thepisode.Uponanyunsatisfactoryperformancebroadcasterscancancelthecurrentprojectandinvestinanotheroneatanytime.Broadcastersrefrainfromriskingthefallofratingscoresfollowedbythepotentialfallinadvertisementrevenuescausedbyanunsuccessfulseriesthatisairedonprimetimeslot.
Broadcastersmaysupportprojectsbychangingtheirscheduleandairingtheirteasersfrequently.However,mostofthetimeachangeinschedulegiveswarningsignalsforaproject.Ifweeklybroadcasttimeofaserieschanges,theunderlyingreasonisoftenthepoorratingperformance.HoweverthischangecanbeintentionalforplacingtheseriesintoamoreconvenienttimeslotinordertoreducetheratingcannibalizationriskoftheshowsthatareairedinopponentTVchannels.
Generallyasatisfyingprojecthasaround35-40episodesperseasoniflaunchedatthebeginningoftheseasonand20-25episodesiflaunchedwithintheseason.
Becauseofthescale,institutionalizationandsustainabilityissuesproductioncompaniesface;whichareresultsoftheproblemsmentionedabove;productionfirmshavetroubleaccessingnecessaryfinancialresources.Combinedwiththelowequity,productioncompaniesaredependentonbroadcasters’fees,whichresultsinasub-contractorpositioningofproductioncompanies.Achangeintheecosystem;e.g.similartothesystemindevelopedcountries,whereproducerstakeinitiativeandnegotiatetermswiththebroadcastingcompanieswithashootingapilotepisodeorfirst5to10episodesinadvance,isnotexpecteddueto(i)thecurrentmarketstructure(ii)thescaleoftheproducers(iii)accesstofinancialresources.
5Mainincentivebehindshooting13episodesstemsfromagainlongerdurationofTVseries;a13-episodeprojectiseligibleforexportssinceitissufficienttocoveraseasoninoverseascountries,itisequivalentto26-episodewhenbroadcastedabroad.
15
Success Factors
ThemainfactorsthatleadtosuccessfulTVseriesareasfollows:
1- Famouscastisananchortogetapprovalfrombroadcasters,andthenattractaudience’sattentionattheinitialepisodes.
2- Scenarioisakeyfactor;aftertheinitialstages,generallyitsimportancesurpassescastingandbecomesthemostimportantfactorforsuccess.
3- Broadcastersupportisamustforsuccess;e.g.promotingtheserieswithtrailers,ads,etc.,schedulinginamorepropertime(oranunrivaledtimeslotoronthecontraryinthesametimeslotwithastrongopponent),etc.
4- Productioncompany’sfinancialstrengthandreputationallowthecompanytomakecontractswithreputableactorsandattractstrongscenarioshenceincreasethechancesofproducingasuccessfulseries.
OneofthemaindifferencesbetweenTurkishandUSmarketsistheconceptof“pilotepisode”whichhadbeentriedbuthadtobeabandonedinTurkeysinceitfailedtoreflectthefeedbacksandopinionsoftheaudiences.
IntheUS,pilotepisodesareconsideredasprototypesoftheseriesanddistributedtoTVnetworksbeforeactuallystartingtoshootfollowingepisodes;theyarefundedbyproducersandarecancelledbeforegettingairedincasethereactionsfromtheaudiencesandthebroadcastersarenotsatisfactory.TurkishproductioncompaniesprefernottoshootpilotepisodesastheyhavesmallerscaleandlimitedfinancialresourcesorlimitedaccesstofinancialresourcescomparedtoUSproductioncompanies.
Additionally,whilstratingsareperceivedtobethemaincriteriathatmeasurethesuccessofaTVseriesforadvertisersandbroadcastersinTurkey;USTVseriesareevaluatedbyutilizingmorescientificmethods.Forinstance,focusgroupstudiesareperformedinordertounderstandtheaudience’sreactionstothescenario,actingperformancesandproductionqualityofpilots.Thesestudiesareconsideredalongsidetheratingswhiledecidingtoairtheseriesornot.
Focusgroupstudiesmayalsobecarriedoutthroughouttheseasonofaseriesandthefeedbackcanbeusedtoamelioratetheseriesi.e.modifythescenario,makechangesinthecastandmakefuturedecisionsparalleltotheexpectationsoftheaudiences.
16
Genres in the market
TurkishaudiencesloveTVserieswithromanticelementsandfeaturesthemost.Thisisparalleltoglobaltrends;broadcastersandproducers’maintargetisfemaleviewersinTVseries,andatouchofromanceisapositivefactorthatattractsthefemaleaudiences’attention.Thuseveninhardcoreactionandcrimeseries,romanticismisapartofthesub-plot.
