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Distribution School

THE BEGINNER'S CRASH COURSE IN FILM DISTRIBUTION -- Part 9: US & Foreign Sales

The ten-part series The Beginner's Crash Course In Film Distribution distills some of the information contained within The Insider's Guide to Film Distribution into a useful mini-guide for independent filmmakers.

Part 9: U.S. and Foreign Sales

So what should you expect from the sale?

The U.S. Sale

By way of actual dollars, it's hard to say what you'll be paid as this is always case specific. I always tell filmmakers to have measured expectations. This is overstating the obvious, but if you have an A-list star in your movie, then you'll obviously sell your film and will get a whole lot more than if you don't. If you were a hit at the festivals, especially the major ones, and snag a deal there with a mini-major, then you're looking at a different scenario than if you are simply looking for a DVD sale. So what if your film didn't catch on at the festivals? That doesn't mean it's dead in the water, it just means that you obviously will have to work harder to sell it and you will have to find someone within a distribution company to really get behind your film and champion it, whether it be at a theatrical distributor or at a DVD distributor, or you will need to hook up with a Producers Rep or Independent Sales Rep to sell your film.

If you acquire distribution, be aware of exactly what you are signing away. There are all different types of distribution deals ranging from worldwide all-media packages to others that allow you to split up the rights and sell off theatrical, television, DVD individually both domestically and worldwide. And there's, of course, all kinds of variations in between. So what's best for you? Again, that's determined on an individual basis. But before you sign you do need to know what you are signing. It can often be confusing and overwhelming if you are going it alone without representation. This is where Distribution Consultants can be helpful. The expense of a consultant is fairly minimal in the grand scheme of things (for an hour it'll run you around $250 and most consultants offer shorter, prorated consults) and the best part is, the consultation is fast, easy and painless. Distribution Consultants are generally moonlighting Producer's or Sales Reps, so you get their expertise at a fraction of the cost. They will advise you on which distribution package is best for your film. Should you give one distributor a worldwide theatrical, DVD, and television rights or should you split up the U.S and overseas rights? A Distribution Consultant can look at your options and advise you on the best way to go.

The Overseas Sale

The U.S. sale is the big payday and the foreign sales are icing. Some markets are so small the money is insignificant. But a bunch of sales do add up. I advise filmmakers to know the power of their film in the foreign market before seeking out distribution. Many B-list stars are huge draws in certain overseas markets. Before signing with a distributor who wants control of all, or even multiple overseas markets, I suggest thorough research so you know if you're getting a good deal or if you're better off selling rights region by region. Making realistic sales projections for overseas sales of your film, along with setting a solid distribution plan in place, can also help when raising money, too. Investor's can see where the potential lies to make their money back.

The Contract

I've said this before, and I'll say it again - I always recommend using a lawyer to negotiate the finer points of the deal. Unless you are very well-versed in reading contracts, you cannot process all the legalese you'll be faced with when it comes time to sign a deal with a distributor or even a Foreign Sales Agency or Sales Rep. This is where some of the more unsavory distributors, agencies or reps will take the opportunity to sweeten their deal at your expense, hoping you'll never find out until it's too late. A lawyer will protect you in this case and is generally just better suited to negotiation than a filmmaker. It's money well-spent.


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