Renting or buying a video studio: what suits your organisation best?

At AVEX, we guide many different organisations in this trajectory. Business Consultant Jacqueline Borremans recently spoke with a marketing director who was convinced of wanting to buy: “After two years, we’ll have paid off the studio.” However, after a thorough analysis, it turned out that renting, in his case and for his organisation, was much more advantageous and practical.

In this article, you’ll discover:

• The actual pros and cons of renting and buying

• A cost comparison for 3 years

• The key decision-making criteria

• A step-by-step plan to map out your needs

After reading this article, you’ll make a well-thought out decision that fits your current situation and future plans.

Why only looking at purchase costs is a pitfall

Many organisations make the mistake of merely looking at the cost of purchase. Then, buying a studio seems cheaper, but oftentimes, crucial factors aren’t taken into consideration:

• Do you have a technical team to take care of maintenance and updates?

• How fast does your organisation change?

• How often will you actually use the studio?

For the marketing director from the example, these were the exact pitfalls. Eventually he chose a Studio-as-a-Service model, and after 6 months tols us: “It was the right decision to rent. We use the studio more often than expected, we’ve adjusted the layout twice already, and my team is fully focussed on making content instead of solving technical issues.”

Below, we’ll go over the pros and cons of renting a studio and of buying a studio:

Renting a studio: when flexibility is more important than ownership

The pros of renting a studio:

• No technical worries
  When renting, you don’t have to worry about maintenance, repairs, or software updates. Everything will be taken care of. It’s perfect for when your team wants to focus on creating content, not on managing technology.
• Low entry costs
  You pay fixed costs monthly instead of making a big investment in advance. This makes budget planning predictable and ensures that you don’t have to allocate a large amount.
• Flexibility for growth
  Organisations change. Maybe in a couple of years, your studio needs will change, or you want to expand to more locations. When renting, this is easily adjustable.
• Technology is always up-to-date
  The AV world is developing fast. When renting, you get automatic access to the newest technology without extra investments.

The cons of renting a studio:

• Higher long-term costs
  If you use the studio intensively for years, you end up paying more than when purchasing. For organisations that plan to work with their own equipment for a longer term, this could be a disadvantage.
• Less ownership
  You’re dependant on the supplier for changes and have less control over the studio layout than when owning a studio.

Buying a studio: control and ownership come first

The pros of buying a studio:

• Lower costs for long-term use
  If you’ll use the studio intensively for a minimum of 3-5 years, buying is often cheaper than renting. The studio becomes part of your business assets.
• Full control
  You decide the layout of the studio and which alterations will be made. It’s prefect for organisations with specific needs.
• No monthly costs
  After the purchase, you only pay for maintenance and possible expansion. Budget wise, this can be attractive.

The cons of buying a studio:

• High initial investment
  You must invest a substantial amount before you can start your first recording. This requires a good business case and available budget.
• Technical responsibility
  Maintenance, repairs, software updates – it all becomes your responsibility. That requires technical knowledge or external support.
• Risk of aging
  Technology develops fast. Your studio could be outdated in of a couple of years, which requires new investments.
• Limited flexibility
  Changes in your studio needs means additional costs rather than a simple adjustment in your rental contract.

Cost comparison renting vs buying (3 years)

In this example, renting ends up being €5.860 cheaper. But more importantly: when renting, support, replacements for defects, and periodic optimilisation is included as well.

Step-by-step plan: map out your needs

Before making a definitive decision, it’s a good idea to go over the following steps and questions. Together with your knowledge about the pros and cons of both options, it’ll give you insights into what could work best for you:

Step 1: Analyse your current and future usage

• How many recordings do you currently make each month?
• How many do you expect this to be in 1-2 years?
• What types of content will you create?
• How many people will use the studio?

Step 2: Evaluate your organisation

• Do we have technical people among us?
• How stable are our plans for the coming years?
• What’s our budget: big investment or monthly costs?
• How important is flexibility for us?

Step 3: Calculate the actual costs

• Don’t just compare purchase vs hiring costs
• Include maintenance, updates, and support
• Think about the value of your own time
• Calculate for at least 3 years

Step 4: Test your assumptions

• Talk to other organisations that have made similar choices
• Ask for references at potential suppliers
• Consider a pilot or trial period

Conclusion: what suits your organisation?

The decision between renting and buying isn’t a standard formula. It’s about your situation, team, and future plans.

Do you remember the example of the marketing director? He assumed that buying would automatically be cheaper, but forgot about the hidden costs and challenges. Because of a broader consideration, he decided to rent – and his organisation still notices the benefits.

At AVEX, we help organisations make this decision daily. Thanks to our experience with both models, we know exactly when renting or buying is the right choice.

Next step: Schedule a free advisory meeting with Jacqueline Borremans to discuss your situation. Together, we map out influential factors and explore which option suits your organisation the best.