Tundra
June 27th, 2009, 10:19 PM
By jwillis81 (http://www.imdb.com/board/bd0000019/flat/38038138)
on IMDB
(Posted with Permission)
Since there are always several questions at any given time about selling scripts, what the process is, etc., I thought I would start a post that will give everyone an idea of what to expect from the industry. I called this post ‘Reality Check’ because, in all likelihood, that’s going to be the first check you’ll get in this industry.
The thing that needs to be understood, first and foremost, is that production companies are like any other company… they want to make money. If they don’t make money, they can’t pay the bills. If they can’t pay the bills, they can’t continue to operate. People can complain and whine and moan all they want about the types of movies Hollywood makes, or how good writers aren’t given a fair chance, but the fact of the matter is, Hollywood makes its decisions based upon what works or has worked in the past. They make the best financial decisions they can, just like the rest of us do.
With that in mind, here’s the typical process of getting a motion picture made:
STEP 1: FINDING A GREAT SCRIPT
The first thing any company needs is a great script upon which to base their great project. This script can be found a variety of ways. It could be found by the development department, which reads through hundreds or even thousands of scripts every month. It could be found by an executive or other employee who, through their network of contacts, came across a great property and brings it to the company. It could be found hearing a pitch from established writers. Or, again, based on the company’s network of contacts, a company or individual with some drawing power can pitch the project in hopes that the company will share the risks and rewards of producing the picture. However it’s done, finding a great script is the first step.
STEP 2: ACQUIRING THE SCRIPT
The next thing the company needs to do is acquire the script. If it’s a previously established project (spec script, based on existing material, etc.), rights need to be obtained. If it’s a new project (original pitch, idea an executive came up with, etc.), a writer just needs to be hired.
Money is paid for creative work in two ways… as an option or as a purchase. A purchase is an outright sale of the material from the owner to the company. The papers are signed, money changes hands, and the material is then owned, now and forever, by the company. It’s just like a purchase at the grocery store. You give them money and the groceries are then yours to do with as you will. An option, on the other hand, is like a lease. It’s a lesser amount of money given in order to “own” the material for a predetermined amount of time. Just like a lease on a car, it’s a way of being allowed to use something, without necessarily having to pay the money to own it outright.
Now this bears saying… in 99% of all situations, your material will be optioned before it’s purchased.
What that means is that you, as a writer, will most likely NOT get the full purchase price up front. You’ll likely be given a small percentage of that so the company can own your material for a period of time. The reason the company does this is because there are a million and one reasons why a project won’t get made (to be detailed below). As a way of minimizing their financial risk, the company will option a script instead of buying it, so in the event the project falls through, they’re only out a little bit of money, rather than the entire purchase price.
There are a LOT of factors that go into determining an option, but let’s look at a basic example:
A production company loves your script. They tell you they’ll buy it for $100,000. But before they buy it, they want to option it, to see if they can get the project off the ground. So they say, “We’ll give you $5,000 for a twelve-month option.” What that means is that they’ll pay you $5,000 now. In return, they own your screenplay for the next twelve months. You can’t sell it, shop it around, or do anything with it… it’s theirs. BUT, at the end of those twelve months, the company either has to give you the rights to your script back (and you keep the $5,000), or pay you the remaining $95,000 of the purchase price to buy it. The reason they do this is because, as stated above, if they can’t get studio, distributor, director, actor, etc. interest in those twelve months, it’s easier to say, “Keep the five grand and here’s your script back,” than it is to say, “Wow, we just wasted a hundred grand and now own the rights to a script no one wants to make.”
Many writers see this as a disadvantage. After all, they’re only getting a fraction of the money instead of the full purchase price. But there is a silver lining… first, you’re getting money for just sitting around (you got that $5,000 and don’t have to do any work on the project). Second, you have the script back, which, once you have it back, you can send out to other companies, which, IMO, is much better than to have it sit at a company who clearly can’t get it made. And hey, you made $5,000 off someone!
Keep in mind, too, that once you sell your work to someone, they become the new owner. They can do anything they want with the material, since it’s theirs. They can hire a new writer to change it, let it sit on their shelves forever, or refill the toilet paper dispenser in the bathroom with it, if they so choose. It’s theirs, and you, as the original writer, no longer have any claim to it. That’s why it’s important that the Option/Purchase Agreement you sign specifically outlines ANY and ALL things you want. Because outside of that agreement, the company doesn’t owe you anything. But contract terms and negotiation is a whole separate thread.
STEP 3: DEVELOPING THE SCRIPT
In most cases, the production company will want to change elements of the script. Maybe they want the lead to be twenty-five instead of forty-five. Maybe their audience is older, and want your script to be more adult and more graphic. Whatever the reason (and there are endless reasons), chances are the script will change, possibly a great deal.
