That's right. Day rate with the rest deferred. In essence, we (producers) decide how much we want to make before paying anyone else (besides investors, of course). Sounds pretty arbitrary.
As you said, it's a good jumping off point. I realize most films to reach that point, but assuming we actually make something, I just want to make sure everyone is taken care of. Thanks again, Rik.
Well....
It is arbitrary. Everything on a non-union show is: day rate, work hours,
meals, payday. It all depends on what the prodCo is offering. It's the
unions that remove much of the arbitrariness from the process.
I've been on both sides - crew member and producer. As a crew member
I'm always glad when the producer want's to take care of everyone - but
I have never received a dime of deferrals in my entire career. As a producer
I understand why. If (and that's a big word) a movie begins to get money
from the distributor there are so many people and entities that need to
be paid before the deferrals.
As a producer I never offer deferrals - the accounting headache just isn't
worth it. And as a crew member I prefer not to be offered deferrals - I would
rather just get the agreed upon day rate and stop thinking about the
accounting of the final product.