The Business of Television

243 Pages·2018·2.829 MB·English

by  Ken Basin

“This is the book I have been waiting for … highly readable and forward looking, providing a coherent
overview with enough specifics to be of genuine practical value, delivered from the inside perspective of a
scholarly television executive currently working at the highest level.”
—Nick La Terza, Adjunct Professor and Lecturer in Law, UCLA School of Law, University of Miami Law
School, and UCI Law School; Partner with law firm The Point Media; Former Senior Legal/Business
Executive for Largo Entertainment, New World Pictures, and Alliance Atlantis Entertainment
“Ken Basin has created a timely and unique book that perfectly balances a big-picture view of the
dynamic television industry with practical details about its business and legal processes. This is an
essential reference source for anyone studying or engaging in professional activities related to television
production and distribution for all media platforms.”
—Stuart Brotman, Howard Distinguished Endowed Professor of Media Management and Law and
Beaman Professor of Communication and Information, University of Tennessee, Knoxville; Nonresident
Senior Fellow in the Government Studies Program, Center for Technology Innovation, The Brookings
Institution
“Ken Basin has given us a great primer in the nuts and bolts of the rapidly evolving television business—
told with insight, brevity, and wit. Basin’s experience on both sides of the buyer/seller equation really
shows through, and makes this book a valuable tool for anyone who wants to understand the business
side of the shows we love to watch.”
—Dan Scharf, Head of Television Business Affairs, Amazon Studios
“In the fast-changing environment of the television business, it’s never been more important to
understand how things are, how they used to be, and where they are going next. This book covers all you
need to truly grasp the business of making great TV.”
—Amy Powell, President, Paramount Television
“With The Business of Television, Ken Basin has created a powerful tool for people of all levels of
experience in the television business. In an industry where the rules are being re-written daily, Ken has
found a clear through-line that delivers a foundation of knowledge that you can use to jump in and begin
to re-write the rules yourself.”
—Chris Parnell, Co-President, Sony Pictures Television Studios
“This book would not make a good TV show. It is, however, about as comprehensive and readable a guide
to how television gets made as you can find. I’ll admit, after over a quarter of a century in the business,
there are things in here I didn’t know. With an insider’s perspective and a lawyer’s clarity, Ken Basin lays
it all out (even the technical stuff). It is an essential reference book, both dictionary and encyclopedia, for
anyone interested in the serious business of television.”
—Chris Keyser, Writer and Executive Producer; Creator, Party of Five
“A masterful job! Basin provides a readable and comprehensive guide to the uninitiated, while offering
knowledgeable insiders a valuable and incisive analysis of this ever-evolving industry.”
—Bert Fields, Entertainment Attorney, Partner, Greenberg Glusker Fields Claman & Machtinger LLP
“EVERYONE hates Business Affairs people - but NO ONE hates Ken Basin. That’s because he’s smart,
honest, and helpful, and because he behaves with honor. Turns out, he writes that way, too. I thank him
for explaining the future to me.”
—Billy Ray, Writer, Director, and Executive Producer; Creator, The Last Tycoon
“As a practicing lawyer, producer and now professor teaching film artists, this book is a wonderful
combination of real workplace knowledge with an understanding of how the television industry functions;
an accessible and brilliant book.”
—Barbara Boyle, Associate Dean, Entrepreneurship and Special Initiatives, UCLA School of Theatre,
Film, and Television
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“I never knew how much of the television business I didn’t know until I read this book! This is THE
comprehensive how-to manual on the business.”
—Jamie Erlicht, Head of Worldwide Video Programming, Apple Inc.
“In The Business of Television, Ken has found a way to encapsulate the knowledge that has taken me 40
years in the industry to learn. If every producer, manager, agent, and lawyer in our industry took the time
to read Ken’s book and really invest in understanding each step in the process of making a great TV show,
we could all save a lot of time and pain.”
—Steve Golin, Founder and CEO, Anonymous Content LLP
“Ken Basin has a talent for explaining the TV industry in a way that makes sense to lawyers and laypeople
alike. The Business of Television is the essential reference guide for creative professionals.”
