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Old October 26th, 2006, 10:21 AM   #1
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Stock footage typical royalty percentage?

A stock footage provider is interested in carrying my HDV underwater video footage and charging their clients 20-45 euro per second for it. They want exclusivity on the particular clips. What would be a typical royalty percentage (or flat fee) payable to the creator in this case?
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Old October 26th, 2006, 09:11 PM   #2
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The average is 50% for both parties per transaction meaning if the exclusivity is for 1 to 2 years and the same footage got sold for about 20 times both parties get an equal amount of money.

It seams as if the company is only rights based because companies that want exclusivity for at least 1 year usually is. These are the type of companies that prefer exclusive content over footage that is sold to many stock footage companies. Royalty free companies are the opposite meaning they can care less if you already done business with other stock companies. You obviously get a lot less freedom using a rights based company but you have the potential to make a lot more money doing it this way.

How long is your contract with them for the exclusivity?
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Old October 27th, 2006, 12:01 AM   #3
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5 years

Thanks for the reply Paulo.

They want a 5 year exclusivity agreement. Sounds like 40% is a low offer in this case, right?

There is another company I have talked to who offer 50%, but they charge a setup fee for encoding the footage and getting it online etc..

I have a huge DV (SD) archive but I'm just getting started with HDV, and it's HDV they're interested in. I am likely to get a number of very similar clips (e.g. manta rays) so I could give these companies exclusivity on the particular clip, but they would be competing with each other, and with my own website, for footage of that type. I don't think I'm going to offer exclusivity on my very best stuff, at least not until these stock companies have proved they can sell my stuff.
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Old October 27th, 2006, 10:03 AM   #4
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I have done extensive research on several of the stock footage companies that use user submitted footage and the best one that I know that is for underwater footage is http://www.oceanfootage.com/. It’s similar to the second one that you mentioned but it’s based in the United States. With this company you have the freedom to set your own price. Commission is 50%.

Even though the second company that you mentioned and the one that I mentioned charges you to have the clips prepared its still best to use a company like that because you may want to change companies after 1 to 2 years and if you have a 5 year contract, you may get severely penalized.

HDV is starting to be the bare minimum standard for most of the stock footage companies because a lot of productions are only buying HD stock footage and since you can easily find DV footage all over the place, HD footage can be charged a whole lot more money. Also footage such HD CAM or DVCPRO-HD gets higher prices than HDV. This company will gladly accept DV footage https://www.pond5.com/ but it’s a royalty free company meaning the buyer has the right to use the same clip in several projects but you still set your own price and as I said already you are allowed to sell the same footage elsewhere so you can basically sell DVDs with the same footage on your own website without any hassle. This company is also based in the United States and they take 50% commissions.

Sorry that I haven’t done that much research in European companies even though the first company that I started researching was form the Netherlands but I tried emailing that company last year and they never responded to me.
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Old October 27th, 2006, 10:50 AM   #5
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Quote:
Originally Posted by Nick Hope
They want a 5 year exclusivity agreement. Sounds like 40% is a low offer in this case, right?
Unless the company have very good clients and is very well known then maybe but the company sounds like they are asking for too much. If its 60% for you and 40% for the company than thatís a different story. See if they are willing to do at least 50 50.
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Old November 4th, 2006, 04:55 PM   #6
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If anybody is using Pond5.com because of me, than please tell the company. I just realized that Pond5.com once offered referral awards. I hope they still do.
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