This is not a post about the TNT series -- although I personally like it and am glad to see Tim Hutton acting again. This is about the leverage you have in your negotiation with a network, movie company, music company, or any corporate entity who wants to buy your property.
The specifics of the negotiation can get very detailed -- you will grant rights to your property in a specific number of territories and mediums. For example,if you are the author of a novel, you can sell the film rights to one company, the television rights to another, and the stage adaptation rights to someone else. A friend of mine just licensed the right to create a stage version of his screenplay to a company in Italy. He licensed them only the rights to Italy. If the stage version is a hit he can then license the rights to different producers in different countries. This could result in a much larger income for him than if he licensed worldwide stage rights to one company.
Of course someone needs to negotiate these deals. Now you know what keeps agents and managers busy.
After you get past the specifics of what you're selling, negotiations for intellectual property hinge on leverage: How much does the buyer want what you have; are other companies bidding, and how desperate are you to sell? The less desperate you are, and the more they want your idea, the better your chance of getting top dollar.
If you're negotiating with any established media company it's important to work with an experienced professional who understands the business (see my post from 3/3 about using an entertainment attorney). The top producers, stars and writers get the advice of the best agents and lawyers available. You spent too much time on your idea to allow it to go for less than market value, or entrust it to someone who won't treat it with care.
Of course, if you don't have a track record in the industry and you only have one buyer you may have to take what you can get. The Beatles first record deal gave them the industry minimuum for royalties. They were happy to get it. They did better in subsequent negotiations, after selling millions of hit records.
Wednesday, May 26, 2010
Monday, May 24, 2010
Work for Hire
In the days when three broadcast networks ruled the U.S. television market, the financial model for programming was this: networks licensed programs from independent production companies for an amount that generally allowed the networks two plays per season per show. The license fee generally did not cover the production company's costs. Instead, the company retained the rights to syndicate, or sell the program, to other entities -- the network affiliates and independent stations that actually played the network's programs and foreign broadcasters. They could make enough money from selling the syndication rights to a network hit that production companies could afford to deficit spend on network series.
Those were the days -- the days of lavish executive dining rooms and corporate art collections in the New York skyscrapers that headquartered the Big Three networks. Some production companies still have this kind of agreement with networks -- it depends upon their leverage (see previous post). However, networks like Discovery, which already have channels around the world, see the advantage of owning the content they show. Therefore they are purchasing all the rights to shows outright -- paying production companies to produce work for hire.
In a work for hire situation, you create a program for a fee and the network or film company owns all the rights. If you are running a production company, it may be a good deal for you to accept steady work at a rate that covers your costs, plus a profit in exchange for all rights to your work. That's particularly true if the network brings the idea to you first.
However, if you have an idea that you have nurtured from conception and want to retain creative control, then you should not agree to create the show as work for hire. You will want control over rights, and a say in how the production looks. Of course, this might mean that the network will pass on your idea. You have to be prepared for that to happen if you want to retain control. If your idea and its execution are strong enough to attract an audience, you will find a network that will agree to your terms.
Make sure you know before you sign a contract whether your program will be work for hire or whether you will retain rights. Make sure the rights are spelled out clearly in the contract -- don't rely on any verbal assurances. As Samuel Goldwyn famously said, "a verbal contract is not worth the paper it's written on."
There's nothing wrong with doing work for hire. Just be sure you know what you're agreeing to do before you sign anything.
Those were the days -- the days of lavish executive dining rooms and corporate art collections in the New York skyscrapers that headquartered the Big Three networks. Some production companies still have this kind of agreement with networks -- it depends upon their leverage (see previous post). However, networks like Discovery, which already have channels around the world, see the advantage of owning the content they show. Therefore they are purchasing all the rights to shows outright -- paying production companies to produce work for hire.
In a work for hire situation, you create a program for a fee and the network or film company owns all the rights. If you are running a production company, it may be a good deal for you to accept steady work at a rate that covers your costs, plus a profit in exchange for all rights to your work. That's particularly true if the network brings the idea to you first.
However, if you have an idea that you have nurtured from conception and want to retain creative control, then you should not agree to create the show as work for hire. You will want control over rights, and a say in how the production looks. Of course, this might mean that the network will pass on your idea. You have to be prepared for that to happen if you want to retain control. If your idea and its execution are strong enough to attract an audience, you will find a network that will agree to your terms.
Make sure you know before you sign a contract whether your program will be work for hire or whether you will retain rights. Make sure the rights are spelled out clearly in the contract -- don't rely on any verbal assurances. As Samuel Goldwyn famously said, "a verbal contract is not worth the paper it's written on."
