Deal Memo: Overview
A deal memo is a concise, often one-page document that locks the essential terms of employment—rate, credit, start date, and exclusivity—before a full employment agreement is drafted. In time-sensitive productions, deal memos get signatures so work can begin while lawyers hammer out long-form boilerplate.
Deal Memo: Typical Clauses
| Clause | Description | | — | — | | Compensation | Daily/weekly rate, currency | | Credit | On-screen billing, font size | | Per Diem | Daily living allowance | | Box-Office Bonus | Sliding scale percentages | | NDAs & Morals | Protect studio image |
Risks & Safeguards
Because deal memos are legally binding, vague wording can backfire; for instance, omitting overtime language may default to statutory maximums. Experienced line producers attach union riders to pre-empt grievances.
Evolution in the Streaming Era
Streamers like Netflix embed streamer-specific confidentiality and residual models into their memo templates, shifting back-end participation away from traditional theatrical gross points.
Deal Memo: Trivia
- Alfred Hitchcock’s famous back-end deal on Psycho (1960) was first captured in a one-page memo scribbled during a lunch break at the Beverly Hills Hotel.
- A leaked memo from a 2022 superhero sequel revealed a $5 million bonus for reaching a 90 % Rotten Tomatoes score—legal yet controversial among critics.