The Broadway Musical as
a Motion Picture

Music Business

Even though the heyday of the Broadway musical as a major motion picture is over, for those musicals that are transferable to film, the profits can still be substantial. The motion picture sale can take a number of different turns and encompass a number of areas, but virtually every agreement will encompass most of the areas that follow.

Payment for the Rights. The motion picture company will pay a negotiated fee (e.g., from $1 million to more than $10 million) for the rights to produce a motion picture based on the musical.

Obviously, the final compensation is based on the success of the show on Broadway and on the road, the conviction of the producer that the show can be successfully made into a commercial film, whether the film will have international appeal, and what is given up by the writers in other areas of the agreement.

Percentage of the Proceeds from the Film. The producer, writers, and music publishers are many times given a percentage of the net monies earned by the motion picture after the break-even point for the film has been reached. A number of different formulas are used in this area depending on the company producing the film, and each is extremely complicated.

For example, break-even for a film company normally includes the recoupment of a multiple of the direct costs of making the film, fixed deferred payments (as opposed to deferred income based on how well the film does), a production fee for the film's producer, overhead fees to the producer equal to a set percentage of the production costs, supervisory fees to the film company financing the production, and the bank interest on the money needed to produce the film.

Fees for Remakes or Sequels. The film's producer will usually be given the right to produce a remake or sequel, provided a specified fee ($250,000 and above) is paid within a certain number of days after principal photography has begun.

If additional compensation based on a percentage of the net earnings was received on the original film, the same formula or a percentage thereof would also be received for the remake.

As for sequels, the fees paid and percentages are many times more than those that would be payable for a remake of the original film.

Fees for Television Films or Series. In addition to the motion picture, sequel, and remake rights, the film producer will also try to negotiate for television rights to a made-for-TV movie or series based on the play if the theatrical film is actually produced. In the event that the television version is released theatrically outside the United States, a further payment may be due (usually the equivalent of or more than the television fee).

If a television series is based on the play (including a spin-off based on characters in the play), additional fees will be due, dependent on, among other factors, the running time of the series.

In addition, many contracts provide for payments of negotiated fees (sometimes based on a percentage of the initial fee) for each rerun of the program up to a certain limit.

This article is based on information contained in the new, revised 6th edition of the book "Music, Money, And Success: The Insider's Guide To Making Money In The Music Business" written by Jeffrey Brabec and Todd Brabec (Published by Schirmer Trade Books/Music Sales). See also www.musicandmoney.com