You're absolutely correct.Okay, still only on page 10 (there just aren't enough hours in the day!), but had to respond to this:
Fear not. The film biz is just like the music biz. While it's entirely possible that the writer received a nice windfall from the deal you mentioned, you can bet that the contract will have had all kinds of clauses in it that will limit what the writer is entitled to under certain circumstances, and that will allow the production company a relatively free exit from its obligations to said writer (beyond the actual rights to the story) if they decide to have a more experienced writer do the screenplay (which they likely will).
There is no such truth as, "Now it's going to be a movie," in the film industry. Getting a picture green-lighted can take years - decades in some cases. And even then, there are no guarantees. Like dealing with major record labels, it's all designed to look good in the press. The reality is often far different.
My guides in the L.A. entertainment world introduced me to people who made a spectacular living selling movie screenplays and pilots for TV shows that everybody knew would never be made.
I met a guy who wrote a screenplay for a female James Bond and got $250,000 for it as a first-time screenwriter. That was at least ten years ago.
The best novel ever written, without a doubt, is The Far Arena, by Richard Ben Sapir. A frozen man is found in the ice by an American oil company drilling in the frozen Norwegian wastelands, and as an experiment the Norwegians see if they can revive him using a new technique developed by a Russian cryogenics expert visiting the hospital where the body is taken.
To their shock, they revive the guy, and he turns out to be the premiere Roman gladiator of his day, sentenced to death for committing the crime of disrespecting the emperor. He was taken to the furthest reaches of the Empire and sent out to fight the snow and ice with his sword, but a centurion took pity on him and gave him a poison that had a glycerine compound, which kept his cells from rupturing when he was frozen. So he was in hibernation for millenia.
When he awakens, the only person they can find who speaks fluent Latin is a beautiful young Norwegian Catholic nun who is experiencing a crisis of faith. The oil company was illegally drilling, so they assign an American guy to make sure none of this gets out. This man is an ex-college football player who sympathizes with the gladiator as a fellow athlete and someone who completely screwed up his life. The oil-company guy is seriously conflicted about the orders he's been given by his bosses.
All inconceivable hell breaks loose; lives are destroyed; soaring triumphs are achieved; and you care so deeply about the characters that once you read the novel, you never forget it.
When I bought my first copy of The Far Arena, there was a golden sunburst in the upper corner of the cover that said, "Soon to be a major motion picture."
That was in 1978. It would be one the greatest films ever made, and it would earn hundreds of millions.