Film glossary

Minimum Guarantee

A minimum guarantee, or MG, is the floor amount a distributor commits to pay for the right to release a film in a territory or on a platform.

The minimum guarantee is paid regardless of how the film ultimately performs in that territory, which is why it functions as a floor. Any revenue above the amount needed to recoup the MG and the distributor costs is then shared according to the deal terms.

A signed minimum guarantee can be borrowed against, so it plays a role in financing as well as distribution. It is a contracted commitment, not a prediction of performance.

Go deeper

Film Distribution guideFilm distribution is how a finished film reaches audiences and earns revenue across theatrical, streaming, television, and other windows. It involves sales agents, distributors, and a patchwork of territory and rights deals. Clean chain of title, complete deliverables, and clear collection arrangements are what let a distribution deal actually close and pay out.

Related terms

Keep reading the glossary

Pre-SalesA pre-sale is a contract in which a distributor agrees to pay for the right to release a film in a territory, often before the film is finished.Sales AgentA sales agent represents a film to buyers across territories, using a mandate from the producer to license rights on the film behalf.Recoupment WaterfallThe recoupment waterfall is the agreed order in which each source of capital is paid back from the revenue a film generates.Cross-CollateralizationCross-collateralization is a deal structure in which the revenue and costs of multiple territories, titles, or windows are pooled so that shortfalls in one are offset by surpluses in another.

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This definition is educational and does not provide financial, legal, or tax advice. Consult your own licensed advisors before acting. FILM.FUND is a software and workflow platform, not a broker-dealer. It never handles money, never holds securities, never takes a percentage of any raise or sale, and never predicts returns.