Next time a local TV station goes into negotiations with a syndicator for a show, or a network negotiates with a studio, look for the contract to go beyond over-the-air distribution and include clauses on the information superhighway.
That’s the strategy of the future, say network execs at the National Assn. of Broadcasters confab. To survive on the information highway and protect your lane , broadcasters need to make sure their programming is exclusive.
“Get as much of the rights as you can to exploit over-the-air product,” said Molly Pauker, Fox Broadcasting’s Washington counsel.
Pauker said the network was alarmed that a video-on-demand test had an agreement with one of Fox’s program suppliers for Fox shows, meaning that viewers in that market don’t have to watch Fox to watch the show. (She declined to say who is performing the test.)
A question of rights
Capital Cities/ABC, participating in video-on-demand tests with cable programmer Discovery Communications, has found that even if you own the show, you don’t necessarily own the rights to the content.
“There are clearance problems across the board,” said Charlene Vanlier, Washington counsel, CapCities/ABC.
News talent also will want extra money if their shows are being offered on other services other than the network, Vanlier said. That means that when Barbara Walters starts renegotiating her contract, there could be clauses giving her more money for additional distribution of her shows via vid-on-demand or similar experiments.
The same holds true for union contracts and residual payments for actors. CapCities/ABC recently put out a video of all the famous soap opera weddings and , according to Vanlier, spent lots of time tracking down old actors for permission and payment.
One of the problems with negotiating for copyright for programming-on-demand, Vanlier said, is that “no one knows what to charge, so they highball it.”
That’s why the majority of video-on-demand tests don’t include programming from the Hollywood studios and syndicators but instead rely almost exclusively on owned product from the networks.
Once the programmers and distibutors can come to an agreement on price, the shows will be there. Of course, before that happens, the program producers have to hammer out new terms with their talent that include provisions for ancillary use.