In coming to a decision, arbitrator Bruce Friedman first determines that the audit settlement didn’t cover the claims over the BeFit videos. The earlier accounting dispute settled in 2014. However, that wasn’t the focus of an initial 2012 audit related to her profit participation statement. As of March 2016, Michaels had been paid $85,000 from BeFit. Lionsgate, according to the arbitrator’s findings of fact, began accounting for advertising revenues upon Michaels’ objection by incorporating them under the DVD sales line item. During that time, sales of Michaels’ DVDs declined and continued to decline through 2015 as views on BeFit continued to increase or stay steady.”
“From 2012 to 2013, views of BeFit content increased from 6.7 million to over 27.5 million. “It took some time for BeFit to gain traction,” writes the arbitrator in the decision. Lionsgate had a deal with Google that let it collect 55 percent of advertising revenue from BeFit, and unlike ETV (which went out of business), no subscriptions to access the content were required.
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Instead, Michaels made a deal with Gaiam, Inc., another company distributing fitness videos.Īround this time, trouble started brewing when Michaels began complaining how her videos were being featured for free on ETV, and later BeFit, Lionsgate’s fitness YouTube channel. They did well enough that Lionsgate wanted to extend her deal, offering $1 million plus a flat-rate royalty. BBC Names Chinny Okolidoh Director of Diversity and Inclusionīy 2010, the videos including 30 Day Shred, Yoga Meltdown and 6 Week 6 Pack Abs hit the market.
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