Commercial Affairs FAQ

Channel 5 currently has insurance (see programme finance section) and music (see Music Notes under Programme Management) for use by producers.

A draft production agreement is usually issued ASAP after PFC approval and provided all key terms have been agreed with the producer. For fully funded programmes, the producer will be asked to complete and return programme details and subject to any comments it may receive from the producer, signature copies will be issued. For co funded programmes, the process is the same with some additional requirements regarding details of the co-funding - please see Co-Productions.

This will vary, but essentially Channel 5 will cashflow a substantial proportion of the licence fee up to but excluding delivery payment subject to there being a signed production agreement and a trust account set up by the producer. Producers may request advances of cashflow under trust which will be discussed with the Commercial Affairs Representative and Programme Representative and if approved, a trust letter will be issued for an agreed amount as an advance of the licence fee. Details in setting up a trust account and Channel 5's standard payment schedule may be found in the Programme Finance section.

Legal and compliance queries related to the content of your programme, in the first instance should be addressed to the commissioning editor. Alternatively, contact Adrian Mitchell (Tel. 020 8612 7675 or adrian.mitchell@channel5.com) who will refer you to the appropriate lawyer. Rights queries should be directed to your Commercial Affairs Representative. (also see our Legal and Compliance section)

Prior to issuing a draft production agreement, the producer will need to provide details of its co-funding arrangements with Channel 5's Commercial Affairs Representative which will state: level of co-funding; rights granted to the third party including territories and licence period and any holdbacks. If these details are not available at this stage, key terms of co funding agreements should be sent to the Commercial Affairs Representative but the producer needs to be aware that a production agreement cannot be signed off until co-funding is in place.

Contract and copyright issues are normally dealt with by the Commercial Affairs Representative.

See PDF files of Channel 5's Technical Delivery Code and Presentation Specification, which may also be found under the Programme Management section. Note: It is important that all underlying rights agreements should be subject to Channel 5s broadcast requirements and, specifically, Channel 5's credit guidelines. The Presentation Specification covers fully-funded and co-funded programmes as well as reversioned programmes. Both of these documents are updated from time to time and should be reviewed closer to commission.

See PDF copies of Channel 5's Terms of Trade and Code of Practice (both of which are currently under review and discussion with OFCOM). See also the PDF copy of Channel 5's standard production agreement which is updated from time to time, although producers will be issued most up to date version on commission.

The Independent Producer Handbook should be your first port of call for advice. It is available online at www.independentproducerhandbook.co.uk. Producers may also order copies from Channel 5's legal department on 020 8612 7675 or adrian.mitchell@channel5.com

This will depend on the channel or channels the programme has been commissioned for, but by way of example, for fully funded programmes the minimum rights are usually: 3 (three) transmissions on Channel 5 with associated narrative repeats and a minimum of 2 (two) narrative repeats to be fully cleared and paid for and with a licence period of 3 (three) years. Part of these primary rights include a minimum of 30 (thirty) days up to 1 (one) year exclusive video on demand rights.

Revenue derived from VOD is based on terms agreed with Pact (see PDF file Channel 5 VOD Proposition March. With regard to programmes commissioned directly for a Channel 5 secondary channel (e.g. Fiver), the minimum period is usually 16 (sixteen) playweeks over 2 (two) years with a licence fee based on terms agreed with Pact plus reasonable clearance costs agreed with Channel 5 prior to expenditure.

Channel 5 is entitled to a share of net receipts from all of the revenue earned from the exploitation of non primary rights in accordance with Channel 5's Terms of Trade which is 15%(fifteen percent) of the producer's net receipts. The producer is required to report quarterly to Channel 5. Reports should be sent to Emma Derrick, Commercial Development Controller (Tel: 020 8612 7527 emma.derrick@channel5.com) or Cathy Sophocli, Commercial Development Executive (Tel: 020 8612 7529 cathy.sophocli@channel5.com)

Each commissioner has assigned to it a Commercial Affairs Representative (who will negotiate terms and issue a draft production agreement and trust letters) and Programme Representative (who primarily deals with budgets, cashflow payments, and trust account requirements). Producers will be informed of the representatives when the programme has been PFC approved.