Reference / Film business

Film economics,
defined.

Clear definitions with the contractual and economic context that short dictionaries leave out.

A

Above the line

The budget section commonly used for core creative and producing elements such as key cast, director, producers, screenplay and underlying rights.

Read definition ↗

AVOD

Advertising-supported video on demand: on-demand viewing funded principally through advertising rather than a viewer subscription.

Read definition ↗

B

Below the line

The production accounts associated with executing and finishing the film, including crew, sets, locations, equipment, transport and post-production.

Read definition ↗

C

Completion bond

A contractual guarantee addressing completion and delivery of a covered production within agreed parameters.

Read definition ↗

D

Distribution fee

Compensation retained by a distributor under the agreement, calculated on a defined receipt base.

Read definition ↗

F

FAST

Free ad-supported streaming television: scheduled, channel-like streaming offered without a viewer subscription.

Read definition ↗

G

Gap financing

Financing supported by the estimated future value of unsold film rights rather than solely by contracted receivables.

Read definition ↗

Gross receipts

Money received within the scope of a specific agreement before the deductions defined by that agreement.

Read definition ↗

M

Minimum guarantee

A contracted minimum payment, often recoupable, made in exchange for defined exploitation rights.

Read definition ↗

N

Negative cost

A film-accounting term for the cost of producing and delivering the completed master, traditionally the “negative,” subject to the definition used in the relevant agreement.

Read definition ↗

P

P&A

Prints and advertising: shorthand for release and marketing expenditure associated with bringing a film to audiences.

Read definition ↗

Presale

A license of defined distribution rights agreed before a film is completed, frequently with payment tied to delivery and acceptance.

Read definition ↗

R

Recoupment waterfall

The ordered contractual rules that allocate film receipts among fees, expenses, financing obligations, investors and profit participants.

Read definition ↗

S

SVOD

Subscription video on demand: access to a catalogue or service in exchange for a recurring subscription.

Read definition ↗

T

TVOD

Transactional video on demand: a viewer pays for an individual rental or electronic purchase.

Read definition ↗

W

Windowing

The sequencing and timing of a film’s availability across markets, media and business models.

Read definition ↗