What Does “Optioned” Mean?

In Hollywood, when a script, book, or original concept is optioned, it means a producer, studio, or production company has secured the exclusive right to develop the project for a set period of time—usually for 12-24 months.

This agreement does not guarantee that the project will be made into a film or TV series. Instead, it gives the buyer (the studio or producer) the exclusive opportunity to further develop it, attach key talent, secure financing, and eventually move into production.

Think of it like renting intellectual property before deciding whether to buy it.

How Does an Option Agreement Work?

An option agreement typically includes:

1. An option fee – A payment made to the rights holder for exclusive rights to the project.
2. An option period – A specific timeframe (usually 12-24 months) in which the producer must decide whether to move forward.
3. The purchase price – The pre-agreed amount to buy the rights if the project proceeds.
4. Renewal clauses – Some agreements allow the studio to extend the option period for an additional fee.

During this period, the producer or studio works on:

• Developing the script
• Attaching directors, actors, and financing
• Pitching to networks or distributors

If the project moves forward, the rights are purchased and production begins. If not, the rights revert back to the original owner, and the studio loses exclusivity.

Key Terms in an Option Agreement

Understanding the legal terms in an option deal is essential. Here are some of the most important ones:

• Option Fee: The upfront payment to secure exclusive rights.
• Exclusive Rights: The buyer has sole control over the property for the duration of the agreement.
• Purchase Price: The agreed amount to buy the rights if the project is greenlit.
• Reversion Clause: If the project isn’t made, the rights return to the original creator.

Who Benefits from Optioning Content?

For Writers & Creators

✅ Earn upfront money while keeping long-term ownership.
✅ Gain exposure to Hollywood’s production pipeline.

For Studios & Producers

✅ Secure exclusive rights before committing major budgets.
✅ Reduce financial risk by testing market viability.

Option Agreements vs. Outright Purchases

Real-Life Examples of Optioned Content

• The Witcher – Originally a book series, Netflix optioned it before turning it into a global hit.
• Game of Thrones – HBO optioned the rights to George R.R. Martin’s novels before production began.
• Harry Potter – Warner Bros. optioned J.K. Rowling’s books before buying full rights.

Common Challenges in the Option Process

❌ Projects get stuck in development hell.
❌ Studios may not renew the option.
❌ Rights holders may demand higher fees later.