There is no universal standard for how earnings payments are calculated. We can provide you with guidelines that will help you better understand the process. We are unable to provide specific details on Channel Payment schemes for contractual reasons. Also, if we published these it would give us less leverage in negotiating higher pay rates for you.

As a general rule, Filmhub enters into a master revenue share agreement with each channel. This allows channels to license more content and pay for what is watched. Because of our size, market presence, knowledge, and growth Filmhub is generally able to negotiate more favorable agreements than individuals or smaller distributors.

There are three basic ways that channels interact and are paid by their subscribers. This article will address each of these ways.

AVOD

AVOD stands for Advertising (or Ad based) Video on Demand. AVOD channels are free to consumers, but they need to watch advertisements. The channel generates its revenue through advertising that is shown before (pre-roll) and/or during (mid-roll) a view of your title. This advertising revenue is then split between the channel and the filmmaker (or rights holder).

How AVOD revenue is calculated

Generally AVOD rates are expressed in CPM (cost per thousand impressions). The CPM rate is multiplied by the number of CPM units. For example, 100,000 impressions at a $10 CPM would equal a $1,000 total price. With AVOD channels there are typically multiple ads shown on your title every time it is watched.

How AVOD revenue is allocated

There are two basic models for the allocation of AVOD revenue.

  • Individually: Payment is calculated based on the number of impressions watched during views of your title. (Impressions multiplied by CPM).

  • Collectively: All AVOD revenue for all titles is pooled and then allocated by the channel to each title based on the amount each title was watched compared to all titles.

SVOD

SVOD stands for Subscription Video on Demand. User pay a flat rate fee (usually monthly) to the channel. this allows the user to watch content on the channel.

How SVOD revenue is allocated

There are three basic models for the allocation of SVOD revenue.

  • Time Watched: Filmhub negotiates an hourly rate for titles watched on a channel. The channel then pays based upon how long each title is viewed. 

  • Pooled: The channel pools all subscription fees, which are then divided between the channel and content owners at a rate negotiated by Filmhub. The content owners' pool of money is then allocated to each title based on how much it was watched relative to all other titles. 

  • License Fee: Filmhub negotiates a flat license fee that allows a channel to license a title for a specific period of time (for example, one year). License fees are generally paid in installments.

TVOD

TVOD stands for Transactional Video on Demand. Users pay a TVOD channel for either the right to limited views (rental) or unlimited views (purchase). 

How TVOD revenue is allocated

Whether TVOD revenue is for a rental or for a purchase, the amount paid by the user is divided between the channel and the content owner based on rates negotiated by Filmhub.

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