BBC Radio Independent Production Companies Terms of Trade New terms 2014

Introduction O Original terms – 2005 O New terms agreed with RIG in 2014 to update existing terms and grant new commercial rights to independent production companies and new public service rights to BBC O Updated terms for both indie and BBC- owned formats (ie normal and hybrid terms)

Indie-owned formats New rights for the independent production companies: CD/Downloads-To-Own (DTO) worldwide release immediately after first linear BBC tx instead of eight days afterwards Earlier release for radio/Audio-on-Demand in UK (previously no such release for full licence period permitted) in accordance with new audio release policy on bbc.co.uk: o 12 months for single commissions o 5 years for drama/comedy/music docs o Licence period where returning series

Indie-owned formats New rights for the independent production companies (2): Radio/AOD ex-UK release immediately after first linear BBC tx instead of eight days afterwards Commercial website/apps/social media opportunities enhanced subject to BBC approval to be given in a fair, reasonable and non-discriminatory manner in accordance with new clear guidelines published on bbc.co.uk. Guidelines to ensure public service propositions not undermined by indie commercial activities

Indie-owned formats New rights for the independent production companies (3): Ability to create audio-visual content: o Indie owns fully including commercial rights o Indie can exploit DVD/DTO worldwide (including UK) and TV sales ex-UK immediately after first BBC tx (on-demand is day 30) o Indie can commercialise on UK TV/VOD in accordance with the same holdbacks as the UK audio release policy but clips to TV stations may be able to be licensed earlier in certain instances o BBC receives 50% net revenue share post- recoupment of production cost o Subject to BBC approval and first option for TV o BBC granted digital PS rights in such material

Indie-owned formats New rights for BBC: On-demand catchup window extended to 30 days, but BBC also has right to include programmes in its archive in perpetuity UNLESS: o Comedy/drama/narrative history programming o Indie can evidence 3% of the licence fee as net revenue from commercial exploitation, at which point BBC will be obliged to take it down BBC right to podcast for 30 days unless: o Comedy/drama/narrative history programming o Indie can evidence 3% of the licence fee as net revenue from commercial exploitation, at which point BBC will be obliged to withdraw the podcast

Indie-owned formats New rights for BBC (2): Segment and chapterise programmes online Extra analogue transmission in Tier A, two extra digital transmissions in Tier B – Tier C (repeats) down from 10% of licence fee to 5% and local/nations usage down from 10% of licence fee to 5% Updated interactive deliverables including: o 1 photo per episode o Short, medium and longform summaries of the programme o Creation and publishing of podcast (BBC to provide appropriate tools and training) Inclusion of programmes in BBC provision to British Forces radio network

Indie-owned formats New rights for BBC (3): BBC right to include programmes in BBC Store – terms to be agreed in due course Full series stacking instead of previous 5 episodes limit BBC backend share of net revenue from indie commercial exploitation to remain at 30% unless indie is exploiting a new release window or right in which case it will be 50% just for that extra time/right.

BBC-owned formats (hybrid terms) O BBC to retain all PS rights in perpetuity, ownership of title, brand and format plus right to decide whether to re-tender or bring in-house BUT commercial rights now jointly owned O BBC can re-tender as follows: o The title/brand/programme but NOT any sufficiently distinctive creative elements brought to the programme by the indie unless it buys out those creative elements; or o BBC can decide not to re-tender and continue with the existing indie while retaining use of their new creative elements

BBC-owned formats (hybrid terms) O Commercial exploitation Commercial rights jointly owned Expectation that the parties will discuss and agree who is best placed to exploit but BBC solely entitled to exploit: o Entire network featuring the programme o Inclusion of programme in any BBC commercial service (global iPlayer, bbc.com etc) o BBC Store o Music (non-exclusively) in a BBC-branded music offer or under the BBC’s agreements with the labels o Exploitation of brand/title/format as a historic asset as opposed to the actual audio programmes

BBC-owned formats (hybrid terms) O Indie to receive 30% of net revenue unless: o Particular idea and exploitation is by the indie in which case it can increase to a maximum of 50% o Where exploitation is of brand/title/format as historic asset as opposed to the audio programme it will range from 0-50% depending on what is the exploitation and who does it

Independent Producers  Day 8 worldwide CD/DTO and ex-UK radio/AOD exploitation  Published audio release policy for UK radio/AOD (12 months single commission, 5 years drama/music doc/comedy, returning series after licence period)  Commercial online opportunities enhanced in line with published policy - approval given in a fair, reasonable and non-discriminatory manner  Ability to create audio-visual content that indie owns fully including commercial rights:  Same commercial exploitation holdbacks as audio (save that ex-UK VOD is day 30)  BBC receives 50% net revenue share post-recoupment of production cost BBC  On-demand and podcast windows now 30 days; permanent online archive and 30-day podcasting permitted unless comedy/drama/narrative history programming or 3% net revenue is evidenced  Extra analogue/digital txs and interactive deliverables, repeats and local/nations radio at 5% of the licence fee  Inclusion in BBC Store on terms to be agreed  Net revenue share remains 30% unless indie exploits one of their above new rights or release windows in which case it will be 50% just in respect of that extra time/right BBC-owned formats  BBC retains ownership of title/brand/format but commercial rights now jointly owned  BBC can either re-tender the title/brand/format (but not any sufficiently distinctive creative elements brought to the programme by the indie unless it buys out those creative elements) or not re-tender and continue with the existing indie while retaining use of their new creative elements  BBC solely entitled to exploit brand/title/format as a historic asset as opposed to the actual audio programmes  Indie to receive 30% of net revenue unless idea and exploitation is by the indie (up to 50%) or exploitation is of brand/title/format as historic asset as opposed to the audio programme (0-50%)