Downloads and video on demand

Posted on April 7, 2008

What is Equity going to do about downloads and video on demand services? Is it best to agree a buy out of these new services?

If we take the second part of the question first we believe the answer is: “absolutely not”.

However small the new services are and however small the income generated now, these new platforms will increase and therefore income will increase. Our experience is that once you agree to either incorporate such uses in the fee or agree a limited buy out it will become incredibly difficult to negotiate a return to appropriate equitable remuneration.

The process which led Equity to seek to negotiate one TV Agreement was primarily a result of the impact of new technologies such as those listed in the question. Whilst negotiations have continued business within the television industry with Equity busily negotiating agreements to cover these new services/platforms. We now have a number of agreements, please refer to the FACTSHEET number 3: ‘Paying for the Future: Collective Licences’ , with all the major UK broadcasters which allows them to run their video on demand services such as the BBC iPlayer, 4oD (Channel 4 video on demand) and ITV.com (ITV’s video on demand service).

On these largely free services Equity has been negotiating sums of monies to be distributed by BECS which is based on period of time and the number of hits or visitors registered to a particular programme. In terms of downloads such as Download to Own or Download to Rent, please refer to the Briefing Document: ‘Terms and Definitions: What it all Means’ , Equity is negotiating with the broadcasters a revenue sharing agreement based on the appropriate point of the download price which is free from deductions please refer to the FACTSHEET number 3: ‘Digital Deductions: Do they Add up’ . We are also playing our part in the debates on digital rights managements which ensure that multiple copies of titles are not made by the consumer.

We should point out that our sister unions in Canada and the USA have recently had to strike to secure payments and rights for the use of performances on these new platforms. Thankfully Equity has beeen able to negotiate additional payments without the necessity to instruct members to take industrial action.

TV is Changing • Equity