This is the term used to describe the percentage of a film’s budget that is used by distributors to determine the price to acquire a film. In other words, one of the main factors that distributors use to figure out how much they are going to pay for a certain film is the film’s negative cost. This is usually a percentage, and every distributor has a different percentage that they apply to particular films. Therefore, the higher the film budget, the higher a distributor is likely to pay for it.
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