ATTN JMS: Why sign 'net' deals?

[B5JMS Poster]

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From: Charles Gregory <charles at hwcn.org>
Date: 18 Jan 2000 06:49:34 -0700
Lines: 21

> From: jmsatb5 at aol.com (Jms at B5)
> Date: 16 Jan 2000 01:19:17 -0700
> Net means nothing because they can continue to charge anything and
> everything against the revenue, and you can never show a profit on
> paper; it's only if you own a piece of the gross that actual money
> appears.

So if everyone in the industry *knows* this, why do studios write in the
'net' clause? To insult your intelligence? Or is there a bizarre
circumstance of extraordinary success under which *someone* might
someday realize earnings from this clause?

Side Note: It's a darn pity that it takes more money to produce a series
than what can be offered by a Canadian station, or I'm quite sure the
Space channel in Canada would be funding Crusade on its own......

- Charles
  ...another happy Canadian who can turn on B5 any day he wants.




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From: jmsatb5 at aol.com (Jms at B5)
Date: 18 Jan 2000 21:17:20 -0700
Lines: 29

>So if everyone in the industry *knows* this, why do studios write in the
>'net' clause? To insult your intelligence? Or is there a bizarre
>circumstance of extraordinary success under which *someone* might
>someday realize earnings from this clause?

It is, to be honest, kind of insulting, an assessment I think most people would
agree with.  But the way the town works is that everything's incremental. 
First you work for just the salary; then you get a net deal (which means you're
STILL working for just the salary but on paper you're a profit participant),
then you go for an *adjusted* net deal, which means that someday down the road
you'll see a small amount of money, then you can get an adjusted net deal with
a better definition of revenue streams and items which the studio can and can't
charge against the profits of your show...and someday, some far, far distant
day, you may be able to argue for a small piece of the gross, if the prior
shows have been wildly successful.

 jms

(jmsatb5 at aol.com)
B5 Official Fan Club at:
http://www.thestation.com
(all message content (c) 2000 by
synthetic worlds, ltd., permission
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SFX Magazine)




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