Thanks Guvet, Scooters,So the intial and biggest payment is on...

Thanks Guvet, Scooters,

So the intial and biggest payment is on release? or securing the licence? ( would this fall under cost of Goods?) and the Balance classed as a depreciating asset?
(Accounting never interested me :-)


I have been doing my some homework ,Bratz August Rush and Penolope (among others) licences were purchased in 2006 well before DES came on the scene, and I am surprised that distributors secure rights before the movie is even finished! Seems a bit of a lottery however I guess its done with the most favourable terms.

Intersting article here - (http://www.marklitwak.com/articles/film/indie_filmmaker.html)

Anyway DES/Magna, as opposed to old Magna, has invested in nine other films were licensed on an ‘all rights basis’ including:
o Righteous Kill starring Al Pacino and Robert De Niro (US distributor: Overture);
o The Accidental Husband starring Uma Thurman (US distributor: Yari Film Group);
o GAME starring Gerard Butler (US distributor: Lionsgate); and
o The Goods starring Jeremy Piven (US distributor: Paramount Vantage).

All are yet to be released bar Accidential Husband (Feb 29 in the UK). Hard to find too much info but the last two show promise, what do you think, smart buying?

I guess it also comes down to what they pay for the rights?

Also Magna caused a bit of a stir in New Zealand circles by taking the movie Ferryman straight to DVD, could this be prudent new management?

Thanks guys once again for your input.

Cheers Oscar

I think I'm becoming a serial DES poster.