What does Buyout mean?
Buyout refers to a type of payment in the entertainment industry where an actor, model, or other talent receives a one-time, lump-sum payment for their work, instead of receiving ongoing residuals or royalties. A buyout agreement is often used in commercials, photography, or certain film projects, where the talent is compensated upfront for the use of their image, voice, or performance over a specified period. Once the buyout payment is made, the talent typically has no claim to additional earnings from the project, even if the material is reused or continues to generate income.
Example:A model agrees to a buyout for a commercial, receiving a one-time fee for the use of their image across all platforms without expecting future royalties.
Example: A voice actor is paid a buyout for their work on an animated short, allowing the producers to use their performance in perpetuity without paying additional residuals.
Did you know?
Buyouts are common in advertising, especially for non-union projects where the talent is paid upfront rather than through recurring payments!
You can also find “Buyout” and related terms in this category: Administrative and Financial.
