Opportunity dressed in overalls
In the filmed entertainment business, we are closely watching the growth in “overall” deals — contracts that lock-up creators to exclusively work for one specific studio or network (including streaming platforms) for up to five years.
The rise of streamers as competitors in film/TV has crafted an image of industry power becoming less concentrated within the traditional Hollywood studio system and therefore creating more opportunities for creators through greater competition for top talent and content. A successful show runner, director or producer can play the field for each new project, perhaps financing certain things independently before selling into the Hollywood machine…or so the narrative goes.
The reality at the top echelons of the industry is starting to look quite different. In the last two years, this space has seen a dramatic rise in the number of overall deals being struck, with a relatively “old school” trade-off. The contracting studio gets access to anything the creator may develop, but is under no obligation to actually produce anything. Meanwhile, the creator is not able to shop the work to anyone else, even if the contracting studio passes. The deals come with large lump sums for the creators and typically reflect the fair market value of the opportunity cost and risk the creator takes to lose their independence.
Complexities arise when the ‘incestuous’ nature of the industry peaks its head. Actors and actresses have been diversifying their careers and becoming writers/producers/directors. If one is signed up to an overall deal as a producer, he/she may be precluded from simply acting in a project not affiliated with their home studio. For instance, if The Rock wanted to reunite with Kevin Hart for a remake of one of their past movies, they’d have to do it via Netflix, where Mr. Hart is committed to a massive multi-year deal.
As in the music industry, these deals are an example of the stronghold large corporate balance sheets continue to have on talent-led industries despite the general ‘democratization’ of the creator economy and the growth of the long-tail. For anyone looking to play in the big leagues, the big paydays certainly don’t seem to come synchronized with independence!
For the mid-market production sector relevant to MEP, these contracts become relevant when producers looking to attract an A-list star for a brief participation in an indie film to boost the value of the project now have contend with these exclusivity provisions in addition to the existing schedule and budgetary challenges.
