Channel 4's Social Media Monetisation Scheme

Background

In 2021 PACT and Channel 4 agreed to trial a scheme whereby Channel 4 could monetise show extracts published on social media platforms outside UK/Eire with payaway net share as per the relevant Commissioning Agreements.

Producers have received reporting of their relevant share for 2021 and 2022 under that trial. The trial has come to an end and Channel 4 are now proposing (with Pact’s acknowledgement) to continue the scheme but with all revenues split 50-50 (including C4 UK/Eire revenues) and to also allow Producers to publish and monetise show extracts on their own social platforms earlier in the UK/Eire (within certain parameters outlined in the scheme). 

All Producers have the opportunity to Opt Out of the scheme if they wish. 

The Scheme

Under the Scheme Channel 4 will waive its 12 month UK/Eire exclusivity on show extracts to allow Producers to publish and monetise on their own social platforms. All revenue from both Channel 4 and Producer exploitation will be split 50-50 (Producers will be permitted to deduct a 30% Commission/Channel 4 will not take a commission). Channel 4 will therefore share 50% of revenues from its social extract activity in UK and ROW. Producers will therefore share 50% of revenue from their social activity (minus commission) in UK and ROW. The Scheme therefore enables Producers to both publish earlier in the UK and share equally in the UK revenue of Channel 4, enables Channel 4 to monetise extracts ROW, and for all ROW revenue to be shared equally whoever monetising. There are certain conditions attached to publication which are outlined in the full SMM Scheme guidelines. 

The Benefits to Producers

PACT recognises that some producers already monetise their show extracts (whether themselves or through distributors) but that the majority of members do not systematically exploit their extracts in this way. For these PACT members the Channel 4 scheme will mean that money is not ‘left on the table’ from C4 publishing ex-UK, and they will receive an income not previously expected from Channel 4 activity (including in the UK), and have the opportunity to generate additional income earlier in the UK through their own activity. 

It will also mean that Producers and Channel 4 can work together on a synchronised social campaign to help maximise promotion of the show. Channel 4 expects Producers who wish to publish extracts to work closely with the 4Studio Strategy team to co-ordinate the two-pronged social approach. This will include agreeing relevant tagging, hashtags, interaction, collaboration, Calls To Action  etc (some of which is outlined in the scheme). 

Opting Out

For those Producers who do not believe the scheme will benefit them, they may opt out at the outset, or for the following year during the ‘Opt Out Window’ (running throughout October in 2023, and in September each year thereafter). Should a producer ‘opt out,’ all shows commissioned during the following calendar year will be Opted Out of the scheme and extracts will no longer be monetised outside of the UK/Eire. Channel 4 will retain its minimum 12 month UK/Eire exclusivity on all extracts going forward and no longer share UK/Eire monetisation. Further details are outlined in the scheme.

Producers who are uncertain of the benefits of the scheme have the ability to monetise for a year to quantify the financial benefit and may review their position annually. However, once a show has been ‘opted in/out’ it will remain so for its lifetime.

Further Info?

Anyone with questions about the operation of the Scheme should contact the Channel 4 Rights Team via Rebecca Cheshire (RCheshire@channel4.co.uk).  Clip enquiries should go via your usual 4Studio contact.