Inaddition,TurkishTVseriesoftenfitintomultiplegenres;inanattempttoevokemultipleemotionshenceattractalargeaudience.Thegraphbelowillustratesthemostpopulargenresamongseriesin2013-14broadcastingseason;howevermostseriespresentelementsfrommultiplegenres.
Recently,adaptationsofwell-knownTurkishnovelsandbiographiesofhistoricalfigureshavebeenarisingtrend.Insteadofcomingupwithproductionswithoriginalscenariosandriskingthesuccessandratingoftheseries,well-knownevents,novelsandstories,areadaptedasanattempttosecuresuccess.SomesuccessfulexamplesoftheseadaptationsareYaprakDokumu,HuzurSokağı,Çalıkuşu,Fatih-Harbiye,MuhteşemYüzyıl.Ontheotherhand,adaptingtheformat/scenarioofsuccessfulforeignTVserieshasbeenarisingtrend.ExamplesincludeDesperateHousewives-UmutsuzEvKadınları,TheO.C-Medcezir,Revenge-İntikam,Monk-GalipDerviş,andGossipGirl-KüçükSırlar.However,therehadbeenmanyunsuccessfulexamplesofadaptedseriesthatdidnotlastlongduetointenseratingcompetitioninspiteoflargebudgets.
Genres
Source:DeloitteAnalysis,validfortheTVSeriesairedasofJune30,2014.Mostdominantgenreistakenintoconsideration.
31%
15%33%
13%
3% 5%
Komedi
Aksiyon
Romantizm
Aile
Fantastik
Gençlik
Comedy
Romance
Action
Family
Youth
Fantastic
17
TV Series consumption
Thereisfierce“consumption”intheTVseriesmarket;50-70TVseriesarelaunchedperseasonintopbroadcasters,andmorethanhalfarecancelledinthesameseason,mainlyduetolowratings.TheAmericanTVseriesindustryhasasimilartrend.
AccordingtotheanalysisofScreenrant(2012),65%oftheseriesthathavebeenairedbetween2009-12onABC,Fox,CBS,andNBCwerecancelledwithintheirfirstseason.Nonetheless,consideringthesizeandthedevelopmentoftheAmericanmarket,the"consumption"levelinTurkeyremainsathigherlevels.
Series Consumption in Turkey
Source:DeloitteAnalysis,itwasassumedthatbroadcastingseasonbeginsinJuly1st,andendsinJune30th
Each season around 50-70 new series are launched, more than half are cancelled before the end of the same season.
6TVSuccessRate:65%OfNewShowsWillBeCanceled(&WhyItMatters);http://screenrant.com/v-success-rate-canceled-shows-aco-172162/2/
26ofthe39seriesonTVattheendofthe2013-14broadcastingseasonhavebeenlaunchedin2013-14broadcastingseason.Only4oftheseseriesonTVwerelaunchedpriorto2010.
©2012 Deloitte Turkey
Sayfa 18 – Güncel Grafik (Legend Ayni sekilde ekleyelim)
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Yay
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nuSo
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yınd
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aYa
yına
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dırıl
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yınd
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yına
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dırıl
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yınd
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yına
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aSo
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dırıl
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yınd
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lan
Serieslaunchedin2011/12season
Serieslaunchedin2010/11season
Serieslaunchedbefore2010/11season Serieslaunchedin2012/13season
Serieslaunchedin2013/14season
Pre-Laun
ched
2010
/11Laun
ched
2010
/11Cancelled
2010
/11OnAir
2011
/12Laun
ched
2011
/12Cancelled
2012
/13Laun
ched
2013
/14Laun
ched
2012
/13Cancelled
2013
/14Cancelled
2012
/13OnAir
2013
/14OnAir
2011
/12OnAir
18
Atthebeginningofthebaseyearofthisstudyi.e.2010-11,therewere36seriesonTVthathadbeenlaunchedinpreviousseasons.55newserieswerelaunchedinthe2010-11seasonduetoincreasingdemand;however29ofthe55(53%)serieswerecancelledduringthesameseason.In2011-12,59serieswerecancelled,35ofwhichwerelaunchedthatseason.In2012-13,57serieswerecancelled.Ofthe59seriesthatwerecancelledin2013-14,41werecancelledbeforetheendoftheirfirstseason.
Sameseasoncancellationhasbecomeaveryusualcaseintheindustry.MostoftheTVseriesthathavebeencancelledinthesameseasonarecancelledbetweentheir7thand12thepisodes.Inthelastfourseasons,amongthesameseasoncancellations,22%happenedwithinthefirst6episodes,29%within7th-12thepisodes,20%within13th-18thepisodesandremaining28%after18thepisode.Anotherrecenttrendistheconsistentsurgeincancellationsintheinitialepisodesduetoincreasingcompetition.
