Welcome to Transparent Movie Accounting™


This site will be used for authorized participants  (for  a specific movie). The participants may be investors, certain cast and  crew members, executives, attorneys and accountants. 

Motion Picture Distribution 

GMT Releasing (GMTR) owns the trademarked name, Transparent Movie  Accounting™, TransparentMovieAccounting.Com™ [prior name was CreativeMovieAccounting.com]

This proprietary service opens books for all net-participants in a  program called "SHOW ME THE MONEY". The accounting practices of  marketing and distribution services of movies distributed by GMTR has  open reporting of revenues and expenses on-line anytime,  anywhere. Net-Participants in each film will be able to unlock the  accounting books to view the progress of marketing and distribution  results. GMTR receives the Marketing and Distribution funds from the Producer or  directly from the investors, based upon the Movie Production and  Distribution budget. 

GMTR'S Accounting Philosophy

The following two practices by the major studio set the stage for GMTR's philosophy.

  • Hollywood Creative Accounting is a derogatory term  commonly used to refer to the accounting practiced of  studio/distributors and that may include everything from actual  dishonest practices in reporting and dividing up the revenues generated  by a given film at the exhibitor and distributor levels to sharp  negotiating tactics used in conjunction with drafting the distribution  deal. (See 337 Reported Business Practices of the Major studios)
  • Actual Breakeven. The point at which revenue  generated by exploitation of a motion picture equals the costs incurred  in the production and/or distribution of such motion picture for the  applicable entity (e.g., the film's distributor). Breakeven in a film  context is a contractually defined term, and a significant number of  variations have been used to signify specific points in film's revenue  (e.g., artificial breakeven, breakeven, cash breakeven, first breakeven,  rolling breakeven, etc.)                         

GMTR practices Generally Accepted Accounting Practices [GAAP] and shows participants the money utilizing these principles:

  • Principle of regularity: Regularity can be defined  as conformity to enforced rules and laws. This principle is also known  as the Principle of Consistency.
  • Principle of sincerity: According to this principle, the accounting unit should reflect the good faith the reality of the company's financial status.
  • Principle of the permanence of methods: This principle aims at allowing the coherence and comparison of the financial information published by the company.
  • Principle of non-compensation: One should show the  full details of the financial information and not seek to compensate a  debt with an asset, a revenue with an expense, etc.
  • Principle of prudence: This principle aims at  showing the reality "as is" : one should not try to make things look  prettier than they are. Typically, a revenue should be recorded only  when it is certain and a provision should be entered for an expense which is probable.
  • Principle of continuity: When stating financial  information, one should assume that the business will not be  interrupted. This principle mitigates the principle of prudence: assets  do not have to be accounted at their disposable value, but it is  accepted that they are at their historical value.
  • Principle of periodicity: Each accounting entry  should be allocated to a given period, and split accordingly if it  covers several periods. If a client pre-pays a subscription (or lease,  etc.), the given revenue should be split to the entire time-span and not  counted for entirely on the date of the transaction.

As we see it, Hollywood Accounting, at best, sways the numbers  toward the studio and distributor. GMTR, practicing GAAP, would set  forth honest results, fair accounting and open on-line "film results"  for investors and net-participants.

GMTR is Different

GMTR's purpose is to provide worldwide marketing and distribution  services for film products for its client. The budget for its'  operation, the corporate overhead or the "House Nut" is transparent to  participants. 

The marketing and distribution work happens weeks and months before  any sales receipts are received by GMT Releasing, the Distributor’s  Gross. A five percent [5%] for expenses, of the Distributor's Gross  Receipts, are withdrawn upon receipt of monies for the coverage and  continuing corporate "House Nut". This is in lieu of charging a large  fee for corporate overhead against the film.

The "House Nut" includes the fixed and variable expenses based on  real costs to operate. Examples of the variable expenses include basic  travel, business class for 4 to 6 hours in duration [coach for less  time], government rates for gasoline/mileage for company business,  communication costs, membership fees, guild dues, postage, and fixed  costs such as salaries, contractors, facilities, utilities, corporate  legal, accounting, and insurances. GMTR's operating annual budgets are  traditional in business [GAAP] practices in covering the "House Nut". 

Film overhead includes E & O, communications, legal, specific  staff for the film and this budget is based upon complexity of each  film's marketing plan, if the film gets 'legs' or not, and use of  "distribution partners or use of in-house staff or contractors". The  film's GMTR budget is pre-approved with the investors and Executive  Producers. Any significant changes over a certain amount are  communicated as well. 

Each selected movie product becomes or is already an established  corporate entity such as, "Film Title" LLC, and is accounted totally  separate from all other films, avoiding cross-collaterialization. The  film marketing and distribution expenses include, for example, prints  and advertising, publicity, travel, film festivals, and events, freight,  audience research, film insurance, graphics, artwork, warehouse,  storage, domain hosting, travel, web site, web broadcast streaming,  Internet social media marketing, film specific communications, and other  necessary marketing practices. The film's marketing plan and strategies  determine the amount of money along with the specific overhead for this  film.

GMTR receives a distribution fee of 10% of the Distributor's Gross.  The gross receipts from sales are held in an account, we call it a "war  chest",  pending disbursement to net participants per their agreement.  The disbursement of funds from the "war chest" are made to all net  participants [investors, producers, others per agreement and the  distributor's 10% fee]. Beginning at or around the same time.

Revenues from Product Placement and other streams of income may  be used upon 2/3rds agreement between the Distributor and the Exedcutive  Producer and the Investor for 'marketing expansion', production  enhancements, and / or minimizing the film investment. If the film has  'legs' it most likely will need these funds to 'grow the revenues'.

Password Protected

It is the practice philosophy of GMTR to provide net-participants  with password protected on-line accounting information for their film.  This on-line information has certain limitations of use such as seeing  other's contractual share.

How it works?

A contractual net-participant receives a password from GMTR and can  access 24/7 their accounting information from any Internet connection by  remote access.

Example [ there may be 5 or 6 movies on the site at the same time ]  and thus the title, your name and the password are all needed to enter  the specific film site

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