← Glossarydistribution
Minimum Guarantee
An advance payment from a distributor against future royalties.
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A minimum guarantee (MG) is an upfront payment a distributor makes to acquire distribution rights, paid against future royalties. For example, if a distributor pays a $50,000 MG and the film earns $80,000 in royalties, the filmmaker receives an additional $30,000. If the film only earns $30,000, the filmmaker keeps the MG and receives nothing more. MGs are rare for first-time filmmakers but increasingly common with streaming platform acquisitions.