by Andrew Einspruch
Filmmaker Andrew Einspruch recently attended the Australian International Documentary Conference and wrote a series of articles for the event, which he’s graciously allowed us to reprint here. These articles originally appeared in Screen Hub, the daily online newspaper for Australian film and television professionals.
You’d already know that formats are all over your TV screen. From Big Brotherto Who Wants to Be Millionaire to Go Back to Where You Came From, formats (shows with “a framework which contains several clearly described elements that are combined in a unique way”) are TV mainstays. What you might not know is that worldwide in 2009, formats generated production worth € 9.3 billion (that’s with a “b”), or $11.8 billion. And that amount would only have gone up since then.
Patty Geneste knows a thing or two about formats. Her company, Absolutely Independent, has won several international awards for the formats it represents, and she sits on the board of the Format Recognition and Protection Association (FRAPA). So she brought lots of expertise to her AIDC session on dealmaking.
The first formats were gameshows, like Wheel of Fortune and Jeopardy. Next came light entertainment, like You Bet or Honeymoon Quiz. Today, formats cover a wide range of styles, from factual entertainment to scripted or constructed reality, from observational documentary to comedy drama. Shows that are formats are often not obviously so. The drama Homeland, for example, was an Israeli format sold into the US.
Geneste said there are good reasons someone might license a format, as opposed to knocking off a show. For one, licensing a format gives you access to the originator’s knowledge and expertise, which can save a lot of money. It lets you buy a proven winner with its existing brand and reputation. Plus, Geneste said that most rip-offs fail.
So, when you sell a format, what exactly are you selling. Geneste listed eleven key items. Each is listed below with a sense of how it is paid for (in parentheses).
- Idea.
This is the key idea that the format is based on. It must be compelling and original. (Included in the format fee – 5-8%.)
- Title.
Your format needs a catchy name, and that name is part of the IP you are selling. (Included in the format fee – 5-8%.)
- Production know-how.
As the originating producer, you know what goes into making the show work, and how to make that happen. (Included in the format fee – 5-8%.)
- Technique and software.
These are the mechanics of the show, often coded in software that the buyer repurposes for their version. The software, in particular, may be one of the most valuable parts of the IP. (Separate fixed fee.)
- Production bible.
This encapsulates much of the know-how that goes into the show. It is the production bible that your buyers will turn to to help make their version a success. (Included in the format fee – 5-8%.)
- Network.
By producing the show, you would have likely built up a network of contacts that helps the show run smoothly. For example, say your show tracked down the biological parents of adoptees in other countries, or involves international travel. Your network of overseas contact could be tapped by the buyers of your format to help with their version. (Included in the format fee – 5-8%.)
- Consultancy.
Part of what you sell is you – your personal expertise that the buyers can tap to help solve localisation and production issues. It is crucial you make this part of the deal so you do not completely lose control of the product. But buyers can be reluctant to include this, as they may perceive it as undermining their control. (Daily rate, at € 1,000 to 1,500 per day.)
- Leader.
(Varies per format.)
- Graphics.
Developed for the show, and part of its branding. (Separate fixed fee.)
- Music.
Developed for the show. This might attract ancillary fees, and can include things like ring tones or anything that makes a sound, as it becomes part of the show’s branding. (Separate fixed fee.)
- Share in Production Fee.
As the format originator, you can get a slice of the production fee the buyer will receive from their broadcaster. (Percentage of the budget.)
Geneste went on to describe the roughly two dozen the main points that get negotiated in the deal. Briefly, these include:
- Option period.
- Option fee.
- Format fee.
- Territories included.
- License period.
- Minimum guarantees.
- Changes in the format, and who owns the rights to those.
- Exploitation format fee
- Catch-up TV period.
- Ancillary rights.
- Number of runs.
- Consultancy, including how many days are allowed for it.
- Share in the Production Fee, and what that percentage should be.
- Renewal of rights.
- Pilot conditions.
- Success rate.
- End credits.
- Payment terms.
- Deal producer vs. deal broadcaster, in that the deal you make with a producer will be different to what you make when dealing directly with a broadcaster.
It’s possible that some (maybe most) of those terms are unfamiliar to you. If so, keep the list for future reference when you are negotiating your deal. These are the bottlenecks where negotiations get clogged.
- Finally, Geneste listed basic rules for protecting your format. These included:
- Describe your concept as detailed as possible.
- Make sure there is a unique twist to it .
- Put the different elements in a unique order.
- For games, describe the rules and create the final game.
- Register the complete development process.
- Create a strong title with a logo.
- Work with established companies in the market.
- Save your communication about the format.
- Become a member of FRAPA and register your format. This would be similar to registering your script with the writer’s guild.
And if it all seems too much, Patty Geneste’s agency would, of course, be happy to talk to you about representing your format. She said they can help with everything from co-creation to distribution to co-production. There’s something to be said for having someone helping you who knows the territory.
Andrew Einspruch is a producer with Wild Pure Heart Productions . His current project is the low budget feature film The Farmer.
