performer-buy-out

What is a performer buyout and why are they important?

If you’re new to creating content, the concept of performer buyouts maybe unfamiliar territory, but they are absolutely essential when engaging talent and for safeguarding intellectual property rights. 

Let’s take the example of a voiceover artist, you would typically pay them a studio fee to compensate them for their time and their service, however, depending on the application, you may also have to pay them a buyout to secure their intellectual property rights.

Obtaining intellectual property rights is vital because it permits the rights holder to exploit the content without being beholden to anyone else. 

In broadcast television terms, this buyout is proportional to the size of the addressable audience, something otherwise referred to as a TVR score. We’ve written about TVR scores here.

Depending on the longevity of the buyout, it will need to be renewed after a nominated period of time in order retain the performance rights. An indefinite all-rights buy out can be obtained at the point of commission but this can be costly. 

If you suspect your content could have a significant lifespan then either consider an all-rights buy out, or discuss a renewable rate at the point of commission because it is likely to be more speculative at this point in time and frankly, who wouldn’t prefer the guarantee of money today over the chance of it in the future.

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