The Eye: Video Producers Issue Rider To Ensure Prompt Payment

MVPA OUTLINES INDUSTRY STANDARDS: One of the dirty little secrets in the music video industry is that there's often a tense relationship between record companies and the production companies they hire to make music videos. Perhaps the biggest complaint that production companies have is about payment: Production companies say that record companies often don't send them payment for their work in a timely manner and/or the production companies aren't properly compensated for their expenses.
The Music Video Production Assn. (MVPA), the nonprofit organization that represents music video production companies, has decided to take action by issuing a new rider to music video contracts that outlines industry standards for music video production. Record companies will be receiving this new rider by the end of January, says MVPA president Catherine Finkenstaedt.
"The music video industry has been operating under this antiquated formula," adds Finkenstaedt, an executive producer at A Band Apart Music Videos, whose recent credits include videos from Ricky Martin, Britney Spears, and Destiny's Child.
"So much of what goes on is based on good faith and a handshake," she adds, "but things have changed since the early '80s, when a typical video would cost only $35,000. Now we're making videos for millions of dollars, and the MVPA is adapting to this change by putting in writing what we feel are acceptable operations."
Following are some of the standards that will be required by the MVPA:
€ Compensation for "overages" (approved expenses that run over the initial budget), to be paid no later than 30 days from the date of approval.
€ A payment schedule in which an initial 50% of the approved video budget is either paid no later than five days before the first day of shooting or upon the production company's execution of the contract, whichever comes first. Of the approved remaining budget, 25% should be paid upon completion of principal photography, and the final 25% should be paid within 10 days of delivery of final materials.
"That's typically how it's done anyway," says a major-label video production staffer who asked not to be identified. "If production companies don't get paid on time, it could be for any number of reasons: The edits weren't done properly or they didn't uphold their end of the bargain."
Elektra Records VP of video production Gina Harrell says, "We don't have payment problems with production companies. We require that they give us all of the backups and invoices. We can't pay until we get these materials."
Finkenstaedt says, "Unfortunately, there are too many record companies that treat production companies as lending institutions. There's a lot of miscommunication that leads to these problems, and this [rider] is supposed to be a clarifying document."
She admits that it may take a while before things improve: "We may have to put some screws on record companies that don't follow these guidelines. I can't say it will necessarily lead to legal action, but record companies need to know that we're serious about people conducting business by these standards."
In other MVPA news, the organization has a new address: Suite 104, 940 North Orange Drive, Hollywood, Calif. 90038. MVPA's E-mail address is still musivideo@aol.com.
The MVPA is also accepting entries for its ninth annual MVPA Awards. The deadline is Feb. 4. The entry fee per video is $25 for MVPA members and $50 for nonmembers. The awards show will be held April 7 at the Directors Guild in Los Angeles.
LOCAL SHOW SPOTLIGHT:This issue's spotlight is on the Bayonne, N.J-based R&B/hip-hop program "Club Video Expo."
TV affiliate: Comcast Cable in various New Jersey markets.
Time slots: 9-10 p.m. Fridays; 10 p.m.-midnight and 2 a.m.-4 p.m. Saturdays.
Key staffer: Jesse Simpson III, PD.
E-mail address: clubvideoex
po@aol.com.
Following are the show's top five videos for the week ending Jan. 8:
1. DMX, "What's My Name" (Ruff Ryders/Def Jam).
2. LL Cool J, "Shut 'Em Down" (Warner Sunset/Atlantic).
3. E-40, " Big Ballin' With My Homies" (Jive).
4. Trick Daddy, "Boy" (Slip-N-Slide/Atlantic).
5. Lexi, "I'm A Winner" (Real Deal).