| Commentary

369 Exhibition agreements: Sliding scale arrangement

| Commentary

369 Exhibition agreements: Sliding scale arrangement

A sliding scale arrangement is a variable percentage split of gross box office receipts payable by the exhibitor to the distributor without the recovery by the exhibitor of any house nut. The percentage of receipts payable depends on the level of gross box office receipts. At a very low level the exhibitor will pay the distributor 25% and retain the balance of 75%. As the amount of gross receipts rises, so too does the percentage payable to the distributor. It is normal for the percentage film rental to increase in steps of 2½% or

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