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Q: Tom Cruise' Percent of Total Gross ( No Answer,   3 Comments )
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 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." http://www.ft.com/cms/s/d817b680-33a0-11db-981f-0000779e2340.html Question: What is Tom's percent when theatrical and DVD are treated as one gross?```
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 ```That depends on the relative total grosses of revenues from theatrical and DVD, which will only be known when distribution and sales revenue stop. 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.```
 ```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 there. 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.```
 ```Thanks guys. Very good point. There is just too much info missing to make even an estimate.```