What’s the Industry Standard Payment to the Author of a Book for Film Rights?
Are you an author that is interested in selling your book for film rights? Optioning film rights in a book is certainly a major consideration for any author. And it’s something that many authors (most of them actually) dream of. But what is your book worth, really? How much do you expect to be paid? Is there an industry standard payment to the author of a book for film rights?
And if so, what is it?
OPTION RIGHTS & PAYMENT
When a film producer purchases the option rights to a book they are obtaining exclusive rights for a specified period of time. Which allows them to develop your book into a script. This can be used to determine if there is further interest in producing.
The film producer commits to purchasing the book rights and to producing it into a movie. In exchange the writer puts the book on hold for the duration of the commitment. Plus the producer pays the writer.
e film rights to a producer, you’re going to have to understand your rights and what you’re giving up.
The producer might ask for an “option” which represents an agreement between you, the author, and the producer. This reserves the right for them to make your book into a film or television show during a specified length of time.
A standard option is generally 18 months with the right to renew.
INDUSTRY STANDARD
Industry standard option rights for a book to film deal allow for 18 months. In which the book is only offered to the producer and not to any other production parties.
The option can be renewed if the producer needs more time to get the film produced. Often allowing up to two renewal periods before the author might decide not to renew. And can option the book to film rights to another party.
The purpose of placing a limitation to the time that the producer has to produce the book is to ensure that the production does take place. And, if not, to allow the author to sell the rights to another party ensuring their book can potentially be made into a film.
OPTION RIGHTS
The option rights provide payment to the writer. In fact, the industry standard payment to the author of a book for film rights is somewhere between $500 and $50,000. Depending on the estimated purchase price.
As a rule of thumb, the option price that is paid to the author is about 10% of the total expected purchase price. The writer also gets paid for each option renewal period. Typically with an increase in payment after the first option.
The purpose here is to encourage production as the writer is placing their story on hold for the term that is negotiated between the author and the producer.
BOOK TO FILM PURCHASE PRICE
The industry standard payment to the author of a book for film rights will be based on the film’s budget if a purchase price is estimated.
When a book to film deal is executed, the purchase price will generally be in the range of between 2% and 4% of the total production budget.
This means that for a book that is to be produced into a film with a production budget of $5M? The purchase price would be around $150K or 3% of the production budget.
PRICE CAP
When pricing is determined in a book to film deal there is generally a cap placed on the total purchase price. Such as a cap of $225K.
Which means that even if the production budget grows beyond the $5M that was originally estimated. The price paid to the author will not go beyond the price cap that is set.
The Takeaway
As you can see, the actual purchase price or the amount paid to the author can and will vary based on a variety of factors.
But as a general rule of thumb, the industry standard payment to the author of a book for film rights is a percentage of the production budget. With payments also made for the option rights that are granted before the film is produced.
