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Channel 4's Social Media Monetisation Scheme T&Cs

Scheme headlines:

  • The SMM Scheme is intended to follow on from the trial of social media monetisation outside of UK/Eire that Channel 4 has been undertaking with Pact’s permission. So for Producers who do not Opt-Out there will be continuity of monetisation.
  • Channel 4 will waive its exclusivity on the exploitation of show extracts in the UK/Eire to enable Producers to publish themselves on their own social accounts (whether on a Producer social account, or a show branded social account).
  • The aim is a framework that ensures collaboration and amplification regarding the promotion of shows
  • Channel 4 will be permitted by producers to monetise show extracts globally (i.e. additionally ex-UK/Eire) on social channels, via ads served around the content on the platform. Producers will also be able to do the same.  
  • Both Producer and Channel 4 will split all revenue from this activity 50/50.

 

(1)    The SMM Scheme

  • With Pact’s endorsement, Producers will be considered part of this Scheme unless they inform Channel 4 in writing during the ‘Opt Out Window’ of their intention to Opt Out the following year (see (3) below for how this will work in practice).
  • If Channel 4 is not notified of any Opt-Out, Producers will be included in the Scheme for all their commissioned programmes (i.e. the Scheme applies at an individual producer level, not at a programme level).
  • Channel 4 will monetise via advertising served around the content, extracts in UK/Eire and also additionally ROW on social platforms 
  • The advertising revenue will be split 50-50 on a global basis (UK/ROW) from both Producer and Channel 4 exploitation in perpetuity (after platform deduction).
  • The Producer (or distributor on its behalf) may deduct a single 30% Commission (post platform deduction) from their exploitation. Channel 4 will not deduct a Commission.
  • Channel 4 will waive its exclusivity in UK/Eire to permit Producer to publish and monetise show extracts, subject to certain terms (outlined in (2) below).
  • Producers will report twice a year to C4 with key metrics and issue payaways annually (once the pay-away is more than $250 – relevant share accumulating until that threshold reached). Reporting will be in accordance with published C4 Reporting Guidelines and will be split by Platform and at Show Level. The key metrics will include Views (split by UK/Eire vs ROW) ; Demographics ; Revenue ; Watch Time – as per data supplied by the relevant social platform.
  • C4 will report twice a year to Producers on the above same metrics (once the pay-away is more than $250 – relevant share accumulating until that threshold reached), and issue relevant payaways annually.
  • The potential for more detailed reporting and data sharing to be discussed and agreed between individual producers and Channel 4 on an ad-hoc basis.
  • C4 retains the right to cancel the SMM Scheme at any time. Should this occur, C4 will retain  exclusivity on show extracts within the UK/Eire thereafter (though not on extracts already published under the scheme) and will continue to publish social extracts globally (not geo-blocking) but will only monetise within the UK/Eire, retaining 100% of UK/Eire revenues. Subject to any outstanding amounts due, there will be no payaways to Producers if C4 cancels the scheme or if Producer Opt Out and no payways to C4 under the Scheme.
  • If a Producer is looking to approach a 3rd party to sell advertising around Channel 4 extracts on social platforms in UK/Eire, then C4 Sales to be given the first option to undertake this activity.

 

(2)    Producer Exploitation of Extracts Terms: 

All extracts published by Producers must adhere to the following rules:

