Broadcast and distribution partners
Broadcasters and distributors have yet to take a firm stance on how crowdfunding might affect their willingness to engage with a production.
Still, there are a number of other considerations that content creators using crowdfunding need to take into account when it comes time to engage broadcast and distribution partners.
- Ownership of rights. In an Investment Model, where contributors receive equity in the company or rights to the product in exchange for their contribution, a producer would likely jeopardize his/her ability to establish a licensing agreement with a broadcaster. Broadcaster agreements typically come with very specific and very strict limitations on who can own rights to the product. They typically do not allow any private third party investment.
- Journalistic standards and artistic license. One of the major concerns from the perspective of broadcasters is the risk that crowdfunding could pose to journalistic standards and policies regarding editorial control. Any campaign that has the appearance of giving up or sharing a creator’s artistic decision-making power with contributors could be viewed very negatively by broadcasters and those projects are likely to find it difficult to engage a broadcast partner.
- Exploitation of rights. Producers that offer pre-sales as part of their crowdfunding campaign could encounter difficulties securing broadcast license agreements because the broadcaster could perceive this as an exploitation of rights that diminishes the future value of any rights they would be purchasing. Similarly, it might be difficult to secure a distributor advance if the producer is already engaging in direct distribution via the pre-sale model.
Published on April 24, 2013.