22 Indiefilm Distribution Definitions Filmmakers NEED to know

If you’re going to read and understand your distribution agreement, then there’s some terminology you have to grasp first.  So with that in mind, here’s a breakdown of some key terminology you ABSOLUTELY need to know if you’re going to get traditional distribution for your film.

This is one of those blogs I should probably start out by saying that I’m not a lawyer.  Always talk to a lawyer when looking at a film or media distribution contract.  With that out of the way, I’d recommend we get started. 

1. License

At its core, a license for an independent film or media project is the right to exploit the content for financial gain.  Every other piece of a license agreement is clarifying the limitations of that license. 

2. Licensor

A licensor is a person or entity that is licensing a piece of media to another entity to either distribute or sub-distribute its content.  In general, this is the filmmaker when the filmmaker is dealing with a sales agent or producer’s rep, or the sales agent or producer’s rep when they’re dealing with distributors. 

3. Licensee

The License is the entity that is acquiring the content to distribute it and exploit it for financial gain.  In the instance of filmmakers and sales agents, it would be the sales agent, in the instance of sales agents and distributors, it would be the distributor. 

4.  Producer’s Representative (Producer’s Rep)

An agent who acts on behalf of a filmmaker or film to get the best possible sales and distribution deals. 

Related: What does a Producer’s Rep Actually do, anyway?

5.   Sales Agent

A Company that licenses films from sales agents or Producer’s Reps in order to sub-license the film to territorial distributors around the world.

6. Distributor

A company that directly exploits a film in a given territory on agreed upon media right types.

Related: What’s the difference between a sales agent and distributor

7. ​MG (Minimum Guarantee)

This is a huge one.  It’s the amount of money you get up front from a sales agent, or a sales agent receives from a distributor.  The biggest difference between this and a license fee is that at least in theory an MG has the potential to receive more in residual payments beyond the additional payment.  In practice, this is less common. 

8. License Fee

A license fee is a set amount of money paid by a distributor to exploit media in a defined territory and set of media rights.  Unlike a minimum guarantee, a License fee is the total amount of payment the licensor will receive over the course of the license, regardless of the financial success the film goes on to achieve.  License fees can be paid in one lump sum, or over the course of the license. 

9. ​Revenue Share

​Revenue share is the other most common way films can receive payment.  Revenue share essentially means that the licensee will split the revenue with the licensor according to an agreed-upon commission generally after they recoup their expenses. 

10. ​Producer’s Corridor

A producer’s corridor is an alternate payment waterfall of money a filmmaker is paid prior to the licensee recouping their expenses.  This generally means that the producer is paid from dollar one. 

11. Term

Term is the length of time a contract is in place.  For most independent film sales agency contracts, the term is generally 5-7 years. 

12. ​Region

The instances that generally apply to traditional distribution in the modern-day region refer to a set of territories in which a film can be distributed in. While they vary slightly from sales agency to sales agency, they are generally English Speaking, Europe, Latin America, Asia/Far East, and others.

13. ​Territory

When it comes to film distribution and international sales. territories are areas within a region that add greater specificity to where a sales agent can parse rights.  Latin America is both a region and a territory.

14. Media Rights

The sorts of media that a distributor has to exploit in a given territory or set of territories. 

Related: Indiefilm Media Right types

15. Benelux

A territory consisting of Belgium, the Netherlands, and Luxembourg. 

16. Four-Wall

The act of renting theaters in order to screen your film in them.  It generally involves a not insignificant upfront fee, and as a result, all money returns to the licensor. 

17. Community Screening

An alternative to a theatrical run for films with a strong niche or cause.  See below for more information. 

Related: How Community Screenings can replace a Theatrical Run

Related: 9 Essential Elements of Independent Film Community Screening Package

18. Payment Waterfall

When it comes to independent film distribution agreements, a payment waterfall is contractual representation How many flows from stakeholder to stakeholder?  If there is a producer’s corridor or some other non-standard modifications of a license agreement, there may be more than one waterfall in said contract. 

