| Commentary

353 Off the top arrangement

| Commentary

353 Off the top arrangement

Another possibility is an arrangement where the gross receipts of a film are applied first towards the recovery of distribution expenses incurred by the distributor, and the balance is then applied in the agreed percentage and shared between the distributor and the producer. Any advance paid by the distributor can be recovered either in the same way as distribution expenses or out of the revenue payable to the producer; the former method is favourable to the producer, the latter to the distributor.

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