Branded entertainment on TV from the perspectives of system theory and principal agent theory

The communication industry is on the move. Increasing digitalisation brings new distribution channels, new forms of content and a fragmentation of target groups. Players in the communication industry and marketeers search for new forms of communication. Media companies seek for new forms of generating revenue. In this context, TV productions that are focused on branded entertainment content become increasingly important. In this article, constellations of the players of branded entertainment TV productions are for the first time systematically identified and described. The difficulties that arise between the different parties under conditions of incomplete and asymmetric information are analysed with the help of the system theory and the principal agent theory. Recommendations for the management of branded entertainment productions are given, while instruments that could reduce uncertainty and risks for the principal are presented.