Related: IndieFilm Distribution Payment Waterfalls 101

19. Collection Account

​​A collection account is an account that a sales agent pays into which pays out all other stakeholders according to a pre-defined set of parameters.

20. ​Reports

In the context of independent film distribution and international sales agreements, a report is a statement made monthly, quarterly, bi-annually, or annually that states all incomes and expenses for a film.  Generally, this is accompanied by a check one is due.

21. Payment Threshold

When it comes to film and media distribution, a payment threshold is a minimum payment owed by a licensee in order to issue a payment to a licensee.  This payment amount is generally dependent on what payment method is being utilized.  For instance, the minimum is for a wire transfer is generally higher than a check which in turn is generally higher than for a direct deposit. 

22. Recoupable Expense

A recoupable expense is an investment made into marketing or distribution-related expenses by a licensee.  This investment will need to be paid back before the licensee pays the licensor, with the notable exception of the producer’s corridor.  Generally, these investments will fall into one of 3 categories of capped, uncapped, and uncovered expenses.   For more information, please check out the blog below. 

Related: What are recoupable expenses?

BONUS! - Expense Cap

An expense cap is a cap on the total amount of expenses that a licensee is able to take out before paying the licensor. There are exceptions, see the related link above for more information.

Thank you so much for reading the glossary! I hope it’s Helpful. If this is all intimidating and you need a little help, consider hiring a professional to assist you in the process.  So you could consider checking out Guerrilla Rep Media’s services. These blogs Blogs are largely a public service and marketing tool for me, most of my business is from representing and consulting with filmmakers just like you.  You can learn more and submit your film via the link below.  Or, if you're not ready for that, but want to support more content like this, join my email list to stay up to date on new offerings and get an awesome film business resource package while you’re there.

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Everything you need in an Electronic Press Kit (EPK)

Last week I shared a few different types of printed materials to use at film festivals.  This week, I thought I’d follow up with a post on the essential components of the Indiefilm Electronic Press Kit.    I will say that this is one thing where reasonable people can disagree, so if you think there’s something I missed, comment below and I might change the post to include it.

How people should access your press kit

Your press kit is not the same as the press tab on your website.  The press tab on your website is primarily to promote your film to consumers and assemble the press that you’ve gotten for both your company and your film.  The EPK is a kit to give potential reporters and reviewers of your film so that they have most of everything they need to do an article on you, or a report on you.  Here’s what you’ll generally need to provide them.  (Often, this will be behind a password firewall, that you’ll include on your printed materials.)​

Synopsis

You’ll want to include a catchy summary of your film.  This will be in lots of places on your site, but you want to make it easy to reference for the press. 

A Running Festival Acceptance/Award List

This section will be on the press tab as well, but you should keep everything on a single page for your film.  It’s essentially just a list of any and all film festivals you’ve been accepted to, as well as any and all awards you’ve won. 

Trailer/Clips from the film

You should include your trailer and maybe a scene or two from your film to give those who are writing an article on your film the ability to do their job both easily and well.  I’d also include a direct link to wherever the videos are hosted. 

Full Bio of Cast/Crew/Production Company With Social Media/IMDb links.

Your regular site will have a lot of this information, but you’ll want to make sure you include the names, bios, previous credits, and links to public-facing social media profiles of all your key cast and crew.  These would be the producers, directors, leads, and strong supporting characters.

Photo Gallery/Downloadable Zip File

Articles tend to come with a few photos, so I’d include around 10-15 photos including stills from your movie and headshots of key personnel.  Make sure they’re high-res, but not Raw.

A Password Protected Screener

You should definitely include a password-protected screener for your film. In this instance, it’s acceptable to have something akin to an email for a password below it. Normally this isn’t something you’ll want to do to people reviewing your movie, but since you’ll probably hand the other password out as part of your printed materials that may end up in the wrong hands this one might be wise to include.

If you’ve got too much to do and wish you had templates for your printed materials, I’ve got your back. My resource pack is chock-full of templates including festival brochures, investment decks, contact tracking, form letters, and exclusive educational content to help you grow your filmmaking career. Click the link below to grab it.

