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Advance/Guarantee Question 07 Mar 2004 21:02 #7630

  • mumbog11
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I'm a newbie working on business plan. I've been lurking and reading for weeks. One question that I haven't seen in the FAQs: How are advances calculated? Is it based upon number of seats? Locale? Relationship?

I've read someone post that they had to pay a $5K advance for a popular movie, I've also read in Movie Business Vol 2 where the COO of Cinemark said he's paying 100K for advances. What accounts for the 95K differnce?

Thanks!
/mumbog11

[This message has been edited by mumbog11 (edited March 07, 2004).]
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Re: Advance/Guarantee Question 08 Mar 2004 12:12 #7631

  • BurneyFalls
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I'll give you an uneducated guess.
# of potential patrons.
Past payment practices.
Longevity of theater ownership.
How big they expect the picture to be.
Past payment practices!!
Is theater or chain undergoing bankrupcy proceedings, financial difficulty or management problems.
Size of the studio & how often theater plays their product.
Relationship between theater, booker, and sales rep.
Size of theater.
Theater's geographic location & demographics.
Past payment practices!!!!!!!!!

How off am I?
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Re: Advance/Guarantee Question 08 Mar 2004 12:16 #7632

  • CharlieBo
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The 100G advance may have been for a number of theatres,or for a huge picture in a very high grossing theatre.
Amount of advance(if any) is usually determined by the grossing ability of your theatre and your credit worthiness
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Re: Advance/Guarantee Question 08 Mar 2004 13:07 #7633

  • Mike
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!!!!!How big they expect the picture to be.!!!!!!!!!

ala Newmarket with The Passion.

Look at it their way: 5000.00 x 2500 screens advance = 12.5 million for press buying etc. Not bad if you can get it.

I have never paid an advance where it did not pay back in the first week. I have never been burned.

Partially it's a test: if you can't pay it maybe you can't afford the biz you want to do.

I'm glad to hear there is scale for the big guys! They should pay huge when little guys pay big.


Michael Hurley
Impresario
Michael Hurley
Impresario
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