VOD service

VOD is a paid video-on-demand service divided into subscription-based and monthly fee-based services. 

The royalty for the use of music works in paid VOD services is calculated either on the basis of the revenue generated from subscribers or on the basis of the number of subscribers and the number of times viewed, depending on which is higher. The level of the licence fee depends on the purpose of the content. 

T-VOD (subscription-based digital video on demand)

Purpose of the content	Share of revenue (%)	Minimum price per viewing
Entertainment	3,5%	0,04 €
Mostly entertainment	3%	0,03 €
Theatrical performances	3%	0,03 €
Mixed content	1,75%	0,02 €
Mostly sports	1,25%	0,02 €
Sports, news, current affairs	0,65%	0,01 €

S-VOD (subscription-based digital video on demand)

Purpose of the content	Share of revenue (%)	Price per subscriber
Entertainment	3,5%	0,16 €
Mostly entertainment	3%	0,13 €
Theatrical performances	3%	0,13 €
Mixed content	1,75%	0,08 €
Mostly sports	1,25%	0,06 €
Sports, news, current affairs	0,65%	0,03 €

The EAÜ is entitled to reduce the price per subscriber in cases where the price of the S-VOD service for subscribers is significantly below the market average, and instead of paying a percentage of the revenue based on the purpose of the content, the service provider would have to pay a licence fee on a fixed price per subscriber. At the same time, the reduced price per subscriber may not be less than 80% of the fee calculated on the basis of the percentage of revenue based on the purpose of the content.

Explanation of the purpose of the content in the VOD service

Entertainment – nearly 100% of content is intended for entertainment purposes (films, series, children’s shows) and includes a significant proportion of music. 
Mostly entertainment – includes other content besides entertainment (e.g. documentaries, current affairs, sports), but entertainment accounts for at least 60% of the content of the service. 
Theatrical performances -–recordings of theatrical performances made available through digital video on demand. 
Mixed content – contains a wide variety of content of which less than 60% is entertainment. 
Mostly sports – sports broadcasts account for nearly 100% of the service. 
Sports, news, current affairs – includes other content besides sports, news and current affairs, but these programmes represent at least 60% of the content of the service. 

The content of the service will be negotiated or determined by the service provider on the basis of the usage report submitted to the EAÜ. 

EAÜ consultant