Opinion: Hello from the other side, I must’ve called a thousand times…

InterContinental Miami

TBI’s resident format expert Siobhan Crawford delves into deals with the US and European opportunities ahead of today’s NATPE Global, the first of two Miami-based markets taking place this month.

Adele won’t mind I borrowed this, the US loves a Brit. But do they love a European?

The US. It’s the pinnacle of our industry. The great US commission, the great US format, the great US version, the great US contingent at MIPCOM. But have the great been great to us in Europe? Do they even understand us? Do they know what we have to offer and how to access it? And if so, can the US and European styles find common ground?

Europe is an exceptional thing: our doors are open, hearts on our sleeves, content circulating freely, with strong relationships. We are connected and that is reflected in how we work together, with deals fairly standardised and applicable across multiple territories.

Fox get it – produce outside the US, test projects outside by buying slots and still save coin

We access the top commissioners instantly with no barriers. Distributor or producer, there is no difference. Remember, this is Europe, the UK is a different beast. But across the ocean it is completely different and while we revere the US market, it is not easy to navigate.

Open your doors

Yes, we can reach Netflix, Fox, NBC, ABC, CBS – but can we get through the door and be taken seriously? US networks are hidden behind layers and personnel shifts are a constant struggle.

This navigation is one of the things hindering most Europeans in the mission to export. There is no way the European market will ever be able to familiarise ourselves with the depth of the production sector in the US, it is just too big.

Enter the agents. These are an oddity to Europe but there’s no surprise that we use religious phrases like ‘agnostic’ – we need to pray to the alters of WME, CAA, APA, UTA that come MIPCOM they will connect us to as many clients as possible! The heritage of US television means there are catalogues no one will ever find but we are all looking!

Locking us up tight

And then there is the language. Pick-ups. MAGR. Shopping agreements. Life locks. Packaging. What the hell? A US contract can be a beautiful thing but it takes time to get there. You may even read The Business Of Television by Ken Basin to get there. No shame folks!

Take these examples: Europe: option fee 50% recoupable; license fee with the higher of 5-6% of budget or MG; four exclusions only; 33% ancillary share to licensor, at worst case; flexible holdbacks; creative control; production consultancy per day rate; further series option with uplifts; and, ultimately, reversion.

Siobhan Crawford

US: shopping agreement/option with no fee; development window (with or without penalty); pilot with or without fee; series pick-up; 3-5% of budget with 13-25% exclusions to be taken from gross; no MGs but perhaps ceilings; EP if you are lucky or consultancy debates; 12.5-20% MAGR; format participation or complete buy-out; holdbacks; and tape rights in perpetuity.

There may be parallels here but the shapes of these deals are by no means the same. And the key to this is who you work with. The BA from the US side can make this process heaven or hell, so get praying.

With love from Europe

Europe is cheaper, so perhaps we should be the land of opportunity? We are working on primetime ranges of €90k ($97k) up to €350k in Germany for a 120-minute monster show, or you can have hub productions in Europe for big brand formats for €60k an episode, versus the US network’s $950k-$1.5m.

Fox get it – produce outside the US, test projects outside by buying slots and still save coin.

Another positive to Europe that some of you are looking to capitalise on – IP retention! Producers can retain 50-70% of their unscripted format IP (if they don’t sell to streamers and even then the difference between approaching the acquisitions team versus the originals team can be the difference between 50% and 0%) while also expecting a meaningful amount of back-end revenue on tape.

We have tax incentives in multiple countries and while many of the networks probably don’t know it, we have some of the most hard working distributors in the world, meaning you also have a competitive environment to choose partners (because yes, in European deals you get to choose).

So, if you want to be part of the European love-in, we are waiting for you to join us. But don’t use boats, we don’t love those in Europe.

Siobhan Crawford is co- founder of Glow Media and has worked in the format business for almost two decades at firms including DRG, Zodiak, Banijay and Primitives

Check out Siobhan Crawford’s columns from 2023:

Reflecting on the relentless hustle of 2023 & why next year will be better…

TBI Weekly: Reliving the ’90s and the ‘everything that came after’ in Formatland

Opinion: ‘MIPCOM 2023: The One Where We All Got Together & Didn’t Buy Anything’

TBI Weekly: How to do MIPCOM 2023 right

TBI Weekly: Ahead of MIPCOM, does anyone actually have any money?

TBI Weekly: Why not all press is good press for TV formats

Opinion: Mapping the Nordic market & what it means to Formatland

Opinion: How fatigue has hit formatland

TBI Weekly: All eyes on MIPTV 2023

Opinion: MIPTV 2023, Cannes we talk about it?

Opinion: ‘High Hopes’ for formats as MIPTV beckons

TBI Weekly: Devil’s in the detail – IP sharing in today’s grabby world, Part 2

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