Media content/IP distribution valuation approaches
Hi all, not a banker, but joining a corporate team where part of the role is supporting negotiations related to content/IP rights purchasing/payout structures (think situations like Netflix paying out a lump sum to NBC for distribution rights to The Office + a payout each time an episode of The Office is viewed. No idea if this is the actual fee structure between Netflix & content owners, but this is broadly the structure of deal I'd be working with).
Any of you have experience advising these types of deals, particularly on the content owner side? Generally I'm seeking to be able to quantitatively approach answering questions like the below:
- If a distributor licenses our content, we anticipate this to improve that distributor's capability to capture subscribers. What kind of impact on their top line could it have?
- Based on that, how much $ should we ask for this distributor to pay us on a fixed or variable basis?
Are there any particular modeling approaches you took on transactions like these? Any broad guides, anonymized models, etc. that anyone would be able to share? Thanks!
Hey shmalo72, what a lonely thread. I'm here since nobody responded ...so maybe one of these discussions will help:
More suggestions...
Hope that helps.
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