Option Agreement
Definition
A contract that gives a filmmaker the exclusive right to purchase or develop a property (book, article, life story, screenplay) for a specified period, typically 12 to 24 months. The filmmaker pays an option fee upfront and agrees to a purchase price if the film goes into production. If the option expires without production, the rights revert to the original owner.
Example
You pay $5,000 for a 18-month option on a true crime article, with a purchase price of $50,000 if the film enters production. You develop the script and secure financing within 18 months, then exercise the option and pay the $50,000.
Related Terms
Put this into practice
Filmcane helps you manage your distribution across AVOD, SVOD, TVOD, and FAST platforms with smart links, pixel tracking, and analytics. Create your first smart link free.
Get Started Free