There's nothing wrong with doing work for hire. Just be sure you know what you're agreeing to do before you sign anything.
Wednesday, May 19, 2010
From Twitter to TV
In today's New York Times I read the story of Justin Halpern, whose twitter feed, "S*** my Dad Says", will become a sitcom on CBS' fall schedule. There's a lot we can learn from Justin's story.
Justin was an aspiring screenwriter who moved back home to San Diego in his late twenties after his screenplay did not become a movie. Although he had a job writing for maxim.com, his dream of making it in Hollywood was dead. While living at home he started writing down his father's words of wisdom and posting them on Twitter (119 posts so far). His dad's witty and sometimes profane thoughts became very popular, and eventually a production company came calling.
Justin's story shows the extraordinary opportunity you have to get your idea directly to the audience. Twitter, Facebook, you tube, and other web outlets give you the chance to tell your story. If your work strikes a chord out there, you may be able to move it to the more traditional media that can pay you significant money for it.
Here are two lessons from Justin's story that are particularly important for you. First, create something. If Justin hadn't written down his father's words in the first place, nothing would have happened. Don't wait for everything to be perfect: just get going.
Second, create for multiple platforms. S*** my Dad Says" is a twitter idea that became a tv sitcom. Do you have a movie idea that can also be a novel? Try writing the novel first. Perhaps you'll find a publisher, but you can also self-publish. If you have a popular novel, the film and television rights will pay you more.
Whatever you're creating, get started today. Moving from conception to creation to publication can take months or years. The sooner you start, the sooner you'll get done.
You can link to the NY Times article at: http://www.nytimes.com/2010/05/19/arts/television/19shatner.html?ref=arts
Justin was an aspiring screenwriter who moved back home to San Diego in his late twenties after his screenplay did not become a movie. Although he had a job writing for maxim.com, his dream of making it in Hollywood was dead. While living at home he started writing down his father's words of wisdom and posting them on Twitter (119 posts so far). His dad's witty and sometimes profane thoughts became very popular, and eventually a production company came calling.
Justin's story shows the extraordinary opportunity you have to get your idea directly to the audience. Twitter, Facebook, you tube, and other web outlets give you the chance to tell your story. If your work strikes a chord out there, you may be able to move it to the more traditional media that can pay you significant money for it.
Here are two lessons from Justin's story that are particularly important for you. First, create something. If Justin hadn't written down his father's words in the first place, nothing would have happened. Don't wait for everything to be perfect: just get going.
Second, create for multiple platforms. S*** my Dad Says" is a twitter idea that became a tv sitcom. Do you have a movie idea that can also be a novel? Try writing the novel first. Perhaps you'll find a publisher, but you can also self-publish. If you have a popular novel, the film and television rights will pay you more.
Whatever you're creating, get started today. Moving from conception to creation to publication can take months or years. The sooner you start, the sooner you'll get done.
You can link to the NY Times article at: http://www.nytimes.com/2010/05/19/arts/television/19shatner.html?ref=arts
Thursday, May 13, 2010
What Rights Should I Sell?
Last week (May 4) I provided some basic copyright information. Let's assume that you've developed your original idea to the point where a television network or some other entity wants to buy it. What rights should you license?
The buyer will want as many rights as possible for as little money as possible. For example when I licensed shows I started by requesting all rights in all media in perpetuity. As a seller, your goal is to get the network to pay as much as possible for each right, and reserve as many rights as possible for yourself. The outcome of your negotiations will depend upon the relative strengths of your positions -- how much the buyer wants your idea, and how desperate you are to sell. Knowing the rights you have available to sell is the key to maximizing the value of your content.
For the sake of this post, we'll assume you have a television idea. The first thing you want to negotiate is territory. Are you selling U.S. rights only, or U.S. and Canada? What about Asia? Don't ever just throw in worldwide rights to the program. There can be great value in that. The British producers of the show 'Pop Idol' make a great deal of money selling the rights to that show around the world. You know it in the U.S. as 'American Idol.' They would have left a fortune on the table if they licensed worldwide rights to the first network that asked.
Networks will also want the right to use footage on the internet. They may even ask for the right to post the show on their web site, or on a content aggregator like Hulu. If they want the right to use your program on the web, they should compensate you for it.
Make sure you have a plan to exploit any rights you do retain. If you have no plans to put your show on the internet, there's no harm licensing those rights to your buyer. Just make sure you're getting fair value for them. Remember in an earlier post I reminded you that 2% of something is better than 100% of nothing.
