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Author Topic: Fox plays hardball with AMC
Steve Kraus
Film God

Posts: 4094
From: Chicago, IL, USA
Registered: May 2000


 - posted 12-11-2002 03:36 PM      Profile for Steve Kraus     Send New Private Message       Edit/Delete Post 
I believe that the 90/10 business or similar extremely high percentage is calculated AFTER deducting a house nut from the box office revenue. The house nut is supposed to represent the operating costs of the theatre--presumably in a multiplex you could apportion it by seat count per screen--but is really just an agreed upon figure. Hopefully someone with actual knowledge of booking and deals can explain this better. It used to be a three way thing...90/10 after nut...60 or 70 etc with no nut...vs a minimum guarantee...whichever was greater.

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Joseph Pandolfi
Expert Film Handler

Posts: 213
From: Milford, CT.
Registered: Nov 1999


 - posted 12-14-2002 12:03 PM      Profile for Joseph Pandolfi   Email Joseph Pandolfi   Send New Private Message       Edit/Delete Post 
Same situation with National Amusements and Fox/Searchlight here. The New Haven County Area is blacked out from certain releases. Mostly noted were "Castaway" and "Moulin Rogue" were played in independent houses rather than chains.

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Richard C. Wolfe
Master Film Handler

Posts: 250
From: Northampton, PA, USA
Registered: Apr 2000


 - posted 12-14-2002 11:58 PM      Profile for Richard C. Wolfe   Author's Homepage   Email Richard C. Wolfe   Send New Private Message       Edit/Delete Post 
Steve, you are absolutely correct.

As well as being a theatre owner, I am also a booker/buyer for numerous independent exhibitors throughout eastern Pennsylvania. Often I see people post about how awful it is that theatres have to pay 90% for the first week. No one pays that amount unless they have given a guarantee that is higher then what the film terms call for, and then they would be paying possibly a 100% or more. That seldom happens. When the 90% comes into play they have already deducted there house expense, and are theoretically getting a 10% profit off of ticket sales, even before adding concession or advertising profits. As you said the 90/10 is always an "either/or" situation whereby the distributor calculates the film rental by the straight percentage and the 90/10 and then bills at whichever is higher.

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