Highlights of GMT Releasing Practices

Term / Description
Major Studio
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.

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