Film hire calculation methods

Distributor fixed amount contract

The distributor receives a fixed amount for the entire length of the contract, regardless of Box Office revenue or the number of sessions.

Cinema film hire contracts using distribution terms with this method will require a contract length to be defined. Each week will be assigned an equal split of the full contract amount.

Fields to enter:

• Distributor Fixed Amount - Enter the full contract amount.
• Calculate using full Ticket Price - Calculates Film Hire using the full ticket price or charged price (prior to any discounts).

Note: The field Calculate using full Ticket Price is only visible if the system setting AllowFullPriceCalculation is set to Yes and system setting CalculateOnRevenueValue is set to Gross.

Distributor fixed amount per session

The distributor receives a fixed amount per session of the film, regardless of the Box Office revenue.

Fields to enter:

• Distributor Fixed Amount - Enter the fixed amount per session.
• Deduct House Costs per Session - Deducts house costs from the fixed amount.
• Calculate using full Ticket Price - Calculates Film Hire using the full ticket price or charged price (prior to any discounts).

Note: The field Calculate using full Ticket Price is only visible if the system setting AllowFullPriceCalculation is set to Yes and system setting CalculateOnRevenueValue is set to Gross.

Distributor fixed amount per week

The Distributor receives a fixed payment per week, regardless of Box Office revenue or the Number of Sessions.

Fields to enter:

• Distributor Fixed Amount - Enter the fixed amount per week.
• Deduct House Costs per Session - Deducts house costs from the fixed amount.
• Calculate using full Ticket Price - Calculates Film Hire using the full ticket price or charged price (prior to any discounts).

Note: The field Calculate using full Ticket Price is only visible if the system setting AllowFullPriceCalculation is set to Yes and system setting CalculateOnRevenueValue is set to Gross.

Distributor percentage

The Distributor receives a percentage of Box Office revenue, using one of these methods:

• If the percentage is fixed for the entire length of the contract, enter the Formula Share (either Distributor Share or Cinema Share) percentages, and enter zero (0) into the Minimum Distributor's Share fields.
• If the percentage varies by week, enter the variable amounts into the Minimum Distributor's Share field, and enter zero (0) into the Distributor's Share (the Cinema Share will be automatically populated). In longer contracts, the 10th week's percentage is used for the 11th and subsequent weeks.
• If the percentage varies by week but the distribution is guaranteed a minimum percentage, enter the relevant percentages in all fields. The two values will be calculated each week and the Distributor will be given the greater value.
• If the percentage should be calculated after deducting house costs, select After deducting House Costs.

Fields to enter:

• Distributor Share/Cinema Share - Enter the percentage for either the Distributor or the Cinema.
• After deducting house costs - Enables the exhibitor reserve a portion of revenue to cover basic expenses (such as house costs).
• Variable Weekly Percentage - Enter the Distributor's share per week.

Exhibitor fixed amount per session

The Exhibitor receives a fixed amount per Session.

The Distributor receives the remaining Box Office revenue.

Fields to enter:

• Exhibitor Fixed Amount - Enter the fixed amount the the exhibitor receives per session.
• Add House Costs per Session - Determines if House Costs should be added to the Exhibitor fixed amount.

Exhibitor fixed amount per week

The Exhibitor receives a fixed amount per week, regardless of Box Office revenue.

The Distributor receives all Box Office revenue, less the amount specified here. This calculation method is sometimes known as "Theatre Rental".

Fields to enter:

• Exhibitor Fixed Amount - Enter the fixed amount the the exhibitor receives per week.
• Add House Costs per Session - Determines if House Costs should be added to the Exhibitor fixed amount.

Minimum Average Net Ticket Price per Capita

The Distributor receives a percentage of Box Office revenue calculated based on net ticket values. The calculation can be run separately for each Ticket Class if Calculate By Ticket Analysis Code is selected.

If the calculated payment is less than the Distributor Minimum, the Distributor Minimum will be paid instead.

Fields to enter:

• Distributor Minimum - Enter the minimum that the Distributor will receive per week.
• Variable Weekly Percentage - Enter the Distributor's share per week.
• Minimum Price (Net) - Enter the minimum net ticket price per week.

Minimum Average Guarantee per Capita

The Distributor receives a percentage of Box Office revenue, but the Exhibitor guarantees that the Distributor receives payment based on a specified minimum average ticket price per capita.

If the calculated payment is less than the Distributor Minimum, the Distributor Minimum will be paid instead.

