Personal Managers Association
Please see below from Equity with regard to the proposed VOD 2% buyout (when he says hold firm he means do not accept, for clarity):
I would advise you to hold firm on the 2% VOD residual being converted to an advance. Netflix Love Film etc pay for a licence and dependent on the term the royalty pay away to your client could easily exceed the 2% residual. At the moment its only UK rights but if Netflix like the title they may well wish to transfer it onto their US platform which would require them to negotiate another licence and therefore another royalty pay away would be due.
It’s vital that the agents hold firm on this matter regarding Equity’s advice.
On Death Comes to Pemberley only five agents held the Equity line and as a result the VOD residual was converted into a royalty advance.