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The New Deal How Digital Platforms Change Negotiations Between Public Media and Independent Producers By Pat Aufderheide 
As television transforms itself, once-stable relationships between independent producers and programmers are also changing. Producers are searching for new ways to reach content consumers and to monetize their own investment through new media; programmers are trying to extend their brand and access as they take advantage of new market opportunities. And as producers and programmers seek to exploit new platforms, they are confronted with the question of who owns the rights to do so. Both producers and programmers face funding challenges daily, and the exploitation of rights is a key factor in how producers can help recoup filmmaking costs and how programmers can continue to finance independent film productions. The money to be made from new media platforms—including Internet, DVD and video-on-demand sales—is coveted by both sides, complicating negotiations between producers and programmers. In the past, rights negotiations between producers and programmers were more or less static. Independent producers would grant television rights to broadcasters in order to secure the funding for their films and would use secondary distribution outlets, such as DVD sales, to finance future projects. Programmers would broadcast a film and accrue advertisement revenue. Both sides got what they wanted, and producers and programmers saw negotiations as generally fair.
The lack of standards in language and hardware for new technologies make discussion about the future haphazard and imprecise. But the most nascent platforms, such as the Internet and mobile phone video, appear ripe for profit, which puts rights ownership for untapped platforms in a far different light, making the rights to those platforms more and more indispensable. The Report The New Deal: How Digital Platforms Change Negotiations Between Public Media and Independent Producers is a new study, conducted by the Center for Social Media and ITVS, that investigates the current rights marketplace. Thirty executives—representing public, cable and satellite television companies, Internet companies, producers, and producers’ representatives—were interviewed by center researchers. The study offers information on current rights demands of both commercial and public television programmers and also looks at how new media platforms are being used. Some of the findings are summarized here:
In this changing media environment, cable and public television stations have continued to act primarily as programmers rather than as archive builders. Instead of collecting rights to materials for an indefinite amount of time with open-ended uses and rights to all platforms, they are entering into shorter-term agreements with producers that permit only specified uses of content.
And although underexploited now, these new platforms promise to profoundly change the mass media model, making them extraordinarily valuable for the future. New technology is redefining both how media are made and how viewers obtain and watch media. The old mass media model—in which a central source broadcasts content to a large number of passive viewers—is being reconfigured. A more open and decentralized structure will most likely take its place as digital communication technology improves. But for now, broadcast television remains the unparalleled mass medium. Today, consumers spend 51 percent of their media time on television. For this reason, rights negotiations remain fixed on the broadcast, and public and commercial programmers still see television as the best medium to showcase content. Advertisers recognize this, and programmers enjoy a continually rising volume of advertising dollars for broadcast programs. The high prices for ads signify television’s dominance, and the movement to a new media model remains in the distance. New digital delivery systems and business models are stymied by this very point. Systems like video-on-demand currently attract few advertising dollars, and other platforms, such as mobile and downloadable video, are still in the experimental stage. Until these platforms begin to show profits, broadcasters will likely not take advantage of them. Perhaps the most promising trend for new media is Internet television, or ITV. Although still nascent, it is expected to be huge. Increasing numbers of broadband users and the improvement of compression and distribution technology for computers both point to the growing importance of video on the Internet. Even the high sales numbers of Apple’s Video iPod highlight the popularity of downloadable content, signaling that the Internet will be the key player in the future of new media. As these new media platforms gain footing in how viewers consume content, the traditional distribution processes are collapsing. Distributors are replacing the old progression of content—from theater to broadcast to cablecast to DVD/video—with a more horizontal approach. Same-day release of a film on different platforms, such as in theaters and on DVD, is just one way distributors are trying to accommodate the changing habits of viewers. Within this changing environment, producers—now more than ever—have the opportunity to use different delivery methods to distribute their content. Self-distribution of DVDs by producers remains a dependable revenue stream, and the decreasing costs of disk reproduction permits filmmakers to recoup expenses through DVD sales— as long as they hold the rights, of course. Implications and Recommendations for the Future In today’s new media market, knowledge about rights negotiations is more important than ever. Independent media producers need to explore and understand the funding potential of holding the rights to these new digital media platforms. Foresight is critical to knowing how to deal with this changing environment and how to better seize opportunities. For public broadcasters, rights negotiations remain confusing. Standardized terminology for different digital platforms, transparency about market conditions and business models, and clarity surrounding how money is distributed can help facilitate honest and productive negotiations with independent producers. Public broadcasters and independent producers have long supported each other in ways that result in incalculable benefit to the general public. But at the moment, these two parties are struggling separately to find ways to sustain their own enterprises and to take advantage of the opportunities new media offer. Ten years from now, viewing habits will still be changing—no doubt they will be as different from today’s viewing habits as they are today from those of 10 years ago. Understanding how new media platforms will be used and the importance of rights in this arena is one way to ensure the survival and vitality of public media. To access The New Deal report in its entirety and to view responses, comments and news, please visit www.centerforsocialmedia.org. Taking the Plunge Anyone who works in media these days, or even consumes media, can attest that these are times of change. And anyone who wants to be a player in new media can tell you that this is no time to sit at the edge of the pool. You have to dive right in. In recent years, ITVS has done just that, seizing opportunities