As I understand it, the reason that things like IMDBtv exist is that so not
everything is in one basket. Just how many subscription video on demand
services (SVOD in the industry parlance) is one home likely to subscribe
to? And because so many of them have minimal or indeed no advertising at
all, and there's still an awful lot of TV advertising money floating
around, the advertising-based video on demand services (AVOD) exist
basically to hoover up that money. And they are popular, even if you and I
don't like commercials, and can't even do that
record-the-show-on-my-DVR-so-I-can-fast-forward-through-the-ads thing that
I would do with cable channels.

I would be surprised if there were specific contractual limitations placed
on certain shows that they *had* to appear on ad-based platforms. There are
definitely rules in place to prevent self-dealing, where, say, Warner's
HBO-Max pays less-than-market-rate for a Warners TV production,
particularly if there are profit participants. There was that case about
Bones and Hulu getting it cheap when Fox had an ownership stake. They had
to pay out.

In terms of new contracts, I spoke with a TV producer a couple of years ago
who said that when you deal with Netflix etc, you go in knowing that you're
going to make x% on the deal. Netflix pays more than a network would, but
you are going to get zero residuals afterwards. If the show catches fire,
you're not going to be like Warners and Friends, licencing it repeatedly
for the next 25 years. Netflix buys everything outright, and I suspect
these days even takes all the subsidiary rights. Their mooted new gaming
offering springs to mind. I doubt Shona is getting extra if they make a
Bridgerton mobile game - not that she did badly out of her Netflix deal
anyway!

On the other hand, when Warners make Manifest for NBC, the fee that NBC
pays is less than it costs Warners to make. They hope to make up the
difference licencing it on to Netflix and international broadcasters. And
of course, if the series catches fire, then they can cash in vastly more
than simply selling it for a flat-fee to Netflix. I wonder if Warners
playing hardball over that very show right now is what is keeping
NBC/Netflix from renewing it? It is complex, because while the show in on
Netflix in the US after its NBC window, in other territories the picture is
more complex. In the UK, for example, it's on the Comcast owned Sky and not
on Netflix at all. Netflix likes more and more to do global deals.



Adam

On Sat, Jul 24, 2021 at 7:47 PM PGage <[email protected]> wrote:

> This would be consistent with the observation that the ad supported
> programs seem to be older shows. Maybe newer shows are more likely to have
> negotiated a way to deal with subscription fees?
>
> On Sat, 24 Jul 2021 at 7:45 AM Tom Wolper <[email protected]> wrote:
>
>> On Fri, Jul 23, 2021 at 6:16 PM PGage <[email protected]> wrote:
>>
>>> So, this starts to make sense, like IMDbTV has programs Prime could not
>>> make available ad-free for licensing reasons. And now that you mention it,
>>> i think I have seen a note on some subscription services that they are
>>> required t o show ads for some programs.
>>>
>>> But then I guess the question is why would a license holder require ads
>>> rather than subscription payments?
>>>
>>
>> Here's my uneducated guess: When creative people talk about making TV
>> shows for Netflix, they say Netflix pays out up front and there are no
>> residuals. The deals the guilds have with the media companies have
>> breakdowns for residuals in different platforms. If the streamer gets the
>> show from the license holder to be added to the ad free library the guilds
>> will still demand compensation for their members. If the streamer shows the
>> TV shows with ads, residuals can be apportioned according to the ad
>> revenue.
>>
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