Screenwriting : Optioning a Script vs Buying a Script by Martin Reese

Martin - My guess is that a producer would look at the quality of your story, the cost to bring it to the big (or not so big) screen, and its marketability. I recently read that Netflix is looking at investing some $13 billion in new content and Disney+ is looking at investing some $30 billion. That's ALOT of new content! But it must still be a well written compelling story that has audience appeal.

My 2cent educated guess from being an assistant to two Hollywood franchise IP owners/producers- nobody has $ to buy a script unless they have a studio deal in place. Legit producers are not spending their own money. Lol.

Options are another thing- i see folks praising themselves with options but there is no real money. $1 options, shopping agreements. No actual money into writer's pocket

Options really vary Dan Maxx. I got way more than $1:for my screenplay getting optioned. But thanks for further insight.

From the Producer's pov. The Producer must first be 'comfortable' with your script: Am I comfortable in that genre, am I comfortable in that budget range, am I comfortable with the talent/crew/time for such a project, am I comfortable with the financial risk? If I'm really comfortable - I'll buy the script. If it looks interesting but I don't have all my ducks lined up - I'll option it while I'm busy herding the cats.

The issue is there's now such an oversupply of scripts. Producers don't feel the need to option a script for a significant sum because they know the writer most likely as no other immediate offers, or even interested parties. Why spend money you don't need to spend?

Another issue is that studios have stopped paying advances on projects and instead issue MGs (minimum guarantees) that producers then use to convince financiers that a film is almost guaranteed to sell. Part of this is again supply and demand but also because of a scammy loophole linked to tax rebates.

Sales at an indie level tend to be tied to the funding that's greenlit and placed in a holding account. That said, I have had indie producers offer five figure sums to buy scripts outright themselves because they are funding their own production.

ScriptFella shares some interesting numbers at a studio level. He talks about how his writing partner and him would sign contracts with lottery winning numbers but almost always walk away with nothing but the $10k option, which would then have rep and lawyer fees deducted and have to be split between them.

Something writers need to be talking more about is participation as that can ease the cost burden for small indie productions while remaining highly rewarding should the completed movie perform well. The problem is, much like many screenwriting conversations, the topic is often over-simplified and misunderstood.

Among the reasons not canvassed above... If the producer has a very similar script in development, possibly already funded, he/she may buy your script outright , especially if it can be lowballed, to prevent (a) IP claims and (b) potential competition. In other cases, they are "optioning" the script because they don't have the money to produce it, and are shopping it around themselves. Again, there may be other competing scripts they know of or are working on and this keeps anyone else from buying yours in the meantime.

Something they want to own. They may like the idea and characters, but want to rewrite it with their favourite writer. So they buy it and get started making it what they want.

They know a perfect actor, but need them to age. Example Kevin Costner in the Highwaymen.

They want to own it but don’t have the time to produce it now.

In a nutshell, they want to own it.

Shadow - been there but they couldn't lowball it. It went for full -tilt-buggy. I was happy with the check but a little sad to see the script sink outta sight - I got over it pretty soon.

Most producers I know like to option the script first, so they can use it to raise development money. I guess the ones I know are tighter than the paper on the wall.

Production companies will buy scripts that are too close to their idea to keep them off the market or to avoid potential copy infringement.

Anyone here qualify to join WGA union? How do they get paid- options vs buys, and how long is the wait for $ from a WGA signatory company paying union wages?

A trick I've heard of via a WGA writer is for prodcos to simply not acknowledge in writing when a draft is handed in. This way they get to hold back payment as long as they need and can simply resurface when the project needs to move forward (if ever). There was a guy on Twitter saying he was a year overdue on a payment from a studio. Not only does it suck from a payment point of view but apparently it's really demotivating as you're handing in a draft excited and expecting some sort of response and you just get radio silence back like you've become a pariah.

Corporations are the masters of paying as little as possible as late as possible and unions are nowhere near as effective as people often think. It's clear that screenwriters all the way at the top still have to act like independents and fight their corner. So many WGA, PGA, and DGA members end up parking their membership so they can go work on indie projects to pay rent.

WGA payments are subject to 30 terms with a 1.5% per month compensation rate on late payments but, again, the start of those payment terms can be highly ambiguous. There's also significant deferral options that are linked to the director's terms, like 100% deferrals at some levels.

The huge perk with the WGA is their right to audit on your behalf. That's where it's easiest to hide any monies owed.

CJ Walley That little trick, which I hadn't heard of before now, but certainly can see happening, should be deterred by either or both of simple contractual language (which would specify the right to deal with the material is contingent on timely payment and thus can be lost at any point) or the writer delivering in hard copy either by registered mail or in person, obtaining a signature.

Theoretically yes but we're talking about an eager to please writer and the best entertainment lawyer they can afford here vs an entire department of grey suits tasked with finding and creating loopholes. Take participation clauses in tent pole projects for example. They aren't lines, they aren't passages, they're entire chapters written to be as convoluted and limiting as possible.

Plus, at only 1.5% interest per month for late payment, the average studio is probably making more on the money by putting it to use elsewhere for the duration.

I'm not trying to hate on the WGA, I have 3x the points needed to join at the moment, I've just spent most of my life working with corporations and know how cynically they operate as a whole.

I'm reminded of Peter Jackson securing the rights to Lord of the Rings and not having the ability to greenlight it for another 10 years. If you have the assets within arms reach and just need to nail down the details, then an option may be all you need. If, however, you still have some people to convince and assets to acquire, then yeah, purchase it so you can sit on it until the planets align.