Is Spiderman working without a net (profit) on Broadway

Gordon P. Firemark

The Hollywood Reporter reports that the $65 Million production of Spiderman on Broadway will take two or three years running at 100% capacity to recoup its investment. Now, historically, multi-year runs at 100% capacity are the rare exception.

Universal, Sony Hit With Accounting Lawsuit Over 'Smokey and the Bandit' (Exclusive)

THR, Esq. Entertainment & Media Law Blog

Matthew Belloni A producer of the 1977 film has sued Universal and Sony claiming he’s owed his share of net profits and is being denied the right to audit the studios’ books. read more. THR, Esq. The Business Movies

Trending Sources

Front Money – what it is, how it works

Gordon P. Firemark

Typically, this involves the producer giving front money investors “points” from the producer’s side of the profit equation, in addition to those allocated directly in proportion to the invested capital. For example, suppose an investor’s contribution of $50,000 would (if ordinary investment funds) entitle the investor to 1% of net profits. With the additional ½% drawn from the producer’s share of profits.

Rate Court is Over: Pandora Caves, Signs Licenses with ASCAP and BMI, Drops Appeal

Music Technology Policy

Good news for Pandora stockholders, too–maybe Pandora’s “Selling, General and Administrative” Income Statement line will start going down instead of tripling and net profits will start going up.

CREATIVE ACCOUNTING

Entertainment Law Resources Blog

Filmmakers and profit participants often lament about distributors engaging in creative bookkeeping. The general consensus among filmmakers is that net profits are illusory. Rarely does a share of net profits generate hard cash. The major studios determine profits for participants using their own special accounting rules as set forth in their net profit defi¬nitions.

SNAFU: Poor Quality Reporting on Pandora Financials

Music Technology Policy

But Pandora “has never turned a profit” Nobody mentions the fact that Pandora has actually managed to do pretty well on the revenue side–over $1 billion in the last 12 months with a gross profit over $400 million. So why can’t Pandora “turn a profit”, meaning a net profit? We’ll have more on the quirky CRB decision shortly, but let’s get something out of the way about the reporting.

CREATIVE ACCOUNTING

Entertainment Law Resources Blog

Filmmakers and profit participants often lament about distributors engaging in creative bookkeeping. The general consensus among filmmakers is that net profits are illusory. Rarely does a share of net profits generate hard cash. The major studios determine profits for participants using their own special accounting rules as set forth in their net profit defi¬nitions.

Entertainment Law Update Episode 037 – Top Ten Stories of 2012

Gordon P. Firemark

‘Indiana Jones’ Lawsuit Seeks Hollywood Profits from Alleged Crystal Skull Theft: THResq: [link]. Awe is seeking injunctive relief, accounting for profits, and is accusing the film defendants of Tortious Interference with Prospective Economic Advantage and Civil Conspiracy.

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Revenge of the Trip: Lessig gets it wrong again

Music Technology Policy

Rumor has it that a chunk of Star Wars net profits goes to support the USC film school (not quite as rich as the Google/Stanford relationship, but we Hollywood types have to stumble through life somehow.). [Editor Charlie says: Today "Star Wars: Phantom Menace" crossed $1 billion in worldwide box office. This is a repost from July 15, 2007.].

Revenge of the Trip: Lessig gets it wrong again

Music Technology Policy

Rumor has it that a chunk of Star Wars net profits goes to support the USC film school (not quite as rich as the Google/Stanford relationship, but we Hollywood types have to stumble through life somehow.). [Editor Charlie says: As of Christmas Day (7 days in release) “Star Wars: The Force Awakens” has grossed $890 million in worldwide box office. “How How better to revive a 30-year-old series than by enlisting armies of kids to make the content interesting again?”

DOMESTIC DISTRIBUTION PART I

Entertainment Law Resources Blog

In my last article I discussed foreign sales agents and their role in the distribution of independent films. Now let's turn to domestic deals. Domestic" is usually defined as North America, which is comprised of the USA and Canada, as well as their possessions, territories, commonwealths, protectorates and trusteeships. For the United States, these include the U.S. Virgin Islands, Saipan American Samoa, Guam, Wake Island and Puerto Rico.

Frequently Asked Questions: Directing

Entertainment Law Resources Blog

Contingent compensation also referred to as "points" or "net profits," is far less likely to be received by a profit participant. That is because net profits are typically defined in such a way that all kinds of costs and expenses and distribution fees are deducted before any profits are declared. Answers from Mark Litwak, Attorney At Law.

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SAG & The Studios: What Are They Fighting Over?

