An overall deal, also known as an exclusive deal, is a business agreement in the entertainment industry where a network, studio, or production company pays a creator (like a writer, director, producer, or actor) a fee to have first right of refusal on any of their future projects.
The agreement is typically a way for the studio or company to ensure exclusive access to a talented individual’s output. These types of deals can cover everything from TV and movie projects, to podcasts and books.
In practice, an overall deal might mean that a particular creator is bound to only develop new projects with the company they’ve signed the deal with for the duration of the contract. In return, the creator gets a reliable income and resources to develop their projects.
This type of agreement can be beneficial for both parties. For the creator, it can provide security and resources, while for the studio or company, it can ensure access to the talent and potential high-quality content.
It’s important to note that the terms of overall deals can vary greatly depending on the people or entities involved, and can be complex, involving factors such as term length, specific obligations, pay structures, and the potential to earn bonuses or back-end profits.
Example of an Overall Deal
Here are some examples of overall deals from the entertainment industry.
- Shonda Rhimes with Netflix: Shonda Rhimes, creator of hit TV shows like “Grey’s Anatomy” and “Scandal,” signed a multi-year overall deal with Netflix in 2017. Under this agreement, Rhimes and her production company, Shondaland, develop new series and other projects exclusively for Netflix. This deal led to the creation of the popular series “Bridgerton.”
- Ryan Murphy with Netflix: Another high-profile overall deal is between Ryan Murphy, the creator of “American Horror Story” and “Glee,” and Netflix. Signed in 2018, the deal is estimated to be worth as much as $300 million. Under this deal, Murphy will produce new series and films exclusively for Netflix.
- J.J. Abrams with WarnerMedia: In 2019, J.J. Abrams and his production company, Bad Robot, signed a $250 million overall deal with WarnerMedia. This deal covers film, television, video games, and digital content.
These are just some examples. Overall deals have become a major part of the business strategy for many streaming platforms and media companies as they compete for top talent and content.