If you can't afford to buy a script outright, but you want to reserve it while you're looking for funding, you put a down payment called an option. It's compensation for the writer, to stop them from shopping the script elsewhere. It also helps investors know that the script is secure, and that you have faith in it.
Now, I hear in American TV, to secure actors and locations for a second series, they have a "holding fee." The holding fee means you have to pay something even if there isn't a second series. However, without the holding fee, it's harder to guarantee that you'll get the right locations and actors if there is a second series (and maybe the price will go up further.)
I sometimes try to work with people who have made short films, and they don't always seem to understand these concepts. However, I'm aware there are more pre-payments (such as a down payment to a composer or an editor.) I'm also aware that in different countries, we sometimes use different names.
What kinds of down payments / securities are you involved with? Have you found it different in different countries (or, from film to television?)
Willem, I think you're overlooking the question. This question is about types of downpayment. [edit: Willem's response has been deleted.]
As for unknown writers, well, read a little. Read the trades. Unknown writers get optioned all the time. Yes, it's a long shot, but most people don't go to see a film because of the writer (most don't even know who wrote a film.)
I was just wondering if there are equivalent down payments in other areas. Like for instance, say I want to reserve a location, or a have a commitment from a costume designer.
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No secret that short films are a different animal than features films and TV shows. With short films I've never heard of any producer or director using deposits (aka: holding fees) to secure talent or crew (if it does happen it's rarely). The reason for this is it's a short film. You put your crew together and go shoot it. Feature scripts can have option agreements that run anywhere from a few months to 18 months. One thing not mentioned is there's also 'producer attachment agreements' which are non-exclusive and allow a producer to pitch and submit the scripts.
Very true - shorts, feature film, TV series, commercials... on & on are each unique in many ways. It's just my view (based on years of observation/participation) that shorts are generally self funded. Major studio (with lots of standing capital infrastructure) FL films are produced in house using many salaried folk as are TV series and commercials. This becomes an issue for the small time up & coming Indie having limited funds available. The Indie Filmmaking Industry has evolved during the past couple of decade from the infant to the toddler stage - with a hell of a long way to go. All of these various monetary issues will fall into some sort of pattern as the industry grows. I wish it well.
Lindbergh E Hollingsworth That's for mentioning the producer attachment agreements. I never heard of those, and while I personally would not invest in anything with a non-exclusive right to pitch scripts, it's an interesting concept.
Yes, I don't think deposits are used in short films.
Doug Nelson It's true that there are many different business models.
Also, the independent film industry is not in its infancy. It's been around since the silent days, with indies becoming majors all the time.
The more I read about how writers and directors get their start, the more I see that option agreements are common among indies and have been for a long time.