BBC & Pact Agree to “Historic” New Terms of Trade for Indie Producers

The BBC and Pact have agreed to a new terms of trade deal for BBC television productions made by U.K.-based indie producers.

The new terms of trade provide the BBC with an automatic 12 month BBC iPlayer window on all content it commissions within its initial payment. The agreement also sets out fixed rates for exclusive and non-exclusive extensions to the iPlayer window beyond 12 months (except where otherwise agreed as part of the funding arrangements for the production). This is an update from the current arrangement, whereby content is only guaranteed to be on iPlayer for 30 days, unless through a separate negotiation.

For independent producers, this deal sets a clear framework across genres, providing certainty of payments for use beyond 12 months. The BBC will also pay the producer sooner to extend the license period if the additional iPlayer windows are taken up beyond 12 months. Producers are expected to see greater revenue streams as a result of the BBC share of net receipts from sales being reduced to 10 percent (except in the U.K. during the term where it is reduced to 20 percent).

BBC Director-General Tony Hall said: “This is an important deal for the BBC, the industry, and the wider public. Not only have we reaffirmed our commitment to supporting independent U.K. producers, but we have also ensured license fee payers have access to the best content for at least a year on BBC iPlayer. Everybody wins.”

Sara Geater, all3media’s COO and Pact chair, added: “The terms of trade are the lifeblood of the U.K. indie sector and I’m delighted we have reached a mutually beneficial agreement with the BBC which gives them the flexibility to increase exploitation of the programs across iPlayer as well as their linear services.

“This is obviously crucial at a time of increased competition from the global SVOD players. I would also like to take this opportunity to thank the BBC team for their positive engagement.”

Bal Samra, BBC’s group commercial director, commented: “We are the largest supporter of the U.K. production sector, and so our priority was always to get a deal that worked for the broadest range of suppliers possible, regardless of size, location or type of content they make. This agreement does that and means that at a time of rapid change a strong BBC can continue to invest in its home market and champion U.K. content.

“I’m delighted we will be able to deliver more value to license fee payers whilst at the same time independent producers will be able to showcase their work to a bigger audience and increase their commercial returns.”

John Mcvay, Pact’s chief executive, said: “Pact has worked hard over many months to ensure that the BBC understood that indies deserve to be paid fairly for their content to be used for additional periods on iPlayer.

“iPlayer has become even more important to viewers during this lockdown period, and it’s great that more compelling programs will be available for longer—and that all U.K. companies will benefit from success.”