PROVYS: OTT Rights. All Right.

"Why should I read this article?" you are probably asking yourself when seeing this tedious theme of licensing and rights, writes Martin Junek, PROVYS.

Well, in our industry, this subject is gaining more and more attention and it may appear on your desk as it directly influences financial health of your organisation.

Although revenue flows still dominate in mainstream classic linear television, broadcasters have already started arming their operations with new OTT (Over The Top) platforms to keep the younger generations of viewers hooked. In the last issue, we explained some of the management aspects of launching and operating these non-linear content delivery channels. There are still rather low revenues from this area and so broadcasters cannot justify generous staffing or heavy capital investment. They rather need a clever software which would bring in two basic functions: automatic (or at least semi-automatic) planning of the content publishing, and the management of more and more complex rights to put the content on air or on line.

Management of rights is more than a simple but important functionality as it also involves serious responsibilities and risks with regard to how the rights are described in the system and consequently, how, when and where the content is released. When broadcasters acquire any rights (for linear and non-linear delivery), it is highly advantageous if all those rights are effortlessly registered, described and monitored within the same information system (no names mentioned).

At the moment, there are five basic parameters, which we call dimensions, and which form the management framework. These dimensions are: distribution mode, platform, language, territory, and period; and they all have their own sub-parameters. In order to navigate through this multi-dimensional jungle, the system can use tabs to easily switch from view to view, or a customised screen can be created to efficiently access all necessary dimensions and their sub-parameters. Such a window is pictured here as a simple printscreen titled "Purchased Licence Detail".

In the example shown here in the tab "VOD Rights Properties", the complex hierarchy of the period dimension is illustrated. For "inclusive rights", which are derived from linear rights, different platforms exist such as SVOD Preview, SVOD Catch-up, etc., with each requiring an extended set of period parameters to ensure all combinations are accurately described. Among these parameters are: period after first episode, period after last episode, maximum number of offered episodes, exceeding licence period allowed, period blocking, reprises included, all runs included, etc., etc. Different platforms can be added as necessary, reflecting the exact requirements of each particular right held. The same flexibility applies to distribution mode, territory and language, with a comprehensive set of sub-parameters for each.

Arising from years of practical experience, many other sophisticated functionalities have been incorporated in the system, particularly financial control. The principal concern in this field is the question of SVOD subscription management, payments to rights holders, and amortisation of each and every right acquired. Amortisation includes accurate recording of the initial cost of every single right followed by the amortisation to-date, the current value and the expiry date for usage of the right. Different amortisation profiles are assigned to particular content and depreciated automatically.

"We have developed hundreds of other important features to keep broadcasters' health robust. Wellness in broadcasting operations is our ultimate objective," says Magdalena Bernhardova, OTT Expert at Provys.

Image: Screen of a licence detail.

www.provys.com

This article is also available to read at BFV online here, page 10.

(JP/LM)