Perfect Film Industry Contracts

Robust contract management software covers the bases, so filmmakers can focus on getting the job done. Cinematic features are a result of collaboration with numerous creative and technical experts who bring the production vision to life. On the business side, contracts provide the structure for outlining roles, responsibilities, and payment. To ensure the process runs smoothly, filmmakers must develop at least three types of movie industry contracts.

Investment

Investors who fund 100 percent of the film’s budget traditionally expect a 50 percent return. For large-budget movies, a lot of money exchanges hands, making an iron-clad contract a necessity. Every detail is essential, and the filmmaker must obtain a deal that works with his vision. From passive investing to the security interest in the film, the elements of an investment agreement are complex. In addition, it may take time for an investor to receive a return, so the deal must outline contingencies to ensure that all parties involved are protected.

Employment

In the film world, a vast majority of workers are contractors. During the pre-production phase, contractors or employees plan every aspect of the filming process, including the production team. From directors to cinematographers, workers generally hop from project to project, negotiating the best possible deal each time. So, the employment terms are vital for production management to secure the best talent. For workers, these terms protect staff from extended work hours and unfair practices.

Payment

“Show me the money” is not just an infamous line from the movie Jerry McGuire. The multi-billion dollar film market is an economic powerhouse, and contracts determine when and how the money is divided. Some stakeholders agree to deferred payments and receive a percentage of gross receipts. Other financiers expect payment with interest at the loan’s maturity date. With so much money at stake, it’s easy to understand the contract’s importance in outlining agreements and clarifying each person’s responsibility in the process.