Due to fierce competition, many TV series are cancelled within the season they were launched in.
Same season cancellations
Source:DeloitteAnalysis
V20 – 11.07.2014 - TASLAK
20
Yan Mesaj: Dizi sektöründeki yoğun rekabet nedeniyle yayn hayatna başlayan pek çok dizi ayn sezon içerisinde iptal olmaktadr.
Yayna başlayan dizilerin daha sezon sonunu görmeden iptal edilmesi oldukça sk karşlanan bir durum halini almştr. Yaplan analizde ayn sezon iptallerinin en yoğun 7‐12. bölümler arasnda gerçekleştiği gözlemlenmiştir. Son dört yayn sezonu incelendiğinde, ilk sezon içerisinde yayn sona ermelerinin %22’si ilk 6 bölüm içinde, %29’u 7. ve 12. bölümler arasnda, %20’si 13. ve 18. bölümler arasnda ve geri kalan %28’lik bölüm ise 18. bölüm sonrasnda gerçekleşmiştir. Artan rekabetle birlikte ilk bölümlerde dizilerin yayndan kaldrlma oran da hzla artmaktadr.
Ayn Sezon İçinde Final Yapan Diziler
Kaynak: Deloitte analizi
DizilerinDevamllğ
Yan Mesaj: 30 Haziran 2014 itibariyle, yayndaki 40 diziden 27’si (%67) ilk sezonu içerisindedir
Dizilerin Devamllğ – Yaynda Kalnan Sezon Says
5
8
5
3
8
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12
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76
9
7
2
6
13
10
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5 5
1-6 7-12 13-18 19-24 24+
Diz
i Ade
di
Finale kadar yayınlanan bölüm sayısı
2010/2011 2011/2012
2012/2013 2013/2014
Num
berofTVSeries
NumberofEpisodesAiredTillFinalEpisode
19
As of June 30, 2014, 26 out of 39 (67%) TV series that are on air are in their first season.
Sustainability of Turkish TV Series-Number of Broadcasted Season
Source:DeloitteAnalysis,IncludesonlyonairTVseriesinthetop6TVBroadcasts.TheendofeachTVbroadcastingseasonisconsideredastheendofJuneofeachyear.
Sustainability
AsofJune30,2014,27outof39TV(67%)seriesonTVareintheirfirstseason,5(10%)insecond,4(10%)inthirdandremaining4(10%)areintheirfourthorinafurtherseason.Consideringseriesthatareintheir3rdorfurtherseasonsasmatureTVproductions,thereisalackofmaturityintheindustry.
67%
13%
10%
10%1
2
3
3+
20
Rating performance and continuity of TV series
AccordingtoratinganalysisofTVseriesthatwereairedonTVin2013/2014season,itseemsthatgenerally,withsomeexceptions,TVseriesthatcannotfindarankingintop10programs(daily)arecancelled.
Rating Performance and Continuity of TV Series
Source:DeloitteAnalysis,serieswhichhavelessthan50episodesairedinthe2013/2014seasonareincluded ©2012 Deloitte Turkey4
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ölüm
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Önceki Sezonlardan Devam Eden 2013/2014 Sezonunda Başlayıp Devam Eden
Önceki Sezonlardan Olup Final Yapan 2013/2014 Sezonunda Başlayıp Final Yapan
Num
berofEpisodeson
Air
AverageRankinginDailyRatings
Continued-LaunchedinPreviousSeasons
Finalized-LaunchedinPreviousSeasons
Continued-Launchedin2013/2014Season
Finalized-Launchedin2013/2014Season
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Top 10 TV Series by Number of Episodes Aired (Among weekly broadcasted TV series)
TV Series Name Production Company TV ChannelTotal Number of Aired Episodes(as of the end of 2013/2014 Season)
1 ArkaSokaklar ErlerFilm KANALD 336
2 KurtlarVadisiPusu PanaFilm ATV 229
3 ÇocuklarDuymasın–Yeni MinTYapım FOXTV 156
4 Seksenler MinTYapım TRT-1 111
5 PisYedili TükenmezKalem ShowTV 101
6 YalanDünya D-Yapım KANALD 86
7 ZenginKızFakirOğlan MinTYapım TRT-1 86
8 Karadayı AyYapım ATV 75
9 BeniBöyleSev BSKYapım TRT–1 63
10 GüneşiBeklerken D-Yapım KanalD 50
Source:DeloitteAnalysis,asofJune30,2014
22
Among 85 production firms, only 21 have aired 4+ TV series in the last 4 seasons.
