Gross Receipts: This is the theatrical rental from exhibitors, or in the case of TV, the license fees payable to TV licensees (networks, stations).
- In Film, the theatrical rental is roughly 50% of the box office.
- For DVD, 20% of box office.
Gross Proceeds: Gross receipts minus "off the tops"
- Off the Tops are approximately 5% of the gross receipts and go towards checking and collecting costs from exhibitors, MPAA dues, taxes and conversation costs, residuals to guilds, etc.
- So if Gross Receipts are 1,000,000 then the Gross Proceeds would be 950,000.
- Gross Proceeds are only relevant when you start dealing with Gross Participants however.
Net Proceeds: Gross receipts minus....(in this order)....
- Distribution Fees (def. amount distributor gets to deduct for doing the distribution work from the gross)....for domestic theatrical 30%, domestic TV 30%, domestic DVD - NA, foreign theatrical 35%, foreign TV 40%, foreign DVD - NA.
- Distribution Expenses - includes costs of prints, shipping, marketing costs, etc.
- Cost of Production - which includes the Direct Cost (budget), Administration Fee/Studio Overhead, Interest, and Gross Participation (Pre-Break)
= NET PROCEEDS
