Understanding Competitive Positioning in the Commercial Video Production Industry

The Reality of Competition in Video Production

In every industry, competition defines the marketplace. It determines pricing, influences branding, and establishes the expectations for quality and service. In the world of commercial video production, this competitive landscape is becoming more polarized, particularly when analyzing the upper, middle, and lower tiers of production companies.

While the upper-class firms solidify their standing and lower-class freelancers fight their way in, the middle-class production companies are facing the greatest challenges—a reality that threatens their existence. Understanding who your competition is, why they are your competition, and where you stand in the industry is critical for long-term success.

The Three Tiers of Commercial Video Production

Upper-Class Production Companies: The Established Giants

At the top of the commercial video industry sit the production companies handling Fortune 500 brands, global corporations, and major advertising agencies. These companies have:

• A defined style that is recognizable and trusted.

• Premium pricing that reflects their high-level quality and production value.

• Long-term industry relationships that ensure repeat business.

• Scalable business models with teams, infrastructure, and polished workflows.

The upper-class production companies aren’t competing with the middle or lower class because they operate in an entirely different sphere. Their clients seek elite-level results and high-touch service, often at six- or seven-figure budgets.

Lower-Class Production Companies: The Disruptors

On the other end of the spectrum, entry-level filmmakers and small production teams are aggressively pushing into the industry. This segment thrives because:

• They are hungry and willing to work for less to build their portfolio.

• They over-deliver on value in an effort to attract more clients.

• They leverage technology and online communities to quickly gain knowledge and skills.

• They are pricing aggressively low, often undercutting middle-class competitors.

These smaller teams are not yet refined, but they are highly adaptable. Many of them will either fail, pivot, or grow into the middle-class tier. But in the process, they create pricing pressure and force established companies to justify their higher rates.

The Struggles of the Middle-Class Production Companies

The middle class—the companies working with SMBs (small-to-medium businesses)—face the biggest existential challenge. These companies are typically five to seven years old and are dealing with major struggles in:

• Pricing – They can’t price too low, or they’ll be outbid by lower-class freelancers, but they can’t price too high, or they’ll be compared to upper-class companies.

• Style – They may not have a signature style yet, making them less recognizable in the marketplace.

• Market Positioning – They lack the resources of upper-class firms but need to offer more professionalism and quality than the lower class to justify their pricing.

Many middle-class production companies fail at this stage because they either:

1. Drop prices to compete with lower-class freelancers, which reduces profitability.

2. Try to elevate pricing to compete with the upper class, but lack the infrastructure or experience to deliver at that level.

3. Fail to develop a strong brand identity, making them forgettable in a crowded market.

The Merit of How You Do Things Matters More Than What You Do

Blaise Pascal once wrote, “It is not the thing you do. It is the merit in which the thing you do is done.”

This statement is a key insight for middle-class production companies struggling to differentiate themselves. At the end of the day, every class—upper, middle, and lower—can provide the same technical services. A lower-tier filmmaker can shoot a corporate video, just as an upper-class production company can. The distinction isn’t what you do but rather how you do it.

For middle-class companies that are still defining their style and struggling with pricing, the best competitive advantage they can cultivate is excellence in execution. This means focusing on:

• Customer Satisfaction – Delivering a client experience that exceeds expectations.

• Customer Retention – Turning one-time clients into long-term partners.

• Pre-Production Process – Making the planning and creative development phase seamless.

• On-Site Professionalism – Ensuring that every shoot is organized, efficient, and stress-free.

• Post-Production Communication – Keeping clients informed and engaged during edits and revisions.

While style and pricing can be competitive battlegrounds, merit is not. A production company that develops a reputation for professionalism, reliability, and strong relationships will always have an advantage.

How to Survive and Thrive in the Middle Market

1. Define and Own Your Style

One of the primary reasons middle-class companies struggle is because they lack a clear, recognizable style. Clients trust brands they can identify instantly—whether that’s a high-gloss commercial look, a documentary-style approach, or cinematic storytelling.

If a middle-class company can develop a signature aesthetic that differentiates them, they stand a greater chance of attracting and retaining a loyal client base.

2. Strategic Pricing: Finding the Sweet Spot

The key to survival is understanding value-based pricing rather than simply matching competitors’ prices. Instead of competing on cost, middle-class production companies should focus on:

• Specialized expertise – Develop niche industry knowledge (e.g., healthcare, real estate, tech startups).

• Process efficiency – Offer fast turnaround times to compete with lower-tier competitors.

• Scalability – Develop tiered pricing models to accommodate different budget levels while maintaining profitability.

3. Market with Authority and Confidence

Middle-class companies must project expertise, trust, and reliability to differentiate themselves from new, inexperienced competitors. This can be done by:

• Showcasing case studies to highlight results, not just the final video.

• Building relationships with repeat clients, ensuring steady work.

• Educating clients on the value of professional production, emphasizing ROI.

A middle-class production company that positions itself as an authority will stand out in a field filled with generalists.

Final Thoughts: Knowing Your Competition, Knowing Yourself

To succeed in any competitive landscape, you must understand who your competition is, why they are competing with you, and how you can position yourself effectively.

• If you’re in the upper class, your competition isn’t the lower market—it’s about maintaining exclusivity and quality.

• If you’re in the lower class, your goal is to prove your value, build your portfolio, and climb into the middle class.

• If you’re in the middle class, you face the biggest risk—but also the greatest opportunity to differentiate, refine, and scale.

The best strategy for middle-class production companies is to improve upon how they do things, not just what they do. By delivering superior client service, reliability, and execution, they can develop a competitive edge that neither price nor style alone can provide.

Ultimately, businesses are not just judged on their final product, but on how well they handle every interaction leading up to and following that final product. Those who prioritize merit, efficiency, and client experience will be the ones that survive—and thrive.