Yapım şirketi bazında yayınlanan dizi sayısı
DYapım,GoldFilm,AyYapım,MinTandSüreçFilmaretheleadingproductioncompaniesintermsofnumberofseriesairedbetweentheseasonsof2010/2011-2013/2014.Thereare65moreproductioncompaniesthatairedlessthan5series,whichwerenotpresentedonthegraph.MostoftheproductioncompanieschoosetoworkwithvariousTVchannels(generallymorethanthree)inordertodiversifytheriskofdeferredpaymentsandgainvisibilitythroughvariousbroadcastersinsteadofasingleone.
Number of TV Series Produced per Broadcaster by Production Companies
1
5
3
5
2
3
4
1
2
2
2
2
2
1
1
2
3
5
1
2
1
2
1
4
1
2
1
2
11
3
2
3
4
3
5
1
1
1
1
1
1
1
3
3
1
1
2
5
3
2
2
2
1
1
2
3
2
1
3
4
2
1
4
2
2
2
1
1
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2
2
2
1
1
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1
13
13
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12
12
11
10
10
9
9
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6
6
6
6
6
5
5
5
5
D Yapım
Gold Film
Süreç Film
MinT Prodüksiyon
Ay Yapım
NTC Medya
TIMS Production
Medyapım
Erler Film
TMC
Limon Yapım
Adam Film
Avşar Film
Most Production
Pana Film
Sinegraf
Tükenmez Kalem
Boyut Film
BKM
Koliba Film
Focus Film
ATV FOX TV Kanal D Show TV Star TV TRT 1
Source:DeloitteAnalysis;DataOnlyincludesTVseriesairedbetween2010/2011and2013/2014seasonsintop6TVbroadcasters.Companiesselectedfor5ormorethan5seriesairedbetweentheseasonsof2010/2011-2013/2014.TVseries’latestonairtelevisionchannelsareconsidered.
23
Rating Performance of Production Companies (2013-2014 Season)
Source:DeloitteAnalysis;DataofsixmajorchannelsareformedbytheanalysisofTNSdatabasedon2013/2014season.OnlytheoriginalepisodesoftheTVserieswereincludedintheanalysis,re-runsandsummarieswereexcluded.CalculationsweremadebydividingthecumulativeratingsofairedTVseriesepisodestocumulativenumberofepisodesperproductioncompany.Onlyfirst10productioncompanies’namesarelabeled.
©2012 Deloitte Turkey
Sayfa 24 – Güncel Grafik
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Ay Yapım
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TIMS Production
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izi S
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Top Production Firms and TV Series by Revenues
AccordingtoForbesTurkey’sresearch,intermsofrevenues;AyYapım,AvşarFilmandTim’sProductionhavebeenthetopthreeproductionfirms,andMuhteşemYüzyıl,KurtlarVadisiPusuandKaradayıwerethetopthreeTVseries.Totalturnoverandprofitoftop10productioncompanieswereTL450millionandTL45millionrespectively.
Top 10 Production Companies by Revenue (2013-2014 Season)
#Production Company
Producer NameRevenue(TL mn)
Profit(TL mn)
Series on Air (2013-2014 Season)
1 AyYapım KeremÇatay 77.0 7.4 Karadayı,KaraParaAşk,KurtSeyitveŞura,Medcezir
2 TimsProduction TimurSavcı 51.8 5.1 MuhteşemYüzyıl,Çalıkuşu
3 AvşarFilm ŞükrüAvşar 51.0 4.8 BugününSaraylısı,Karagül,LaleDevri,NotDefteri
4 MinTYapım BirolGüven 50.0 5.0Seksenler,Doksanlar,ÇocuklarDuymasın,ZenginKızFakirOğlan
5 DYapım AydınDoğan 47.7 4.3 GüneşiBeklerken,Kayıp,PaşaGönlüm,YalanDünya
6 PanaFilm NecatiŞaşmaz 43.1 4.1 KurtlarVadisiPusu,BenOnuÇokSevdim
7 GoldFilm FarukTurgut 38.8 3.7 DilaHanım,BenimHalaUmudumVar,A.Ş.K
8 FocusFilm NilgünSağyaşar 35.7 6.2DenizYıldızı,UnutmaBeni,BeniAffet,AdınıKalbimeYazdım,AşkınBedeli
9 ErlerFilm Türkerİnanoğlu 30.0 2.9 ArkaSokaklar,GüzelÇirkin,KüçükAğa
10 TMCFilm ErolAvcı 25.5 2.5 AramızdaKalsın,TatarRamazan,Yasak
Source:ForbesTurkey
Top 10 TV Series by Revenue (2013-2014 Season)
# TV Series Name Production Company TV Channel Revenue (TL mn)
1 MuhteşemYüzyıl Tim'sProductions STARTV 36.7
2 KurtlarVadisiPusu PanaFilm ATV 34.9
3 Karadayı AyYapım ATV 33.2
4 Karagül AvşarYapım FOXTV 27.1
5 Medcezir AyYapım STARTV 25.9
6 FatihHarbiye KolibaFilm SHOWTV 19.6
7 ÇocuklarDuymasın MintProdüksiyon FOXTV 18.5
8 GüneşiBeklerken DYapım KANALD 18.2
9 BenimHalaUmudumVar GoldFilm FOXTV 18.2
10 ArkaSokaklar ErlerFilm KANALD 17.6
Source:ForbesTurkey
25
Average Number of Episodes per TV Series and per Production Companies
Although,therehavebeenmanysuccessfulTVseriesaccordingtothenumberofepisodesairedandproductioncompaniesthathaveproducedsuccessfulshowsintheindustry,therehavealsobeentensofproductionsthathavebeenfinalizedintheinitialepisodes.
