Film Accounting Glossary
Gross receipts
What are gross receipts?
Also called distributor gross receipts.
Gross receipts are the total revenues actually received by the distributor from all sources for a title, including film rental, home entertainment, television, and streaming licenses, before deducting the distribution fee and expenses.
What counts as a gross receipt is defined by contract rather than by accounting convention, so two participants on the same picture can have different gross receipts. The definition is the first thing an auditor reads.
Example
Two participants on the same picture can have different gross receipts, because one deal counts home entertainment at 100% of wholesale and the other at a 20% royalty. Same revenue, different contractual definition, materially different payment.
Figures are illustrative, chosen to show the mechanics rather than to quote market rates.
Where you'll see it
Defined in each agreement rather than by accounting convention. The first clause an auditor reads before checking any statement.
Common mistake
Assuming there is one definition. Two participants on the same picture can have different gross receipts because their contracts count revenue differently.
Related questions
- What counts as gross receipts on a film?
- Revenue actually received by the distributor from all sources, before the distribution fee and expenses. Exactly what is included is set by contract.
- Why is the definition of gross receipts negotiated?
- Because it decides the base every participation is calculated on. Home entertainment counted at wholesale versus at a royalty produces very different payments.