John August

Follow Up

Feature Residuals and the Mystery of SVOD

Film Industry, Follow Up, WGA

Following up on my earlier post, here’s an update on Aladdin’s residuals.

Let’s look at the breakdown for 2020 Q3:

Re-Use Market Amount
Basic Cable $1,536
Foreign Free TV $8,071
Home Video/DVD $11,161
Pay TV $76,687
New Media — EST $11,134
New Media — SVOD $222,496
TOTAL $331,086

Note that these are total writer residuals. As Aladdin’s co-writer, I get half, so I’m simply doubling what I see in my individual residuals report.

The first four categories are pretty self-explanatory. You can find more information about them in the WGA’s residuals survival guide.

New Media — EST stands for Electronic Sell-Through. This is when a customer purchases a download, which they then own forever. If you buy a movie for $19.99 on iTunes, that’s an EST. It’s the digital equivalent of someone purchasing a DVD at Target. The residual is calculated as 0.36% of the company’s accountable receipts.

The final category is a little confusing. Even after serving on the negotiating committee for the last MBA, I ended up emailing a colleague at the Guild for clarification.

New Media — SVOD combines very two different ideas. The full title for this category should really be something like New Media — Rental and SVOD.1

Rental is what you think. If you’ve ever paid $1.99 for a movie on iTunes and had 48 hours to watch it, that’s an electronic rental. The residual is calculated at 1.2% of the studio’s accountable receipts.

SVOD stands for Subscription Video on Demand, services like Netflix, Disney+ and Hulu, also referred to as streamers. The residual is calculated as 1.2% of the amount the studio receives for licensing the movie to the service. For example, MGM might license an old James Bond movie to Amazon Prime for 12 months. The screenwriter would get a residual based off the price MGM was able to charge.

In the case of Aladdin, it’s available exclusively on Disney+. Disney is never going to license it to Netflix or Peacock or Amazon Prime. So any fee Disney-the-studio is charging Disney-the-streamer is really just numbers on a spreadsheet. They’re the same company.

Now you’re asking: Wait, if this residual is 1.2% of a made-up number, how do you know it’s a fair price?

Self-dealing is always a concern, and has long been an issue in television. My colleague at the Guild writes:

When that happens the MBA requires the company to impute a license fee based on comparable pictures. This is an issue happening across all the streamers and is one of our most important enforcement efforts.

For 2020 Q3, this lone residual was worth nearly a quarter of million dollars for Aladdin. It’s both hugely important and largely opaque.

I don’t have a breakdown to show how much of this line item came from rental versus the imputed license fee, but it’s something I’ll be watching closely in the years ahead.

  1. And even that’s not complete: this category also includes “Premium VOD,” which hasn’t really been a thing but might become more important. ↩

Working as a freelance reader

Film Industry, First Person, Follow Up

On this week’s Scriptnotes, we talked about professional readers and the challenge of making a living as a freelancer. We got several great emails from listeners, like this one from “Zeke.”

Like most people outside LA, I had no idea that people are actually getting paid to read scripts or that coverage even existed. That changed when I took a story analysis course that specifically taught us how to read, analyze, and write professional coverage.

From there I started doing unpaid reading at a couple of places around town as an intern and with the Austin Film Festival. My first paying gigs were with some popular script competitions such as Screencraft and obscure ones such as the Canadian Wildsound. The pay ranged from decent ($30-$40 a script) to downright embarrassing ($15 per script).

My first “real” reading for a company was Paradigm talent agency, and then UTA, who pay more but also require more extensive work (additional character breakdown, etc.). From there, and for the past few years, I’ve been focusing on reading for production companies and, most recently, for premium cable and streamers.

Consistency is the bane of the freelance reader’s existence. I always make sure I’m reading for at least 4-5 places simultaneously, and even then, there are slow weeks with little to no work (especially around the holidays). As for rates, I started with lower rates and had to fight for raises. And that’s a big issue: unless you push the companies to pay more and ask more than a few times, you will stay at the same rate you started with years earlier. I know that for a fact by asking other readers who just didn’t know they could ask for more money.

Being a reader for multiple companies, I have to be on call essentially all the time, including nights and weekends. For example, just this week, I got a request to read a script at 11 PM on a weekday, and the requested turnaround was for the following morning. This is not a rare incident.

Technically, you don’t have to accept the work. If you turn down one script or one book, maybe it won’t change much. But the second time you do it, you risk losing the gig with that company, no matter how good your working relationship is with them. Needless to say, sick or vacation days do not exist. I go to Israel every year to visit family, and I work from there as well. Again, I was never forced to do so, but I have no choice since this is my main source of income.