Evensuccessfulproductioncompanieslaunchseriesthatdonotevenlastfor10episodesduetofierceratingcompetition.Thereforethereisnotafeasiblecorrelationbetweenthenumberofproductionsfirmairandtheaveragedurationoftheseries.
Production Company Performances in Terms of Median Aired Episodes per TV Series
Source:DeloitteAnalysis,Onlycompletedseriesaretakenintoconsiderationbetween2010/2011and2013/2014season.MayincludedailyairedTVseries. ©2012 Deloitte Turkey
SY 26 – Güncel Grafik
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Medyan
Num
berofEpisodes
ProductionCompanies(rankedfromhightolowintermsofnumberofairedTVseries)
Median
26
Production costs
AnepisodeofTurkishTVseries’costtobroadcasterfirmsdifferbasedontheproductionfirms’bargainingpower,competitivedynamics,cast,script,etc.IndustryexpertsprefertogivearangeofUSD200KtoUSD600K-USD700Kperepisode,ratherthanprovidinganaverageoverallfigure.Totalproductioncostshaverisenintherecentyearsduetotheincreaseincastingcostsandareexpectedtoslightlydecreaseinmediumterm.
Duringourinterviews,itisseenthatcastingcostsmakeupthelargestportionofoverallproductioncost;productionswithlargebudgetsthatemploypopularcastsmayhaveacastingcostofupto45%oftotalcost.Popularcastisthoughttooutsettheburdenofhighcostsbyreceivinghighratingscoresandleadingtoimportantsponsorshiprevenues.
Turkish TV Series Costs Breakdown Approximation
Source:ExpertInterviews,theremaybesignificantvariationsincostbreakdownamongTVseries;specifiedvaluesaregatheredthroughexperts’opinionsforleadingTVseries
0 10 20 30 40 50 60 70 80 90 100
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Diğer
Kostüm
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% % % % % % % % % % %
OperatingProfit
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27
Lowcostproductionsgenerallyhaveunpopularcasts.Makingupalargeportionofthecostofproduction,popularcastisoneofthemainfactorsthatdeterminetheratingscoresofaseries.
Interviewswiththerepresentativesofthesectorhighlightthefactthatnothavingmodernstudiosasoftheonesabroadisanimportantfactorthatdrivesupthecostofproduction.Especiallywhenaseriesiscancelledaftershootingafewepisodes,miseenscènespendingbecomessunkcosts.Whilethisaffectsthefinanceofproducersnegatively,italsopointsouttothenecessitytoinstitutionalizethesector.
Financing TV Series: Turkey vs Abroad
IntheUS,productioncompanieshavevariousadditionalrevenuestreamsontopoftheincomereceivedfromTVchannels.Generally,productionstudiosgaintheirrevenuesbysellingtheirproductiontoproductioninstitutions,whichareequivalenttoabout60%-75%ofthecostofproduction,theygaintherestoftherevenueswhichmakeupthe25%-40%ofcostsbysubsidies,sellingproductionsabroad,productplacementandstreamingdealstonetworkssuchasAmazon,Netflix,etc.Forproductionswhicharecalled“blockbusters”,thepercentagesoftherevenuestreamscanbequitedifferent.
Firstly,inmanycountriesgovernmentsprovidesubsidiesandincentivestoproductioncompaniesforshootingtelevisionprogramsandfilms.IntheUS,differingamongstates,thereisupto30%-40%incentives,typicallytaxcreditsorcashgrants.Accordingtoastudyperformedin2012,taxcreditsprovidedtofilmindustryintheUSreachedtoUSD1.4bnayear7.Althoughtherearecomplaintssuchasnothavinganycomprehensivestudyonwhethertheseincentiveshaveapositiveimpactontheeconomyandbeingpraisedonlysuccessfulcases;statesareintroducingnewincentivesforthefilmindustry.Forinstance;UndertheDome8,shotinNorthCarolina,isbelievedtoreceiveUSD400k(approximately13%oftheproductioncost)perepisodeastaxcreditandcashgrantsfromthefederalgovernment9.
