Which of the following is NOT a purchase price structure?

• A. Flat Fee
• B. Budget-Based
• C. TV/Series Fee
• D. Royalties

Answer: (D)

Purchase price structures describe how a buyer pays to obtain rights upfront, not how the work is paid for over time. A flat fee is a single fixed amount paid to secure rights. Budget-based pricing ties the price to the production budget, still typically framed as an upfront cost. A TV/Series fee represents a payment to license rights for a show, usually agreed as part of the initial deal. Royalties, however, are not an upfront purchase price; they are ongoing payments calculated from ongoing exploitation of the work—a share of revenues or profits paid over time. That revenue-sharing nature makes royalties not a purchase price structure.