This is why it’s important to be professional, courteous, and understanding as a writer. These changes are GOING to be made; they don’t necessarily have to be made by the original writer. So if you’re willing to work with the company and give them the script they want, you might make some extra money by way of rewrites and polishes. But if you’re going to be a stickler for your original script and refuse to make their requested changes, it’s very easy for them to boot you off the project and hire a writer who WILL make the changes. There are plenty of struggling writers out there who wouldn’t bat an eyelash at gutting someone else’s script for $10,000 and six weeks’ work.
The bottom line is that the company is who gets this picture made. That means they’re going to make the picture they want to make, or they’re going to abandon it. The more willing you, as a writer, are to helping them make the movie they want to make, the more likely you’ll continue to work with them, and continue to be paid by them.
STEP 4: ATTACHING ELEMENTS
These days, just having a great script isn’t enough anymore. Investors want a guaranteed return on their money. Although nothing’s ever guaranteed, that risk is minimized by, for example, attaching a star actor to play the lead, or a well known director to helm the picture. Once the company has a script they want to make, and owns the rights, they have to get people interested in the script, and get them to commit to the project.
This is a long, drawn-out process. Talent doesn’t want to attach to a project without the money in place (because they don’t want to be obligated to a picture that is going to take forever to get made), but the money often won’t be available without an attractive proposal, which includes attached talent. Most often, these negotiations take the form of the actor, for example, saying, “Okay, I’ll do it, but only if you can get half the movie funded first,” while the investor or studio says, “Okay, I’ll give you the money, but only if so-and-so actor agrees to be in it.” And, if things go well, in what can only be described as a blind luck miracle of opportunity, both parties will agree, and you’ll get both the money and the talent attached.
The process of attaching talent and balancing raising the money is very tricky, and if things aren’t timed well, there’s a good chance it’ll fall through. This first obstacle to getting a movie made is why companies option scripts instead of buying them. If they can’t finagle that magical window where the investor and the talent are both happy, the project probably won’t get off the ground. And then it becomes a decision of whether to keep pushing forward, or to cut the losses and give the script back to the writer.
STEP 5: RAISING THE MONEY
This is the second obstacle to getting a picture made. Once talent is attached and some money is in place, the company has to get ALL the money for production. Most companies don’t have those kinds of assets on hand, or at least don’t want to risk taking out a sizeable chunk of their net worth by backing only one project (something about eggs being in one basket...). So, in most cases, companies will co-finance pictures together with outside investors, whether they’re individuals or other companies.
These negotiations also have to succeed, and a partnership has to be formed in order for the money to be available for production. If the company can’t agree with the investors and no agreement is signed, there’s no money and the project is scrapped (or stalled while they look for money elsewhere). At this point, the company still needs to be able to cut its losses with the script, which is again why they option before they buy.
STEP 6: FINDING DISTRIBUTION
The last step that a company worries about, in terms of setting up a project, is finding distribution for the film. It doesn’t matter if it’s a theatrical release or straight to video, most companies need to find someone willing to put up the money to get the picture made and distributed to theaters, retailers, etc. Again, this is another situation where the company has to enter into an agreement with a distributor, and why they option the script instead of buying it. If no distributor will back the film, they’re better cutting their losses on the script than paying the full purchase price for a script that no one will distribute.
STEP 7: FINALLY! THE SALE!
If Step 1 through Step 7 goes well and everything is in place, the picture is ready for pre-production. This is usually the point where the movie is ready to be made and will, barring any production or post troubles, be made. Since everything is in place, and the picture is a go, they will purchase the script from the writer to establish their ownership of the material. This is when the writer will get that big fat check for the screenplay, and sign it over forever to the care of the company.
The above process, even when everything goes smoothly, can take months, or even years. That’s why it’s so important that aspiring screenwriters understand that this is not a “get rich quick” business. Yeah, a lot of money trades hands, and the high profile sales are touted by numerous sources, but it’s certainly not a situation where someone dropped off a script with a production company and got a $200,000 check a week later. It’s a very slow-moving process, and, as you can hopefully see above, there’s a reason it moves so slowly. A lot of elements have to come together in order for a picture to be successful. Hollywood is like any other business… it may spend a lot of money on writers and other talent, but that money’s not going to be spent without having a product to show for it. That can take a very long time.
Hopefully after reading this post, some of you will have a better understanding of the process, and why it can take so long to get that big paycheck we’re all hoping for. The business drives everything… and when we understand the business of making movies, we can better prepare ourselves for the reality that surrounds our career choice. There’s so much hype and misconception surrounding this industry; it’s the writers who are realistic about their expectations and understand why things work the way they do that will stand the best chances of success.
