Contingent Compensation Cont.
1. Back End Deals Cont.
- Sometimes, instead of being paid in advance, they opt to take the gamble of back-end deals in which they receive a percentage of the film's total revenue after release.
2. Bonus
- Bonus: money paid when a certain goal is reached.
- Example: when script goes into production or
- amount made at box office
- one gets nominated or receives an award.
3. Royalties
- Money paid for the privilege of using name and likeness or copyright in any ancillary markets.
(Merchandising, posters, toys, games, etc.)
- the word "royalties" is often used to mean any contingent compensation - back end, residuals, etc.
4. Residuals
- Residuals are compensation paid for the reuse of a credited talent's work.
- Residuals are compensation paid to talent for use of a theatrical motion picture or television program beyond the use covered by initial compensation (reuse of talent) paid by unions.
Streaming - Residuals/Bonuses
- Used together with or in lieu of back ends
- Success based residuals
- In the form of a bonus
- If 20% of a streamers subscribers view a movie within 90 days of its release, they get a huge bonus.
5. Deferred
- Deferred Compensation: (usually used on low budget film when producer can't afford to pay cast and crew) $ is not payable, unless movie is released and revenue is received. Income earned but not paid.
- Participation: contingent payment to talent (or others) based on a percentage of earnings from a motion picture (participants).
- Points: investor and talents profit participation in the film.