Turnaround Deal
Agreement allowing a project to move from one studio to another, with the new studio reimbursing development costs to the original studio
Definition
A turnaround deal enables a film project to transfer from one studio or production company to another, with the acquiring entity reimbursing the original developer for their investment in development costs, including script fees, producer costs, and other pre-production expenses.
Turnaround agreements typically include specific time limits and financial terms, often requiring the original studio to recoup their development investment plus interest and sometimes profit participation. These deals can revive stalled projects by finding new homes with more suitable resources or vision.
Why It Matters
Turnaround deals prevent valuable intellectual property from remaining dormant by enabling projects to find appropriate homes where they can move forward into production, maximizing the potential return on development investments and creative work.
For filmmakers, turnaround provides opportunities to maintain control of their projects while finding studios better aligned with their vision or budget requirements, potentially leading to more successful productions than the original development situation allowed.
Examples in Practice
Disney acquired the 'Pirates of the Caribbean' franchise through a turnaround deal after the original studio passed on the pirate adventure concept, leading to one of Disney's most successful film franchises worth billions in revenue.
Amazon Studios acquired several projects in turnaround from traditional studios, including prestige dramas that better fit their streaming platform strategy and awards ambitions than conventional theatrical distribution models.
Taika Waititi's 'Thor: Ragnarok' emerged from development turnaround when Marvel found a director whose comedic vision aligned with their desire to refresh the Thor franchise after previous installments underperformed expectations.