We don’t make projections anymore, unless we are paid to do so through our consultancy. The business is too subjective, and it has been a “buyer’s market” for many years now. Global advertising revenues were in their worst slump ever from 2000 through 2004, and well, at the moment we are trying to ride out the worst financial crisis since the Great Depression, and it’s a global crisis.
License fees have declined dramatically over the years, as the content business has become commoditized. There are fewer acquisition slots as media conglomerates became vertically integrated and moved production and copyright ownership in-house, and this is especially true in the mature television markets of North America, Europe and Japan.
Depressing? Sure. But if there is revenue for your program from the world’s media markets, we will find it. On our very best one-hour properties, programs with enduring international appeal and high production values, we have achieved over a $300,000 in gross sales over five or more years. On many properties (blue-chip one-offs or series) we have garnered $75,000 to $200,000 dollars in gross sales. But on still others we have “guessed wrong,” and have returned only a few thousand dollars in royalties to our producers, in some cases losing money when we were unable to recoup our entire promotional and marketing investment. But if we offer you a Distribution Agreement, it is because we think we earn revenue for your content, because after all, that’s how we make money too. Even if we cannot secure high-paying deals from top-tier broadcasters in major markets (Japan, UK, France, Germany), there are opportunities from mid-level markets like Spain, Italy, Holland, the Scandis, Australia, and from emerging territories like Russia, China, SE Asia, and Eastern Europe, and regional satellite channels. DVD revenues (both domestic and international), inflight airline deals and new media platforms all can bring additional revenue streams.
