Hollywood Marketing

(Acheson & Maule 1994). He also uses other marketing strategies aimed at convincing the exhibitors that showing their film will profit them financially. Once a distributor secures an exhibitor, he then processes a written contract which legally binds him with the exhibitor (Scott, 2002). The contract stipulates among other things, the amount to be paid to the distributor obtained from tickets sales. This amount is normally calculated as a percentage of the gross sales after deducting crucial miscellaneous costs such as house allowance. The distributor then audits the ticket sales by the exhibitors to ascertain accuracy of amounts declared. The distributor then deducts his percentage from the proceeds and transmits the necessary amounts to the film Production Company or agent. The percentages applied in different levels may vary on films though there are standards