Finance
Minimum Guarantee
Definition
An upfront payment a distributor pays to acquire the rights to a film. The minimum guarantee (MG) is typically recouped from future revenue before the filmmaker receives additional payments. MGs range widely based on the film's commercial potential, from a few thousand dollars for small indie films to millions for festival hits.
Example
A distributor pays a $20,000 MG for your film. They must earn back that $20,000 from platform revenue before you receive any additional profit participation.
Related Terms
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