Tuesday, May 4, 2010

Vocabulary Lesson

Since I previously discussed some of the different box office terms, I've decided to take that a step further.

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)