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Film and Television Business Terms
Terms that are used in the Film and Television industry
38
Film, Theatre & Television
Professional
11/20/2012

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Term
Development
Definition
Phase in which a screenplay is developed into a packaged script, aka "Development Hell".
Term
Option Agreement
Definition
The right to make a film during a specific amount of time and for a specific sum.
Term
Locked
Definition
Major characters, locations, stunts, effects, big scenes, and major sets are decided.
Term
Copyright
Definition
A legal concept that gives a creator of an original work exclusive rights to it.
Term
IP
Definition
Intellectual Property: Creations of the mind for which exclusive rights are recognized by the law
Term
NDA (non-disclosure agreement)
Definition
is a legal contract between at least two parties that outlines confidential material, knowledge, or information that the parties wish to share with one another for certain purposes, but wish to restrict access to or by third parties.
Term
LOI (Letter of intent)
Definition
A document that shows an actor’s interest in appearing in your movie subject to availability. It is an important part of the pre=production package used to raise financing.
Term
Seed Money
Definition
A form of securities offering in which an investor purchases part of a business.
Term
Business Plan
Definition
A document that outlines how the business will be set up, operate, and make money. Also includes overview of the current money and how business will compete effectively.
Term
Set Operations
Definition
Day-to-day procedures of film production during principal photography.
Term
1st AD
Definition
Assists the production manager and director, ensuring the film comes in on schedule, overseeing the day-to-day management of the cast and crew scheduling, equipment, script, and set.
Term
2nd AD
Definition
Assistant to the 1st AD and helps carry out task delegated. Responsible for call sheets and letting the crew know the schedules.
Term
Line Producer
Definition
The liaison between the studio or producer and the production manager.
Term
Room Tone
Definition
The natural sound of a room or location; ambience
Term
Martini Shot
Definition
The last shot
Term
Money In
Definition
Who is giving it? What triggers the giving? What amount are they giving? Who funds unforseen losses and expenditures?
Term
Money Out
Definition
What’s the order & priority for distributions of money? Who is the first to get a return? Is there interest on the monies? How are profits divided? Are the sources of distribution different for different parties…ie ; are they last in with different rules and payout, etc?
Term
Who Controls It
Definition
Is it a joint control (co-production…another producer? Is it allocated? A party has creative, B party has financial?
Term
Want
Definition
Know what you want
Term
Wish
Definition
Know what you wish for
Term
Walk Away
Definition
Set it up so that you will be willing to walk away. What are you willing to give up?
Term
Call Sheet
Definition
Issued daily during production, created by the AD, informing cast and crew where they should be for a particular day of shooting.
Term
Pre-Production
Definition
The early stages of film production preceding principal photography, including casting, budgeting, financing, and finding suitable locations for filming.
Term
Packaging
Definition
A package of individuals to work on a film. The package may include the director, screenplay writer, stars and members of the supporting cast. The package is usually as a whole in that you cannot choose only some elements. Typically done by a talent agency.
Term
Pay or Play
Definition
a commitment to pay a director or performer made before production commences, and sometimes before all the finance has become unconditional, regardless of whether his or her services are used.
Term
Chain of Title
Definition
The route by which the producer’s right to use copyright material may be traced from the author to the producer through a “chain” of assignments and transfers.
Term
Deferment
Definition
A sum payable to a writer, performer, director, producer, or someone else connected with a film out of revenues derived from the exploitation of the film, but typically after the deduction of distribution fees and expenses and, usually, after the financiers and the completion guarantor have recovered all of the sums they have advanced towards the cost of production and delivery of the film.
Term
Above The Line
Definition
Term denoting portion of a film’s budget, usually including the writer, director, producer, and main cast.
Term
Below The Line
Definition
Term denoting portion of a film’s budget excluding all elements that are considered above the line.
Term
Contingency
Definition
A final sum added to the budget for a film to cover unforeseen circumstances, usually 10% of the budgeted costs excluding the completion guarantee fee.
Term
Favored Nations
Definition
The most favorable terms accorded to any party to a transaction, including that no one will get any better terms or if any improved terms are granted to a third party then the “Favored nation” will be treated equally.
Term
Residual
Definition
A sum of money, payable under a union, guild or individual agreement, to a performer, musician, writer, composer, director or producer by reference to the m eans by which, or the place in which, the film is exploited.
Term
Fringes
Definition
Social security and, in some cases; pension, health, and welfare payments due to the cast and crew on top of wages shown in the below the line section of the budget. Fringes are often detailed in a separate schedule and summarized in a line in the final section of the budget top sheet
Term
Hollywood Studios
Definition
certain US-based companies that own physical locations and facilities for film development, pre-production, production, and post-production. They also have subsidiaries responsible for film production, distribution, and in some cases, exhibition. The most well-known of these are Columbia/Tristar (Sony), Universal, MGM, Paramount, 20th Century Fox, Walt Disney, and Warner Bros.
Term
Independent Film
Definition
A film made without the direct financial participation of the Hollywood Studios.
Term
Turn Around (Production)
Definition
When a project is developed, the person financing the development has an agreed period in which to put the project into production, failing which the projects goes into turnaround. When this happens the producer generally is entitled to acquire the project back from the financier, usually for all or a portion of the sums advanced by the financier.
Term
Production
Definition
The stage of physical film production that involves the actual filming of the piece.
Term
Post Production
Definition
The late stages of film production after filming, including editing, adding music, special effects, digital intermediate, and titles
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