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The Business of Media Distribution, 2nd Edition by Jeff Ulin

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CHAPTER 10

Making Money

Net Profits, Hollywood Accounting, and the Relative Simplicity of Online Revenue Sharing

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More content from this chapter is available at www.focalpress.com/9780240824239

“Hollywood accounting” has become a somewhat infamous phrase, but in practice it simply takes effort to understand the jargon and rules. The greatest single area of confusion is the fact that the term “net profits” has no correlation to the concept of net profits that most companies use in a typical corporate income statement. Rather, the term net profits used in Hollywood contracts is a carefully crafted and defined term of art.

Because most people ...

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