"If the distributor shorts a $100 contract and the movie grosses $50 million, the distributor will make $50, thereby limiting the company’s total losses from a film."
From what they have said, this does not sound like a viable hedging strategy for those in production. There is unlikely to be enough contracts traded. Instead, it seems more like a gambling operation with a CFTC gambling shield. I'm surprised they did this, given how much general anger there still is regarding derivatives and speculation.