Day Two

Question 1

Conglomerate

Answer 1

Two or more corporations operating under one corporate group. Facilitates allocation of capital and resources.

Question 2

P&A

Answer 2

Prints and advertising.

Question 3

Film silos

Answer 3

Development + acquisitions, production, marketing, distribution, research, business affairs, home entertainment, international.

Question 4

Facts on pacts

Answer 4

Lists every single deal that every studio has with its network of partners.

Question 5

Roles of a studio

Answer 5

Own IP, finance, distribute, market.

Question 6

Tentpole

Answer 6

A movie that is expected to be very financially successful and fund a range of related products and movies.

Question 7

Specialty label

Answer 7

Production company’s that focus on “indie” label. Fox Searchlight, Screen Gems, Focus Features.

Question 8

Co-financing

Answer 8

Two financiers agree to finance a single project.

Question 9

Negative pick-up

Answer 9

Studio gives a contract to a independent production company to produce a movie which studio will purchase at an agreed upon price and date.

Question 10

Third party acquisition

Answer 10

Studio acquires completed film from third party producer.

Question 11

Rent-A-System

Answer 11

Production company will “rent” studio distribution system.

Question 12

Indie film statistics

Answer 12

4,000 produced, 2,000 submitted, 100 accepted, 15 sold, 5 sold in bidding war.

Question 13

DBO

Answer 13

Domestic box office. Includes US and Canada. Both directly and indirectly drives revenues. Operates as “loss leader”. Attendance is flat or declining.

Question 14

Theatrical rentals

Answer 14

46% typical distributor gross. Sliding scale dependent on commercial appeal of film.

Question 15

Home entertainment

Answer 15

32% gross. Correlates indirectly with DBO.

Question 16

Pay TV/SVOD rate card

Answer 16

Document containing prices and descriptions for film rentals by media outlets.

Question 17

Free TV

Answer 17

8% to 15% gross.

Question 18

Syndication

Answer 18

4% gross. Sale or licensing of material to television stations for broadcast.

Question 19

1 to 7 off the tops

Answer 19

8% budget. Conversion, checking, collection, residuals, trade dues, licenses, taxes.

Question 20

Studio distribution fee

Answer 20

30% for total studio, 20% for studio P&A, 12.5% for rent-a-system.

Question 21

Advertising fee

Answer 21

1 million per 100 screens. 20% creative and 80% media. Marketing overhead at 10%.

Question 22

Virtual print fee

Answer 22

1000 per screen.

Question 23

Third party P&A

Answer 23

Based on partnerships with other companies. Interest at 15% and ownership.

Question 24

DBO bumps

Answer 24

2.5x budget, 0.5x thereafter. 25K to 250K per bump.

Question 25

Initial actual break-even

Answer 25

Point in time when gross receipts equal sum of distribution fees, distribution expenses, negative cost, studio overhead, interest on unrecouped negative cost, any deferments payable.

Question 26

Cash break-even

Answer 26

Point in time when gross receipts equal sum of defined distribution fees on revenues and ABE.

Question 27

Net profits

Answer 27

What remains of gross receipts after deduction ABE and all gross participations paid after ABE.

Question 28

Rolling ABE

Answer 28

A break-even which is recalculated every statement to take into account additional distribution expenses incurred after initial ABE.

Question 29

Soft floor

Answer 29

Once someone reaches their soft floor, the burden of additional participations is shared between the participant and the studio.

Question 30

Hard floor

Answer 30

A strict minimum below which a participant may not be reduced.

Question 31

Deferment

Answer 31

A contingent payment made at some break-even point.

Question 32

International box office

Answer 32

70% gross.