This Business of Film by Stephen R. Greenwald

Author:Stephen R. Greenwald [Landry, Stephen R. Greenwald and Paula]
Language: eng
Format: epub
ISBN: 978-0-307-87501-3
Publisher: Crown Publishing Group
Published: 2010-08-11T00:00:00+00:00

Figure 9.1: Revenue from box office to net profits.

It is the essence of contractual accounting that different profit participants in the same film may have different contractual definitions of “net profits.” Contractual accounting is a matter of negotiation between parties, reflective of their leverage. As an example an agreement between Participant A and a distributor may provide that in calculating net profits no deduction will be taken for interest on the negative cost and prints and ads, while an agreement with Participant B on the same film may provide for such interest deductions. The impact will be to put Participant A in a preferred position to Participant B in determining net profits on the same revenue (see Figure 9.2).

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