With today’s expanding cinematic markets and the Golden Age of TV, there has never been a better time to work as a creative. However, intellectual property can be difficult to track, with so many outlets available.
Also, if there are multiple licenses applicable to your work, you need to make sure you can keep up with where it is being distributed. Getting by on a spreadsheet has become too challenging for some. This is where a good quality royalty management plan can come in.
Finance teams will know what they are doing, but even the experts can find that their work can be made simpler by the right program. We are going to take a closer look at what this means to you and your creative work.
Simply put, a royalty is a payment made by a company to the creator of an asset for its use. Historically, this has applied to the use of intellectual property as part of the broadcasting of a TV show or movie.
However, in the modern age, where streaming has become commonplace, there are different kinds of revenue models at play. The subscription service format is one of the fastest growing markets and includes the likes of Netflix, Hulu, and increasingly more.
This can make the profits and royalty agreements difficult to keep track of, and new revenue models demand new software.
Types of Royalties
This very much depends on the type of agreement you have, but the following are the most common types:
This can be per series or movie. It can also apply to a select amount of shows.
This can be structured as per the performance of the company, how their subscription uptake is managed, and any advertising success.
This can be a figure that is agreed to as a minimum and is often paid upfront.
A particular arrangement can also involve the combination of any of the above.
The intricacies of each deal can include many factors, which can quickly make things complicated. The subscription service provider often gains licensing rights for a certain period of time. It is not uncommon for a TV series to be available on one subscription service for a year, only to be found on a different service later.
Keeping track of those changes in rights is challenging enough, but it gets even more complicated. As an example, different seasons of the same show may be available on different streaming services. This can mean that there are multiple licenses, making the royalty process even more complicated. This is especially the case when there are different types of licenses split between different companies.
The traditional way of monitoring royal payments just does not work in the modern market. Thankfully, technology manages to keep up with the times, meaning you can make this difficult process much easier on yourself. Film Track is among the best royalty management programs out there, with a sophisticated, automated solution that makes this complex task simple.