Minimum Guarantee

A Minimum Guarantee (also called MG) is a contractual agreement between a distributor and a producer where the distributor agrees to pay an amount of money to the producer upfront for the distribution rights of a film. Once the distributor has paid the MG to the producer, they will deduct all incoming revenues generated by the film until the investment is fully recouped. After the recoupment the remaining revenue is then divided between the distributor and the producer based on the agreed terms.