The Cost of Licensing: New Movies vs. Classics for Broadcasting
When considering alternatives for broadcast syndication, the cost aspect of licensing new movies versus classics can be quite intriguing. Traditionally, a package of older films and shows has been cheaper than one featuring recently released films and newer series. This article delves into the reasons behind this trend and provides an in-depth analysis to help you make an informed decision.
Why Classic Films and Shows are Cheaper
While I cannot provide a definitive answer, based on industry insights and common practices, it is generally suspected that classic movies and TV shows are less expensive to license. This is largely because these films and shows have already been paid for, and the licensing fee serves merely as additional revenue. In contrast, recently released movies and television shows come with higher licensing fees to compensate for upfront costs such as production, marketing, and distribution expenses.
The Role of Production Costs
The production costs of classic films and shows, especially older ones, are significantly lower compared to newly produced content. This is evident when considering that sometimes the spending on one episode can go beyond the entire budget of a feature film. For instance, the budget for Marvel's Secret Invasion was reported to be 212 million, meaning each episode cost an astounding 35 million. This massive inflation in budgets has prompted extensive discussions and news in the entertainment industry.
Legal and Economic Considerations
The legal framework also influences licensing costs. For example, American films made before 1964 are currently in the public domain. This is primarily because the renewal of these copyrights was not mandated after 28 years of the production date. In 1966, Congress instituted a new copyright law that extended protection to 75 years from the date a film was created, providing a clearer and more consistent legal framework.
Marketing and Negotiation
The high licensing fees for new shows and movies can also be attributed to marketing and negotiation. Actors and actresses of these shows are often overpaid and require significant compensation during production. They typically negotiate for extremely high, sometimes unrealistic, fees, which directly impact the licensing costs. This is a common issue in the entertainment industry, where star power and talent are critical in attracting an audience.
Case Studies: Friends vs. Because of Jim
While licensing fees for classic shows like Because of Jim and Two Guys a Girl and a Pizza Place are relatively low, licensing newer series can be quite steep. For example, the US version of Friends is more expensive than licensing Because of Jim, even though the latter includes Ryan Reynolds and Nathan Fillion, who are both star players. Interestingly, the entire U.S. series of Because of Jim can be purchased for US$30 from SHOUT! Factory, including all 81 episodes.
These examples illustrate the complex dynamics of licensing fees and the factors that influence them. It is crucial to carefully consider these factors when making decisions about content licensing for broadcast syndication.
Conclusion
In summary, the cost of licensing new movies and shows versus classics can be significantly different, influenced by production costs, legal frameworks, marketing, and negotiation. Understanding these factors can help broadcasters make informed decisions, ensuring a cost-effective and successful broadcast syndication strategy.