Digital Media Law

It’s a real threat to actor’s livelihoods—and to studio profitability as well, since the ad revenue for a given broadcast (i.e., Unfortunately, that just not true, because it ignores the difference between gross revenues and net revenues. So why not have a residual formula based on net profits—i.e., In talent contracts, for instance, the definition of net revenues can go on for pages. That’s what led Eddie Murphy to refer to net points (i.e.,

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REAL DEALS

Entertainment Law Resources Blog

It is better to back a filmmaker willing to work for a modest wage and share in the success of the endeavor through deferments or profit participation. Usually, investors are entitled to recoup all of their investment from first revenues before payment of deferments or profits. Profits are declared after payment of debts, investor recoupment and payment of deferments. Profits are generally split 50/50 between the producer(s) and the investors.

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NOT EVEN TOP DIRECTORS ARE IMMUNE TO ACCOUNTING DISPUTES

Entertainment Law Resources Blog

Veteran producers and directors frequently avoid such disputes because they have lawyers and agents to protect their interests, and because they have enough clout to insist on a better definition of profits, and can sometimes even secure a piece of the gross. Television for more than $5 million, contending that WB did not pay him his share of profits from the highly rated TV show “Friends.”

NOT EVEN TOP DIRECTORS ARE IMMUNE TO ACCOUNTING DISPUTES

Entertainment Law Resources Blog

Veteran producers and directors frequently avoid such disputes because they have lawyers and agents to protect their interests, and because they have enough clout to insist on a better definition of profits, and can sometimes even secure a piece of the gross. Television for more than $5 million, contending that WB did not pay him his share of profits from the highly rated TV show “Friends.”

REAL DEALS

Entertainment Law Resources Blog

It is better to back a filmmaker willing to work for a modest wage and share in the success of the endeavor through deferments or profit participation. Usually, investors are entitled to recoup all of their investment from first revenues before payment of deferments or profits. Profits are declared after payment of debts, investor recoupment and payment of deferments. Profits are generally split 50/50 between the producer(s) and the investors.

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Purchasing Life Story Rights

Entertainment Law Resources Blog

You could give the subject points (percentage of net profits), consulting fees and/or bonuses to be paid when the film is exploited in ancillary markets. Before you decide to purchase the rights to a person’s life story, it is worth considering what you are buying. When you buy the rights to portray someone in film or television, you are buying a bundle of rights. These rights include protection from suits based on defamation, invasion of privacy and the right to publicity.

Purchasing Life Story Rights

Entertainment Law Resources Blog

You could give the subject points (percentage of net profits), consulting fees and/or bonuses to be paid when the film is exploited in ancillary markets. Before you decide to purchase the rights to a person’s life story, it is worth considering what you are buying. When you buy the rights to portray someone in film or television, you are buying a bundle of rights. These rights include protection from suits based on defamation, invasion of privacy and the right to publicity.

The Matador Opens December 23

Entertainment Law Resources Blog

The director/producer is employed by the studio, receives a fee for his services, and may be entitled to a small share of net profits. Net Profits," however, are defined so that there is little likelihood the employee will ever realize anything from this "back-end" compensation. So on the domestic side of the ledger, the distributor has a net loss.

The Matador Opens December 23

Entertainment Law Resources Blog

The director/producer is employed by the studio, receives a fee for his services, and may be entitled to a small share of net profits. Net Profits," however, are defined so that there is little likelihood the employee will ever realize anything from this "back-end" compensation. So on the domestic side of the ledger, the distributor has a net loss.

Frequently Asked Questions: General Questions

Entertainment Law Resources Blog

Question: Can you please point me to a resource that provides for standard net profit participation for producers, actors, and lawyers in a $30,000 independent film? Answer: No one sets a standard as to what a net profit definition should be, although many of the major studios have similar definitions. Silman-James Press), which has a net profit definition in it. Answers from Mark Litwak, Attorney At Law.

Frequently Asked Questions: Contracts

Entertainment Law Resources Blog

Each point is one percent of net profits. Depending upon how net profits are defined, it may amount to a great deal, or nothing. In fact, many profit definitions that are labeled as "Modified Adjusted Gross," upon examination appear to be more akin to a net profit definition. Answers from Mark Litwak, Attorney At Law. DISCLAIMER: The information provided here is intended to provide general information and does not constitute legal advice.

Frequently Asked Questions: Writing

Entertainment Law Resources Blog

Answer: It is not unusual for a first-time writer to receive a percentage of net profits. Typically, they receive 5% of 100% of the net profits if they receive sole screen writing credits, and 2.5% If you are going to give your script to someone for a very minimal payment, then it seems to me you should be rewarded handsomely on the back end with a significant deferment and/or participation in the profits. Answers from Mark Litwak, Attorney At Law.