{"id":28414,"date":"2025-09-04T13:45:52","date_gmt":"2025-09-04T20:45:52","guid":{"rendered":"https:\/\/presskitchen.com\/?p=28414"},"modified":"2026-01-28T09:50:00","modified_gmt":"2026-01-28T09:50:00","slug":"departures-luke-lashley-via-advertisingweek-hey-cmos-whats-the-point-of-starting-an-internal-production-entity","status":"publish","type":"post","link":"https:\/\/demo.techsystintel.com\/press_kitchen_dev\/departures-luke-lashley-via-advertisingweek-hey-cmos-whats-the-point-of-starting-an-internal-production-entity\/","title":{"rendered":"Departure’s Luke Lashley via Advertising Week: ‘Hey CMOs \u2013 What\u2019s the Point of Starting an Internal Production Entity?’"},"content":{"rendered":"

\"\"<\/p>\n

By Luke Lashley, Founder, Departure<\/strong><\/a><\/em><\/p>\n

If you\u2019re a major brand or large agency considering starting an internal production offering, I see two main roads ahead of you. And the road you choose will determine whether you\u2019re building a small additional revenue stream for your parent organziation, or creating a genuine competitive advantage.<\/p>\n

Let me break this down, because I think a lot of organizations are accidentally choosing the wrong path.<\/p>\n

Road A: Build A \u201cNormal\u201d Production Company<\/strong><\/h2>\n

Option A is to start a \u201cnormal\u201d production company. Your objective is to get boards, submit directors, win some jobs, stay afloat, and generate additional bottom-line revenue for your parent organization. Maybe you have a separate P&L, maybe you don\u2019t. The exact accounting and legal setup here isn\u2019t the point, more so the headspace and high level objective. With Road A, you\u2019re essentially building another production company that happens to live inside your organization.<\/p>\n

If this is you, that might be totally okay. Especially if you\u2019re working under a large agency or brand, it might be more than a small business. There\u2019s nothing wrong with this approach, it\u2019s straightforward, it\u2019s familiar, and it can absolutely work.<\/p>\n

But for me, when I look at this route, it seems like you\u2019re voluntarily choosing to compete in exactly the same game as every other production company out there. Production company land is incredibly congested and overcrowded, so you\u2019re voluntarily opting in to play the game in an incredibly crowded room by the same rules as everyone else. Essentially you\u2019re hoping to win through execution rather than structural advantage.<\/p>\n

Road B: The Unfair Advantage<\/strong><\/h2>\n

Option B is something entirely different. In this option, the goal is to create a production entity that captures market share on the production side of the table, gaining an unfair advantage over third-party production players, and establishes meaningful stability, control, and economic upside.<\/p>\n

This is a whole other story. The game becomes less about getting boards and sending directors like every other production company, and more about setting up your production entity to have a truly unfair advantage in the production ecosystem.<\/p>\n

This approach comes with a whole slew of challenges and very niche nuances around talent acquisition, director relationships, board distribution, reel submission, timing protocols, bidding strategies, mandate structures, and so on. But it also comes with the potential for genuine competitive moats that external production companies simply can\u2019t replicate.<\/p>\n

The Missed Opportunity<\/strong><\/h2>\n

At Departure, we\u2019ve identified a series of about three \u201ceasy to make\u201d moves that would put an internal production entity at a serious unfair advantage (at least theoretically\u2026we haven\u2019t proven it with a partner yet). But it sure is fun to think about, and as I\u2019ve written in other articles, we follow \u201cwhat seems wrong\u201d as our northstar.<\/p>\n

Part of what seems wrong is how heads of production sound at major companies when we talk to them.<\/p>\n

Most HOPs we\u2019ve spoken to are thinking, operating, and receiving mandates from leadership to \u201cbuild a production company.\u201d Build a production company. Full stop. As if the goal is to recreate what already exists in the marketplace, just with your logo on it.<\/p>\n

We see a massive opportunity for internal production entities to be thinking much larger, more competitively, and using their proximity to the brand, agency, or parent organization to remarkable advantage.<\/p>\n

Beyond the Soft Benefits<\/strong><\/h2>\n

And we\u2019re not talking about the usual soft benefits that get thrown around like \u201cunderstanding the brand better\u201d or \u201cbeing close to the office.\u201d Those are too\u2026fluffy. We\u2019re talking about hard, business process advantages that create structural moats your competitors can\u2019t cross.<\/p>\n

Think about it: you have direct access to budget allocation decisions. You can control the flow of information. You can influence briefing processes. You can structure workflows that external partners simply can\u2019t match. You can create decision-making efficiencies that cut weeks out of traditional procurement cycles.<\/p>\n

Most importantly, you can align economic incentives in ways that make your offering not just competitive, but structurally superior to external alternatives.<\/p>\n

The Strategic Question<\/strong><\/h2>\n

So here\u2019s the real question for CMOs and leadership teams: what are you actually trying to accomplish?<\/p>\n

If you want a production company that happens to live inside your organization, Road A is perfectly fine. You\u2019ll probably save some money, maintain some control, and create a nice little revenue stream.<\/p>\n

But if you want to fundamentally change how production works for your organization. If you want to create genuine competitive advantages that compound over time. Then you need to think bigger than just \u201cbuilding a production company.\u201d<\/p>\n

You need to think about building a production entity that plays by different rules entirely.<\/p>\n

The Nerd-Out Invitation<\/strong><\/h2>\n

If you\u2019re a CMO, HOP, or anybody involved in an internal production offering at a major organization and you want to nerd out about what this could actually look like, holler at us.<\/p>\n

We spend a lot of time thinking about structural advantages in production, and we\u2019d love to explore how those concepts could apply to internal entities. Because it seems like many internal production companies are leaving a lot of competitive advantage on the table.<\/p>\n

###<\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

By Luke Lashley, Founder, Departure If you\u2019re a major brand or large agency considering starting an internal production offering, I see two main roads ahead of you. 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