IntheUS,networksthathavewidecoveragesuchasNetflix,AmazonPrime,Hulu,etc.areimportantrevenuesourcesforproductioncompanies.Referringtotheexampleprovidedabove,fortheTVseriesUndertheDome8,AmazonPrimepaysUSD750kperepisodetolettheirmembersstreamtheepisodesjustafterfourdaysaftertheyarebroadcastedonTV9.
Byenteringtheseagreementsevenbeforetheepisodesareonair,productioncompaniesorbroadcastersbecomeeligibleforexternalfinancingfromeitherfinancialinstitutionsorprivateinvestors.
7http://www.bloomberg.com/news/2014-04-30/california-report-criticizes-film-subsidies-affirms-need.html8 UndertheDomeisanAmericanscience-fictiondramatelevisionseriesbasedonthenovelofthesamenamebyStephenKing.9http://www.vulture.com/2013/06/under-the-dome-tv-revenue-when-ads-fail.html
28
InTurkey,mostoftelevisionseriesproducers’revenuecomesfromthebroadcastersandinternationalsalesrevenueforthesuccessfulones.DomesticrevenuesvarybetweenUSD200ktoUSD700k,whileinternationalrevenueshavearangebetweenUSD0.5ktoUSD200k,perepisode,dependingonthesuccessandperformanceoftheproject.Itisworthtounderlinethat,dependingonthecontractterms;internationalrevenuesaresharedbetweenbroadcastersandproductioncompanies.
SinceTVseriesproducersarelikethesubcontractorsofbroadcastersandproductionsarepronetobecancelledimmediately,financialinstitutionsarereluctanttoprovideproducerswithloans,especiallyfornewproductions.
WhiletheTurkishMinistryofCultureandTourismprovidescinemasectorwithsupportschemesundercertaincriteria,thereisnotdirectsubsidies/supportschemesprovidedtoTVseriessectorbythegovernment.
InTurkey,unlikethecaseintheUS,networkslikeTTNETandTVYO,whostreamtelevisionshowsbypayingforthecopyrights,areininfantstage,accordinglyproductioncompaniescannotcreatematerialrevenuestreamsfromthesechannels.However,therearealotofwebsitesstreamingTVshowsillegally;itisstatedthattherewerearound3-4klinksthatareputofflineafterwarnings10.
Recently,sponsorshiprevenuesareincreasinginparalleltothegrowinginterestintelevisionseries;corporationsintendingtoreachconsumerssponsorsseriesinareassuchasmiseenscène,logisticsetc.
10http://cadde.milliyet.com.tr/2013/11/14/YazarDetay/1791708/diziler-koruma-altinda-ya-muzik
29
International revenues
Inthelastdecade,TurkishTVserieshaveimprovedsignificantlyintermsofproductionqualityandart.Accordingtoindustryrepresentatives,throughtheimprovementsincinematography,scriptwritingandacting,Turkishserieselevatedtoastatusinwhichtheycancompetewithcinemafilms.Thepriceofexportingseriesincreasedcorrespondingly.WhileasingleepisodeofTurkishserieswassoldtoforeignbroadcastersforUSD500onaveragefiveyearsago,currentlythispricelevelrosetoUSD0.5k-USD200kperepisodeduetotheirenhancedproductionquality,increasingreputationanduptrendinthemarket.
Turkish series’ enhanced quality can compete with movies.
Evolution of Turkish TV Series
2000 2002 2004 2006 2008
Item‐15
2010 2013...
30
Due to shared cultural values and proximity of Balkans and Arab World, these geographies have become major export destination.
Turkish TV series exports (USD mn)
Source:CalinosHolding,Hurriyet,Dunya.com,PrimeMinistryPublicDiplomacyCoordinatorship
TurkishTVseriespromoteTurkey’spopularityallovertheWorld,notlimitedtoonlyMiddleEast,CentralAsiaandEasternEurope;TurkishTVseriesappealtowiderangeofaudience,whichisnotonlylimitedtoagroupwiththesameculturalbackground.ItisestimatedthattheTurkishTVseriesreachto400millionviewersin75countries.
