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A Study of the risk and reward structure in the copyright contract between terrestrial broadcasting and production company

방송사와 외주제작사간 저작권계약에 나타난 위험과 보상구조 연구

  • Lee, Chi Hyung (Dept. of Advertising and Public Relations, Pyeongtaek University)
  • 이치형 (평택대학교 광고홍보학과)
  • Received : 2013.08.07
  • Accepted : 2013.10.20
  • Published : 2013.10.28

Abstract

Broadcaster and production studio inevitably take the risk in Korea because the outsourced drama is contracted before produced. However, it is important for both parties to share risk and reward. This study seeks to assess the fairness of the copyright contract between broadcaster and production studio by examining whether they both have the balanced risk and reward structure. For the study, revenue and cost elements with their amounts are identified, which come from TV commercials, oversea sales, the secondary windows, sponsorship, and product placement. Next, the revenue and COGS (Cost of goods sold) of broadcaster and studio are estimated for both cases of when drama becomes successful or not. The analysis reveals that the current copyright agreement allows broadcaster hold low risk but high reward whilst production studio takes high risk low reward. However, the result doesn't imply that government intervention is justified because demand and supply determine the negotiation power in a free economy.

Keywords

Outsourced drama;risk and reward;copyright;government intervention;free economy