and creating working models in the new media. We have co-produced two reports to inform the field on digital policy issues and digital rights and are working with producers and their content to take advantage of new platforms. We have helped producers to create interactive television prototypes and to deliver high-definition programming to PBS. In the past year, we began podcasting from the Independent Lens website, and we sponsored the Online Shorts Festival, streaming short films online. We checked in with several leaders in the field to hear their thoughts as they take the plunge into the digital pool. Here are some of their responses. Paula Kerger President, PBS When technology renders the traditional television schedule virtually meaningless, when “what’s on” becomes “whatever you want, whenever you want,” when technology frees viewers from the shackles of their traditional television habits, I believe content quality will become the key factor in choosing what you watch. And for PBS, quality is paramount. My goal is to ensure that we remain a choice for consumers in the digital age, no matter how they choose to access our content—via television, the Web, cell phones, MP3 players or some device that has yet to be invented. Cal Skaggs Lumiere Productions, Inc. A few of the challenges facing independent producers like me as the new digital landscape surrounds us: 1. How can we refrain from running off after the wrong system, like lemmings over a cliff? 2. How can we continue the sustained imaginative concentration required to make any fine film while atomizing our consciousness to include a half-dozen new ways to optimize audience receipt of that film? 3. How can we pay for re-versioning or repackaging a film into new digital elements for markets that are not yet ripened? We’re trying—we’re trying to adapt to this decade’s distinctive new brain-stretch. Jacquie Jones Executive Director, National Black Programming Consortium NBPC, since its founding in 1979, has always taken on the role of advocate for the African American community, serving as a producer, funder, exhibitor and distributor of films by and about the black experience. Today, 27 years later, we understand that our task also must encompass connecting our constituent communities of filmmakers and their audiences with the technology that is going to carry all media forward into the coming decades. If theories of convergence are true, which they almost certainly are, then being left out of the world of advanced digital media is the same as being left out of media altogether. It is the same as being silenced, not having a voice. Linda Lawrence Vice President, Open Media Network It’s easy to think that making content available in the digital marketplace is a strategy unto itself. But people expect exponentially more flexibility of digital content than of other mediums. This is why managing the details of distribution is a much more difficult challenge: How much should it cost? Where is a viewer allowed to view it? How many times? Should other people add their personal commentary? Open Media Network provides a free public service to independent and public television producers that gives them the same access to digital rights management that large commercial networks have and that ultimately offers consumers more choice. Katy Chevigny Executive Director, Arts Engine, Inc. One of the things we’ve learned through running our website, MediaRights.org, is that new electronic delivery opportunities have created a very exciting time for independent producers of documentaries. The possibility of finding a film after it has been broadcast and seeing it again has greatly increased. Through a variety of websites that cater to viewers looking for new opportunities to see films, we’ve seen a network of new relationships arise that greatly enhances the viewing experience and extends the life of films. The core elements of the digital age—dialogue, interaction, democracy—are strong motivators to create new platforms for viewing films and exchanging ideas and information. Denise DiIanni Executive in Charge, Boston Media Productions, WGBH In 2006, the new media revolution is old news—today, many young people produce content, and everyone else is vying to deliver and consume content in new ways. The push has become the pull: Instead of media giants pushing content at consumers, consumers pull the content they want when and how they want it. The combination of greater access to the technological means of production and increased options for distribution is leading to a new form of democracy—the unleashing of the personal voice and multiple new forums for civic dialogue and community engagement. The WGBH Lab is a magnet and incubator for emerging independent voices and new content ideas for digital platforms. The Lab’s Open Call—powered by Open Media Network [OMN.org]—invites independents to pitch proposals for shorts, which if selected receive financial and editorial support. Online communities are engaged in commenting, rating and selecting favorites—finished work appears on WGBH air as well as on wgbh.org, OMN.org and elsewhere. Currently, the WGBH Lab is developing an Open Content Sandbox feature, which will make some WGBH archive materials available to independents for remixing and remashing. The Lab Sandbox will launch in the fall. Gordon Quinn Kartemquin Films I just attended the Trans Atlantic Consumer Dialogue, where I made a presentation on Fair Use to their intellectual property rights conference. I was representing Kartemquin and the Center for Social Media. In looking at digital rights issues, it is critical that we keep abreast of how the rest of the world is dealing with these issues and to continue to press for the “moral rights” of creators. In the struggles ahead, consumers can be some of our best allies as we try to defend ourselves from the big rights holders and gatekeepers. Annie Roney ro*co films international We haven’t jumped into the digital pool yet; we’ve only gotten our toes wet. As representatives of filmmakers in the foreign television marketplace, we don’t sign any deals that don’t clearly benefit the filmmaker. So for the most part, we exclude digital rights from license agreements. As a practical matter, we are enjoying the technology of SmartJog, which can deliver a screening copy of a film by satellite directly to many of our buyers’ computers. Gone are the days of packing up cumbersome VHS cassettes. Shane Palusi Seggar Program Director, Pacific Islanders in Communications Due to how far-flung our communities are across the Pacific and all the way to the mainland of the United States, Pacific Islanders have been among the first to use new digital technology to keep in touch with family and community—via email, on websites and now through such technology as MySpace pages. PIC is now ready to launch PIC Wiki, which in its first phase will aggregate all the information on our various websites into a searchable database and will allow users to manipulate and create their own content. We want to give users the tools to access all this information and also to create an interactive world that will allow them to connect with others no matter how far away they are. We’ll share more detailed information about our new digital projects in the coming months. |
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