Saturday, October 22, 2016
Music Business/Law Tips - "Accounting Transparency"
Recently The Orchard - which now also releases indie films as well as music - set up a new "transparent" form of accounting that to date has been unheard of in the film business (based on all the "net profit" lawsuits over the years on why no one is paid on a big hit film). The new model allows filmmakers to see the revenue and expenditures from the beginning to the end of any film that the company acquires or distributes and the bottom line net profit. Now filmmakers can see in real time the revenues (e.g., ticket sales, streams, cable) and costs to be deducted (production, distribution, marketing). According to The Orchard this new model is set up to let the parties have a better working relationship of collaboration/trust and hopefully will prompt the filmmaker to cooperate with promotions, etc., and so that everyone understands the reality of the costs versus benefit so that all parties can better project the long term outcome. We can hope that this type of mentality will also spill over into the music business where historically there has also been an information gap that has led to many unhappy results. Ben McLane Esq benmclane.com