prebreak

Remember that the prebreak gross profit participant only receives his or her participation with respect to adjusted gross receipts after cash breakeven.

The Movie Business Book, Third Edition Edited by Jason E. Squire 2004

Then we will show how studio accounting affects three types of talent participants—the highly sought after, dollar-one gross participant; the steady prebreak gross participant and the lowly net-profit participant—each using the same performance assumptions.

The Movie Business Book, Third Edition Edited by Jason E. Squire 2004

As with the prebreak gross participant, we deduct studio actual costs and imputed costs from the adjusted gross receipts as follows:

The Movie Business Book, Third Edition Edited by Jason E. Squire 2004

As with the prebreak gross participant, we deduct studio actual costs and imputed costs from the adjusted gross receipts as follows:

The Movie Business Book, Third Edition Edited by Jason E. Squire 2004

So if you are a producer without the clout to negotiate a dollar-one gross participation or a favorable prebreak gross participation, how do you retain a meaningful profit participation in your film?

The Movie Business Book, Third Edition Edited by Jason E. Squire 2004

Both the adjusted gross receipts and the actual studio out-of-pocket costs for the prebreak gross participant would be the same for the net-profit participant.

The Movie Business Book, Third Edition Edited by Jason E. Squire 2004

For an example of how a prebreak gross participation kicks in, assume adjusted gross receipts at cash breakeven is $130,000,000.

The Movie Business Book, Third Edition Edited by Jason E. Squire 2004

Remember that the prebreak gross profit participant only receives his or her participation with respect to adjusted gross receipts after cash breakeven.

The Movie Business Book, Third Edition Edited by Jason E. Squire 2004

Then we will show how studio accounting affects three types of talent participants—the highly sought after, dollar-one gross participant; the steady prebreak gross participant and the lowly net-profit participant—each using the same performance assumptions.

The Movie Business Book, Third Edition Edited by Jason E. Squire 2004

These fees will take on importance when included in the prebreak gross and net-profit participants analysis later on in this article.

The Movie Business Book, Third Edition Edited by Jason E. Squire 2004