1025
45
65
100
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2008 2009 2010 2011 2012 2013 - TahminiEstimated
31
Turkish series incorporate values and traditions of Islamic World alongside Western lifestyle
USTVseriesareconsiderablysuperiortoTurkishseriesintheglobalmarketintermsoftheirproductionbudgets,casts,cinematographyandmiseenscène.However,alongsidetheWesternlifestylespresented,theculturalbackgroundthatthataudiencesintheMiddleEast,NorthAfricaandEasternEuropecanassociatethemselveswithallowsTurkishseriestocompetewithAmericanseriesintheseregions.
AccordingtothecommentsfrompeoplewhowatchTurkishseriesinvariouscountries,TurkishTVseriesattractaudiencesastheyamalgamatevariousculturesbyincorporatingvaluesandtraditionsofIslamicWorldwithwesternlifestyles.Thevisionof“amodernlifewithoutrejectingcustoms”thattheTurkishseriespresent,hasastronginfluenceinattractingespeciallywomenaudienceinthesecountries.
TurkishTVseriesindustryisalsoasuccessfulexampleforneighboringcountrieswithitstransformationoffocusinglocalproductions.10-15yearago,TurkishbroadcastersweremainlyfocusedonforeignTVseriesbothintheirdaytimeandprimetimeschedules.Afterdevelopingaself-sustainableecosystemof“broadcasting,advertisingandproduction“;localTVserieshaveemergedthemselveswithoutanyprohibitionsforforeignproductions.Ontheotherhand,othercountrieslikeAzerbaijan,Kazakhstan,China,EgyptandMacedonia,haveforbiddenthebroadcastingofforeignTVseriesintheirnationalbroadcastingchannels.ProhibitionofbroadcastingforeignTVserieshasnegativelyimpactedtheTurkishTVseriesproducers.
Eventhoughtherearepoliticalandculturalmotivationsbehindtheseprohibitions,theneedforboostingthelocalTVproductionsandproducersisamongmainfactors.
Nevertheless,itisstillbelievedthatTurkishTVserieshaveinfluencedcultural,economicandpoliticallivesintheseregionsinmanyaspects.Despitethelimitationsinsomecountries,TurkishTVseriesindustrywillcontinuetogrowinternationallyaslongasitisabletoattractlargeaudienceswithdifferentsocioeconomicbackgroundsbypresentingdiverseemotions,experiencesandcultures.
Turkish TV Series Collateral Impacts
TheimpactofTurkishseriessectorshouldnotbeevaluatedsolelybyitsexportrevenuesbutbyitsroleinrepresentingTurkishcultureandenhancingtourismandtrade.Accordingtotheresearchthatglobaltravelsearchmachine,Skyscanner,carriedout,thereisapositivecorrelationbetweentheflightsearchesandtheforeignTVseriesonTV.Especiallywhentheseriesareshotattouristicattractions,therelationshipbetweenthetwobecomesstronger.Comparedto2011,flightsearchtoTurkeyin2012and2013rosenearlytwice.Since2012,flightsearchincreasedbymorethan100%fromKuwait,Qatar,Jordan,YemenandLebanontoTurkeyandbymorethan200%fromBahrainandSaudiArabia.
Inadditiontoitscontributiontotourism,TurkishseriescanbeidentifiedaswindowopeningtoTurkeytoitsadoptedvalues,traditionsandlifestyle,therebyraisingvisibilityofTurkeyininternationalplatform.TurkishTVserieshighlyinfluenceawiderangeofpeopleamongdistinctregionsandespeciallyatplaceswhereclosehistorical,linguistic,religioustieshadbeenestablished.
32
Trends and future
Duetoincreasingviewershipandcompetitioninthesector,TurkishTVseriesindustryhasbeenexperiencingsubstantialameliorationincinematographyandartisticvalueinrecentyears.Theseimprovementsledtoincreasesinratingswhichgeneratedhigheradvertisingrevenuesforbroadcasters.However,theincreasingdemandforhigh-qualityproducersandproductionsandpreciselyforwell-knowncastshascausedanupwardpressureontheproductioncosts.Asaresult,broadcasterssearchformorecostefficientalternativesthatwouldreceivetheratingscoresthatseriesdo.Therefore,reality/entertainmentshowsbecamegoodalternatives;howevertheintroductionofnewshowformatshavebeenanimportantdeficiencygloballyandinTurkey.Yet,entertainmentshowsmakeuparound10%-20%oftheprimetimebroadcastingschedules;ariseinthisshareisexpected.
PrimarysolutiontorisingcostsofTVserieswastobroadcastlongrecapsandre-runsofTVseries;andthesere-runsemergedtobesignificantsourcesofrevenue.ThereareexamplesofsomeTVserieswhichbreakevenasaresultofthecontributionoftherecapandrerunrevenues;otherwisetheircostsexceedtheirrevenues.Excludingsomeexceptionalcases,thecopyrightsoftheseriesareownedbythebroadcastingchannelshencetheycanbroadcastthererunoftheseriesevenaftertheseriesarecancelled.
