UK producer body Pact and Paramount’s 5 sign up to new terms of trade

UK producers’ association Pact and Paramount-owned terrestrial broadcaster 5 have agreed to new terms of trade, effective from this week.

Max Rumney

The terms apply to 5’s unscripted public service broadcasting commissions from qualifying independent production companies.

The two organisations say the updates “will deliver greater clarity for producers and greater flexibility for 5 to address evolving audience needs across platforms as it accelerates its growth in streaming.”

The new terms say the initial licence period for primary, secondary and streaming rights will be set at three years, meaning producers will receive some extension fees one year earlier than previously.

Producers will retain 100% of international sales revenue, up from 85% under the current agreement.

A fixed-percentage fee model, based on the cost of production, will be introduced for additional packages, enabling exhibition across Paramount’s UK portfolio, including Comedy Central and Paramount+.

A new mechanism will also allow producers to recoup deficit funding via UK sales earlier than previously permitted, while 5’s grant of rights and exclusivity will have parity across streaming and broadcast.

Incremental fees associated with streaming exploitation of commissions will be removed.

Max Rumney, deputy CEO and director of legal and business affairs at Pact, said: “After over 20 years since the implementation of the terms of trade, this new agreement shows that they remain fit for purpose and can be adaptable for both broadcasters and producers.”

James Tatam, senior VP of business and operations at 5, added: “The new terms of trade reflect 5’s move to a platform-neutral model and offer greater flexibility across the wider Paramount portfolio. As 5’s streaming offering continues to grow, we will continue to work closely with Pact and our independent production partners in a mutually beneficial way.”