There are other rights to negotiate in addition to internet and territory. I will discuss them in an upcoming post.
The buyer will want as many rights as possible for as little money as possible. For example when I licensed shows I started by requesting all rights in all media in perpetuity. As a seller, your goal is to get the network to pay as much as possible for each right, and reserve as many rights as possible for yourself. The outcome of your negotiations will depend upon the relative strengths of your positions -- how much the buyer wants your idea, and how desperate you are to sell. Knowing the rights you have available to sell is the key to maximizing the value of your content.
For the sake of this post, we'll assume you have a television idea. The first thing you want to negotiate is territory. Are you selling U.S. rights only, or U.S. and Canada? What about Asia? Don't ever just throw in worldwide rights to the program. There can be great value in that. The British producers of the show 'Pop Idol' make a great deal of money selling the rights to that show around the world. You know it in the U.S. as 'American Idol.' They would have left a fortune on the table if they licensed worldwide rights to the first network that asked.
Networks will also want the right to use footage on the internet. They may even ask for the right to post the show on their web site, or on a content aggregator like Hulu. If they want the right to use your program on the web, they should compensate you for it.
Make sure you have a plan to exploit any rights you do retain. If you have no plans to put your show on the internet, there's no harm licensing those rights to your buyer. Just make sure you're getting fair value for them. Remember in an earlier post I reminded you that 2% of something is better than 100% of nothing.
There are other rights to negotiate in addition to internet and territory. I will discuss them in an upcoming post.
Saturday, May 8, 2010
Get Good Feedback
You don't create and develop program ideas for yourself. You want to reach an audience: either on line, in movie theaters, or at home. Therefore you must develop your idea with the audience in mind. That may seem obvious, but not every creative person grasps that.
When I was a theatre director, I received feedback from everyone that watched rehearsals. But there was no substitute for putting the actors in front of a live audience. The audience's laughs told me what was funny (intentionally or unintentionally). When they were quiet (no coughs, sneezes, or shuffles) I knew they were riveted. And if they walked out, I knew we were losing them.
But what do you do if you're not directing live theatre? Find a small group of two or three trusted friends or colleagues that agree to take the time to review your work. They should be supportive, but even if they don't like your idea they should explain why. Someone who just says "that sucks," or even, "that's great!" without providing details won't help you.
Pay particular attention to the parts of your work when they say, "I'm not sure I understand why that character did that," or "I got lost here. I wasn't sure what was going on." That should be a red flag for you. It's important that the audience understand what is going on and believe the characters' motivation. That's true for reality shows as well as scripted entertainment. The story (as I mentioned in a recent post) is the most important thing.
Remember, that as the creator you have the ultimate say about what goes into your program. At least, I hope you negotiated that into your production deal. Thoughtful feedback will save you from going off track.
When I was a theatre director, I received feedback from everyone that watched rehearsals. But there was no substitute for putting the actors in front of a live audience. The audience's laughs told me what was funny (intentionally or unintentionally). When they were quiet (no coughs, sneezes, or shuffles) I knew they were riveted. And if they walked out, I knew we were losing them.
But what do you do if you're not directing live theatre? Find a small group of two or three trusted friends or colleagues that agree to take the time to review your work. They should be supportive, but even if they don't like your idea they should explain why. Someone who just says "that sucks," or even, "that's great!" without providing details won't help you.
Pay particular attention to the parts of your work when they say, "I'm not sure I understand why that character did that," or "I got lost here. I wasn't sure what was going on." That should be a red flag for you. It's important that the audience understand what is going on and believe the characters' motivation. That's true for reality shows as well as scripted entertainment. The story (as I mentioned in a recent post) is the most important thing.
Remember, that as the creator you have the ultimate say about what goes into your program. At least, I hope you negotiated that into your production deal. Thoughtful feedback will save you from going off track.
Tuesday, May 4, 2010
Copyright
Do you own the copyright to your idea? Do you know the difference between owning a copyright and owning the rights to your work? You should consult an attorney before signing anything regarding your work or idea. But you can save yourself time and money if you understand the basics.
"Copyright" is literally "the right to copy." If you are the copyright owner of a work (whether it is a story, book, play, song, or film) you have the sole right to make copies of the work, authorize adaptations, and also have the right to allow others to do so. No one can make copies without the copyright holders permission.
There are two key points. 1. You do not need to publish your idea. According to the U.S. copyright office, a "copyright is secured automatically when the work is created,and a work is “created when it is fixed in a copy or phonorecord for the first time." This means your idea can't be copyrighted when it's in your head, but can be once you write it down or record it, even if it has not been published.
