DavidTai wrote:
Hm. I'm not too clear on it, but does this generally mean royalties only kick in when net profit is made?
Depends on the contract.  Some of these payments are fixed amounts based upon post-release box office performance, among other things, in which case, they're not really royalties.  On the other hand, some of these are actually structured as royalties, which can come out of either gross or net profit.  Net profit royalties are always dicey in Hollywood, since films almost never show a net profit, regardless of how profitable they are (a major source of litigation in the business).