Future of TV Briefing: What it costs brands to fund long-form creator series
This week’s Future of TV Briefing looks at the economics behind brands sponsoring creator-led long-form original video series.
This week's Future of TV Briefing explores the financial aspects of brands sponsoring creator-led long-form original video series. The costs for such a series can range from $150,000 to $5 million, depending on factors like episode count and ownership. A six- to seven-figure investment may seem steep, but with platforms like YouTube, Instagram, and TikTok highlighting serialized shows, brands are increasingly treating creators as creative collaborators rather than mere media properties.
A recent study by LTK and Northwestern University found that 57% of brands aim to generate content through their creator campaigns. While generating content is typically seen as a given when hiring creators, the shift lies in brands looking to maximize content from the creators beyond social platforms. This often involves producing long-form series, which can average between $300,000 to $500,000 in costs.
To adjust these costs, brands can modify episode count, IP ownership, or other factors. Ownership is a contentious aspect, as it depends on the creator's retained rights and the studio's stake. Brands may opt for a 60-40 or 70-30 ownership split in favor of the creator. The brand's cut, whether or not they own the IP, is then re-evaluated.
If the series succeeds and additional seasons are produced, the brand can re-engage in IP ownership discussions. While some brands might be hesitant to fully invest in IP due to the long-term payoff, the studio approaches this by utilizing a model similar to brand deals with talent and traditional brand integrations, providing more flexibility.
Written by urgent.news from Digiday's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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