can anyone explain 'buy outs'?

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fartoomuchtodo
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can anyone explain 'buy outs'?

Post by fartoomuchtodo »

DS has just filmed a commercial for Morrisons. After making me sign a 'contract' at the audition they also stuck a contract on my knee in the pitch black on Friday night when filming was half way through and said I had to sign again so I did. Agent has since said I should have phoned her at home but I didn't think to at the time.

Anyway, the contract offered a fee for the filming then a 'buy out tbc' if he's featured and this is what agent has been told. My question is - does buy out mean no repeat fees? Sorry if I'm being naive.

Interestingly I saw adult and child fees on the original contract - child fees were less than 1/10th of adults!!
twirlymum
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Re: can anyone explain 'buy outs'?

Post by twirlymum »

Hi,
Yes a buyout is a one-off payment. It has replaced repeat fees (my guess is to do with there being so many more tv channels now).
Most buyouts are usually for a one year period, but I would check. If asked to sign on a shoot day, I always take a photo of it on my phone, but you should be given a copy anyway.
My DS has had repeat buyouts for tvc's, when the companies have decided to run the ads for another year etc.
There should also be separate buyouts for print and internet usage, and if the ad is shown in other countries there should be buyouts for different territories too.
Hope this helps!
paulears
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Re: can anyone explain 'buy outs'?

Post by paulears »

Been around for long time - and they're not always negative. In effect - you sign your rights away for a fee, which can often be more than if you take the normal repeat fee version. ITV do these for all their guest spots on daytime TV - so a spot on Good Morning Britain might pay £500 - but that is that! If something controversial happens and it gets repeated, or ITV sell it worldwide as a 'scoop' - there are no further payments. The BBC had a kind of buy out in their contracts certainly from the 70s, where they exploited different territories through BBC Worldwide. Equity have tried quite a few times to question some of these, but at the time, the artistes were happy - but had no idea re-runs in foreign countries would even happen?

The most famous buyout was session bass player Herbie Flowers' bass line on "Walk on the Wild Side" - just another day in the studio, and took the half day's pay - and that is all he ever got!

Most of the stuff I work on is likely to NEVER become popular, so I always take the money, and do a buyout. On the odd few occasions when it suddenly surfaces on TV or radio, you just have to smile and not get cross, because the money probably paid the mortgage payment a few years ago!
Brighterthanstars
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Re: can anyone explain 'buy outs'?

Post by Brighterthanstars »

Digging up an old thread here as it's probs useful to have posts together for people searching like me!
Just filmed a commercial with a usage buyout, which was separate to the pay for working the day (forgotten the name for that), and have already received the day fee but not the usage- is this pretty normal? And will it probably just come separately as one whole sum (rather than throughout the year) for admin reasons do you think?
Might sound like a silly question but just want to check for future reference as it's my first commercial job.

Thanks! B x
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swanny
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Re: can anyone explain 'buy outs'?

Post by swanny »

Hi- I know this sounds really dim but I am still unclear on the difference between a buy out and a repeat fee twirlymum.

You said
My DS has had repeat buyouts for tvc's, when the companies have decided to run the ads for another year etc.

So if they pay another buyout for another year isn't that the same as a repeat fee? Sorry if I am being really dim.

My son did a commercical last year. He was paid £180 to do it and a usage fee for the first year followed by a repeat fee in years 2 and 3. We just got notification of the repeat for year 2. Does anyone know what happens if it is used in year 4? As we signed for 3 years is that it? or does the agent have to renegotiate?
I'm swanning around trying to get the hang of all this! Thanks for your help!
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