The EssentialShowbiz Dictionary™

of Entertainment Industry Terms

Pay-or-Play Clause

1 minute read | Last updated: 4 months ago

What does Pay-or-Play Clause mean?

Pay-or-Play Clause is a provision in an actor’s or director’s contract that guarantees payment even if the project is canceled or the talent is no longer required. This clause ensures that the talent will be compensated regardless of whether the production goes ahead or if their role is reduced or eliminated. Pay-or-play clauses are common in big-budget films, where key talent is hired before the project is fully greenlit. For example, a major actor might have a pay-or-play clause in their contract, ensuring they are paid even if the project is shelved.

Example:The actor’s pay-or-play clause guaranteed their full salary, even though the film was canceled during pre-production.
Example: Pay-or-play clauses are common for top-tier talent, ensuring that actors and directors are compensated even if their roles are reduced.

Did You Know?
Pay-or-play clauses can be costly for studios, but they help secure high-profile talent in the early stages of development!

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