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The producers of the selected films will receive a share of the profits. Profits are all revenues from theatrical distribution, DVD sales, VOD sales, sales of TV rights, soundtrack sales and merchandising minus the costs for production and marketing (please reference the contract for the exact definition of the profit share).
The profit share will be 0.18% of all annual profits per used minute of film footage (counted by the second). The minimum-guarantee payment will be deducted from the profit share. The value of the minimum guarantee depends on the film's overall budget. If we sell all 6,000 FILMBITS for a price of EUR 300, the film's total budget would be EUR 1.8 million. Two thirds of the budget will be invested in production and marketing. One third will be distributed as upfront payments to the selected films. With an estimated length of 100 minutes, the minimum guarantee in this case would be EUR 6,000 Euro per minute of film. If we sell fewer FILMBITS, the minimum guarantee will be reduced accordingly. |
