Editing Never Split Tens (movie prospectus) (section)

===Model Revenues===

To obtain an idea of the relative contributions of these various modes of revenue generation, we present a model of typical relative amounts of revenues.  These are hypothetical figures for a $5 million production budget motion picture and are presented to demonstrate the common relative contributions of non-box office receipts to the cash flow of a motion picture.  The gross revenue reported for domestic box office is the $13.7 million median value quoted for motion pictures with production budgets between $10 and $15 million as quoted in Section 7.b, Historical  Production Budgets and Revenues of Motion Pictures, Revenues. The gross revenue reported for foreign box office is the sum of the similarly reported median value and an estimated $8 million for revenue from electronic media. The figures provided do not constitute a representation or guarantee concerning the actual non-box office performance of the Motion Picture.  

Model Income Statement1
(Based on a motion picture with a $10 million production budget)

A.	Revenues from Domestic Box Office	$13,700,000

	     Less 50% Distribution Fees and Expenses	($6,850,000)

	Net Revenue from Domestic Box Office	$6,850,000	
B.	Revenues from Domestic Home Video2	$3,000,000

	     Less 35% Distribution Fees and  Expenses	($1,050,000)

	Net Revenue from Domestic Home Video	$1,950,000

C.	Revenues from Domestic Television (Premium/ Basic Cable) 	$5,000,000

	     Less 20% Distribution Fees and  Expenses	($1,000,000)

	Net Revenue from Domestic Television	$4,000,000

D.	Revenues from Foreign Sales (Box Office and Other Media)	$21,000,000	
	     Less 35% Distribution Fees and  Expenses	($7,350,000)

	Net Revenue from Foreign Sales	$13,650,000

E.	Revenues from Illinois Film Services Tax Credit3	$1,800,000

	     Less 10% Discount and Sales Commission	($180,000)

	Net Revenue from Illinois Film Services Tax Credit	$1,620,000

	Total Net Revenue	$28,250,000

	     Less  Investor Principal Investment	($10,000,000)

	     Less 15% Investor Preferred Return 	($1,500,000)
$1,500,000

	Net Profits 	$16,750,000

	65% Investors’ Share of Net Profits 
$10,887,500
$10,887,500

	Investor’s ROI on $10,000,000 – nearly 125%
	$12,387,500

1The income projections, distribution costs, and tax credit values listed are hypothetical examples to demonstrate the common relative contributions of various receipts to the revenues of a motion picture and do not constitute a representation or guarantee concerning the actual revenue performance of the Motion Picture.  
2 DVD/Blu-ray, Video-on-Demand, Electronic Sell-Through, and Internet Streaming.
3 Distributed to Investors unless used to augment budget for post-production.