A major rival to TV series are programs such as quiz, game and talent shows that are evaluated in the entertainment shows category which are trending upwards due to their cost-efficient and high rating potential caused by their interactive nature.
Re-runs and recaps constitute a great significance for broadcasters in their revenue streams.
Prime Time – 2013/2014 Season
Source:DeloitteAnalysis
TV Series 62.5%Entertainment Shows
17.4%
Other 20.1%
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Ontheotherhand,fiercecompetitionintheglobalarenacausestrendstochangeataveryfastpace.Thus,Turkishproducersshouldconstantlyimprovethecasting,scenariosandcinematographyinordertosustainandincreasetheirachievements.
TVseriesexportsareexpectedtocontinuewithanincreasingtrendinthefuturefollowingthesuccessachievedinrecentyears.Astheactorsbecomemorefamousperepisode,theproductionqualityincreases,scenariosameliorateandaboveall,thebrandimageofTurkishTVseriesimprove,TurkishTVseriesareexpectedtoattractmoreandmoreofviewersabroad.Thenextstepfortheindustryistohaveatargetaudienceworldwidewithoutbeinglimitedsolelytoneargeographyandtosustainitssuccessalongsideexpandingtheglobaloutreach.
AhotdebatetopicofthesectoristhelongerdurationofTurkishTVseriescomparedtothoseofdevelopedcountriesandthesustainabilityofthelongdurationtrend.Employeesofthesectorfindthedurationofseriesverylongandtheyunderlinethedifficultyofthelongworkinghoursperweekforthecrewandthecast.Consideringthecurrentfinancialpositionoftheindustry,seriesareunlikelytobecurtailed,despitethecritiqueswithintheindustry.Moreover,lowlevelofunityofproducers,actorsandcrew,etc.inthesectorpreventscollaborationandacting/decidingsimultaneously.
Majorfactorshamperingsustainabilityoftheindustryinthelongtermseemtobeintensecompetitionbetweenproductioncompaniesfortthelimitedon-airtimeofbroadcasters,alongwithproductioncompanies’non-institutionalizedstructure.
Nothavingmodernstudiosasoftheonesabroadcausesproducerstoinvestinmiseenscèneforeachandeverydifferentproduction.Whenaseriesiscancelledaftershootingafewepisodes,duetofiercecompetition,investmentsonmiseenscènebecomesunkcosts.
Ifthesectorexpandsatthesamepace,theneedforcomplexstudios/plateaussimilartothoseofdevelopedcountrieswillincrease.
Ontheotherhand,thelackofinstitutionalizationmakesitharderforproducercompaniestoaccessfinancialresources.
It is expected that the TV series exports will continue with an increasing trend.
Due to financial concerns, duration of TV series is not expected to be curtailed in near future.
Need for institutionalization is increasing while the industry continues to expand.
Conclusion
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Conclusion
Conclusion
TVserieswhichconstitute60%-65%oftheprimetimebroadcastingscheduleareexpectedtobeasimportantastheyarenowinthefutureforthebroadcasters.ThelonghoursofTVviewershipinthe
country,leadershipoftheTVinmediainvestmentsandtheinterestofdomesticandforeignaudiencestotheseriescreatethisexpectation.
ConsideringTurkishTVseriesoutreachof400millionviewersin75differentcountries,TurkishproductionsserveasTurkey’scultural,touristicandtraderepresentativealongsidetheexportrevenuestheygenerate.
ThereisfiercecompetitionwithinthesectorsincetherearemanyproducercompanieswithdifferentsizesthatcompeteforthelimitedbroadcastingschedulesofthelimitednumberofTVchannels,whichcausesmorethanhalfoftheseriestobecancelledwithinthebroadcastingseasontheywereairedat.Thefragmentedstructureoftheindustryandtheearlystagesofinstitutionalizationoftheindustryarethemainfactorsthatimpedesustainabilityoftheproductioncompanies.
InordertosustainandimprovethesuccessfultrendsinexportingTurkishTVseries,institutionalizationwhichsomefirmshavestartedshouldbewidelyspreadwithintheindustry;investmentsonstudioandplateausthataresimilartothoseinforeigncountriesshouldbemadesothatdifferentproductioncompaniescanusethemtogetherandreducecosts.Lastly,pirateshowingsofseriesononlineplatformsshouldbeabolishedandthegovernmentshouldsupportproducersbyimplementingsubsidies.Allthesesuggestedimprovementsarecrucialforthesuccessandsustainabilityoftheindustry.
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