adjustment : Spreety TV Online Glossary
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adjustment BUSINESS n.
1. A negotiated reduction in the amount an exhibitor owes a distributor
for the rental of a motion picture made after the run of the picture.
Adjustments to the rental fee owed are generally made when a
picture does not perform as well as the distributor promised when the original
contract was negotiated. This reduces the distributor’s income for the adjusted
picture, but it helps ensure that the exhibitor will take the next picture
offered by the distributor. Sometimes adjustments are made to successful
pictures to encourage the exhibitor to take less promising pictures in the
future. Adjustments are to the immediate advantage of the exhibitor and to the
long-term advantage of the distributor, but are made at the expense of the
profit participants.
2. An increase, or bump, in compensation or credit
given because of an expansion of responsibilities not covered in the original
terms of an agreement. Commonly applied to actors when their roles are revised
mid-production. Compare selling subject to review; settlement
transaction.
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