Filmmakers need to have a good understanding of distribution. Filmmakers who succeed (and can recoup their investments and repay investors) will create a distribution strategy before they start filmmaking. Sometimes they might even write the script before it is finished.
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The global deal is important. Deals are made using split rights
Post Sundance, Toronto and Cannes, major distributors are no longer able to purchase your movie from you.
There are exceptions like Fox Searchlight's purchase of Another Earth at Sundance 2011 It would be foolish to base a film on the possibility of a global deal.
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Cinemas can be expensive.
Booking ad space in magazines or newspapers is expensive. A theatrical release can seem small because of the high cost of publicity and social media resources. Remember that both the distributor and the exhibitors (theatre owners), will take a third. The remaining money from cinema admissions starts to shrink. Distributor deducts the costs associated with the release of the 'profit.
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Service deals can work
The service agreement allows the filmmakers to hire a specialist for distribution. This service agreement is for a small fee. The specialists are then booked, and preview screenings are given to cinema booking agents. The filmmaker receives the money back, less any publicity or advertising campaigns.
Service agreements allow filmmakers greater flexibility and control. You work for the distributor. You will reap greater rewards if you are involved in the campaign.
You have less control the bigger the deal
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Dah. Yes. Yes.
Fortune will distribute your sweet, sweet, heartfelt film to big distributors. You will need to learn quickly how to dance to their tune. You can ignore your voice and just listen to them while they decide how to maximize their return. You can say goodbye to your movie if they don't do the right things for your book and ruin everything. They can re-cut or re-do any artwork without consulting you. It is crucial that you clearly define in your contract the approval process for major marketing decisions.
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Cap Film Distribution Expenses
Marketing campaigns can be costly. If your deal involves a share of the profits, you must limit expenses. Any profit lost will be irrevocable.
Russell Owen, a British filmmaker taught me a great trick. To add a filmmaker’s fee to your expenses. If your agent or distributor is going to spend 100k on marketing for your film, insist that 10% be added to your budget. Once the film has recovered its expenses, you can revert to your original deal.
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The Post has the Cheque
Sometimes it can take money from your movie to reach you. It can take money from your theatrical release to reach the distributor (theatre owner). The wait time for DVD sales can be longer. There are often delays up to 12 months, or even 15 months. To cover unsold merchandise, retailers often keep cash in reserve.
Beware of the middleman
There are some middlemen who can represent newcomers' film slates provided they have an excellent screening process that cherry-picks the best talent to distribute.
In the digital age, this function is more formalized. These intermediaries are also known as middlemen or aggregators. They serve two main purposes. They encode your film in multiple CODECs, which can be used on everything from Playstation to mobile phones to online viewing. Then, they sell your film on major platforms like iTunes and Netflix. After the platform or aggregator takes their cut, the fees are much higher. The filmmakers only receive a small fraction of the total revenue.
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The basics of film distribution
Each relationship in our lives develops and then disintegrates. The distribution agreement is something that wise filmmakers will sign. If the filmmaker does not reach a minimum income stream, the distributor can let them know. Another common element you should include in your distribution agreement is a void clause. This clause allows you to cancel the film's release within a specified time.
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R.O.I. All this and more
Each film has potential revenue. It is crucial to calculate the potential revenue for your movie and price it accordingly. This is an important aspect of film distribution. This is why? This is why.