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Why do distributors and Sales agents ask for Weird assets to sell my Independent Film? (Deliverables 4/4)

Even though the delivery materials in the first 3 parts of this blog seemed pretty thorough, there are still more that may be required to fulfill an international sale.  Generally, these deliverables are only required if requested at a later date, and sometimes they’re created by the sales agents as an additional recoupable expense to be paid before the filmmaker begins taking their cut.  

As with the other three parts of this installment, this list is not meant to be exhaustive.  Every deliverables contract is different, and although this may be thorough, it may still miss an item or two.  More likely though, there would be things on this list you’d never have to worry about. 

1. HDcamSR Masters

And you thought we moved past the need for tapes.  Think again.  Not every television broadcaster in less developed parts of the world has made the switch to HD.  A lot of them still run on tape workflows, so you may be required to provide an HDCamSR Master.  Often, this is something that the distributor will generate through their own sources, and add to your recoupable expenses. 

Note From the Future: This really isn’t common anymore. It’s all generated from the 422 masters.

2. DCP

Generally, this deliverable is only required if the sales agent is going to be hosting market screenings.  If there’s a theatrical run, more may be required.  Generally, the first one is relatively expensive to have done, and the others are simply the cost of a hard drive. 

EDIT FROM THE FUTURE: You probably don’t need this. Market Screenings use different deliverables and if your distributor is doing a theatrical they’ll need to put their own bumper on it. It will be a recoupable expense for theatrical that will come back to them before you get paid.

3. Digibeta Masters

What is this, the 80s?  If you thought that Digibeta lost the format wars to VHS, you’re only half right.  Digibeta is a much higher quality format as compared to VHS, and as such it was used in broadcasting for quite a long time.  In fact, it was even used in the US until all broadcasters made the switch to HD.  I still have some Digibeta tapes laying around my apartment from Film School.  (and I’m only 31, thank you very much.)
​
The reason that some (admittedly thorough) sales agents put this on their as-needed deliverable lists is the same reason they put the HDcanSR on their deliverable lists.  Some broadcasters (Particularly in Eastern Europe) Still use digibeta tapes as their primary workflow. 

NOTE FROM THE FUTURE: Yeah, nobody requires this anymore. In the EXTREMELY rare instance, it does happen, the sales agent or distributor will have it made from your master as a recoupable expense.

4. Clip/Footage/Stills/Bonus Material Licenses

I almost put this in the legal section, but that one was already a bit long.  These are essentially licenses for any bonus materials or stills that may appear in DVD extras.  Similarly, if you licensed any stock footage for the film, you’ll need to prove you have the right to use it. 

5. US Distribution Deliverables

The rest of this list is generally only required for US Distribution.  However, that is not always the case. 

5A. Closed Caption File

There’s a well-defined professional file format for closed caption files.  If you expect to distribute in the US, you’re probably going to need to get one of these. ​ If you don’t have one, distributors will commonly use their vendor and bill it back as a special recoupable expense. This isn’t a bad thing for you to have in general, and it generally costs between 100 and 200 USD per feature.

5B. Copyright Search and Title Reports

This is essentially proof that you have the right to license the film to distributors, and that there aren’t any legal reasons barring you from licensing the film.  Generally, this will be required at least 3-6 months prior to distribution.  Contact the copyright office for more information. 

5C. E&O Insurance Certificate

Generally, E&O Insurance is only required for wide-reaching Domestic Television and Subscription Video on Demand (SVOD) sales.  However, a distributor may require it for other purposes as well.  The exact coverage amount will vary depending on the distributor.  The specifics will include per-instance coverage caps, aggregate coverage caps, and minimum deductibles. 

Often the sales agent/distributor will have a preferred vendor for this and may provide it as a recoupable expense above the existing recoupable expenses.  If they do not provide it as a recoupable expense, there’s a good chance that their vendor gives them a sweetheart deal, and it’s still in your best interest to consider using their vendor. No matter what, you probably want to wait on getting the policy until it’s required just to make sure that you’re getting the right policy.

