FREQUENTLY ASKED QUESTIONS ABOUT PRODUCED VIDEO USAGE:
Where can we show our video?
When we make a video for you, you can upload and post it anywhere online. However, you are NOT permitted to show the video or play the audio on any mass mediums like TV, Film, Radio, etc. without an extended-usage license or buyout.
What if I want to show it on a mass medium like TV, Film or Radio?
If you would like to show the video or play the audio on a mass medium like TV, Film, Radio, etc., you will either need to obtain an extended-usage license from us, do a “buyout” of the video or work with the talent’s management directly for their royalties.
Why can’t I show it anywhere? Didn’t I pay for the video?
Unlike animated videos and videos involving real people (not actors), our videos use actors. Thus, you see their likeness in the videos. You can’t put a price on someone’s likeness, so this is where royalties come in. Like with any normal commercial, once the video is produced, if you want to show it on mass mediums, the actors involved are due royalties, since it is their likeness that is shown.
What is this “Extended-Usage License?”
We try to make this as easy and affordable as possible by offering an extended-usage license for the videos we produce. We have contracts in place with the actors to allow you to only pay a one-time fee, per year, to get unlimited showings on any mass medium, without having to worry about dealing with SAG-AFTRA, managers, agents and paying the actor royalties directly.
What is a “buyout?”
A buyout is the easiest way to show unlimited showings of the video, forever. Basically, you are paying the principal actors in the video an amount to “buy them out” of the video. This means that after you do the “buyout,” you will be able to show the video anywhere for as long as you’d like and no royalties will be owed. We usually recommend trying out the “Extended Usage License” option first to see how much you air the video since a “buyout” can cost about $5000 per principal actor. The pricing is negotiated and will be agreed upon by the actor. If you would like to go with this option, we recommend letting us know before ordering the video so we can work that into the actor’s initial pay, instead of afterward. But, we can do it afterward as well.
When can I move forward with purchasing the extended-usage license or buyout?
Either can be a separate purchase after the video is delivered or an upfront fee with the video.
How much does the extended-usage license cost and what does it cover?
The pricing for an extended-usage license for TV, Film and Radio is a flat rate of $1000 for a 1-year period, for each principal actor (the main actors appearing in your video, not including background actors). This allows you to play the video or audio an unlimited amount of times for the 1-year period on any mass medium. After 1- year, you would need to pay the yearly fee again if you want to continue to air the video. You will not have to worry about royalties to the actors. It is included in the cost of the license. You will receive a document, for each video, stating that you have usage rights to air those commercials on mass mediums and that you have covered the principal actor’s residual fees for a 1-year period.
What if I do not want the extended-usage license or buyout?
No problem! We only offer the extended-usage license as a convince to our clients and the buyout option to make it easier if you are planning on playing the video a lot over a decent amount of time. You can always just go the traditional route. We would give you all the info for our actors’ agents or managers and you would be responsible for work with them and the stations you would be airing the video on to work out the royalties.
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