• by David Goetzl , March 5, 2008

Fox's agreement with the owner of the "American Idol" franchise gives the network the right to continue airing the series through 2011.

Under the terms of a 2005 deal between Fox and 19 Entertainment (now owned by the Robert Sillerman-headed CKX), the network will carry the series in 2009--and if minimum ratings levels are reached, will continue with it for the following two seasons, according to an SEC filing.

Ratings have been down this year, and although unlikely, if the undisclosed minimums aren't met, Fox apparently could move to renegotiate its terms with 19 Entertainment to continue carrying the show past next season. In any case, it appears a new deal will need to be cut if Fox opts to continue with the series past 2011.

FremantleMedia is also a party in the agreement; it receives a license fee from Fox for each hour of "Idol" broadcast each year. Fox pays the salaries of the judges and the show's host.

According to the 2005 deal, on top of the license fees, Fox pays a bonus based on "Idol's" ratings and performance in the 18-to-49 demo, the SEC filing said. Details of the deal were included in CKX's annual report filed with the government on Tuesday.

Fox's costs of carrying the show are apparently increasing, according to the filing--with 19 Entertainment reporting a $41.7 million jump in revenue in 2007. There were 49 hours of "Idol" on Fox in 2007, up from 45 in 2006. The four additional hours brought 19 Entertainment an additional $5 million in revenue--that's $1.25 million an episode.

But the per-episode rights fees Fox pays are likely to be considerably higher--perhaps double--since 19 Entertainment shares those fees with Fremantle.