As for the union, we’ve been having a discourse about organizing as freelance readers, but it’s still quite vague on what steps we could take. A union reading job is much-coveted since it not only provides you with stability, but also a respectable salary, excellent health insurance, and paid days off. I would note that Netflix is probably the company that offers the best pay and terms of all non-union companies who work with freelancer readers.

Finally, I believe that a major problem in this field is the fact that many of us, including veteran story analysts at the studios, often feel somewhat inconsequential. Intellectually, we know this work is essential to the development process of any production company/studio/agency. But it doesn’t often feel that way. And that problem translates to everything else: if readers don’t respect themselves, why should companies?

It’s hard to convince employers to offer better rates or better conditions when most places in town use assistants or interns to read their projects. No matter how good a given reader might be, free labor is hard to compete with.

How accurate is the page-per-minute rule?

Film Industry, Follow Up, Formatting, QandA, Rant

Back in 2006, I answered a reader question about page counts:

Every screenwriting book I’ve read, class I took, and basically the first rule I learned says:

ONE PAGE OF A PROPERLY FORMATTED SCRIPT = APPROX. A MINUTE OF SCREEN TIME.

I know one page of say a battle can last five minutes whereas one page of quick dialogue my last ten seconds if the actors talk fast. So my question is, is this rule true?

I replied that the page-per-minute rule of thumb didn’t hold up to much scrutiny, and offered examples from my own work.

Then a few weeks ago, I started thinking about this question again, and realized there was an opportunity to reframe the question in a more concrete way:

For screenplays, what is the correlation between screenplay length and running time?

I asked data scientist Stephen Follows if he’d be up for tackling this question. He jumped into action, gathering 761 feature screenplays and comparing them to the running times of their finished films. Today, he published his findings.

The results largely match what I expected, and what I wrote in 2006:

The one-page-per-minute rule of thumb doesn’t hold up to much scrutiny. True, most screenplays are about 120 pages, and true, most movies are around two hours. But the conversion rate between paper and celluloid is rarely one-to-one.1

While Follows finds there is some obvious correlation between page count and running time, the rule of thumb barely works in aggregate but isn’t very predictive for any given project.

Why does it matter? Because too many folks in the film and television industry have internalized one-page-per-minute as an axiomatic truth rather than a crude estimate. Any script that is longer than 120 pages is perceived as being too long. Indeed, some studios’ contracts specify that the writer may not deliver a script longer than 120 pages.2

In order to bring their scripts under this artificial limit, screenwriters waste time making tiny edits with the goal of moving page breaks. It’s pointless busy work.

Worse, the page-per-minute rule of thumb puts too much focus on arbitrary sheets of never-printed paper rather than the words they contain. If we’re worried about the length of anything, it should be scenes and sequences. But in 2020 we continue to treat screenplays as if they’re hand-typed on dead trees, forgoing digital tools that would allow for better security, collaboration and version control.

As an industry, we’re afraid to move to new formats for screenplays because we’re worried it’ll break the page-per-minute standard. But we don’t need to worry, because the rule of thumb was never really true.

Doing what makes sense

Is it appropriate to try to estimate a project’s running time based on the script? Absolutely.

Before a project goes into production, the script supervisor — an experienced professional who works beside the director on set — generally performs a “script timing” by estimating the time for each scene. It’s not perfect, but it better reflects reality. If a script times out to three hours, better to know it before production, so you’re not shooting scenes that won’t make it into the film.

Is there an opportunity for computer-generated running time estimates? Probably.

With machine learning, I can imagine systems that better predict how words on the page will reflect minutes on screen. But I wonder if it’s a false goal. Ultimately, running time is a factor of film editing. Scenes get dropped in post, and it’s very hard to anticipate these changes when looking at a script in preproduction.

This analysis was done on feature films, but every TV show faces similar issues. However, long-running shows have the advantage of knowing how their specific show works. My hunch is that every NCIS script falls in a narrow range of scenes and pages because they know what they need.

Big thanks to Stephen Follows for accepting this challenge and myth-busting this rule of thumb. Be sure to read, share and comment on his post.

  1. Celluloid! It truly was a different age in 2006. ↩
  2. On a recent project, my contract limited delivery to 130 pages. Such decadence! ↩

How to Listen

Episode - 438

Go to Archive

Assistants, Follow Up, QandA, Scriptnotes, Transcribed

John and Craig talk dialogue. How characters speak is an optimized version of real speech — but if you optimize too much you risk making your characters feel artificial. We listen to clips of real conversations to pick out patterns and tendencies you can incorporate to help improve written dialogue.

Then we dive into the mailbag for questions on perspective (48:03), submission agreements (51:40), and best practices for non-WGA writers during a strike (55:58).

In our bonus segment for premium subscribers (1:06:56), we get political and discuss the current state of the Democratic primary.

Email us at ask@johnaugust.com

You can download the episode here.

UPDATE 2-21-2020 The transcript for this episode can be found here.