Common use of Pay Television Clause in Contracts

Pay Television. The term “pay television,” as used in this Article, shall mean exhibition of theatrical motion pictures on a television screen by means of telecast, cable, closed-circuit, satellite to home or CATV, where substantially all systems to which the program is licensed meet the following tests: (A) a separate channel is provided for which the subscriber pays a separate fee (which fee is a major charge relative to other charges made to the subscriber) for that channel; (B) the subscriber pays for the motion picture or motion pictures selected (except that a motion picture or motion pictures selected for which only a token charge is made shall not be considered pay television); (C) the subscriber pays a fee for an encoded telecast, which fee is a major charge relative to other fees paid for encoded telecasts. The foregoing tests cover those types of services and systems which exist in the industry today and are commonly understood in the industry today to be pay television services or systems. The term “pay television,” as used in this Article, shall also include the exhibition of theatrical motion pictures through a television receiver or comparable device by means of a telecast, cable, closed-circuit, satellite or CATV for which the viewing audience (whether by the individual viewer or by the hotel, motel, hospital or other accommodation where the viewer is) pays to receive the program by making a separate payment for such specific program. Exhibition in theatres or comparable places by such means is theatrical exhibition and shall not be considered pay television. The term Supplemental Markets does not include the exhibition of a theatrical motion picture by cassette or otherwise over a television broadcast station or in theatrical exhibition and, for this purpose, “theatrical exhibition” includes the educational market, the exhibition of theatrical motion pictures on any commercial carrier (referred to herein as “in-flight”), such as commercial airlines, trains, ships and buses, and other uses which have been traditionally considered theatrical exhibition of theatrical motion pictures, other than the specific home use hereinabove defined as the “Supplemental Market” for cassettes. Whenever reference is made in this Article to pay television, such reference shall be deemed to include only those uses of motion pictures as to which a charge is actually made to the subscriber for the program viewed, or when the subscriber has the option, by additional payment, to receive special programming over one or more special channels. When no program charge or special channel charge is made to the subscriber in addition to the general charge, the transmission of theatrical motion pictures by the CATV facility, including programming originated by the CATV facility, is free television exhibition for the purposes of this Agreement, and such exhibition shall not be considered Supplemental Markets exhibition. The Producers have agreed to the inclusion of pay television in the “Supplemental Markets” because, under the present pattern of distribution of theatrical motion pictures, pay television is supplemental to the primary market. The Producers reserve the right in future negotiations to contend that the pattern of release has changed so that pay television is no longer a Supplemental Market, but constitutes or is a part of the primary market of distribution of theatrical motion pictures, and that therefore no additional payment pursuant to this Article 16 should be made with respect to the release of theatrical motion pictures (including those covered by this Agreement) in said markets. Nothing herein shall limit the scope of negotiations on said subject.

Pay Television. The term “"pay television,” " as used in this ArticleSection, shall mean exhibition of theatrical motion pictures on a television screen by means of telecast, cable, closed-circuit, satellite to home or CATV, where for which substantially all systems to which the program is licensed meet the following tests: (Aa) a separate channel is provided for which the subscriber pays a separate fee (which fee is a major charge relative to other charges made to the subscriber) for that channel; (Bb) the subscriber pays for the motion picture or motion pictures selected (except that a motion picture or motion pictures selected for which only a token charge is made shall not be considered pay television); (Cc) the subscriber pays a fee for an encoded telecast, which fee is a major charge relative to other fees paid for encoded telecasts. The foregoing tests cover those types of services and systems which exist in the industry today and are commonly understood in the industry today to be pay television services or systems. The term “"pay television,” " as used in this ArticleSection, shall also include the exhibition of theatrical motion pictures through a television receiver or comparable device by means of a telecast, cable, closed-circuit, satellite or CATV for which the viewing audience (whether by the individual viewer or by the hotel, motel, hospital or other accommodation where the viewer is) pays to receive the program by making a separate payment for such specific program. Exhibition in theatres or comparable places by such means is theatrical exhibition and shall not be considered pay television. The term "Supplemental Markets Markets" does not include the exhibition of a theatrical motion picture by cassette or otherwise over a television broadcast station or in theatrical exhibition and, for this purpose, “"theatrical exhibition” " includes the educational market, the exhibition of theatrical motion pictures on any commercial carrier (referred to herein as “"in-flight”"), such as commercial airlines, trains, ships and buses, and other uses which have been traditionally considered theatrical exhibition of theatrical motion pictures, other than the specific home use hereinabove defined as the “"Supplemental Market” Markets" for cassettes. Whenever reference is made in this Article Section to pay televisionPay Television, such reference shall be deemed to include only those uses of theatrical motion pictures as to which a charge is actually made to the subscriber for the program viewed, or when for which the subscriber has the option, by additional payment, to receive special programming over one or more special channels. When no program charge or special channel charge is made to the subscriber in addition to the general charge, the transmission of theatrical motion pictures by the CATV or television facility, including programming originated by the CATV or television facility, is free television exhibition for the purposes of this Agreement, and such exhibition shall not be considered Supplemental Markets exhibition. The Producers have agreed to the inclusion of pay television Pay Television in the “"Supplemental Markets” " because, under the present pattern of distribution of theatrical motion pictures, pay television Pay Television is supplemental to the primary theatrical market. The Producers reserve the right in future negotiations to contend that the pattern of release has changed so that pay television Pay Television is no longer a Supplemental Market, Market but constitutes or is a part of the primary market of distribution of theatrical motion pictures, and that therefore no additional payment pursuant to this Article 16 should be made with respect to the release of theatrical motion pictures (including those covered by this Agreement) in said markets. Nothing herein shall limit the scope of negotiations on said subject.

