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Wikipedia:Reference desk/Archives/Entertainment/2022 October 6

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October 6

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What's the point of net points?

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Thanks to Hollywood accounting, royalties on net margin rarely if ever pay out. But it seems like they're still assigned in contracts. Why? It seems pointless if they're not going to be paid.

I had a (fairly quick) look but couldn't find anything. I think it would be a useful addition to Hollywood accounting if anyone knows of a source discussing why net points are still assigned. AlmostReadytoFly (talk) 15:29, 6 October 2022 (UTC)[reply]