Pact and Channel 5 have today (Tuesday 11th September 2018) launched the key commercial points of a new Terms of Trade agreement for independent production companies working with Channel 5.
The agreement, which takes effect from today for an initial period of three years, puts in place a deal for commissioned programming, reflecting industry developments, audience expectations and the wider commercial landscape for content. Only fully-funded commissions from qualifying independent producers for the main channel (Channel 5) will be governed by the new Terms of Trade.
For producers, the new terms provide opportunities to create further value in their content IP across secondary and international markets, including a shorter holdback position in the Republic of Ireland and on VOD, as well as a more advantageous position in music ownership and publishing revenue participation, and enhanced VOD royalty payments.
For Channel 5, it secures UK exhibition rights on its main public service channel and also secures rights to play programmes across Channel 5’s secondary channels and the pay and free channels of Viacom International Media Networks (VIMN) in the UK and the Republic of Ireland. It also grants rights across associated VOD services and viewer functionalities across all platforms, amongst other benefits.
Pact Chair, Sara Geater, said: “Pact’s recent Census showed that Channel 5 is a significant commissioner of programming from smaller producers from around the UK. They – along with other qualifying indies commissioned by Channel 5 – will benefit greatly from these new terms of trade that are easy to understand and reward success. I’m pleased that both Pact and Channel 5 have managed to achieve such a positive outcome for UK indies”.
James Tatam, VP, Commercial, Digital and Operations for Channel 5 commented: “Independent production companies are the lifeblood of Channel 5, so it is vital we operate a Terms of Trade that benefit broadcaster and producer alike.” He continued: “We’re delighted to have agreed these terms with Pact and look forward to partnering with more independent production companies to power the next stage of our content evolution.”