5D. MPAA Rating

If the Distributor is planning any level of a wide theatrical release, they’ll need a rating certificate from the MPAA.  Often there will be rating caps such as R for any adult-oriented movie, or PG for any family-oriented movie.  The Producer will be expected to bear the cost of acquiring this certificate.  Also, unless you have the official certificate, the film is unrated.  DO NOT attempt to rate the film yourself without going through the MPAA.  If you’re getting a relatively limited theatrical release, your distributor may use the TV rating system which is generally self-regulated. If they go that way, they’ll probably err on the side of caution and up the rating to avoid a fine. A few of the films I’ve released are rated MA where they should be more like TV-14.

Thanks so much for reading!  Hopefully, this 4 part series has been illuminating as to what’s involved in deliverables.  If you’re a film school teacher, feel free to use this information in your classwork.  You can also reach out to me via my contact form and let me know if you’d like something more suited for a handout.  

Also, if even if you’re not a film school teacher you should grab my free film business resource package. It’s got an e-book with exclusive articles to help you grow your filmmaking career. It’s also got templates for investment decks, festival brochures, and more.

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What paperwork do I need to deliver to my Indiefilm Distributor? (Deliverables 3/4)

Distribution deliverables are far more than simply technical requirements.  As we saw last week, there are also substantial marketing materials that you’ll have to provide to the distributor and more that they may have to generate themselves.  This week we’re covering the basics of legal distribution deliverables.

This list is thorough, but not exhaustive.  There may be things required outside of this list for legal, and there may be things on this list that are not required, depending on who you’re dealing with.  Also, I’m not a lawyer, this isn’t legal advice. Check with your attorney to get some advice if anything is unclear.

1. Key Production Agreements

These are essentially legal documents from key cast and crew saying that you have the right to use their work in your film.  Essentially, you’ll have to prove that either you’ve paid out all of the filmmakers, or that they have no claim on the intellectual property of the film. Essentially, you’ll have to prove that whatever work they did was “For Hire” or that you will take on the liability of ensuring that all deserving stakeholders are paid appropriately

Generally, you’ll have to provide agreements proving this for key cast and crew.  Most of the time, those appearing in the main title sequence are a good measure. The preferred form of delivery for this is fully executed contracts or deal memos.   A lot of times you won’t need to deliver these unless it’s asked for.

You’ll also have to provide separate agreements for composers, or any other songs or assets that you’ve licenced.  For the composers, you’ll need to make sure you have the right to use their work in any way you see fit.  This can include trailers, promo spots, DVD extras, and anything else in conjunction with promoting or marketing the film.  This is particularly important and must be treated separately from a standard crew agreement. 

If you used source music, you’ll also have to provide that you have the right to use any and all of that source music under similar terms to the composer’s original music listed above.  there’s slightly more wiggle room on this here, but not a whole lot. 

2. Certificate of Origin

This is a certificate stating where the film was shot, and essentially stating that the film had the right to be shot there.  This is important in all cases, but particularly important in the event that you took tax incentives to finance your film. 

3. Chain of Title Summary

This deserves its own blog, which it will get.  However, in summary, the chain of title outlines the passage of intellectual property between source material, Script, and Production company.  It’s generally a document summarizing all of the associated rights agreements.

4. Rights Agreements

These are essentially documents proving that you have the rights to all the intellectual property used in the film.  These documents can include options, proof of option payments, assignments, licenses, certificates of authorship, written permissions, powers of attorney, and other similar documents. 

Often, if the name of the copyright owner is different from the owner of the picture, you will need to write up a transfer letter as well.  Most of the time you’ll need to generate a chain of title summary for your sales agent to track the rights across multiple documents.

5. Copyright Registration Certificate

This should be fairly self-explanatory, but you’ll need to include the copyright registration of both the picture and the screenplay.  Yes, you do need to copyright your work, a WGA registration will not suffice.  And yes, you need to have copyright certificates for both the screenplay and the film. 

