Here in the UK, we never tire of congratulating ourselves on the quality and international appeal of the TV content we produce. Maybe we are right to do so. But in terms of delivering commercial returns from selling TV rights overseas, our TV industry is still stuck in the black-and-white 405-line era. Given the UK's £3bn annual investment in TV content, and the head start we gain from the global dominance of the English language, the £400m we get back every year from exports of TV rights is a paltry return.

Valuing TV rights is a complex area in which the opportunities for wider exploitation vary dramatically both by genre and type of rights.

But while UK media companies acknowledge this complexity, they have not made a very good job of managing it. Often they do not even know what types of rights they possess.

Paradoxically, the recent explosion in the number of opportunities to exploit rights is making it even harder for media companies to get a handle on the rights they own. A terrestrial broadcaster owning the rights to a TV programme can now potentially make money from all the following:

Sell the programmes to other broadcasters either in the same countries (eg re-runs of classics on pay-TV channels) or other countries

Sell the format rights to producers in other countries (eg Wheel of Fortune, Don't Forget Your Toothbrush)

Sell or rent the video

Schedule on it other television channels it owns (either in the same geography, eg Channel 4 with E4, or in others, eg Disney channels).

Sell merchandise licences (eg toys/games).

Develop new media brand extensions or enhanced/interactive television services (especially for game shows).

In the near future, offer content on demand, especially if it is premium (eg blockbuster films) and is offered earlier than straight broadcast.

The broadcaster's scope for making money through any or all these routes is determined by the genre of the programme, the strength of its brand within that genre, and whether the company itself is organised to exploit its brand assets effectively.

The durability of the rights' value varies sharply from genre to genre. Most of the value of sports content is expended on the first live showing, while for wildlife and children's programmes (especially cartoons) the value of rights can last for a decade or more and can even revive like Thunderbirds. Drama also tends to be durable.

How easily the genre translates into other media or formats is also important. Children's programmes again score highly, with around 80 per cent of revenues coming from secondary rights including toys, books, videos and games. Drama and sitcoms are at the opposite end of the spectrum, with most revenues derived from the core programme.

However, even potentially high-value, durable rights will come to nothing without the right organisation. The traditional linear model of commissioning a programme, transmitting it and then looking around for ways to exploit it is less effective for maximising broader rights. This is where UK media companies are falling down. What they need to do is take the exploitation possibilities into account from the start of the process, since it is more cost effective to produce for several media simultaneously.

This means taking a new organisational approach that enables the production and commercial areas to share information and work together more effectively. Critical to this are capabilities such as digital archives and digital rights management, which become vital tools, supporting every phase from creation through to exploitation.

However, all this requires more than new organisations and technology. It also needs new incentives, abandoning the traditional first-run costs-plus-commission basis, and instead rewarding producers with a share of all commercial exploitation. If the UK TV industry were to take that approach, we might just see the UK's export performance start to justify its own sense of self-worth.

Theresa Wise is partner, Media and Entertainment Practice, Accenture

theresa.wise@accenture.com

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