Understanding sales statements

Most VOD outlets report and pay quarterly. Hulu is a typical example: they pay Kinonation 60 days after the end of the quarter. e.g. the quarter after the activity in the sales statement.

Q2 (Apr-June) payments will reach Kinonation on Aug 31st, which is late Q3 and therefore must be booked as Q3 revenue. Kinonation needs 30 days to process, report & pay, so you can expect to get your sales statement for Q2 by Sep 30th. This may seem like a long wait, but it's industry standard.

Sales statements come in to Hulu in many different formats; we have to "normalize" statements so the raw reporting from multiple outlets in disparate formats and reporting periods is understandable for content owners.

In general we can tell you how many times your content was viewed at each outlet during the reporting period. And also the rate at which each view is paid.

For example, Amazon Prime pays $0.10 per view, while Amazon Instant Video pays half (50%) of the retail price of the rental or sale. So on a $4.00 rental, $2.00 flows to Kinonation, and we pass 80% of that to the content owner.

However, reporting from various outlets can be confusing. e.g. Amazon refers to Amazon Prime "views" as purchases, and they also refer to actual "buys" of a film as a purchase. So you might have 76 people "buy" your film at a $8.00 purchase price, and 4,302 people watch it via Amazon Prime at $0.10 per view. Amazon lumps these together as 4,302 + 76 = 4,378 "purchases" which is confusing, but that's just the way they report.

Whereas Amazon "rentals" are logically separated, so if 458 people rent the film at $1.99 (SD) and 602 people rent at $2.99 (HD) then Amazon will report those together as 1,060 "video rentals" during that reporting period.

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