Films and Tv

Payment Behaviour Analysis: Films and TV Sector

An analysis of the payment practices within the Films and TV sector, based on a sample of 94 companies, reveals a payment landscape defined by a generally prompt majority but skewed significantly by a volatile minority. The central tendency metrics illustrate this divergence clearly; whilst the median payment time stands at a respectable 29 days, the average (mean) extends to 34.1 days. This discrepancy indicates a right-skewed distribution where the payment behaviour of a few slow-paying entities disproportionately distorts the overall sector average. Furthermore, the standard deviation of 26.8 days is relatively high compared to the median, suggesting that consistency is not uniform across the sector. For suppliers engaging with this sector, this volatility implies that whilst one might expect payment in under a month, there is a substantial statistical risk of delays extending well beyond that benchmark.

When we examine the distribution in finer detail, it becomes evident that the sector is heavily weighted towards favourable terms. A significant majority, comprising 58.5% of the companies analysed (55 firms), settle their accounts within the 0-30 day 'Fast' window. If we expand this view to include performance breakdown data, 66.9% of invoices are paid within 30 days. This cluster of positive behaviour is reinforced by the interquartile range, which spans from 19 to 36 days. This indicates that the 'middle 50%' of companies operate within a tight, predictable timeframe. However, the analysis also highlights a concerning 'long tail' of poor performance. Approximately 11.1% of payments drag on for over 60 days, with a critical subset of 5.3% (5 companies) taking longer than 90 days to settle debts.

The risk profile of the Films and TV sector is further illuminated by the prevalence of late payments and extreme outliers. Despite the median settling at 29 days, the data reveals that 34.7% of all payments are classified as late. This is a crucial metric for credit controllers to realise, as it suggests that over a third of agreed terms are arguably not being met on time, creating potential cash flow bottlenecks for the supply chain. The extremes of the dataset are particularly stark: the fastest payer settles in just 3 days, whilst the slowest languishes at 188 days. Such a vast range—nearly half a year difference—demonstrates that credit risk management must be highly selective, as the gap between the top performers (24 companies paying in under 20 days) and the bottom tier is immense.

Finally, the geographic distribution of the dataset shows that the sector is overwhelmingly centred in London, which accounts for 83 of the 94 companies analysed. The remaining regions—North West, East of England, West of Scotland, and South East—represent a negligible fraction of the sample. Consequently, the payment behaviour observed here is largely reflective of London-based corporate practices. In summary, whilst the Films and TV sector demonstrates a general tendency towards prompt payment, suppliers must remain vigilant against the substantial volatility and the significant minority of firms that favour extended payment terms, potentially threatening the liquidity of smaller partners amongst the supply chain.