—Josh Berman, Creator, Writer and Executive Producer, Notorious, Drop Dead Diva, and The Mob Doctor
“It takes a keen analytic mind and experienced dealmaker like Ken Basin to craft this indispensable guide
to anyone looking to navigate the increasingly-complicated world of TV prod.”
—Andrew Wallenstein, Co-Editor-in-Chief, Variety
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The Business of Television
In this book, esteemed television executive and Harvard lecturer Ken Basin offers a comprehensive overview of
the business, financial, and legal structure of the U.S. television industry, as well as its dealmaking norms.
Written for working or aspiring creative professionals who want to better understand the entertainment
industry—as well as for executives, agents, managers, and lawyers looking for a reference guide—The Business
of Television presents a readable, in-depth introduction to rights and talent negotiations, intellectual property,
backend deals, licensing, international production, and much more. The book also includes breakdowns after
each chapter summarizing deal points and points of negotiation, a glossary, a list of referenced cases, and a
wealth of real-world examples to help readers put the material into context.
Ken Basin currently works as Senior Vice President, Business Affairs at Paramount Television, where he is
responsible for dealmaking with talent, producers, and licensees in support of Paramount’s broad slate of
premium original television programming. Prior to joining Paramount, Ken served as Vice President, U.S.
Business Affairs for Sony Pictures Television, and before that, Co-Head of Business Affairs for Amazon
Studios. Ken is also a published scholar, as well as a long-time speaker and commentator, on entertainment and
intellectual property legal matters. Since 2014, he has been a Lecturer on Law at Harvard Law School, where he
teaches Entertainment and Media Law, and has previously served as an Adjunct Professor at UCLA School of
Law and Southwestern Law School.
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The Business of Television
Ken Basin
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First published 2019
by Routledge
711 Third Avenue, New York, NY 10017
and by Routledge
2 Park Square, Milton Park, Abingdon, Oxon OX14 4RN
Routledge is an imprint of the Taylor & Francis Group, an informa business
© 2019 Kenneth Basin
The right of Kenneth Basin to be identified as the author of this work has been asserted by him in accordance
with sections 77 and 78 of the Copyright, Designs and Patents Act 1988.
All rights reserved. No part of this book may be reprinted or reproduced or utilised in any form or by any
electronic, mechanical, or other means, now known or hereafter invented, including photocopying and
recording, or in any information storage or retrieval system, without permission in writing from the publishers.
Notices
Trademark notice: Product or corporate names may be trademarks or registered trademarks, and are used only
for identification and explanation without intent to infringe.
Practitioners and researchers must always rely on their own experience and knowledge in evaluating and using
any information, methods, compounds, or experiments described herein. In using such information or methods
they should be mindful of their own safety and the safety of others, including parties for whom they have a
professional responsibility.
To the fullest extent of the law, neither the Publisher nor the authors, contributors, or editors assume any
liability for any injury and/or damage to persons or property as a matter of products liability, negligence or
otherwise, or from any use or operation of any methods, products, instructions, or ideas contained in the
material herein.
Library of Congress Cataloging-in-Publication Data
Names: Basin, Ken, author.
Title: The business of television / Ken Basin.
Description: New York : Routledge, 2018. | Includes bibliographical references and index.
Identifiers: LCCN 2018007727 | ISBN 9780815368649 (hardback) | ISBN 9780815368663 (pbk.) | ISBN
9781351254182 (e-book)
Subjects: LCSH: Television broadcasting—United States.
Classification: LCC PN1992.3.U5 B355 2018 | DDC 384.55/40973—dc23
LC record available at https://lccn.loc.gov/2018007727
ISBN: 978-0-8153-6864-9 (hbk)
ISBN: 978-0-8153-6866-3 (pbk)
ISBN: 978-1-3512-5418-2 (ebk)
Typeset in Bembo
by Apex CoVantage, LLC
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Contents
Disclaimer
How to Use This Book
Preamble
Introduction
 1 A Beginner’s Guide to the Television Industry
A. What Is Television?
B. Who Are the Players (and How Do They Interact)?
i. Service Providers (Talent)
ii. Studios
iii. Networks
iv. Broadcast Stations
v. MVPDs
vi. Advertisers
vii. Talent Representatives
C. Online Video Distribution
i. Types of Online Video Distribution
ii. The Roles of Digital Content Companies
D. The Power of Tax Incentives
 2 The Life Cycle of a Television Series
A. From Idea to Production
i. Packaging and Studio Rights Acquisition
ii. Pitching and Set-Up
iii. Script Development
iv. Pilot
v. Upfronts
vi. Staffing and Writing
B. Production
C. Distribution
i. Media
ii. Territory
iii. Time
iv. Ancillary/Merchandising
v. Portfolio Management and Diversification
 3 The Intellectual Property Context of Television (Or, When Do You Need to Acquire Underlying
Rights?)
