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Q: Tom Cruise' Percent of Total Gross ( No Answer,   3 Comments )
Subject: Tom Cruise' Percent of Total Gross
Category: Business and Money > Accounting
Asked by: paulic7-ga
List Price: $5.00
Posted: 24 Aug 2006 15:41 PDT
Expires: 23 Sep 2006 15:41 PDT
Question ID: 759261
"The bad news is that Mr Cruise gets 22 per cent of the gross revenues
received by the studio on the theatrical release and the television
licensing. Even worse, from the studio?s point of view, is Mr Cruise?s
12 per cent cut of Paramount?s total DVD receipts."

Question:  What is Tom's percent when theatrical and DVD are treated as one gross?
There is no answer at this time.

Subject: Re: Tom Cruise' Percent of Total Gross
From: myoarin-ga on 25 Aug 2006 01:20 PDT
That depends on the relative total grosses of revenues from theatrical
and DVD, which will only be known when distribution and sales revenue

Take the extreme case scenario  - only theoretically possible:  
If there were NO DVD sales, Tom's overall percent would be the 22%
from cinema and TV distribution.
Subject: Re: Tom Cruise' Percent of Total Gross
From: tr1234-ga on 25 Aug 2006 06:49 PDT
From a strictly algebraic point-of-view, it would seem to be
impossible to answer this question unless you had some sort of
mathematical relationship between theatrical grosses and DVD grosses. 
It sounds like what you want to know is the value of X in the formula:

X(Y+Z) = 22%(Y) + 12%(Z)

where Y is the theatrical release grosses and Z is the DVD release grosses.

Now, if you knew, for instance, that DVD gross receipts are going to
be half of the theatrical grosses, you could substitute and solve for
the percentage you want. But I don't know and haven't found any 
mathematical relationship between theatrical releases & DVD that would
seem to be useful for this purpose, but there maybe something out

But if you do find such a mathematical relationship, realize that (1)
obviously, it'd just an estimate; (2) if the figure is a few years
old, it may no longer be relevant, as there have been significant
changes to overall DVD sales in recent years; (3) if the estimate
comes from an overall look at the entire movie industry, it may not be
relevant to any particular person's situation.
Subject: Re: Tom Cruise' Percent of Total Gross
From: paulic7-ga on 25 Aug 2006 18:57 PDT
Thanks guys.  Very good point.  There is just too much info missing to
make even an estimate.

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