As more video ad campaigns run across multiple screens, the management of commercial talent contracts and payment—and of rights in general—is becoming more complex and often quite costly. Unless you’re planning ahead with a unified approach to all of the rights in your video advertising, you’re likely to be left liable.
Different Screens, Different Rules
As part of the evolution of television, TV audiences and content are expanding beyond broadcast and cable into a new world of digital viewing options. But even some of the most forward-thinking agencies still see Business Affairs—particularly commercial talent and rights management—as a TV-only issue. As a result, the terms of talent contracts aren’t always fully understood on digital campaigns.
According to our research, more than a third of all ads in the digital video advertising realm do NOT follow legal contracts for talent and rights. This could lead to major problems for advertisers and millions of dollars in unexpected costs across the industry.
There are actually a wide variety of rules that must be considered when conducting multi-screen campaigns:
— Union vs. non-union payment: Separate payment to performers for Internet (and sometimes Industrial) usage must be made to secure the rights for those media types. Those payments vary for union and non-union ads. The SAG/AFTRA Commercial Contract dictates pay for union ads, but payment for non-union ads is based on negotiated fees.
— Ad expirations differ: Sometimes it’s tricky to know for sure when a particular ad is no longer running or if it’s still okay to run. On TV, ads typically expire after 8 or 16 weeks, but ads online are usually okay to run for a year depending on your contract. Tracking where and when an ad ran on digital media, for the purposes of talent payment and compliance, can be an additional concern as well, because Internet talent and rights lack the maturity and infrastructure of TV and often the digital data is handled separately by a digital team.
— Music and images: There are similar issues involved when securing the rights to use licensed music and images in commercials that may run on the Internet. As digital video ads have become more visible, the “Internet” terms of these talent and rights contracts have become more enforceable. So, it’s prudent to plan for compliance upfront rather than ask for forgiveness if an ad runs where it wasn’t permitted.
Manage Risk & Control Costs
According to SAG/AFTRA, when a commercial featuring union talent runs online without paying Internet usage, the infraction may warrant a late fine of up to $90, plus wages due, per performer. In more severe cases where the commercial has been released, the costs can be dramatically higher, and the headaches of contracting new terms for each actor can be major. In those situations, Talent has quite a bit more leverage and the power to negotiate more expensive usage fees. Finally, willful use of music, images or footage online without a license that covers Internet use is copyright infringement, which can be very expensive if litigated.
Below are some considerations that will help advertisers avoid any unnecessary costs as part of their ongoing Talent & Rights management:
1. Evolve: Think of Business Affairs as a true multi-screen discipline. Establish a workflow that facilitates complete transparency, knowledge and control of all commercial usage rights across broadcast, cable and Internet.
2. Gain Expertise: If you’re part of a broadcast-centric Business Affairs team, hire a trained expert in digital advertising too. Or, if you rely on other digital teams or agencies, identify experts within those groups whom you can work with to establish a safe and efficient multi-screen workflow.
3. Know Early: Rather than thinking of TV first and the Internet as an afterthought, understand the various uses of each commercial before it’s even cast. Early transparency will enable you to think more strategically, manage risk more effectively and keep costs in check.
4. Lock It Down: If there is a chance that a broadcast commercial may run online, report use, pay related fees in a timely manner and lock down any Internet licenses in music and footage agreements. Be mindful of expiring rights to ensure compliance and you will eliminate significant unexpected costs down the road.
5. Track Usage: Take advantage of available tools that enable automatic tracking of commercials and expirations across all screens and against contract terms. You can be immediately and proactively alerted of potential compliance issues, not just on TV, but across every digital screen as well.
Regardless of the screen in which your ad runs, if you aren’t planning ahead for talent and rights, you could end up holding the bag.
Courtney Allen is director of client relations with Extreme Reach.