2. You cannot copyright titles, short phrases, anything not fixed (for example, unrecorded improv comedy sketches) or ideas. So for your own protection, write your ideas down, or film them on your flip cam, or record them on CD.
It's a good idea to familiarize yourself with copyright basics. The U.S. Copyright office has a number of publications available online. Just go to: http://www.copyright.gov/ for more information.
At some point you may want to assign rights to your work to publishers, producers, or film or television companies so they can make your program. Know what rights you're giving them, for how long, and how much money they're paying. Do not assign or give away your copyright.
If you are successful in the business you may at some point be asked to create a show as a "work for hire." For example, if you're a staff producer at a network you probably do not own the copyright to your show, unless you negotiated that right in your contract. I will discuss that in a future post.
"Copyright" is literally "the right to copy." If you are the copyright owner of a work (whether it is a story, book, play, song, or film) you have the sole right to make copies of the work, authorize adaptations, and also have the right to allow others to do so. No one can make copies without the copyright holders permission.
There are two key points. 1. You do not need to publish your idea. According to the U.S. copyright office, a "copyright is secured automatically when the work is created,and a work is “created when it is fixed in a copy or phonorecord for the first time." This means your idea can't be copyrighted when it's in your head, but can be once you write it down or record it, even if it has not been published.
2. You cannot copyright titles, short phrases, anything not fixed (for example, unrecorded improv comedy sketches) or ideas. So for your own protection, write your ideas down, or film them on your flip cam, or record them on CD.
It's a good idea to familiarize yourself with copyright basics. The U.S. Copyright office has a number of publications available online. Just go to: http://www.copyright.gov/ for more information.
At some point you may want to assign rights to your work to publishers, producers, or film or television companies so they can make your program. Know what rights you're giving them, for how long, and how much money they're paying. Do not assign or give away your copyright.
If you are successful in the business you may at some point be asked to create a show as a "work for hire." For example, if you're a staff producer at a network you probably do not own the copyright to your show, unless you negotiated that right in your contract. I will discuss that in a future post.
Sunday, May 2, 2010
Story
Some of my readers asked me to provide more details about what makes a good story. The best definition of a good story that I ever read is on page 462 of Which Lie Did I Tell?, a book about screenwriting and the movie business written by Academy Award winning screenwriter, William Goldman.
"A good story is something with an interesting premise that builds logically to a satisfying and surprising conclusion."
Goldman's book mainly focuses on screenwriting, but this definition is true for all sorts of stories -- novels, television shows, webisodes, songs, everything. Goldman uses the example of the children's story "The Little Engine That Could." Aren't we all just rooting for that train to get those toys over the mountain?
The most popular programs on television have the most compelling stories. Despite what the judges say, American Idol is not the top rated show because it is a singing competition. it's a top show because it's a singing competition repackaged as Greek tragedy. A group of characters we know well are fighting for their lives (a singing career that would change their life) and surviving intervention by the gods: the judges with human foibles who also have the power of miraculous intervention on their behalf (the judges' save).
By the way, you could do worse than imitate the story lines from Greek tragedy. I wish all of our work would last as long as the plays of Sophocles, Aeschylus, and Euripides.
But we were talking about story. Develop the most compelling story possible for your idea. You want the audience wondering "what happens next?" The story matters much more than the particular platform the program is placed, or its genre.
"A good story is something with an interesting premise that builds logically to a satisfying and surprising conclusion."
Goldman's book mainly focuses on screenwriting, but this definition is true for all sorts of stories -- novels, television shows, webisodes, songs, everything. Goldman uses the example of the children's story "The Little Engine That Could." Aren't we all just rooting for that train to get those toys over the mountain?
The most popular programs on television have the most compelling stories. Despite what the judges say, American Idol is not the top rated show because it is a singing competition. it's a top show because it's a singing competition repackaged as Greek tragedy. A group of characters we know well are fighting for their lives (a singing career that would change their life) and surviving intervention by the gods: the judges with human foibles who also have the power of miraculous intervention on their behalf (the judges' save).
By the way, you could do worse than imitate the story lines from Greek tragedy. I wish all of our work would last as long as the plays of Sophocles, Aeschylus, and Euripides.
But we were talking about story. Develop the most compelling story possible for your idea. You want the audience wondering "what happens next?" The story matters much more than the particular platform the program is placed, or its genre.
Subscribe to:
Posts (Atom)