Fields to enter:

• Distributor Minimum - Enter the minimum that the Distributor will receive per week.
• Variable Weekly Percentage - Enter the Distributor's share per week.
• Min.Avg Ticket Price - Enter the minimum average ticket price per week.

Minimum Guarantee by Contract

The Distributor receives a percentage of Box Office revenue, but the Exhibitor guarantees that the Distributor receives a minimum fixed amount for the contract.

Cinema Film Hire Contracts using Distribution Terms with this method require a contract Length to be defined.

Fields to enter:

• Distributor Fixed Amount - Enter the minimum contract amount the Distributor will receive.
• Minimum Distributor's Share - Enter the Distributor's share per week.
• After deducting house costs - Determines if the variable percentage should be applied after deducting house costs.

Minimum Guarantee by Week

The Distributor receives a percentage of Box Office revenue, but the Exhibitor guarantees that the Distributor receives a minimum fixed amount per week.

Fields to enter:

• Distributor Fixed Amount - Enter the minimum weekly amount.
• Deduct House Costs per Session - Determines if the house costs are to be deducted from the fixed amount.
• Minimum Distributor's Share - Enter the Distributor's share per week.
• After deducting house costs - Determines if the variable percentage should be applied after deducting House Costs.

Minimum Guarantee Combined Aggregate

The Distributor receives the higher of either:

• a percentage of Box Office revenue
• or a minimum payment per week plus an agreed percentage of a specified minimum ticket price multiplied by the number of admissions.

The Exhibitor guarantees that the Distributor receives a minimum fixed amount per week.

Fields to enter:

• Distributor Minimum - Enter the minimum that the Distributor will receive per week.
• Base Weekly Percentage - Enter the base percentage the Distributor will receive per week.
• Aggregate Min. - Enter the fixed amount.
• Ticket % - Enter the percentage of the minimum ticket price.
• Min. Ticket Price - Enter the ticket price.

Minimum Guarantee Comparative Aggregate

The Distributor receives the higher of either:

• a percentage of Box Office revenue
• or an agreed percentage of a specified ticket price multiplied by the number of admissions.

The Exhibitor guarantees that the Distributor receives a minimum fixed amount per week.

Fields to enter:

• Distributor Minimum - Enter the minimum that the Distributor will receive per week.
• Variable Weekly Percentage - Enter the Distributor's share per week.
• Min. Ticket Price - Enter the minimum ticket price.

Minimum Guarantee per Capita

The Distributor receives either:

• a percentage of Box Office revenue per capita using the greater of either the ticket value multiplied by the weekly percentage
• or the week minimum ticket price, multiplied by the number of admits.

The Exhibitor guarantees that the Distributor receives a minimum amount per week.

Fields to enter:

• Distributor Minimum - Enter the minimum amount that the Distributor will receive per week.
• Variable Weekly Percentage - Enter the Distributor's share per week.
• Exclude Zero Value Tickets - Determines if zero value tickets should be excluded from the Box Office revenue calculations.
• Min. Ticket Price - Enter the minimum ticket price.

Minimum Guarantee Dual Level

The Distributor receives either:

• a weekly percentage of box office revenue
• or the box office revenue from setting Per Cap Price Override values against specific ticket classes
• or the specified Distributor Minimum Amount

Note: The greatest value will be used.

Fields to enter:

• Base Weekly Percentage
• Per Cap Price Override Level 1
• Per Cap Price Override Level 2
• Distributor Minimum Amount
• Level 1 Ticket Classes
• Excluded Ticket Types

Terms as Circuit

The film hire percentage is equal to the average film hire percentage for the cinemas in the circuit.

This method is used when the Exhibitor and the Distributor don't agree on a specific percentage for a Film ahead of time.

Tiered based on Contract Revenue

Different distribution terms apply, depending on the total Box Office revenue received for the contract.

Cinema Film Hire Contracts using Distribution Terms with this method will require a contract Length to be defined.

Tiered based on Contract Revenue: Select Distribution Terms to be used for each defined Tier (up to 5) of Box Office revenue.

The Distributor receives the specified percentages for each of the screen tiers for each week.

Note: The Film Hire screen records are ranked by gross revenue (and grouped by cinema operator and week), and then the specified percentage for the week is applied to the correct rank of screen. You can only apply this calculation method to contracts with the field Multiple Screens set to Always Split To Actual Screens.

Fields to enter:

• Tier 1–6 %
• Week 1–10