Understanding Broadcast & Cable Finance. A Primer for the Nonfinancial Manager: Broadcast Cable Financial Management Association (BCFM)

Understanding Broadcast and Cable Finance......Page 4
Copyright Page......Page 5
Contents......Page 6
Foreword......Page 8
Introduction to the Second Edition......Page 12
Part I......Page 16
General Industry Structure......Page 18
Broadcasting......Page 20
Ownership......Page 22
Cable......Page 23
Cable Regulation......Page 26
In Conclusion......Page 27
Centralized versus Decentralized Companies......Page 30
Size and Complexity......Page 31
The Players......Page 32
In Conclusion......Page 36
Introduction......Page 38
Financial Statement Preparation Conventions......Page 39
Accounting Periods......Page 42
Financial Statement Descriptions......Page 43
In Conclusion......Page 53
Introduction......Page 54
The Broadcasting Model......Page 55
On-Air Advertising (or Spot Revenue)......Page 56
Nonspot Revenue/Nontraditional Revenue (or NTR)......Page 58
Emerging Revenue Streams......Page 60
Cable-Specific Revenues......Page 61
In Conclusion......Page 63
Introduction......Page 64
Typical Expenses......Page 66
Key Expense Controls and Measures......Page 74
In Conclusion......Page 75
Introduction......Page 76
Traffic Systems......Page 77
Financial Systems for Cable Networks......Page 79
Cable System/MSO Customer Database and Billing......Page 83
Accounts Payable Systems......Page 84
Payroll Processing Systems......Page 85
Fixed Asset Systems......Page 86
Subsystems......Page 87
In Conclusion......Page 91
Defining Long-term Assets......Page 92
Differentiating Capital Assets......Page 93
Depreciating Capital Assets......Page 94
Expense Controls......Page 95
Budgeting and Capital Planning......Page 96
Breakeven Analysis......Page 97
Payback Analysis......Page 98
Annual Cash Flow......Page 99
Discounted Cash Flow Methods......Page 100
Net Present Value (NPV)......Page 101
In Conclusion......Page 102
Tools and Resources......Page 104
Key Performance Metrics - General......Page 105
Segment-Specific Metrics - Broadcast......Page 107
Segment-Specific Metrics - Cable......Page 110
In Conclusion......Page 113
Relevance of Cash Flow......Page 114
Enhancing Cash Flow......Page 115
In Conclusion......Page 118
Part II......Page 120
Introduction......Page 122
Section 404: Management Assessment of Internal Controls......Page 124
The Next Step......Page 127
Where Do We Go from Here?......Page 128
Bibliography......Page 129
Introduction......Page 130
Strategic Planning......Page 131
Budgeting......Page 134
Subsequent Measurement......Page 135
In Conclusion......Page 136
Introduction......Page 138
Payment Terms......Page 139
Fraudulent Advertising......Page 140
Credit......Page 141
Collections......Page 145
In Conclusion, Have a Current Credit and Collection Policy, and Keep It Current......Page 149
Introduction......Page 150
Internal Controls Related to Trade Arrangements......Page 156
In Conclusion......Page 163
Introduction......Page 164
Performance Rights......Page 166
Production Rights......Page 167
Online and Other Rights......Page 169
Performing Rights Licensing and Fees......Page 171
In Conclusion......Page 176
Introduction......Page 178
Property Taxes......Page 179
Depreciation......Page 180
Income Taxes......Page 182
Sales and Use Taxes......Page 184
Payroll Taxes......Page 185
In Conclusion......Page 186
Introduction......Page 188
Determination of Value......Page 189
Due Diligence Considerations......Page 197
Purchase Price Allocations......Page 198
Statement of Financial Accounting Standards No. 141: Business Combinations......Page 200
Statement of Financial Accounting Standards No. 142: Goodwill and Other Intangible Assets......Page 202
Statement of Financial Accounting Standards No. 144: Accounting for the Impairment of Long-Lived Assets......Page 203
In Conclusion......Page 204
The Authors......Page 206
Glossary......Page 214
Index......Page 226