  • In setting up a show account, the account must comply with Channel 4’s Producer Social Account Guidelines (“P-SAG”). See (4) below.
  • It must be made clear that the account is run by the Producer and not Channel 4. In the account description (or ‘about’ section, depending on the Platform) it must state: ‘Feed managed by [Producer]’
  • The maximum aggregate duration of any extract(s) from the programme shall be 10% of the episode’s broadcast slot.
  • All extracts must be Channel 4 branded (as per P-SAG document) and tag Channel 4/E4 where the platform allows.
  • There will be a holdback on all extracts of 14 days from linear TX per episode (Channel 4 will be promoting the show before and around the first TX). However, if Channel 4 are not promoting the show on social, then (i) there is no holdback and extracts can be published post linear tx, (ii) producers can request to publish ahead of tx. 
  • If Channel 4 agrees to posting the extract ahead of TX, the post must include a Call To Action to the Channel 4 VOD service or linear TX plus TX date/time. If posting the extract after TX the post must include a Call To Action to the Channel 4 VOD service or linear TX with an associated link to channel4.com as well as Channel4/E4 tags.
  • Extracts must not reveal any spoilers or alter the show’s narrative arc. Where extracts are ‘treated’ in some way (ie they’re not direct scene lifts, or are condensed/edited versions of the show narrative) they must have prior approval from Channel 4 before publication
  • As a matter of risk management extracts must not use 3rd party IP without prior approval from Channel 4 
  • All extracts must follow Channel 4 guidelines as set out on the 4Compliance website and Producers are responsible for compliance and clearances for all published clips.
  • All show extracts must be taken from the final delivered programme that has been approved for broadcast by Channel 4.
  • Producers must inform Channel 4’s social team in writing (C4SocialPlans@channel4.co.uk) of any proposed extracts at least 48 hours before publication. This is to ensure co-ordination of social strategies and not to comply clips. Channel 4’s social team will respond within 24 hours if any issues or concerns regarding the proposed social strategies.
  • If any extract does not comply with these Terms then Channel 4 has the right to require the Producer either not to publish, or to remove the relevant extract from the platform
  • The Producer must inform their relevant Channel 4 Commissioning Editor within 24 hours if any complaints, press concerns or Duty of Care issues arise from their social activity.
  • If a Producer wishes to obtain a sponsor to feature on the page or the content, the sponsor must not, in Channel 4’s reasonable opinion, conflict with any sponsorship deal Channel 4 has relating to the programme. Any proposed sponsor activity must be in accordance with the relevant warranties given under Clause 3 of the Commissioning Agreement.
  • In respect of shows from Producers who are within the Scheme, Channel 4 intends that its own publishing policy will reflect the rules above relating to duration, branding, and spoilers etc.

 

Producers who Opt Out of the scheme cannot publish any extracts during Channel 4’s exclusive period in UK/Eire - unless Channel 4 are not planning any social activity, in which case Channel 4 will permit publication of a maximum aggregate duration of 1minute per episode, subject to compliance with the framework above.

 

(3)    Producer Opt Out - the Annual Opt Out Window

(a)    The Opt Out window will run annually from 1st Sept to 30th September each year, whereby Producers during this period shall have the option to notify Channel 4 in writing that they wish to Opt Out of the SMM Scheme on an individual Producer basis (not a programme basis) for the following year, commencing 1st January.

(b) Notifications should be sent to RCheshire@Channel4.co.uk  

(c) Application of Opt-Out – where a producer “Opts Out” this has the effect of removing any new commissioned original programme titles from the SMM scheme. i.e.

(i)  any new commissioned programme titles that TX the following calendar year will not be part of the SMM scheme.

(ii) Any previous series of programmes previously within the SMM Scheme (i.e. archive clips) will remain in the scheme,

(iii) Any subsequent series of programmes previously within the SMM Scheme will remain in the scheme.

(d) During the Opt Out window, Producers who have previously Opted Out will have the opportunity to Opt into the SMM Scheme for the following year. Should a Producer Opt-In:

(i) Any programmes which were already outside the SMM Scheme (i.e. archive clips) will remain outside the scheme as will any subsequent series of those programmes.

(ii)  Any new commissioned programme titles that TX the following calendar year will be part of the SMM Scheme.

  • Unless a Producer notifies C4 in writing during the Opt Out window that they wish to Opt Out of the SMM Scheme, a Producer will be included in the SMM Scheme. Should Channel 4 receive no response from a producer who previously either within the Scheme or opted out of the Scheme, then that producer’s previous response shall continue to apply.
  • Should a producer Opt-Out of the SMM Scheme, Channel 4’s exclusivity period in UK/Eire continues to apply, including to any show extracts (though not to extracts already published under the Scheme).
  • New producers or producers with whom Channel 4 has not worked with for 3 years or more, will sit outside the annual Opt Out window in the first instance and will have the opportunity to Opt Out of the Scheme at time of commission.

