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Promotion & Marketing InvestmentProducers entering a Traditional Distribution Agreement with us must understand how we do business with respect to our recoupable Promotional & Marketing Investment. All expenses ("Promotional" and "License Servicing") are paid for by Janson Media, and we are AT RISK for them until we earn revenue from which to recoup them. In a Standard Distribution Agreement, if we do not sell a program or series, we LOSE money (the money we have invested in promotion and marketing). We generally carry (and are at risk for) between $100,000 and $150,000 worth of unrecouped expenses, across our entire catalog. Some of this we will probably never recoup, as a result of guessing wrong about the potential of some programs or series we are distributing. Producers must understand that this is why we are so selective when it comes to offering standard distribution agreements. Our Promotional & Marketing Expense Investments are capped on an annual basis. It is also important to understand that promotional expenses are heavily front-loaded during the initial launch period (6-12 months), and drop off considerably as the contract moves into the second year and beyond. As a rule of thumb, if we have invested $5,000 to launch a program the producer will not receive royalties until we have collected about $8,000 in sales revenue. (65% of $8,000 = $5,200.) However if we offer a Traditional Distribution Agreement for a program or a series it is because we believe it can earn a minimum of $50,000 in revenue over the course of the term. LAUNCH PROMOTIONMarket Allocation (MIPTV, MIPCOM, NATPE, DISCOP): 300 - 900 (for overall promotional activity at any one market and includes a fair percentage of our overall costs of exhibition space rental, pitching and screening at up to 100 meetings over the course of a market. We promote a new title or series much more aggressively during the first year of the term.) ONGOING PROMOTIONShipping & handling of DVD screeners: 22 (plus courier charges if necessary) MISCELLANEOUSDigital encoding/file conversion (eg. digitizing Beta, ripping DVDs, converting various media files to MPEG4): 100 per hour
LICENSE SERVICING EXPENSESVideotape Master Conversion > Videotape Master Duplication > Document Processing (international governmental withholding tax forms, consulate certifications, notarized copyright applications, etc.) 50 per hour plus fees paid, if any. Shipping & Customs of videotape masters: Pricing various depending on destination, shipping method, delivery time, etc. (Transcripts, press kits, music cues sheets, and other deliverables are now usually delivered via the Private Client Area of our website in digital form.) |
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