Outsourcing in the Film and Entertainment Industry: Streamlining Production and Distribution

The BPO industry significantly impacts film production by offering outsourced services for nearly every role, from pre- to post-production, and support roles. This strategy cuts costs and streamlines processes, shaping future film projects.
Outsourcing in Film Industry - featured image

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The business process outsourcing (BPO) industry has had a strong presence in film production for many years. Nearly every role in a project, from pre-production to post-production, has its video production outsourcing equivalent. Many companies specialize in these services.

Outsourcing providers in the film industry also offer a full suite of supporting roles that streamline production and distribution. This strategy not only helps with cutting costs but also streamlines filmmaking processes.

Let’s explore what that means for future film projects.

Outsourcing in the film industry: A tried and true solution

Outsourcing in the film industry_ A tried and true solution

Hollywood is no stranger to outsourcing, with film producers openly relying on third-party service providers to handle various production jobs. Marvel Studios, for instance, has had a long history of outsourcing visual effects (VFX) for their films and Disney+ series. Netflix also outsources its animation and VFX, such as during the production of The Sea Beast and Pinocchio films.

Additionally, marketing and distribution constitute a large portion of the filmmaking budget, averaging one-third of total costs. As such, major and indie film production studios often outsource these functions to maximize returns and get as much attention on their releases as possible. Disney, for example, decided to outsource the distribution of DVDs and Blu-rays to Sony.

Equipment costs are another common reason why people prefer outsourcing video production. Filming gear (camera, light, sound, etc.) can easily cost thousands of dollars, making renting or outsourcing the smart choice for most.

These scenarios perfectly capture what BPO is and how it assists filmmakers, directors, and producers in the film and entertainment industry. Outsourcing eliminates unnecessary costs, making it an effective and efficient strategy for rookies and veterans alike.

How outsourcing can streamline film production

Having an internal team to handle each responsibility is ideal because it enables members to be on the same page. However, internal project teams introduce the added burdens of acquiring talent, office space, and equipment. Recruitment and acquisition slow down film production significantly.

Outsourcing streamlines production by providing a team of readily available experts who can work on tasks simultaneously and immediately. Most major studios can also delegate tasks to separate service providers to leverage a wide pool of global talent.

Here are some of the most commonly outsourced jobs that help streamline film productions:

  • Video production. Seasoned writers, directors, and videographers produce high-quality, compelling stories tailored to specific audiences in full or in part, depending on the need.
  • Post-production. Competent video editors possess the talent and equipment to freely manipulate footage, whether adding, removing, or enhancing particular elements.
  • Animation. Video production companies produce animation as a low-cost but highly engaging alternative to live content. It also allows greater creative expression than live-action films.

Issues with outsourcing film production

Issues with outsourcing film production

Many factors influence whether outsourcing is the right choice for a project, so knowing the BPO risks and drawbacks is also crucial to making a decision.

Depending on your working relationship with the service provider, certain problems might arise. The contents of prior contracts also limit the scope of the provider’s work or the extent of their services for a project. The following points further boost the potential for grave misunderstandings:

  • Cultural differences that cause misalignment in the director’s artistic vision and the film
  • Time zone differences that make direct communication difficult
  • Transparency in the services (i.e., who does the work, how, and what role does artificial intelligence play)
  • Inadequate security and threat prevention measures affecting the film release

Companies must weigh the risks, such as competition for priority status or delayed project deadlines, with the rewards of outsourcing. They can also conduct thorough research to find a reliable provider to maximize the strategy’s efficiency and cost savings.

Other benefits of outsourcing in the film and entertainment industry

Production services are not exclusively for filmmakers; businesses benefit from outsourcing their video strategy to professionals. Outsourcing in the film industry ranges from making corporate videos and campaign ads to feature films and documentaries. The catch is how you outsource work (i.e., hiring freelancers, a BPO firm, or a video production company).

One of the benefits of hiring an outsourcing or video production company is that it speeds up project turnaround. These providers already employ highly capable and adaptable professionals ready for work. Tapping different companies or groups to complete different tasks is not uncommon. Flexibility is what makes outsourcing so great.

Outsourcing in the film industry is effective because you utilize the talents of diverse individuals assembled to fit specific needs, removing redundant roles or elements.

Reduce production costs

According to the Nashville Film Institute (NFI), the average feature film costs $100 million to $150 million to produce. On the other hand, independent films range from $10,000 to upwards of $100,000 to make. A breakdown of the average salaries for independent film roles would look like this:

RoleCost
Film Director$250/hour
Script Writer$150/hour
Cameraman$400/hour
Editor$175/hour
Actorover $500/hour

Some roles (e.g., film director and actor) are hard to outsource piecemeal without compromising the overall vision of the movie. However, other production team roles (e.g., writer and editor) can be delegated to skilled professionals.

Depending on the pricing model, BPO or video production companies can reduce costs. For example, expect to pay between $1,000 and $50,000 per project, varying in length and complexity. Full-length production costs likewise differ depending on the film’s demands.

Outsourcing video production is a cost- and time-efficient choice for anyone taking their first steps in filmmaking. Even veterans can benefit from delegating jobs to individuals or companies that can provide comparatively simpler, faster, or better solutions. 

Streamline back-office operations

Back-office jobs are supporting roles that do not require the person to be physically present for film production, making them suitable for virtual third-party workers. Here are a few back-office roles to outsource:

  • Virtual assistant. Administrative assistants, production coordinators, and production assistants are responsible for keeping filming on track and coordinating tasks. A highly organized virtual assistant can monitor shoots and guide crew remotely with no issue.
  • Bookkeeping. Filmmakers must follow a strict budget, which requires precise bookkeeping. NBCUniversal International Networks is one of the many companies in the entertainment industry that outsources its accounting tasks to a service provider.
  • Casting calls. BPO firms may not have trained actors on hand, but they have experience in talent acquisition. They can send casting calls, organize auditions, and collect submissions to streamline decision-making.

Deploy effective digital marketing campaigns

Generating interest in any type of video content (e.g., film, series, YouTube content) hinges on effective marketing strategies. Having a built-in marketing machine is another advantage BPO firms have over other forms of outsourcing. Here are some essential services to keep in mind:

  • Market research. Knowing the who, what, when, where, and how of a film’s audience is crucial to composing a brand identity and marketing strategy that pays off. The film Cloverfield is regarded for its viral marketing that uses unorthodox techniques to captivate audiences.
  • Paid advertising. Media buying is central to the success of many box-office hits. Barbie saw wide success globally after using paid partnerships and marketing to generate hype. At $150 million, Barbie has one of the highest marketing budgets in Hollywood’s history.
  • Web development. A standard part of advertising is building a dedicated website for the film, where people can preview content. Websites are a great way to keep an audience engaged. It also creates a central platform and ties in nicely with social media strategies.

The bottom line

The bottom line - Outsourcing in Film Industry

Outsourcing in the film industry is common, whether for writers, editors, or marketing professionals. Finding the right BPO partner is critical because it shapes production and distribution and determines commercial success. Exercising creativity is important, but so is working smarter, not harder.

Let’s connect and discuss how we can help you maximize your production time and budget.

Picture of Ranier Randel Ting
Lyon Ting is your typical millennial who enjoys content and aspires to one day create content that others enjoy. Working in Unity’s Digital Marketing Team (DMT) offers a creative outlet to hone his skills while serving the company’s many clients by creating helpful guides and resources for BPO services. His passion for learning new things has given him a sizeable cache of random facts and jokes he likes to share with people.
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Ranier Randel Ting

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