Good luck to all of you with your writing.
on IMDB
(Posted with Permission)
Since there are always several questions at any given time about selling scripts, what the process is, etc., I thought I would start a post that will give everyone an idea of what to expect from the industry. I called this post ‘Reality Check’ because, in all likelihood, that’s going to be the first check you’ll get in this industry.
The thing that needs to be understood, first and foremost, is that production companies are like any other company… they want to make money. If they don’t make money, they can’t pay the bills. If they can’t pay the bills, they can’t continue to operate. People can complain and whine and moan all they want about the types of movies Hollywood makes, or how good writers aren’t given a fair chance, but the fact of the matter is, Hollywood makes its decisions based upon what works or has worked in the past. They make the best financial decisions they can, just like the rest of us do.
With that in mind, here’s the typical process of getting a motion picture made:
STEP 1: FINDING A GREAT SCRIPT
The first thing any company needs is a great script upon which to base their great project. This script can be found a variety of ways. It could be found by the development department, which reads through hundreds or even thousands of scripts every month. It could be found by an executive or other employee who, through their network of contacts, came across a great property and brings it to the company. It could be found hearing a pitch from established writers. Or, again, based on the company’s network of contacts, a company or individual with some drawing power can pitch the project in hopes that the company will share the risks and rewards of producing the picture. However it’s done, finding a great script is the first step.
STEP 2: ACQUIRING THE SCRIPT
The next thing the company needs to do is acquire the script. If it’s a previously established project (spec script, based on existing material, etc.), rights need to be obtained. If it’s a new project (original pitch, idea an executive came up with, etc.), a writer just needs to be hired.
Money is paid for creative work in two ways… as an option or as a purchase. A purchase is an outright sale of the material from the owner to the company. The papers are signed, money changes hands, and the material is then owned, now and forever, by the company. It’s just like a purchase at the grocery store. You give them money and the groceries are then yours to do with as you will. An option, on the other hand, is like a lease. It’s a lesser amount of money given in order to “own” the material for a predetermined amount of time. Just like a lease on a car, it’s a way of being allowed to use something, without necessarily having to pay the money to own it outright.
Now this bears saying… in 99% of all situations, your material will be optioned before it’s purchased.
What that means is that you, as a writer, will most likely NOT get the full purchase price up front. You’ll likely be given a small percentage of that so the company can own your material for a period of time. The reason the company does this is because there are a million and one reasons why a project won’t get made (to be detailed below). As a way of minimizing their financial risk, the company will option a script instead of buying it, so in the event the project falls through, they’re only out a little bit of money, rather than the entire purchase price.
There are a LOT of factors that go into determining an option, but let’s look at a basic example:
A production company loves your script. They tell you they’ll buy it for $100,000. But before they buy it, they want to option it, to see if they can get the project off the ground. So they say, “We’ll give you $5,000 for a twelve-month option.” What that means is that they’ll pay you $5,000 now. In return, they own your screenplay for the next twelve months. You can’t sell it, shop it around, or do anything with it… it’s theirs. BUT, at the end of those twelve months, the company either has to give you the rights to your script back (and you keep the $5,000), or pay you the remaining $95,000 of the purchase price to buy it. The reason they do this is because, as stated above, if they can’t get studio, distributor, director, actor, etc. interest in those twelve months, it’s easier to say, “Keep the five grand and here’s your script back,” than it is to say, “Wow, we just wasted a hundred grand and now own the rights to a script no one wants to make.”
Many writers see this as a disadvantage. After all, they’re only getting a fraction of the money instead of the full purchase price. But there is a silver lining… first, you’re getting money for just sitting around (you got that $5,000 and don’t have to do any work on the project). Second, you have the script back, which, once you have it back, you can send out to other companies, which, IMO, is much better than to have it sit at a company who clearly can’t get it made. And hey, you made $5,000 off someone!
Keep in mind, too, that once you sell your work to someone, they become the new owner. They can do anything they want with the material, since it’s theirs. They can hire a new writer to change it, let it sit on their shelves forever, or refill the toilet paper dispenser in the bathroom with it, if they so choose. It’s theirs, and you, as the original writer, no longer have any claim to it. That’s why it’s important that the Option/Purchase Agreement you sign specifically outlines ANY and ALL things you want. Because outside of that agreement, the company doesn’t owe you anything. But contract terms and negotiation is a whole separate thread.
STEP 3: DEVELOPING THE SCRIPT
In most cases, the production company will want to change elements of the script. Maybe they want the lead to be twenty-five instead of forty-five. Maybe their audience is older, and want your script to be more adult and more graphic. Whatever the reason (and there are endless reasons), chances are the script will change, possibly a great deal.
