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Reportedly, the deal was possible because Simon Fuller who created
American Idol and the show's host Simon Cowell were able
to settle their differences. In the UK, Cowell produced a show X
Factor that Fuller argued was a clone of American Idol.
The two of them now say that they are friends and in fact the dispute
helped strengthen their relationship.
As part of the deal, Fox announced that it had reached an agreement
with Cowell that will keep the acerbic judge on the show for at
least five more seasons.
According to a Securities and Exchange Commission (SEC) filing
by CKX - the American Idol renewal calls for Fox to pay 19
Entertainment and Fremantle an additional $18 million (on top of
the show's regular seven-figure-per-episode license fee) for the
roughly 40 episodes of next year's season. In 2007, the premium
Fox will pay climbs to $21.5 million. This rises to $35.5 million
for the 2011 season should the show run that long.
.CKX had acquired 19 Entertainment and its rights to American Idol
earlier this year. It is hoping to capitalise on the increase in
the demand for globally recognised entertainment properties such
as American Idol, resulting from advances in personalised
distribution methods that allow consumers to exert greater control
over the timing and method of content consumption.
CKX believes that the best evidence of this trend are the new
agreements with Fox and Sony BMG and CKX's increased share of the
revenue produced by American Idol. CXK chairman and CEO Robert
F.X. Sillerman said, "We believe that the significant increase
in our economic share from American Idol under these new
agreements, and the unlimited potential offered by partnering with
Fox on internet rights and wireless platforms shows the increasing
value of content in a world of newly developing and more personalised
methods of entertainment distribution.
"These deals substantiate everything we believed when we chose
to focus on acquiring premier content and partnering with its creators.
With this important step behind us, we can now accelerate our plans
for additional growth from our existing properties and through additional
partnerships and acquisitions."
Fuller who besides creating American Idol is also 19 Entertainment
CEO said "We are extremely excited that Fox has recognised
the phenomenon of American Idol by providing the unprecedented
guarantee of at least four and up to six more seasons of the show.
"We look forward to working with Fox and our partners at Fremantle
to build upon the success of the show and expand the American
Idol content and brand into the evolving worlds of internet
and mobile content distribution. Simon Cowell has been a key component
in the incredible success of American Idol and I am delighted
to have reached an agreemen that will see this relationship continue
and grow over future years."
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