Inflation hits Turkish TV series too
High inflation and escalating production costs are jeopardizing the competitiveness of Turkish television series, which enjoy global popularity, in international markets. Concerns about a contraction in the sector are coming to the fore due to the increase in production expenditures and declining advertising revenues.
12punto
Television series, which have been exported to approximately 170 countries in recent years and have earned millions of dollars for the Turkish economy, are under pressure due to economic difficulties. Industry representatives state that production costs per episode have exceeded 240 thousand dollars per hour. This situation makes it difficult to cover production expenses with advertising revenue.
Özcan Altunkaya, a member of the media committee of the Istanbul Chamber of Commerce, stated, “Production costs are even higher than in Spain. This situation is affecting exports.”
The success of Turkish series stems from an intense competitive environment shaped by weekly ratings. While approximately 75 hours of content are offered during prime time, series that fail to attract viewer interest are quickly taken off the air. Successful productions, on the other hand, generate significant profits in international sales.
However, the recent rise in inflation has begun to suppress this competitive production model. As producers take fewer risks due to the decline in advertising revenues, it is noted that a decrease in the number of new projects may also be seen.
REFLECTIONS OF INFLATION ON THE SECTOR
Inflation in Turkey, which reached up to 85 percent in 2022, currently hovers around 30 percent. The losses in the value of the Turkish Lira have also increased costs in dollar and euro terms, reducing the price advantage of Turkish series in international markets. The same pressures are also showing their effects in the textile and white goods sectors.
NEW DIRECTIONS IN THE SEARCH FOR REVENUE
Against the narrowing profit margins in the sector, producers are turning to alternative markets. While commercial relations with Russia and Gulf countries are being strengthened, co-production projects with Saudi Arabia-based studios are also coming to the agenda.
According to expert opinions, the current production model of Turkish series still has a strong structure. However, it is warned that if economic conditions continue in this way, the sector's position in the global arena may begin to weaken.