American Idol: After The Show

"American Idol" has developed into a formidable cash machine during the last five years, but sorting out who gets what when it comes to cash and control remains a tangled thicket of deals between 19 Entertainment and its various business partners. Billboard sorts out the situation.

THE BRAND

As much as two-thirds of the "Idol" brand is owned by 19, started by Simon Fuller, but bought in 2005 by CKX Inc., the public company owned by billionaire media investor Robert F.X. Sillerman. Another third belongs to Freemantle Media, a TV production company owned by Bertelsmann's RTL. The two companies control "Idol" merchandizing rights around the world.

ARTISTS

The top 24 contestants sign a deal that gives 19 the option on recording, management and merchandising rights. Finalists are also contractually obligated to participate in the American Idols tour that follows the show. The contestants jointly retain a single attorney, selected by the show, to represent all of them and negotiate their deal with 19. Artists who are ultimately optioned by 19 sign a three-album deal (terms not known). Freemantle also participates in a minority share of the winner's recorded music revenue. As for the management option, Fuller says that, when it's exercised, it's a three-year deal. "Idol" vets Carrie Underwood, Chris Daughtry and Fantasia are currently managed by Fuller. Other acts have opted to go elsewhere for representation after the option expired.

RECORDING RIGHTS

19 finds a home for the winner and any signed finalists within the Sony BMG system in the United States, and licenses marketing, manufacturing and distribution rights to a Cowell production company owned by Sony BMG called Simco. —BG