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Ask any film producer, and they will tell you that making the film is only half the battle. Distributing and marketing the film to the right audience is a whole other story. So when you’ve committed to producing a film, a question you’re bound to have is, “How am I going to release this?”
Enter film distributors.
Film distributors are a vital part of the production process. They share your finished project with the masses—knocking down doors, partnering with movie theaters, and developing marketing materials.
Given the numerous options available, finding the right film distributor for your project can be daunting, as is agreeing on contract terms that are, at a bare minimum, a win-win for both parties.
In this article, we’ll share how to find a great film distribution company and go through negotiations as smoothly as possible.
You’ve heard of these companies but may only have a vague idea of film distributors’ responsibilities.
Film distributors handle the release of your film. In other words, film distribution companies are responsible for marketing and distributing the film within the territories specified in the distribution agreement. Distribution agreements come in various forms and can be specific enough to cover only video on demand (VOD) or theatrical release in a single territory.
So filmmakers could choose to sell VOD rights in Latin America to a film distribution company and retain the ability to self-distribute in the US. They could also sign another agreement with movie distributors for theatrical release in China. Or a hundred other scenarios based on a film’s release strategy.
Film distribution contracts also specify a term length. This refers to how long the distributor will have the rights to your film. Often the term length is subject to negotiation and can be anywhere from eight to 15 years.
Film distribution companies take full rights over your project. On paper, that may sound nerve-wracking. But with any contract, you can review the full terms of an agreement and shop around before the pen touches paper.
Micro-budget and indie filmmakers might also want to consider a film aggregator instead of a film distributor.
Film aggregators focus on placing the movie on digital VOD platforms such as iTunes, Amazon Prime, or Google Play. They conduct quality control and handle all the technical requirements to release the film. This is a cheaper alternative to a film distribution company and also gives the producer complete control over their film’s release strategy.
But you might be wondering, what do film distributors do that an aggregator can’t?
Well, this lies mainly in marketing and promoting the film. Indie film distributors have numerous connections to theaters, VOD platforms, publicists, reviewers, journalists, and influencers who can elevate your film’s release. Their experience and track record within a particular genre can also be helpful when navigating a release for the first time.
Some argue that film distribution companies have a vested interest in your movie succeeding because they do not charge a flat fee and are incentivized to get your film distributed.
Instead, they ask for a percentage. For example, for a domestic theatrical release, U.S. movie distributors may want 35% of gross revenues.
Of course, every situation is different, and your negotiation power depends on various factors, including your budget, buzz, attachments, marketing plan, festival success, and more. These factors will determine how much risk the film distribution company is willing to take by acquiring your film.
That means working the festival circuit, scheduling private film screenings, and any other avenues to get your film seen by as many distribution companies as possible. If multiple independent film distributors are interested in the film, it could lead to a bidding war, which gives you, the filmmaker, more leverage during negotiations.
Depending on your release strategy, your film could go through different release windows. Windows is a term used to describe the periods of time a certain type of media can screen a film.
Release windows might include:
These are just a few release windows that filmmakers will discuss during negotiations with independent film distributors. Depending on the distributor, they might also want to discuss AVOD, Linear TV, or VR/AR rights. Always make sure to research each window thoroughly before signing on the dotted line.
The biggest opportunity with developing release windows is the ability to balance monetizing your film and ensuring your marketing covers each release window. For example, if your goal is to have a successful theatrical run, don’t plan for a VOD release simultaneously, as it will diminish transaction sales from platforms such as iTunes.
Or, let’s say you want to see what happens if you release the film on Vimeo. You could get more money per viewing on Vimeo based on their pay split. But if you have no built-in audience, buzz, or marketing behind it, it will be an uphill battle.
Be mindful of your goals and stagger each window to maximize your film’s release.
Before you reach out to distribution companies, it’s essential to understand the different tiers within the industry. There are high-level distribution companies like Universal or Warner Bros. that only distribute studio films. On the other hand, numerous independent distribution companies cater to independent cinema. Ultimately, the film distribution company you select will depend on your goals for the film.
Tiffany Boyle of Ramo Law PC, an entertainment law firm, states:
“Some producers might have expectations that are less concerned about getting money back. They are more focused on the reach so they want a wide release and reviews that bolster their future film career. For more financial goals and getting that money back, work with parties that are honest, fair, and may not necessarily look at a theatrical release.”
