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Old 10-07-2009, 15:48   #1733
TheDon
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Re: Coming Soon to Virgin TV (2009)

Quote:
Originally Posted by Andrewcrawford23 View Post
Size has nothing to do with it, you could have a very small £100 deal that coudl take years to settle or you could have £100billion deal that could months there no comparison when ti comes to size.
Indeed, complexity has nothing to do with size, and I'd like to see an example of a more complex deal than a carriage deal.

I've been involved in tenders for defense contracts, and they were essentially quite simple, despite being for huge amounts. All that it came down to was how you were going to deliver what was required, how long it'd take you to do so, and how much it was going to cost. Throw in some fines for breaching the agreed limits on those and you've got yourself a contract.

There's far more than just two parties involved in a carriage deals, there is the broadcaster (who want to pay as little as possible), the channel (who want to get as much as possible), the rights holders (who want more money if their programs are seen by more people and the channel are gaining more money for them), advertisers (who want their ad space as cheap as possible whilst the channel wants them to pay more for more viewers), and even other broadcasters (who could have terms in their contract requiring renegotiation and price matching if the channels appear on other platforms). It is in all likelyness a case of going back and forwards between all of them to come to an arrangement, and when everyone is only interested in protecting their bottom line then getting to an agreement that is right for everyone can take a LONG time.
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