Upload
frukt-sessions
View
652
Download
0
Tags:
Embed Size (px)
Citation preview
Brands, Rights & Contentin a 360 Degree world
Cliff Fluet
Partner
Media & EntertainmentLewis Silkin LLP
5 Chancery LaneClifford’s Inn
London EC4A 1BL
4 March 2009
Mediascape
• Now TV Production Music Radio
Sports Marketing & Regulation Sponsorship
Retail Online Direct Sales
Brand Protection/Exploitation
Software DataProtection
Hardware
Publishing
Marketing Services
Advertising
New Media Interactive ComputerGames
now
Then
Now
Then
Overview
• It is clear that much of the value from music will come from the use in brands, marketing and advertising rather than recorded music sales
• Whilst recorded music & compositions have long been the preserve of above the line campaigns, the new landscape means that brands and advertisers will want and need more content
• The revolution in the music industry is well documented; however the evolution in marketing and branded content creates a significant opportunity for content owners
Overview
• The key opportunities
• Where these deals flounder – ownership/control/exposure
• Where these deals flourish – engagement and a 360 degree view
Branded Content
• Generate revenue
• Save costs
• Build and protect brand equity
• Establish association and market positioning
• Endorsement and sponsorship now replaced by brand
evangelists and content …
The real opportunity …
• However, the world of media & entertainment needs to understand that these innovative content offerings, new ways of engaging consumers and the nature of experiential marketing means that brands need music as much as music needs brands.
• The nature of the market means that deals that could not be dreamt of a year ago, are possible now.
• However it requires innovative ways of working, flexibility and openness and transparency like never before in order to unlock their potential.
The old model
Content owner
Content licence
Content licence
Assignment of
Agency Creative
Agency Client
Content Owner
Established Business Model for licensing
Songwriter
Search Agency
Advertising Agency
Music Publisher
Brand Owner
Record Company
1
2 3 4
1. Songwriter’s agreement with music publisher
2. Synchronisation Licence (lyrics and music)
3. Search and clearance services agreement
4. Synchronisation Licence (sound recording)
5. Client/Agency Agreement
5
Established Business Model - cont’d
The Problems:
• Complexity - separate © in the song and the recording of the song means two synch licences are required if an original recording is to be used in the commercial
• Cost - synch licences are expensive! Typically 6 figures and even 7 figure sums are not unknown
• Control – songwriters and © owners place strict limits on the use of the song which may include a right of approval of the finished commercial
New Business Model
1. Publishing Agreement
2. Production Agreement
3. Client/Agency Agreement (including revenue sharing)
4. Exploitation Licences, e.g. ringtones, music on hold, CD’s etc
Songwriter
Advertising Agency
Brand Owner
Production Company
2 3
1
4
£ £ £ £
Changes in Mindset
• Realisation of where the value lies
• Lessons from the music industryRoyalty gravy trainBBH / Leap
• Brand Owners now talking direct to content owners
• Brand owners more savvy
• Ease of content creation
The new world order …
• Beyond music rights, opportunities abound
• Upsell opportunities, brand licensing, format rights and viral marketing opportunities are all achievable
• ‘ownership’ of intellectual property rights reaches to photographs, brands, trade marks and underlying copyrights
The key pressure points of these deals?
• Confusion over rights granted
• Confusion over controls and consents from licensor
• Clearance of underlying rights
• Exclusivity
• Value
Confusion over the rights granted
• Who will own the new material created
• Will the agency retain some level of ownership
• Which rights remain reserved to the Artist and/or Licensor
Confusion over controls and consents
• Deals can range from a licence, an exclusive licence, an assignment or shared copyright
• However, rights are rarely granted unfettered and consents and approvals (which can remain subjective) may frustrate exploitation
• Artists/rightsowners used to licence on use by use/platform by platform basis
Clearance of underlying rights
• Even a full rights assignment is often subject to the clearance of underlying rights
• Examples including talent, photography, commissioned art, designs and formats
• Few cleared at source with a view to promoting brands
• Clearance costs placed upon brands (often unbudgeted)
Exclusivity
• Will be seen as “obvious” to the brand
• Not so “obvious” to the rightsowner/artist
• Understanding the mutual value of exclusivity is key to establishing any premium payable
• Need to understand and explain the category and rationale – preparation to compromise is vital
Value
• Headline “fee” often agreed upfront, in a vacuum
• Necessary costs caused by rights clearance/exploitation will impact on perceived value for money for the brand
• Difficult negotiation will lessen the momentum of any activation and reduce the impact and efficacy for both sides
The way to flourish
• A 360 view of rights, not 100% ownership/control of rights
• Focus on the rights you have, the rights you can get and the way they can be exploited in a 360 way
• Value the deals based upon the rights granted and the activation achieved
The way to flourish
• Both sides to understand the mutual importance of reputation and exclusivity
• Build systems for pre-approval of creative material to manage expectations beforehand
• Engagement at the outset of a deal with regard to the rights to be granted, those to be withheld and whom will bear risks
Cliff Fluet, Lewis [email protected]
FRUKT Sessions #004Coming June 2009
Email to register your interest:[email protected]