Content Production and Licensing Cost Management

Data:

• Monthly Fixed Costs: $10,000,000
• Variable Costs per Show: $2,000,000
• Shows Produced: 30
• Licensing Fees per Show: $500,000

Requirements:

1. Calculate the total monthly costs, including licensing fees.
2. Determine the cost per show.
3. Analyze the impact of producing 10 additional shows on total and per-show costs.
4. Discuss strategies for managing content production costs.
5. Recommend ways to optimize licensing agreements.
6. Evaluate the potential benefits of co-producing shows with other networks.
7. Assess the impact of cost control measures on the company's content library and subscriber growth.