Welcome to the Entertainment Newsletter, containing content related to the people, news and business issues we see in our day-to-day service to the industry.
In This Issue:
California’s Withholding Tax Requirements Place an Extra Compliance Burden on the Entertainment Industry
Those involved in California’s entertainment industry understand the coordination and effort it takes to pull off a major production. Independent contractors, such as talent and production crews, are often critical to production. Frequently, these contractors are not residents of California. In an effort to ensure compliance and maximize tax revenues, California has increasingly scrutinized payments made to nonresident independent contractors to ensure that California income tax is being withheld.
“Hasta La Vista” First Dollar Gross Deals
Over the past 10 to 20 years, A-List actors were consistently receiving First Dollar Gross (FDG) deals from major studios, which provide payment to actors based on total revenue less only off-the-top expenses. However, a recent trend towards creating extremely high budget films provide great potential, but also significant risk to studios – risk that is compounded by FDG deals.
Recent Trends: Packaged and Digital Media and the Licensing Industry
In this article, we discuss recent trends and key developments in packaged and digital media. In addition, if you are familiar with the licensing industry, you probably know that the only constant is change. With an increased celebrity presence, expansion in digital media, and growth in the global marketplace, the industry is evolving before our eyes.
NO CRIME HERE: Content Partners Acquires 50% Interest in “CSI”
In a landmark deal, L.A. based Content Partners acquired a 50 percent interest in the hit television series “CSI.” The acquisition, purchased for a reported $400 million from Goldman Sachs, includes “CSI,” “CSI: Miami,” and “CSI: NY.”