A Guide to Traditional and Modern Distribution Rights for Film and TV Content (Part 3)

In the first two parts of this series, we explored the fascinating world of media distribution rights, uncovering how these rights empower filmmakers and content creators to manage the intricate landscape of sharing their work with audiences. In the first part, we examined the fundamental concepts of distribution rights, distinguishing between core and ancillary rights. Core rights form the backbone of a film or TV show’s distribution strategy, while ancillary rights offer additional avenues for revenue generation through merchandise, soundtracks and other channels. Building upon this foundation, our second part dissected the realm of physical distribution rights, which encompass the traditional methods of delivering content through tangible media. We unraveled the nuances of theatrical, traditional home video and non-theatrical distribution.

Now, in Part 3, we shift our attention to the ever-evolving realm of non-physical distribution rights. In this chapter and the next one, we will explore the modern landscape of home video, television and video-on-demand (VOD) platforms, where content transcends geographical barriers and seamlessly reaches audiences through cutting-edge technologies, eliminating the need for physical media.

Modern Home Video Distribution Rights

The world of home video distribution has undergone a dramatic shift, leaving behind the dusty shelves of video rental stores and bulky DVD cases. Today, electronic sell-through (EST) and download-to-rent models reign supreme, offering viewers unmatched convenience and flexibility in accessing their favorite films and TV shows.

• Electronic Sell-Through (EST)
  Electronic sell-through (EST) enables viewers to become permanent custodians of their digital entertainment libraries. Platforms like iTunes, Amazon Prime Video and Google Play offer a vast selection of movies and TV shows for purchase. Once bought, the content resides within the user’s digital library, accessible for streaming or download on various devices. This eliminates the need for physical media and provides the freedom to enjoy content anytime, anywhere. However, unlike physical ownership, EST purchases typically grant a license to access the content, not true ownership of the digital file itself.

• Download-to-Rent
  For those seeking a more temporary viewing experience, download-to-rent offers a cost-effective alternative. Similar to the traditional video rental model, viewers pay a fee to access a film or TV show for a limited time, typically 24 or 48 hours. Platforms like YouTube, Amazon Prime Video and Apple TV provide download-to-rent options, enabling viewers to enjoy content offline after downloading it to their devices. This model caters to those who prefer experiencing a specific title without committing to a permanent purchase.

Modern home video distribution offers undeniable advantages. The convenience of instant access, vast content libraries and the ability to download for offline viewing are highly attractive propositions. However, there are also considerations. Reliance on internet connectivity can be a hurdle and frequent updates to platforms or changes in licensing agreements could potentially restrict access to previously purchased content. Additionally, the lack of physical ownership in EST purchases may deter viewers who prefer the social aspects of lending and borrowing movies with friends or who simply enjoy the satisfaction of building a tangible collection.

Furthermore, modern home video distribution is constantly evolving. Technological advancements promise even greater accessibility and personalization. In this rapidly changing landscape, home video distribution continues to push boundaries, offering endless possibilities for entertainment consumption.

Fundamental Elements of Non-Physical Distribution Rights

Before examining the specific categories of television and Video-on-Demand (VOD) distribution rights, let’s establish the fundamental building blocks that underpin all non-physical content distribution: programming model, monetization model and distribution method. These elements work together to determine how viewers access content and how platforms generate revenue.

Programming Model

The programming model defines how content is delivered to viewers, encompassing two main approaches: linear programming and non-linear programming.

• Linear Programming
  This traditional model delivers content on a predetermined schedule, similar to the experience of watching free-to-air broadcasts. Viewers tune in at specific times to watch the programs being aired, with limited control over what’s available at a given moment.

• Non-Linear (On-Demand) Programming
  This model offers viewers the flexibility to choose what they want to watch and when they want to watch it. Unlike linear programming, which follows a predetermined schedule, non-linear programming allows audiences to access movies, TV shows and other content at their convenience. On-demand programming has become increasingly popular due to its convenience and the ability to accommodate individual viewing preferences. It gives viewers control over their entertainment experience, allowing them to pause, rewind or fast-forward through content as desired.

Monetization Model

The monetization model determines how platforms generate revenue from the content they offer. Here’s a breakdown of some common models:

• Free (Sponsorship)
  In the Free (Sponsorship) model, viewers access content for free without direct advertisements. This model is often associated with state-run or publicly funded television channels, supported financially by government funding, private donations or corporate sponsorships. Viewers enjoy uninterrupted programming, funded by these external sources, which may include indirect advertising through sponsored content or brand mentions within programs.
• Ad-Supported
  The ad-supported model also provides viewers with access to content for free, but with intermittent advertisements. This model is commonly found in commercial television channels and ad-supported VOD platforms. Viewers are shown advertisements before, during or after programs, with the aim of generating revenue for the channel or platform. Advertisements can take various forms, including traditional commercials, product placements or sponsored segments. While viewers benefit from free access to content, they are exposed to advertising messages throughout their viewing experience. Advertisers pay for ad slots based on factors like program popularity and viewer demographics, providing revenue for the channel or platform.
• Subscription-Based
  The subscription-based monetization model allows viewers to access a library of content for a recurring fee. This model is common in subscription TV services like cable or satellite packages and subscription VOD platforms. Subscribers enjoy unlimited access to a wide range of content in exchange for a monthly or yearly subscription fee, allowing them to watch without interruptions from commercial breaks. This model provides a steady revenue stream for service providers, who rely on subscription fees to fund content production and acquisition.
• Pay-Per-Transaction
  Under the pay-per-transaction model, viewers pay a one-time fee to purchase or rent individual episodes or seasons of a show. This model is commonly used for transactional VOD services and Pay-Per-View (PPV) television programs, such as live sporting events. Revenue is generated each time a viewer makes a purchase or rental, with prices varying based on the content’s popularity and demand. While this model offers flexibility for viewers who prefer individual purchases, it may result in higher costs compared to subscription-based services over time.

