Deals in Movie Business

The following are types of deals between a studio and a writer, a producer, or other producing entity and how they differ from the others. If you want to know a little more about movie business, then this is for you :)

a. Development Deal: A non-exclusive arrangement between two parties to develop a screenplay from an original idea, or a novel, play, magazine article, into a screenplay. A producer creates an idea and will either hire a writer out of his/her own money or go to a studio for development money to hire a writer. It is usually between a writer and a producer, but may include a director as well. Since the two parties are not exclusive, unlike the First Look or Exclusive Deals, the producer is able to share the project with others if the main project plan does not work out.

b. First Look Deal: A producer presents any idea to a movie studio first and if the studio does not want to develop the idea, then the producer can pitch the idea to another studio or financier once the contract of the deal has ended. This is an agreement lasting three or more years between a movie studio and a producing entity on a first look basis. Producers, directors, writers and actors/actresses can act as the producing entities in a First Look Deal. This deal differs from a Development deal because it is more formal and has terms and agreements attached to it. Also the development deal is between a writer and a producing entity, while a First Look Deal is between a studio and a producing entity. In the First Look Deal the producing entity is able to present to idea over and over again to many studios until it finally works out, however, in an Exclusive Deal the producing entity is not able to jump around to different studios to present the same idea and the studio has the power to decide whether to release the idea’s rights or not.

c. Exclusive Deal: Similar to the First Look Deal, the Exclusive Deal is also an agreement that lasts three or more years between a movie studio and a producing entity, however, it is on an exclusive basis. A producing entity can be a writer, director, actor, or producer who can introduce an idea to a movie studio; However, if the movie studio is not fond of the idea and does not want to develop it, then the producing entity cannot go to another movie studio and share the same idea. In a First Look Deal, the producing entity is able to distribute the idea to other movie studios if the original movie studio does not want to develop the idea, but in an Exclusive Deal, the producing entity cannot. Also, the Development Deal is different from the Exclusive Deal because an in an Exclusive deal actually involves a certain agreement where the idea cannot shared with others, while the Development Deal is less formal and does not contain any strict rules or regulations.