Re: "Industry standard" for video clips

Lee T. Lau <lau[_at_]wedge.com> wrote:
>
> So, my question - what is the range of "industry standard" for such a
> video and what is customary licensing practise for such a deal; ie. is
> this royalty method commonly used or does the video producer "normally"
> receive a straight percentage of gross and advertising.

It depends on what the video is being used for, who the distributor is, and the potential demand for the material.

Our in-house marketing division (GPN works in K-12 markets) usually demands that it's marketing, distribution, and advertising costs be covered before anything goes to the producer. The producer gets a percentage of the net after that, for the life of the license. That's also the way a lot of the public television organizations deal with producers, mainly because they usually provide funding to get the show produced as well as distributing it. This is for completed programs.

If it's not a complete show, but just segments for something else, a flat fee is often arranged.

The actual percentage negotiated depends on what you can get from the distributor and how wide the distribution will be. Public TV pays very little, commercial TV a lot more, international and sports stuff pays big time. Once in a lifetime shots, you can set the price if the demand is there.

Hope this helps.

Jayne Sebby
Nebraska ETV
jsebby[_at_]unlinfo.unl.edu Received on Mon Aug 10 1998 - 16:02:35 GMT