Share this Page URL

Contract Highlights > Property Definition - Pg. 231

Licensing 231 · Distributor. The distributor is the company that sells the production to broadcasters (networks). There is often a domestic distributor and an international distributor. Like a packaged-goods distributor, these parties charge distribution fees to the producers, usually as a percentage of the rights fees paid by the broadcaster to the producer for the right to air the show. Distribution expenses, the cost of marketing and advertising the show to broadcasters, may be charged separately or included as part of a higher distribution fee percentage. · Broadcaster. The broadcaster is the retailer of children's television: it brings the manufacturer's (producer's) product into the end-user's home. As with packaged-goods retailers, broadcasters expect to be compensated for shelf space (air time), though the money also flows in the other direction: broadcasters pay a rights fee to the producer for the right to air the show, just as retailers pay manufacturers for products they sell. The loving cup from which all television pro- ducers hope to drink is syndication , when a broadcaster airs the show five days a week and pays a fee for every broadcast (known as a strip fee ). This is more likely with adult shows; the demographic windows are so short in children's television (example: 8-11 as opposed to 18-35), the shows don't usually have enough shelf life to support syndication. In other words, adult shows can retain the same viewer for seventeen years, while children's shows must constantly woo new viewers to replace the ones who've outgrown the show. · Master toy licensee. A property hot enough to merit its own television show will probably have a master toy licensee . This is a toy company like Hasbro, Playmates, or Bandai that manufac- tures and distributes many different kinds of toys and desires control over all toy production, marketing, and distribution. Contrast this to a mature game that may have a market for one kind of toy, like a set of high-end figurines. In a situation of limited toy profits, there is not much incentive for a master toy licensee to invest the money in marketing the property, so it makes sense for the property owner to create a limited license for high-end figurines. A master toy licensee can be a vital part of the production and distribution negotiations because it is often