Broadcast stations and network programming
Broadcast stations, including TV and radio networks, often establish SPEs to manage specific syndicated programs, localized content production, or special televised events. This structure enables clear budgeting, legal separation of intellectual property, and easier profit-sharing among affiliates. It also allows station groups to track the financial performance of particular content initiatives without affecting the broader organization.
Accounting and compliance considerations
Variable Interest Entities (VIEs) vs. Voting Interest Entities (VOEs)
Most SPEs in the entertainment, media, and broadcasting space are considered Variable Interest Entities (VIEs). This means that while a parent company may not control the entity through voting rights, it is still the primary beneficiary of the SPE’s financial activity. As a result, current accounting standards (ASC 810) require consolidation of the SPE into the parent’s financials if the parent absorbs risk or reaps the rewards.
Understanding whether your entity qualifies as a VIE or VOE—and when to consolidate—is critical for:
- GAAP compliance
- Financial transparency for investors
- Audit readiness
Expense tracking and intercompany allocations
Entertainment, media, and broadcast accounting is known for complex, multi-layered cost structures:
- Union payroll
- Equipment rentals
- Location fees
- Royalty payments
- Talent residuals
With multiple entities under one roof, managing and allocating shared costs across SPEs can become a manual nightmare without the right tools.
Why media and broadcasting companies need better software for SPE accounting
Legacy systems or entry-level accounting tools often fall short in managing:
- Multi-entity consolidation
- Shared expenses
- Real-time visibility across projects
Gravity Software offers a powerful alternative. Built on the Microsoft Power Platform, it’s tailor-made for multi-entity environments like SPEs used by broadcast and media organizations. Here's how it helps:
Consolidated Financial Reporting
Easily produce consolidated financial statements across all your entities—regardless of differences in accounting calendars, currencies, or business structures. No more exporting spreadsheets or manually stitching data together. With Gravity, you get accurate, real-time reporting in a fraction of the time.
Shared Expense Allocation
Easily tag and allocate costs—such as post-production software, shared studio space, or licensing fees—across multiple SPEs in one step. Gravity’s Dimensional Reporting capabilities let you categorize expenses by project, department, or location, giving you powerful insights into where money is going and why, all without duplicating entries.
Automated Approval Workflows
Route high-value expenses, milestone payments, or intercompany transactions through customized approval workflows—ensuring proper oversight and audit trails every time. With built-in support for Microsoft Power Automate, you can tailor these workflows to fit your exact business rules, trigger notifications, and streamline approvals across teams and entities.
Power BI Integration
Turn financials into visual dashboards with Microsoft Power BI to quickly assess the health of your productions, identify overruns, and communicate performance to investors, executives, or affiliate stations.
Gain real-time insights into multi-entity financial data, enabling smarter decisions across your broadcast, media, or entertainment operations.
A brief history of SPEs in media and broadcasting
The use of Special Purpose Entities (SPEs) in media and broadcasting dates back decades, initially gaining popularity with the rise of syndicated television and studio-driven film projects. As content production became more expensive and distribution models diversified, media companies began creating SPEs to manage the financial risk of individual productions. This became even more common with the growth of cable television in the 1990s and streaming platforms in the 2010s, as each project could have vastly different funding sources, partners, and expected returns. Today, with the complexity of digital rights, cross-border distribution, and third-party co-productions, SPEs have become a standard tool for managing accountability, rights ownership, and investor relationships.
Checklist: Best practices for managing SPEs in broadcasting
- Clearly define the purpose of each SPE at formation
- Maintain legal separation and proper documentation for each entity
- Use accounting software that supports intercompany transactions and consolidated reporting
- Track expenses, revenues, and rights ownership at the entity level
- Implement approval workflows and audit trails for shared expenses
- Regularly evaluate if the SPE meets ASC 810 consolidation requirements
- Integrate accounting data with reporting tools like Power BI for real-time insights
Real-world relevance: Lessons from a hospitality industry peer
While event management companies may fall more squarely into the hospitality industry, their operational needs often mirror those of media and entertainment companies—especially when managing multiple legal entities and shared resources. A great example is Gravity Software’s client, 360 Destination Group, a full-service destination management company with five entities.
360 Destination Group previously used QuickBooks Desktop and struggled with managing intercompany transactions, siloed databases, and manual reporting processes. After switching to Gravity Software, the company was able to consolidate all entities into one unified system with real-time reporting, seamless CRM integration, and automated intercompany balancing.
Their experience illustrates how a multi-entity accounting software like Gravity's can dramatically improve financial efficiency, whether you're running events or producing syndicated TV. The common thread is the need for visibility, automation, and scalable financial operations—exactly what SPE management requires.
Take creative and broadcast risks - without financial chaos
SPEs offer a smart way to pursue high-stakes creative and broadcast ventures with the right level of control and transparency. But managing the accounting for multiple entities doesn’t have to be a logistical puzzle.
Whether you're managing five productions or a network of broadcast stations and affiliate channels, Gravity Software gives your finance team the visibility and control it needs to stay ahead.
Schedule a demo today to see how Gravity Software simplifies special purpose entity accounting for media, entertainment, and broadcasting leaders.
Gravity Software
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