Highlights of GMT Releasing Practices
|
Term / Description
|
Major Studio
|
GMTR
|
Major Studio Profit Participants
|
| Misuse film account numbers | Common to charge against any film | One film, one accounting | Must watch contract language & all charges |
| Breakeven | Artificial, cash, first, rolling | Uses GAAP Practice | Rare for participants to control |
| Adjustment | Reduces film rental grosses and exhibitor and distributor conspire leaving participants out of luck | Uses One film accountability and only negotiates with exhibitor percentages | Rare for participants to control the redirection of revenue streams |
| Advertising Overhead | Typically charge the negative costs of film 10% | No 10% charge is imposed. | Ask for a ceiling on the 10% charges |
| Participant’s Access to all Accounting Reports | Never | Always and current “on-line” availability from any computer. | |
| Advertising Costs Buying a Gross | Inflate costs or shift ad costs | It is what it is. A marketing plan and budget | |
| Commercial Bribery | Executive receive benefits for distributing a film | Provides profits to participants from balance of fees and budgets | |
| Commingling of Funds | Mixes funds but studio never use the term fiduciary | Fiduciary responsibility to investors and participants | |
| Continuous Supply of Product | Expecting one or two major films a year to “make it” | Each film stands alone. Over 10 films are available for distribution equal to any major. | |
| Contract Interpretation | Mistakes, ambiguity, conflicting provisions and excessive discretion | Clear simple language | Your blacklisted if you fight it |
| Contractual Overhead | A money making film will produce a windfall. | All contracts are simple and favor investors and participants | |
| Creative Accounting | Dishonest Practices. “Sue-Us tactics” | Honest Reporting and Open Book | |
| Cross-Collateralization | Offset profits in one market or media against losses in another | One Film, One Accounting | |
| E & O Insurance | Deducts all premium costs | Responsibility of the distributor | |
| Graylisting | Seeks young people | Non-discriminate | |
| Interest | Excessive and hard to audit | No interest payments. Investment money are equity holders |
For further information see 337 reported business practices on this site.