Pay Television. The term “pay television,” as used in this Article, shall mean exhibition of theatrical television motion pictures on a television screen by means of telecast, cable, closed-circuit, satellite to home or CATV, where substantially all systems to which the program is licensed meet the following tests: (A) a separate channel is provided for which the subscriber pays a separate fee (which fee is a major charge relative to other charges made to the subscriber) for that channel; (B) the subscriber pays for the motion picture or motion pictures selected (except that a motion picture or motion pictures selected for which only a token charge is made shall not be considered pay television); (C) the subscriber pays a fee for an encoded telecast, which fee is a major charge relative to other fees paid for encoded telecasts. The foregoing tests cover those types of services and systems which exist in the industry today and are commonly understood in the industry today to be pay television services or systems. The term “pay television,” as used Exhibitions in this Article, shall also include the exhibition of theatrical motion pictures through a television receiver or comparable device by means of a telecast, cable, closed-circuit, satellite or CATV for which the viewing audience (whether by the individual viewer or by the hotel, motel, hospital or other accommodation where the viewer is) pays to receive the program by making a separate payment for such specific program. Exhibition in theatres theaters or comparable places by such means of telecast or cable is theatrical exhibition and shall not be considered pay television. The term Supplemental Markets does not include the exhibition of a theatrical motion picture by cassette or otherwise over a television broadcast station or in theatrical exhibition and, for this purpose, “theatrical exhibition” includes the educational market, the exhibition of theatrical motion pictures on any commercial carrier (referred to herein as “in-flight”), such as commercial airlines, trains, ships and buses, and other uses which have been traditionally considered theatrical exhibition of theatrical motion pictures, other than the specific home use hereinabove defined as the “Supplemental Market” for cassettesPay Television. Whenever reference is made in this Article to pay television, such reference shall be deemed to include only those uses of motion pictures as to which a charge is actually made to the subscriber for the program viewed, or when the subscriber has the option, by additional payment, to receive special programming over one or more special channels. When no program charge or special channel charge is made to the subscriber in addition to the general charge, the transmission of theatrical television motion pictures by the CATV facility, including programming originated by the CATV facility, is free television exhibition for the purposes of this Agreement, and such exhibition shall not be considered Supplemental Markets exhibition. The Producers have agreed to the inclusion of pay television in the “Supplemental Markets” because, under the present pattern of distribution of theatrical television motion pictures, pay television is supplemental to the primary market. The Producers reserve the right in future negotiations to contend that the pattern of release has changed so that pay television is no longer a Supplemental Market, but constitutes or is a part of the primary market of distribution of theatrical television motion pictures, and that therefore no additional payment pursuant to this Article 16 14 should be made with respect to the release of theatrical television motion pictures (including those covered by this Agreement) in said markets. Nothing herein shall limit the scope of negotiations on said subject.

Pay Television. The term “"pay television,” " as used in this Article, shall mean exhibition of theatrical television motion pictures on a television screen by means of telecast, cable, closed-circuit, satellite to home or CATV, where substantially all systems to which the program is licensed meet the following tests: (A) a separate channel is provided for which the subscriber pays a separate fee (which fee is a major charge relative to other charges made to the subscriber) for that channel; (B) the subscriber pays for the motion picture or motion pictures selected (except that a motion picture or motion pictures selected for which only a token charge is made shall not be considered pay television); (C) the subscriber pays a fee for an encoded telecast, which fee is a major charge relative to other fees paid for encoded telecasts. The foregoing tests cover those types of services and systems which exist in the industry today and are commonly understood in the industry today to be pay television services or systems. The term “pay television,” as used in this Article, shall also include the exhibition of theatrical motion pictures through a television receiver or comparable device by means of a telecast, cable, closed-circuit, satellite or CATV for which the viewing audience (whether by the individual viewer or by the hotel, motel, hospital or other accommodation where the viewer is) pays to receive the program by making a separate payment for such specific program. Exhibition Exhibitions in theatres or comparable places by such means of telecast or cable is theatrical exhibition and shall not be considered pay television. The term Supplemental Markets does not include the exhibition of a theatrical motion picture by cassette or otherwise over a television broadcast station or in theatrical exhibition and, for this purpose, “theatrical exhibition” includes the educational market, the exhibition of theatrical motion pictures on any commercial carrier (referred to herein as “in-flight”), such as commercial airlines, trains, ships and buses, and other uses which have been traditionally considered theatrical exhibition of theatrical motion pictures, other than the specific home use hereinabove defined as the “Supplemental Market” for cassettesPay Television. Whenever reference is made in this Article to pay television, such reference shall be deemed to include only those uses of motion pictures as to which a charge is actually made to the subscriber for the program viewed, or when the subscriber has the option, by additional payment, to receive special programming over one or more special channels. When no program charge or special channel charge is made to the subscriber in addition to the general charge, the transmission of theatrical television motion pictures by the CATV facility, including programming originated by the CATV facility, is free television exhibition for the purposes of this Agreement, and such exhibition shall not be considered Supplemental Markets exhibition. The Producers have agreed to the inclusion of pay television in the “"Supplemental Markets” " because, under the present pattern of distribution of theatrical television motion pictures, pay television is supplemental to the primary market. The Producers reserve the right in future negotiations to contend that the pattern of release has changed so that pay television is no longer a Supplemental Market, but constitutes or is a part of the primary market of distribution of theatrical television motion pictures, and that therefore no additional payment pursuant to this Article 16 14 should be made with respect to the release of theatrical television motion pictures (including those covered by this Agreement) in said markets. Nothing herein shall limit the scope of negotiations on said subject.