There are other deliverables that can suffice if the copyright is pending, however, those vary by sales agency so I’m not going to go into them here.  Additionally, if you shot your film internationally it’s generally wise to file for a US Copyright as it tends to have the most standing in international courts as not every country has a well-staffed copyright and patent office.

6. Additional Agreements/Statements/Letters

There are a few other documents you may have to provide under certain circumstances. 

6A, If the Film is Not Originally in English

A deliverable you might need would be an English translation if the film is not in English originally.  Most of the time, buyers prefer a film to be in either their native language or in English.  It doesn’t matter if they have to translate the film anyway, they prefer to be translating the film from English. 

6B, If you worked with Children

Another ancillary document would be some degree of documentation that all children were treated legally on set. Most of the time you can find relevant documentation from the Screen Actor’s Guild, even if your shoot was not a signatory. if the film has any children in it. You’ll also need to provide some documentation that you abided by local child labor laws as they pertain to the film industry.

6C, If the film contains nudity or sexual content

In the event that the film contains sexually explicit material, then you’ll need to provide proof of 28 C.F.R. Compliance and record-keeping responsibilities and documentation of those record-keeping responsibilities. 

Similarly, you’ll need to provide additional documentation from any actor appearing nude or partially nude on screen consenting that their nudity was meant to be widely disseminated among the public. 

6D, If it was a union picture

If the film is union, you’ll need to provide all your agreements and proof that you’re in good standing.

6E​, Other Contractual Obligations.  

There may be a whole host of other releases from governmental, technical, and legal entities that prove this film can be distributed, but there’s such variance, it goes far beyond the scope of this blog. 

Thanks for reading!  This one ended up being a bit scary.  Check the other posts for more.  Also, Grab my free Indiefilm Business Resource Package to get a free e-book, templates, and a monthly blog digest to increase your ability to find meaningful distribution, and check the tags below for more information on filmmaking.

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What Deliverables does my Sales Agent Need to sell my Independent Film internationally? (Deliverables 2/4)

Last week, I covered the basics that are required as deliverables for almost every U.S. Distribution or International Sales Contract.  This week, I’m going through the servicing lists.  Most of these servicing requirements are for the internationalization of the film, be they subs or dubs.  Some are more for marketing purposes, but in the end, it’s what the sales agent needs to effectively put together a package and the film to where it needs to go.

Again, this list though expansive may not cover every distribution deliverable from every contract you may encounter, although it should get most of them.  

NOTE FROM THE FUTURE: After running a distribution company, I found these blogs are overly intensive, and really you’re not going to need everything across the 4 blogs. I may do a revised version in the future if I get enough comments, but until then I’ll leave this up for posterity.

1. ​Final Timecoded Continuity Script/Spotting List:

This is different than a script.  This is you watching the final cut of your movie and going through and noting the timecode of every single line of dialogue.  You’ll also have to write down exactly which words are spoken for this spotting list.  This document is generally used for creating subtitles and dubbing scripts. 

You may also be required to provide this for any trailers. ​

2. Final Shooting Script

Even though you will need to have the spotting list, turning over the final version of the shooting script can help provide a backup, in case parts of the spotting list are unclear, or do not translate well. 

3. Music Cue Sheet

A Music Cue Sheet is similar to a spotting list, but instead of being for dialogue, it’s for music.  While you will be required to provide music and effects tracks, the music queue sheet is required in case of edits are made to the film for censorship or time reasons. ​

4. Music & Effects (M&E) Tracks

If the sales agent sells the right to dub the film, they’re going to need the Music and Effects tracks to do it well.  These tracks are essentially all the audio in the film without any dialogue.  Sometimes the tracks on which each type of audio will be placed on are specified, however, that’s beyond the scope of this article. 

5. Final Main Credits

This is a typed list of the opening credits as they appear on the screen.  Generally, these are more for subtitling purposes than straight-up replacement purposes.  Most of the time delivery of this item will be via Word document. 

