Unfair trade practice between tv broadcasters and contents providers have beenan issue for awhile. In order to determine whether a media contents salescontract is unfair, we need to establish the normal price of the contents. Ingeneral, there are thre...
Unfair trade practice between tv broadcasters and contents providers have beenan issue for awhile. In order to determine whether a media contents salescontract is unfair, we need to establish the normal price of the contents. Ingeneral, there are three ways of calculating the price of a certain item: costapproach, market approach, and profit approach. This paper argues that theprice approach to take should depend on whether copyright remains with theproducer or is transferred to the broadcasters. If intellectual rights aretransferred, then the producers should receive no less than all the costinvolved plus reasonable profit expected in the market. However, if the rightsremain with the producers, then the profit approach should be taken and thereshould be a reasonable division of profit between broadcasters and producers. Notably, this paper would like to argue that advertisements should beconsidered as the market price of the right to broadcast a certain mediacontents.