Common use of Supplemental Markets Clause in Contracts

Supplemental Markets. The Agreement also contains specific sets of provisions for when programs are sold into “supplemental markets,” which are defined as “cassettes, pay-type CATV, or Pay Television” as well as “In-Flight.” “Cassettes” refer to any audiovisual device designed for replay on a home device, so it would include all home video types from VHS up through DVDs, Blu-Rays and any future technology designed for a similar purpose. Dubbing an English-language program into a non-English language to air on a free television broadcast station which primarily broadcasts in a language other than English is also considered a supplemental market. The historical standard payment for supplemental markets has been the “tiered formula,” in which a percentage of a certain base amount (as established by the length of the program) is paid once gross receipts from supplemental market distribution has reached certain tiers. However, a number of optional formulas also exist for payments based on Distributor’s Gross Receipts for sales into specific markets. These formulas include the “Optional Cassette Formula,” the “Optional Basic Cable and In-Flight Formula” and the “Optional Pay TV Formula.” The finer details of supplemental markets payments are too numerous to list in this toolkit. Please refer to the Local of jurisdiction or to the AFM for additional questions you may have on this topic.

Supplemental Markets. The Agreement also contains specific sets of provisions for when programs are sold into “supplemental markets,” which are defined as “cassettes, pay-type CATV, or Pay Television” as well as “In-Flight.” “Cassettes” refer to any audiovisual device designed for replay on a home device, so it would include all home video types from VHS up through DVDs, Blu-Rays and any future technology designed for a similar purpose. Dubbing an English-language program into a non-English language to air on a free television broadcast station which primarily broadcasts in a language other than English is also considered a supplemental market. The historical standard payment for supplemental markets has been the “tiered formula,” in which a percentage of a certain base amount (as established by the length of the program) is paid once gross receipts from supplemental market distribution has reached certain tiers. However, a number of optional formulas also exist for payments based on Distributor’s Gross Receipts for sales into specific markets. These formulas include the “Optional Cassette Formula,” the “Optional Basic Cable and In-Flight Formula” and the “Optional Pay TV Formula.” The finer details of supplemental markets payments are too numerous to list in this toolkit. Please refer to the Local of jurisdiction or to the AFM for additional questions you may have on this topic. AMERICAN FEDERATION OF MUSICIANS REPORT FORM FOR ALL VIDEOTAPE/LIVE TELEVISION/CABLE TV/PUBLIC TV‌ RPNo.