6. Final End Credits

Similar to the final main credit entry above, this is a list of all credits in the back end of the film.  Again this is something you can deliver to your international sales agent in a simple Word document.  Generally, these are preferred to PDFs in case minor changes or copy-pastes need to be made.

7. Press Kit

This deserves a longer entry than I can give it here, but a press kit is essentially a list of all pressworthy information about the film.  What goes into it is subjective relative to space requirements and how you’re using it.  In this instance, it’s best you talk to your sales agents to clarify what they really need in a physical press kit.  Although generally speaking, you’ll want a review or two from festivals, any festivals you got into, any press coverage you’ve already gotten, some screenshots from the movie, the poster, and maybe a few quotes from the director/producers/lead talent. 

8. Logos

You’ll need to deliver logos to the distributor for the production companies involved in making the film.  If you’re using a producer’s rep, then you’ll need theirs too.  Generally, the distributor will want the Photoshop file, and they’ll probably have other tech specs for you as well. 

9. Bonus Material

If the distributor is planning a DVD release, they may ask for bonus materials.  Things like BTS Footage, deleted scenes, an alternate ending, a blooper reel, cast interviews, and commentary tracks. ​

10. Electronic Press Kit (EPK)

This is an electronic version of the press kit.  It will contain everything listed above, plus more links to reviews, broadcast-quality interviews (if available) and more dynamic and updatable content than a paper press kit can provide. 

Thanks so much for reading!  Check the other posts for more.  Next up is legal, and it’s LONG. Also, Grab my free Indiefilm Business Resource Package to get a free e-book, templates, and a monthly blog digest to increase your ability to find meaningful distribution.

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What do I need to deliver to my Independent Film’s distributor? (1/4)

So there are a lot of questions about what’s involved in Distribution Deliverables for an Independent Film.  So I’ve scoured a few contracts to find a very thorough list of what you might need to provide for a distributor or Sales Agent if they take your film.  Since this list is quite expansive, there may be some stuff on here that most distributors do not ask for, but I figured it best to know what you might have to be able to provide

Given how massive this list ended up being, I’m actually going to break this out into 4 parts.  This part is the basics, the next part will be deliverables used in internationalization and marketing, part 3 will be legal, and the fourth and final part will be some of the stranger and incidental things you might have to provide or be willing to pay for the sales agent to provide.

All of this being said, even though this list is massive, I may have missed something, so definitely talk with your post-house supervisor, lawyer, and editor before submitting these items. 

Let’s Dive right in.

​1. Color Stills and Photographs (50):

These color stills and photographs are generally not meant to be Behind the Scenes photos.  They’re meant to be stills from the movie itself to be used in various forms of promotion. They can also be images of the talent in costume to use in the creation of key art, posters, trailers, and other places where art may show up across platforms.

2. Screeners (50)

While many distributors/Sales Agents have moved to providing internet screeners through services like Vimeo, some still prefer DVDs.  These distributors generally won’t want you to put a watermark of any kind on the film.  I’d be hesitant on this due to piracy concerns, but I’m putting it on here because I found it in a contract. 

NOTE FROM THE FUTURE: This isn’t really done anymore. Distributors just use the master file to create their own screener to send to buyers.

3. Digital Promotional Trailer

Unsurprisingly, the sales agent will want a trailer to help with sales.  It's extremely important in market meetings with buyers.  It’s reasonably likely they’ll need a new trailer cut, but if the trailer you deliver suits their needs, they’re less likely to charge you for that deliverable.

4. Credit/Billing Block

This is just a listing of all credits for the film, to help the distributor keep up with legal obligations and consistent crediting across platforms. Be careful in delivering this, as their distribution agreement probably includes something indemnifying them should issues result from errors in files you delivered to them.

5. Certified Statement with Contractual Obligations.

This statement is just so the distributor knows how underwater you are with investors, and more importantly debtors.  Among other things, the distributor wants to know that they won’t lose the film because the bank took it from you. 

6. Tax Payer Information: W8/W9

The Distributor is paying you, and they have to pay their taxes just like anyone else. 

