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Strategic Planning for Media Production and Distribution Businesses

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Strategic Planning for Media Production and Distribution Businesses

Outsourcing Cost / Benefit Calculator

    ✱ see instructions below

Overview

This Cost/Benefit Calculator is based on a more full-featured template Willis Group has utilized in evaluating outsourcing options for our clients.

Given the current CPB Healthy Networks Grant initiative to encourage outsourcing Public TV master control playout, we are pleased to make this free generic version available to assist those who are currently evaluating costs/benefits associated with outsourcing.

To be sure, there are many variables to consider, so our evaluations are typically highly customized to address a client's unique situation. While a customized evaluation would be ideal to address your specific circumstances, this generic version of our calculator should provide valuable insights.

Assumptions

Each of the yellow-shaded cells is a variable used in calculating costs/benefits. Clicking on a cell will reveal instructions for entering a value.

Not all fields are necessarily applicable to every television station. Fill in those that apply, and skip those that don't.

Summary Results

Summary results are displayed below the Assumptions section. Three groups of financial analyses are shown, each of which is color-coded:

  1. –   light blue for capital and operating costs associated with outsourcing
  2. –   green for capital and operating costs to continue local origination
  3. –   grey for cost-benefit analyses comparing outsourcing to local origination

Financial evaluations show CapEx and OpEx for each of the above. Three rows of calculations: Annual Costs, Cumulative Annual Costs and NPV (net present value) of Cumulative Annual Costs are calculated for each of 14 years. Cost Benefit Analyses are then computed using the following formulae:

  1. –   Net Annual Benefit (Cost) of Outsourcing = annual local master control cost MINUS annual outsourcing cost
  2. –   Net Cummulative Benefit (Cost) of Outsourcing = previous year cummulative Benefit (Cost) PLUS current year annual Benefit (Cost)
  3. –   NPV Cummulative Benefit (Cost) of Outsourcing = NPV of previous year cummulative Benefit (Cost) PLUS current year annual Benefit (Cost)

Master Cost Model

Calculations for Summary Results described above are performed in the Master Cost Model. Scroll down beyond Summary Results to view the entire model, including all detailed computations.

Report

Printing is currently not supported. If you would like a report, contact us, and we will collaborate with you to generate one or more reports – with your data – at no charge.

We hope this free calculator proves useful. Please feel free to contact us with any questions and/or comments.