Contract Comebacks
Contract language that must be present for runs based renewals in order to recognize revenue early (subject to reasonability)
What is contractual language which allows a client to utilize runs in the previous window?
The RPM screen used to capture deal terms where customers are contractually required to license future seasons of a licensed TV series.
What is the Series Obligation screen?
Planners should select this special comment type in S2F when prompted on a deal that was fully executed on November 10, allocations confirmed on November 19, and included October title start dates.
What is Contract/Amendment Signature?
This is the Home Office process for fairly distributing the license fee to titles in deals with EITHER
1) a negotiated overall license fee or
2) average title fees.
What are title allocations?
For TV series linear renewals which allow runs to be used in earlier licensed windows, reasonability checks must be assessed at this level.
What is the series level (rather than season or episode)?
Sony enters into an agreement with life of series commitment for SWAT. Season licensing is extended with each new season so that all license periods end on the same date as the final season. Each extension period has an associated fee of $5k. At season 2's official pick-up, the season 1 extension fee of $5k is recognized utilizing this reason code.
ROS - Season Relicense/LP Ext. As Specified In Orig Agmt
This is the date when a title level minimum guarantee must be recognized.
What is the title license start date?
This is required for any new deals or amendments that grant both linear and on demand rights and:
1) are over $20M granting both linear and on demand rights
OR
2) have varying start dates for included medias.
What are Home Office Linear and On Demand assessments?
License period extensions are recognized on the extension start date in these 3 scenarios.
What are:
1) time only renewals (usually on demand media),
2) linear renewals with restricted runs, and
3) linear renewals with unrestricted runs which cannot reasonably be used earlier?
Sony licenses DOC S1 with an option for S2 licensing to a SVOD client. If the client exercises the option to license S2, then S1 licensing automatically extends for 1 year with an associated fee of $5k. Referring to the below title details, this is the system calculated revenue date for the $5k S1 extension associated with S2.
S2 Pickup Date: 1-Jun-2024
S2 Option Exercised: 1-Aug-2024
S1 Original License: 1-Jan-2024 to 31-Dec-2025
S2 Original License: 1-Jan-2025 to 31-Dec-2026
S1 Extension: 1-Jan-2026 to 31-Dec-2026
When is 1-Jan-2026?
This the revenue month when a title license fee is recognized for a cash deferred client.
What is the later of the month of the title license start date and cash receipt?
Title Level Minimum guarantees for TV Series must be set at this level unless approved as an exception by home office.
What is episodic level?
Sony enters into an amendment on 1-Dec-2024 to add an additional $100k SVOD license for VENOM as follows:
Original License: 1-Jan-2025 to 31-Dec-2025
New License: 1-Jan-2026 to 31-Dec-2026
This is the RPM calculated revenue date for the $100k license fee.
When is a 1-Jan-2025?
Sony enters into an agreement to license THE WINTER KING S1. On 1-Dec-2023, the deal is amended to add future season licensing commitment for the life of series and license periods are extended each time a new season is produced so that all license periods end on the same date as the new season’s license period. Each extension has an associated fee of $5k. Referring to the below title details, this is the system calculated revenue date for the S1 extension associated with S2.
S2 Pickup Date: 1-Jun-2024
S1 Original License: 1-Jan-2024 to 31-Dec-2025
S2 Original License: 1-Jan-2025 to 31-Dec-2026
S1 Extension: 1-Jan-2026 to 31-Dec-2026
When is 1-Jun-2024?
Sony enters into a new FTV volume deal which includes the below licensing for GHOSTBUTSTERS in the exhibit:
Term Year 1: 1-Jan-2025 to 31-Dec-2025
Term Year 2: 1-Jan-2026 to 31-Dec-2026
The contract includes terms which allows the client to use runs in the earlier window or unused runs in the later window.
This is the date that revenue is recognized for the Term Year 2 license.
When is 1-Jan-2025?
Overrides in this RPM screen are required when revenue is calculated using an EARLIER window type and previous licensing is in another deal header or contract.
What is the RPM Fee Summary Screen?
Sony enters into an amendment on 1-Feb-2025 which amends an SVOD license for BAD BOYS for $250k as follows:
Original License: 1-Jan-2025 to 31-Dec-2025
Amended License: 1-Jan-2025 to 31-Dec-2026
The $250k license fee is recognized on this date and entered into RPM with this reason code.
What is a 1-Jan-2026 and reason code Ext/Relicense - Time Only?
Sony enters into an SVOD agreement to license TWISTED METAL S1. On 1-Aug-2024, the deal is amended to add future season licensing commitment for the life of series and license periods are extended each time a new season is produced so that all license periods end on the same date as the new season’s license period. Each extension has an associated fee of $5k.
Referring to the below title details, this is the system calculated revenue date and reason code for the S1 extension associated with S2.
S2 Pickup Date: 1-Jun-2024
S1 Original License: 1-Jan-2024 to 31-Dec-2025
S2 Original License: 1-Jan-2025 to 31-Dec-2026
S1 Extension: 1-Jan-2026 to 31-Dec-2026
What is 1-Jan-2026 and Ext/Relicense - Time Only?
On 1-Dec-2025, Sony enters into a new PTV agreement which includes the below licensing for AS GOOD AS IT GETS:
Previous License: 1-Jan-2024 to 31-Dec-2025 10 Runs
New License: 1-Jan-2027 to 31-Dec-2028 10 Runs
The contract includes a clause which allows the client to use runs in the earlier consecutive windows.
This is the date that revenue is recognized for the new license.
When is 1-Jan-2027?
What are the 3 currency options which are acceptable for distribution deals?
What is 1) USD, 2) currency of client’s primary location, or 3) currency of Sony’s licensing entity?