This is why it’s important to be professional, courteous, and understanding as a writer. These changes are GOING to be made; they don’t necessarily have to be made by the original writer. So if you’re willing to work with the company and give them the script they want, you might make some extra money by way of rewrites and polishes. But if you’re going to be a stickler for your original script and refuse to make their requested changes, it’s very easy for them to boot you off the project and hire a writer who WILL make the changes. There are plenty of struggling writers out there who wouldn’t bat an eyelash at gutting someone else’s script for $10,000 and six weeks’ work.
The bottom line is that the company is who gets this picture made. That means they’re going to make the picture they want to make, or they’re going to abandon it. The more willing you, as a writer, are to helping them make the movie they want to make, the more likely you’ll continue to work with them, and continue to be paid by them.
STEP 4: ATTACHING ELEMENTS
These days, just having a great script isn’t enough anymore. Investors want a guaranteed return on their money. Although nothing’s ever guaranteed, that risk is minimized by, for example, attaching a star actor to play the lead, or a well known director to helm the picture. Once the company has a script they want to make, and owns the rights, they have to get people interested in the script, and get them to commit to the project.
This is a long, drawn-out process. Talent doesn’t want to attach to a project without the money in place (because they don’t want to be obligated to a picture that is going to take forever to get made), but the money often won’t be available without an attractive proposal, which includes attached talent. Most often, these negotiations take the form of the actor, for example, saying, “Okay, I’ll do it, but only if you can get half the movie funded first,” while the investor or studio says, “Okay, I’ll give you the money, but only if so-and-so actor agrees to be in it.” And, if things go well, in what can only be described as a blind luck miracle of opportunity, both parties will agree, and you’ll get both the money and the talent attached.
The process of attaching talent and balancing raising the money is very tricky, and if things aren’t timed well, there’s a good chance it’ll fall through. This first obstacle to getting a movie made is why companies option scripts instead of buying them. If they can’t finagle that magical window where the investor and the talent are both happy, the project probably won’t get off the ground. And then it becomes a decision of whether to keep pushing forward, or to cut the losses and give the script back to the writer.
STEP 5: RAISING THE MONEY
This is the second obstacle to getting a picture made. Once talent is attached and some money is in place, the company has to get ALL the money for production. Most companies don’t have those kinds of assets on hand, or at least don’t want to risk taking out a sizeable chunk of their net worth by backing only one project (something about eggs being in one basket...). So, in most cases, companies will co-finance pictures together with outside investors, whether they’re individuals or other companies.
These negotiations also have to succeed, and a partnership has to be formed in order for the money to be available for production. If the company can’t agree with the investors and no agreement is signed, there’s no money and the project is scrapped (or stalled while they look for money elsewhere). At this point, the company still needs to be able to cut its losses with the script, which is again why they option before they buy.
STEP 6: FINDING DISTRIBUTION
The last step that a company worries about, in terms of setting up a project, is finding distribution for the film. It doesn’t matter if it’s a theatrical release or straight to video, most companies need to find someone willing to put up the money to get the picture made and distributed to theaters, retailers, etc. Again, this is another situation where the company has to enter into an agreement with a distributor, and why they option the script instead of buying it. If no distributor will back the film, they’re better cutting their losses on the script than paying the full purchase price for a script that no one will distribute.
STEP 7: FINALLY! THE SALE!
If Step 1 through Step 7 goes well and everything is in place, the picture is ready for pre-production. This is usually the point where the movie is ready to be made and will, barring any production or post troubles, be made. Since everything is in place, and the picture is a go, they will purchase the script from the writer to establish their ownership of the material. This is when the writer will get that big fat check for the screenplay, and sign it over forever to the care of the company.
The above process, even when everything goes smoothly, can take months, or even years. That’s why it’s so important that aspiring screenwriters understand that this is not a “get rich quick” business. Yeah, a lot of money trades hands, and the high profile sales are touted by numerous sources, but it’s certainly not a situation where someone dropped off a script with a production company and got a $200,000 check a week later. It’s a very slow-moving process, and, as you can hopefully see above, there’s a reason it moves so slowly. A lot of elements have to come together in order for a picture to be successful. Hollywood is like any other business… it may spend a lot of money on writers and other talent, but that money’s not going to be spent without having a product to show for it. That can take a very long time.
Hopefully after reading this post, some of you will have a better understanding of the process, and why it can take so long to get that big paycheck we’re all hoping for. The business drives everything… and when we understand the business of making movies, we can better prepare ourselves for the reality that surrounds our career choice. There’s so much hype and misconception surrounding this industry; it’s the writers who are realistic about their expectations and understand why things work the way they do that will stand the best chances of success.
Good luck to all of you with your writing.