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A. Copyrights
B. Trademarks
C. Life Rights
i. Defamation and Related Claims
ii. Public Disclosure of Private Facts
iii. Right of Publicity
D. The First Amendment
i. Copyright Claims
ii. Trademark Claims
iii. Life Rights Claims
E. Practical Considerations
 4 Underlying Rights Agreements
A. Rights Agreements for Books and Articles
i. Option Fees and Terms
ii. Purchase Price
iii. Royalties
iv. Backend
v. Bonuses
vi. Granted Rights
vii. Reserved and Frozen Rights
viii. Consulting Services
ix. Credit
x. Subsequent Productions
xi. Reversion
B. Life Rights Agreements
C. Format Rights Agreements
D. Other Forms of Underlying Rights
E. Quick Reference Guide
 5 Talent Agreements
A. Writing/Writer-Producer Agreements
i. Writing and Spec Acquisition
ii. Producing Fees
iii. Years/Locks
iv. Services and Exclusivity
v. Preexisting Commitments
vi. Consulting
vii. Royalties
viii. Bonuses
ix. Backend
x. Credit
xi. Perks
xii. Subsequent Productions
xiii. Quick Reference Guide
B. Staffing Writer Agreements
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i. Term/Options
ii. Credit
iii. Fees
iv. Guarantees
v. Episodic Scripts
vi. Exclusivity
vii. Showrunners
viii. Quick Reference Guide
C. Non-Writing Producer Agreements
i. Development Fees
ii. Producing Fees
iii. Locks
iv. Services and Exclusivity
v. Royalties
vi. Bonuses
vii. Consulting
viii. Backend
ix. Credit
x. Perks
xi. Subsequent Productions
xii. Quick Reference Guide
D. Pilot Director Agreements
i. Services
ii. Directing Fees
iii. Executive Producing
iv. Royalties
v. Bonuses
vi. Backend
vii. Credit
viii. Perks
ix. Subsequent Productions
x. Quick Reference Guide
E. Actor Agreements
i. Test Options
ii. Pilot Services
iii. Pilot and Series Fees
iv. Series Options
v. Series Guarantees
vi. Credit/Billing
vii. Dressing Room
viii. Photo/Likeness/Biography Approvals
ix. Merchandising Rights
x. Other Approvals/Consultations
xi. Travel/Relocation
xii. Exclusivity
xiii. Publicity/Promotion
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xiv. Quick Reference Guide
F. Agency Package Commissions
G. Other Key Agreements
 6 Backend
A. Gross Receipts
B. Distribution Fees
C. Distribution Expenses
D. Overhead
E. Interest
F. Cost of Production
G. Third-Party Participations
H. Treatment of Tax Incentives
I. Quick Reference Guide
 7 Exclusive Studio-Talent Relationships
A. Overall Term Deals
i. Term
ii. Guarantee
iii. Overhead
iv. Assignability
v. Inside Terms
B. First Look Deals
 8 Network and Streaming Licenses and Studio Co-Production Agreements
A. Network and Streaming License Agreements
i. Development Contributions
ii. Pilot and Series Options
iii. Series Term
iv. Pilot and Series License Fees
v. Minimum Orders
vi. Licensed Rights (Grant of Rights)
vii. License Territory and Term
viii. Network Exclusivity
ix. Revenue Backstops
x. Subsequent Seasons and Derivative Productions
xi. Network Approvals
xii. Network Promotional Rights
xiii. Product Integrations
xiv. Contingent Compensation
B. Co-Production Agreements
i. Lead Studio
ii. Distribution Rights
iii. Allocation of Revenues
C. International Co-Productions and Co-Commissions
 9 Sample Economic Model
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