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Pricing Non-Broadcast 'Sales/pre-roll Video' for Multi-National Corporates?

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David Felmore
Pricing Non-Broadcast 'Sales/pre-roll Video' for Multi-National Corporates?
on Jun 5, 2014 at 4:54:25 am

I have a large multi-national client (an equivalent to 'Sony' for example) who is asking for a quote for use of a sales video I originally produced for just the australian market for all of their global regions/departments.

As I have never had a client where this has been considered, this is new territory for me.

My Key questions are as follows:

1.
a) How do others who have experience at this level quote for a global market or multi region? (licensing term (time based)? loading fee per region? built into the upfront cost of production? etc etc..)

b) Are there industry standard levels of 'terms of use' in regards to non-broadcast video? (online, in-store, video billboard? etc etc..)

2. Are there any extra terms & Conditions contractually that others have implemented through experience?

3.
a) How should I classify the regions? is there a global standard I don't know about? (dvd regions? youtube regions as a reference?) ?
b) Will these regions reflect the Corporate regions of the client? if not, it would be wise to use their region system, correct? what are these regions?

Any real world experience, and advise would be greatly appreciated.


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Mads Nybo Jørgensen
Re: Pricing Non-Broadcast 'Sales/pre-roll Video' for Multi-National Corporates?
on Jun 6, 2014 at 8:57:22 am

Hey David,

You didn't make it clear whether the video was originally produced for said company or for a general release?

If the company has already paid you for it, then they may feel that they own it?

My advice is to keep it simple:
Make the T&C according to the laws of where you are, which should also be the base from where you sell/license it.
Based your territory on language versions - price accordingly to how much that it will cost you to re-version the video. Don't forget translation and graphics. Some areas will want the video dubbed to their language, so do not assume that sub-titles will be OK.
One model could be an upfront fee for doing the re-versioning. And then use Vimeo or similar as a pay per view platform - this takes out the hassle of generating different DVD regions.

If suitable, if you can re-package the program as an e-learning program with a test or two included, and charge $15-$50 per participant, you may find a better revenue model where the client will keep on coming back with new employees. In particularly if the company employs 4,000+ people in sales roles globally.

Good Luck :-)

All the Best
Mads

@madsvid, London, UK
Check out my other hangouts:
Twitter: @madsvid
http://mads-thinkingoutloud.blogspot.co.uk


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David Felmore
Re: Pricing Non-Broadcast 'Sales/pre-roll Video' for Multi-National Corporates?
on Jun 10, 2014 at 5:33:35 am

Hi Mads,

Thanks for taking the time to reply.

Just to clarify the video is a sales product video (online TVC/Youtube Pre-Roll). Not training or a video thats for sale. Lets use for example a Sony TV. Showing off its features and enrolling the viewer in purchasing the TV.

The video was originally produced for them for the australian market. Being a multinational company other regions around the globe now want to use it for their market. This will require translation in some cases.

My question really is to understand for this job and future jobs how the industry goes about pricing for a global market? I would assume a loading fee would be added which could be a percentage of the original production cost? per region or term of use for example etc.

If you know, How would you go about this? how would you define the regions? How would you measure the value?

I am wanting to price things according to industry rates, therefore not lowering the standards or value of the great work we all produce.


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Mads Nybo Jørgensen
Re: Pricing Non-Broadcast 'Sales/pre-roll Video' for Multi-National Corporates?
on Jun 10, 2014 at 6:15:30 am

Hey David,

It is a real tough one to answer as it is all about how much value there is to the client? You'll need to walk a fine balance between making a profit and not being greedy.
("Greedy" is a harsh word to use in this context, but most deals falters when one party wants much more than the other is willing to pay).

I haven't seen your video; but at which point does it become cheaper for the individual sales office to make their own video rather than licensing yours?
Are you talking directly with Head Office?
Is your product an advertorial for the "TV" rather than a training video?
Did sales increase in Australia as a result of your video? And by how much?

Since TV's have a limited lifespan in general I would not wait too long before delivering the global videos. Also, that means that any licence longer than two years might be a moot point.

Bottom-line is: Your client will want your video in the market now. They are not likely to care for licensing, although you could ask that all future changes/amendments are done by your firm.

Since you have already produced the video, and been paid in full for it? Then the client might not be looking to buy you a holiday condo...

Maybe offer three packages:
1) Video to be used as is in another territory including digital file delivery: £Low
2) Video to be re-versioned for another territory: £Medium
3) Video to be produced again using local talent from another territory: £High

Keep it very simple! Licensing is everything but simple and may end up confusing your client to a level where they won't be back for more. It really comes down to who paid for the original production and what the contract states on that.

All the Best
Mads

@madsvid, London, UK
Check out my other hangouts:
Twitter: @madsvid
http://mads-thinkingoutloud.blogspot.co.uk


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David Felmore
Re: Pricing Non-Broadcast 'Sales/pre-roll Video' for Multi-National Corporates?
on Jun 11, 2014 at 2:32:26 am

Thanks Mads, Really appreciate your contribution and taking the time to pass on your knowledge, very generous.

I am on the same track, some really good points for us to discuss and take action on.


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