BBC Radio Independent Production Companies

Terms of Trade

New terms 2014

IntroductionO Original terms – 2005O New terms agreed with RIG in 2014

to update existing terms and grant new commercial rights to independent production companies and new public service rights to BBC

O Updated terms for both indie and BBC-owned formats (ie normal and hybrid terms)

Indie-owned formatsNew rights for the independent production companies:

• CD/Downloads-To-Own (DTO) worldwide release immediately after first linear BBC tx instead of eight days afterwards

• Earlier release for radio/Audio-on-Demand in UK (previously no such release for full licence period permitted) in accordance with new audio release policy on bbc.co.uk:

o 12 months for single commissionso 5 years for drama/comedy/music docso Licence period where returning series

Indie-owned formatsNew rights for the independent production companies (2):

• Radio/AOD ex-UK release immediately after first linear BBC tx instead of eight days afterwards

• Commercial website/apps/social media opportunities enhanced subject to BBC approval to be given in a fair, reasonable and non-discriminatory manner in accordance with new clear guidelines published on bbc.co.uk. Guidelines to ensure public service propositions not undermined by indie commercial activities

Indie-owned formatsNew rights for the independent production companies (3):

• Ability to create audio-visual content: o Indie owns fully including commercial rights o Indie can exploit DVD/DTO worldwide (including

UK) and TV sales ex-UK immediately after first BBC tx (on-demand is day 30)

o Indie can commercialise on UK TV/VOD in accordance with the same holdbacks as the UK audio release policy but clips to TV stations may be able to be licensed earlier in certain instances

o BBC receives 50% net revenue share post-recoupment of production cost

o Subject to BBC approval and first option for TVo BBC granted digital PS rights in such material

Indie-owned formats

New rights for BBC:

• On-demand catchup window extended to 30 days, but BBC also has right to include programmes in its archive in perpetuity UNLESS:

o Comedy/drama/narrative history programmingo Indie can evidence 3% of the licence fee as net

revenue from commercial exploitation, at which point BBC will be obliged to take it down

• BBC right to podcast for 30 days unless:o Comedy/drama/narrative history programmingo Indie can evidence 3% of the licence fee as net

revenue from commercial exploitation, at which point BBC will be obliged to withdraw the podcast

Indie-owned formatsNew rights for BBC (2):

• Segment and chapterise programmes online• Extra analogue transmission in Tier A, two extra

digital transmissions in Tier B – Tier C (repeats) down from 10% of licence fee to 5% and local/nations usage down from 10% of licence fee to 5%

• Updated interactive deliverables including:o 1 photo per episodeo Short, medium and longform summaries of the

programmeo Creation and publishing of podcast (BBC to

provide appropriate tools and training)• Inclusion of programmes in BBC provision to British

Forces radio network

Indie-owned formatsNew rights for BBC (3):

• BBC right to include programmes in BBC Store – terms to be agreed in due course

• Full series stacking instead of previous 5 episodes limit

• BBC backend share of net revenue from indie commercial exploitation to remain at 30% unless indie is exploiting a new release window or right in which case it will be 50% just for that extra time/right.

BBC-owned formats (hybrid terms)

O BBC to retain all PS rights in perpetuity, ownership of title, brand and format plus right to decide whether to re-tender or bring in-house BUT commercial rights now jointly owned

O BBC can re-tender as follows:o The title/brand/programme but NOT any

sufficiently distinctive creative elements brought to the programme by the indie unless it buys out those creative elements; or

o BBC can decide not to re-tender and continue with the existing indie while retaining use of their new creative elements

BBC-owned formats (hybrid terms)

O Commercial exploitation• Commercial rights jointly owned• Expectation that the parties will discuss and

agree who is best placed to exploit but BBC solely entitled to exploit:o Entire network featuring the programmeo Inclusion of programme in any BBC commercial

service (global iPlayer, bbc.com etc)o BBC Storeo Music (non-exclusively) in a BBC-branded music

offer or under the BBC’s agreements with the labels

o Exploitation of brand/title/format as a historic asset as opposed to the actual audio programmes

BBC-owned formats (hybrid terms)

O Indie to receive 30% of net revenue unless:o Particular idea and exploitation is by

the indie in which case it can increase to a maximum of 50%

o Where exploitation is of brand/title/format as historic asset as opposed to the audio programme it will range from 0-50% depending on what is the exploitation and who does it

Independent ProducersDay 8 worldwide CD/DTO and ex-UK radio/AOD exploitationPublished audio release policy for UK radio/AOD (12 months single commission, 5 years

drama/music doc/comedy, returning series after licence period)Commercial online opportunities enhanced in line with published policy - approval given in a fair,

reasonable and non-discriminatory manner Ability to create audio-visual content that indie owns fully including commercial rights:

Same commercial exploitation holdbacks as audio (save that ex-UK VOD is day 30)BBC receives 50% net revenue share post-recoupment of production cost

BBCOn-demand and podcast windows now 30 days; permanent online archive and 30-day podcasting

permitted unless comedy/drama/narrative history programming or 3% net revenue is evidencedExtra analogue/digital txs and interactive deliverables, repeats and local/nations radio at 5% of

the licence fee Inclusion in BBC Store on terms to be agreedNet revenue share remains 30% unless indie exploits one of their above new rights or release

windows in which case it will be 50% just in respect of that extra time/right

BBC-owned formatsBBC retains ownership of title/brand/format but commercial rights now jointly ownedBBC can either re-tender the title/brand/format (but not any sufficiently distinctive creative

elements brought to the programme by the indie unless it buys out those creative elements) or not re-tender and continue with the existing indie while retaining use of their new creative elements

BBC solely entitled to exploit brand/title/format as a historic asset as opposed to the actual audio programmes

Indie to receive 30% of net revenue unless idea and exploitation is by the indie (up to 50%) or exploitation is of brand/title/format as historic asset as opposed to the audio programme (0-50%)