Distribution Method

The distribution method encompasses the pathways through which content reaches viewers:

• Over-the-Air (OTA)
  Over-the-air (OTA) refers to the transmission of television signals through the airwaves, which can be received by antennas on television sets. This method allows viewers to access free-to-air TV channels.
• Cable
  Cable is a method of distributing television programming and other content to consumers through wired connections, commonly using coaxial cables or other copper wire technologies. This method delivers television signals directly to viewers’ television sets from a central distribution point. Cable is favored by many consumers for its high bandwidth, which allows for the transmission of a wide range of channels and content types. It also offers reliable signal quality, often providing access to premium channels and services.
• Satellite
  Satellite distribution involves transmitting television programming and other content to consumers via signals from satellites. This method delivers content to viewers’ satellite dishes, providing access to a wide range of channels and content options. With a wide range of channels and content, it’s popular for its reliability. It ensures uninterrupted reception, even in areas with limited access to other methods. This makes it a preferred choice for diverse viewing options and reliable service.
• Over-the-Top (OTT)
  Over-the-top (OTT) distribution delivers content directly to viewers over the internet, bypassing traditional airwaves, cable or satellite. This method enables access to a diverse range of streaming services, including on-demand movies, TV shows and live broadcasts. OTT platforms provide flexibility and convenience, allowing viewers to watch content on various devices like smart TVs, smartphones and tablets. With OTT, viewers can enjoy personalized content experiences tailored to their preferences, making it a popular choice in the modern digital landscape.
• Direct-to-Mobile
  Direct-to-Mobile distribution refers to the direct delivery of content over the internet to mobile devices, such as smartphones and tablets, through dedicated applications or streaming services. It shares similarities with Over-the-Top (OTT) as both rely on the internet to deliver content. However, unlike OTT distribution, which covers a wide range of devices including smart TVs and computers, Direct-to-Mobile focuses solely on content consumption on mobile platforms.

By understanding these core elements, we can see how different non-physical distribution rights utilize them in various combinations to deliver television content and VOD content to viewers. In the next section, we will explore how television distribution rights leverage these elements to create a diverse range of viewing options.

Television Distribution Rights

Among non-physical distribution rights, television rights play a significant role in bringing content to viewers across various platforms.

Below is an overview of several key television distribution rights:

• Free Terrestrial
  These are traditional free-to-air television channels available Over-the-Air (OTA) and offer linear programming. Free terrestrial TV channels are either free of charge or rely on advertisements for revenue.

• Free Satellite
  Free satellite television refers to channels that are accessible through satellite without requiring a subscription fee. Like free terrestrial channels, these satellite channels offer linear programming and are either free of charge or ad-supported.

• Pay Cable
  Pay cable television comprises channels available through cable subscription, offering a wide range of programming for a monthly fee. These channels provide linear programming and require a subscription fee for access.

• Pay Satellite
  Much like pay cable TV, Pay satellite television provides a diverse range of programming for a subscription fee and is accessible via satellite. It offers linear content.

• Pay-Per-View (PPV)
  Pay-Per-View (PPV) television allows viewers to purchase specific events or programs on a one-time basis for a premium price. These events can include live sports matches, concerts or special broadcasts. PPV channels usually offer linear content and viewers pay for each event they choose to watch. Sometimes, viewers may have limited on-demand access to the purchased content for a period after the event. PPV channels are available through cable, satellite or internet.

• Subscription OTT TV
  Subscription OTT TV refers to subscription-based streaming services available over the internet. Like pay cable and pay satellite, these platforms offer linear content for a subscription fee, providing viewers with a wide range of premium channels and programming options.

• Free Ad-Supported TV (FAST)
  Free Ad-Supported TV (FAST) refers to internet-based channels that offer free content supported by advertisements. These platforms provide a variety of programming, including linear shows and scheduled broadcasts, similar to traditional television. FAST channels are accessible through streaming devices or smart TVs, providing viewers with a convenient way to access a range of shows without a subscription.

• Direct-to-Mobile TV
  Direct-to-Mobile TV delivers content directly to mobile devices, such as smartphones and tablets, through dedicated apps or streaming services. These services offer both linear and non-linear content, tailored specifically for mobile viewing. Users can access live TV streams, on-demand shows and exclusive content, all optimized for mobile devices. With Direct-to-Mobile TV, viewers have the flexibility to enjoy their favorite programs on the go, making it an ideal choice for mobile entertainment enthusiasts.

TV Catch-Up Rights: A Special Case

TV catch-up rights grant viewers access to recently aired programs through a platform for a limited period, allowing audiences to watch shows they might have missed during the original broadcast. Catch-up services can be integrated into traditional TV platforms or offered by on-demand streaming services.

These rights enable viewers to catch up on missed episodes or watch programs at their convenience, adding flexibility to their viewing experience. Catch-up services typically store recently aired content for a specified period, ranging from a few days to several weeks, depending on the platform.

Additionally, catch-up rights can enhance the value of subscription-based VOD services by providing added convenience and accessibility to viewers, particularly for busy individuals who may not always be available to watch their favorite shows when they air live.

To sum up, this chapter discussed modern home video and television distribution rights, along with the core elements of non-physical distribution rights. The next and final part of this series will explore Video-on-Demand (VOD) services and ancillary distribution rights.

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