How often are you to use these terms? I was reading O Brother Where Art thou. And they are used throughout. I thought it was just at the beginning and at the end.
Screenwriting : Fade in fade out? by Ann Burr
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I use the occasional FADE TO BLACK. I try to find interesting transitions like overlapping audio or images. I like to end close and start the next scene wide, or visa versa.
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You can FADE OUT and FADE IN in the middle of a screenplay, usually to show a kind of "end of chapter". OH BROTHER was a period film (titke comes from SULLIVAN'S TRAVELS) and fade outs were much more common in that time period, so the screenplay (and film) use them to give the audience the feeling of a film from that time period. So it seems as if the film is an offshoot of SULLIVAN'S TRAVELS.