 

The Transitional Opt Out Window – 1st-31st October 2023

 

  • Channel 4 recognises the need for an initial Opt-Out Window at launch of the SMM Scheme, whereby Producers have a period of time to decide whether to Opt Out of the SMM Scheme.
  • The SMM Scheme is intended to follow on from the social media monetisation outside of UK/Eire trial that Channel 4 has been undertaking with Pact’s permission, so that for those Producers who do not Opt-Out, there can be continuity of monetisation.
  • The initial Opt Out window will run from 1st October to 31st October 2023 where the producer will need to make two decisions.
  • A producer will need to decide first whether to “Opt-Out” existing programming titles and archive;

 

  • Should a producer “Opt-Out” existing programming and archive :
    • all the Producers programmes under licence to Channel 4 (including any that TX until 31st December 2023) will not be part of the SMM Scheme (i.e. archive and current extracts). This will include any subsequent series commissioned. Channel 4 will switch off ROW monetisation (as the Pact trial has now concluded) as soon as reasonably able once notified. Payaways to Producers will follow the relevant Commissioning Agreement and there will be no further payaways after accounts are updated.
    • Channel 4 will continue to retain exclusivity on show extracts within the UK/Eire thereafter and will continue to publish social extracts globally (not geo-blocking) and will monetise within the UK/Eire, retaining 100% of these revenues.

 

  • Should a producer, not “Opt-Out” existing programming titles and archive by 31st October 2023:
    • all the Producers programmes under licence to Channel 4 (including any TX until 31st December 2023) will be part of the SMM Scheme (i.e. archive and current clips). This will include any subsequent series commissioned.
    • The 50/50 payaway by Channel 4 to producers and producers to Channel 4 will commence 1st Jan 2024.
    • The producer will then have the opportunity to Opt-Out annually, during the Opt Out Window in September each year (beginning September 2024 for the calendar year 2025), with the effect as set out in (3)(c) above.

 

  • A producer will then need to decide second, whether to “Opt-Out” new commissioned original programme titles in 2024 (effectively the Annual Opt Out Window for 2024). Where a producer “Opts-Out” for new commissions in 2024 this has the effect as set out in (3)(c)(i) above.

 

  • A Producer who has Opted Out of the SMM Scheme can subsequently re-enter the scheme during the annual Opt Out Window in September each year, with the effect as set out in (3)(d)(i) & (ii) above.  
  • Nb For 2022 and 2023 where activity was undertaken through the Pact trial, Channel 4 will payaway 100% ex-uk/Eire revenues to producers (minus any Channel 4 share under the relevant commissioning agreement) and retain 100% UK/Eire revenues. For 2022 and 2023 Producer payaways to Channel 4 will remain as per the relevant Commissioning Agreement.

 

 

(4)    Channel 4’s Producer Social Account Guidelines (P-SAG)

Channel 4 follows some basic principles when setting up and running social media accounts. These steps protect sensitive information, enhance account security and guard against the potential for reputational damage (eg through misuse of accounts, possible hacking threats and access to confidential content prior to publication etc). We therefore expect our production partners to follow best practice and the same guiding principles.

  • Accounts must be linked to a business email address, and the passwords stored securely.
  • Channel 4 will be given the account url and a point of contact email address for the account manager
  • Producers are responsible for ensuring the accounts are secure, accessible only to employees and that passwords are stored safely. In certain circumstances C4 may agree to set up the accounts and provide access to the Producer to ensure the accounts are appropriately activated. 
  • Producers are responsible for ensuring all content on the account is compliant and adheres to OfCom regulations.
  • The accounts, and all content from Channel 4 programmes, must follow the Channel 4 Brand Guidelines (see the link) in force at time of exploitation which means all clips must be C4 branded and include (either on the clip on in the copy) a Call To Action to the Channel 4 VOD service or linear TX

 As part of the Scheme, Producers and Channel 4 agree to undertake to work collaboratively to ensure there is strategic alignment across all social activity. This encompasses type of clips, chosen platforms and scheduling of posts, as well as the potential for Channel 4 and Producer accounts to interact and share or amplify activity with appropriate tagging/endcards/pushes/promotional activity.

 

(5)    Future Opportunities

Channel 4 is exploring the possibility of being able to provide reports to the Producer on the Producer’s own exploitation of clips. We have a proprietary Data Warehouse that pulls in data from all major platforms which allows us to produce detailed cross-platform reports. These reports give a more sophisticated overview than an individual platform CMS (and additional metrics to those outlined above) but would require Channel 4 Analysts to have access to the Producer/the Show’s social accounts. We anticipate discussing this with individual producers as an additional benefit from 2024