A great way to begin is by researching potential companies during the post-production phase. Make a note of indie film distributors who have released projects similar to yours. The genre, budget, and target audience are key elements to look out for.
Check out Wrapbook’s independent film distributors list to kickstart your research.
While some independent film distributors may accept cold submissions from filmmakers, most will only review projects pitched by sales agents.
A sales agent acts on behalf of a producer to sell a project’s distribution rights. At film festivals, sales agents spearhead promoting the film and get indie film distributors excited about attending your screening.
Once you have interested distributors, check their credits and look for similar projects. Reach out and network other producers who have worked with them to get the inside scoop on what it's really like to partner with those independent film distributors.
Before working with any distributor, research what filmmakers they’ve worked with to avoid ignominious companies.
As you’ll see by reading below, there are many things to look out for when working on a distribution agreement. Consult a qualified entertainment lawyer to fully understand what you’re agreeing to.
When choosing a film distributor, you want a credible partner. Check that your film distributor has a reputation for transparency regarding marketing expenses and whether the fees reflect the effort they put in.
Producer Tara Ansley highlights,
“Make sure someone will be in your corner. That they are transparent and cap out their expenses by taking out an industry norm percentage. Ten percent is fair.”
Knowing exactly where the money is being spent will give you a clear sense of how much effort the distribution company plans on putting into your film.
“I find certain distributors will charge a lot of expense fees for not a lot of work,” adds Boyle.
Be thorough in your research and avoid independent film distributors trying to nickel and dime you.
If you have a true partner helping you distribute your film or series, they will invest money in the marketing campaign. It’s also important to ensure that the distributor has a plan for both physical and digital marketing.
That way people continue to watch what you produce long after any deal with Netflix or another platform expires.
You don’t want to walk into a meeting with independent film distributors and have them ask, “Ok, what’s the plan?” The distribution company should have a detailed plan on how they will release your film, get it to market, and understand the content they are acquiring the rights to.
Look out for termination and bankruptcy terms in the distribution agreement.
Boyle notes, “Getting a bankrupt company to report a film’s performance is nearly impossible.”
Consider including terms for performance classes and the ability to terminate the agreement if the film distributor assigns rights to a new company, goes bankrupt, or doesn’t generate enough sales after a certain amount of time.
Consider including a release by date in the agreement. Without one, your film could get stuck in purgatory.
With a set release date, your film gets released by that specific date. If they decide to shelve it, you get the rights back to your film.
Distributors may ask for a backend, a percentage of the film’s profit (in many cases 10%) after expenses are reimbursed. Some independent film distributors don’t include a backend in a distribution agreement.
Make sure to pay special attention to this deal point as it could significantly affect the profit split once the film starts making money.
Beware film distribution companies that try to upsell you on extra services like QC, closed captioning, and subtitles.
Boyle has an important piece of advice for filmmakers embarking on their first distribution journey:
“Put a free access term in the contract so any materials the film distributors make, you can use without paying an additional fee. So if they have Spanish dubs they created for the US release of your content, you have a Spanish version that you might be able to sell to Latin America for digital release.”
While you may want to take advantage of some of these services, make sure you get a line item report of all services to know exactly what you’re paying for.
Just because your DVD release is a bust doesn’t mean you have to suffer. Avoid agreeing to cross-collateralization. For example, if you give a film distribution company all rights to media, they may want to recoup losses when no one buys the DVD version of your film.
Protect yourself from additional losses by negotiating the cross-collateralization clause.
Take a potential headache off your plate 10 to 20 years down the line. Ask if the distributor assumes responsibility for residual payments. This should cover unions like SAG, WGA, etc.
While this post is a great jumping off point for film distributor hunting, it’s in no way a substitute for an entertainment lawyer.
A seasoned attorney can help you to vet the distribution agreement and distribution companies based on previous transactions with the company. That way you can get a better sense of a film distributor’s normal contract terms and any potential minimum guarantees.
If you’re in the earlier stages of the filmmaking process, check out our essential guide on film production agreements to lock down vital contract terms ahead of time. Want to explore Wrapbook’s all-in-one platform for entertainment accounting and payroll? Contact us or check out our demo!
At Wrapbook, we pride ourselves on providing outstanding free resources to producers and their crews, but this post is for informational purposes only as of the date above. The content on our website is not intended to provide and should not be relied on for legal, accounting, or tax advice. You should consult with your own legal, accounting, or tax advisors to determine how this general information may apply to your specific circumstances.
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