Commentary

403 Distributor’s profit under a production financing and distribution agreement

ENTERTAINMENT AND MEDIA vol 15(1) commentary, music industry documentation
| Commentary

403 Distributor’s profit under a production financing and distribution agreement

| Commentary

403 Distributor’s profit under a production financing and distribution agreement

Unlike a simple distribution agreement which permits the distributor to take only a distribution fee by way of profit, the production financing and distribution agreement gives the company financing and distributing the film an interest in the profits of the film as well as in all subsidiary and ancillary rights. The producer's right to participate in profits derived from subsidiary and ancillary areas will normally be postponed until the company has recouped the cost of production of the film from its distributor's net receipts.

It is not uncommon to find that

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