7. Layered Keyart

Most of the time the distributor will need to make changes to your art, so they’ll need the PSD file. If you don’t deliver that file, they’ll just have one made completely independent of your art.

8. 4k Technical Sample.

If you’re delivering in 4k, The distributor will also need a 4k sample to show buyers in market meetings.  That’s what this is. 

9. 100% QC'd HD ProResHQ or 4444 Master .mov Files: 

If a sales agent is going to sell your movie, then they’ll need a copy of it.  They may ask for a few versions for SD, and they may also ask for a 4k version.  There will be a lot of technical specs you’ll have to match exactly, and you’ll have to undergo a QC Check from a professional lab. By the way, if they ask you for a 422 file, don’t send them a 4444 file. 4444 files are only needed for really specific tasks that your distributor doesn’t need to do. The increased file size will annoy them or their lab.

10. Bluray Market/Festival Screening Masters

These are for screenings the sales agent might want to do for buyers in any of the provided market screening rooms. 

11. Master Audio Files

They are going to need the stems for the film.  Every once in a while, sales agents need to make edits for other markets.  That’s where these come in. ​

12. Copy of Music Score: Digital Files

Sometimes when you cut a film to comply with censorship in other countries, you’ll need to mask some cost by replacing the score.  That’s why they need some original files for the score. 

13. Certificate of Full QC Pass

A QC Check is required for any distribution you would actually want to have.  This generally involves sending the completed film to a lab, and and having every part of the film checked to ensure it’s in broadcast quality.  Generally this sort of check costs around 1500 per time you have to have it checked.  That means, if you fail your QC check, you’ll have to pay to have it done again.  I may do an entire post on the QC check process in the future, if I do, I’ll post it below. ​

​Thanks for reading!  This is the first of several posts covering Deliverables for Distribution.  Check the other posts for more. Also, Grab my free Indiefilm Business Resource Package to get a free e-book, templates, and a monthly blog digest to increase your ability to find meaningful distribution.

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The 7 Main Indiefilm Distribution Deal Points

A lot of people are afraid of the complexity of deals with sales agencies. They have a reputation as being very dense, and difficult to understand. While there is truth to this, there’s also a general layout every filmmaker should understand. Many of the pitfalls for distribution can be avoided by knowing these 7 major deal points. That said, you should always have a lawyer or a producer’s rep look over your contract.

This list is not meant to be complete, but it does cover the most important aspects of the deal.

1. Term

This is not really different all that different from the standard legal definition of the term, it’s simply how long the contract will remain in place.
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For film, a good term is anywhere between 3 and 7 years. The sales agent will generally be able to sell the film to third parties [i.e Buyers] for terms that extend beyond the contract with the filmmaker.

2. Territory

The territories are where the sales agents have the right to sell your film. These rights can be both exclusive and non-exclusive, but if you’re selling to a sales agent without the help of a representative or a lawyer, you’ll likely be selling them all rights.
Generally, territories are broken out by both region and country. For example, Germany would be considered a territory in the Western Europe Region. This can get confusing, in that Latin America is both a territory and a region. The Region also contains Mexico, Brazil, and a few others.

3. Languages

One must keep in mind that the business of international sales a global one (as the name would imply.) As such, it means dealing with both cultural and language barriers. Often, a territorial sale is heavily influenced by language. For instance, France is often sold with French Canada.

4. ​Media Rights

Media refers to the different Delivery methods that a sales agent can sell your film by. Different rights would include the following.

1. Theatrical
2. DVD/home video
3. PayTV
4. Cable/NetworkTV
5. VOD [Et Al]

Read more: The 5 Main Indiefilm Media right types

Generally, a sales agent will sell by any combination of these three types of rights. Most of the time, these rights will be exclusive, but sometimes they will be non-exclusive. This is more common for VOD deals, with some notable exception for SVOD deals. These deals are also subject to a term.
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Exclusivity is necessary, and does help the filmmaker as well. Without exclusivity is the only thing that creates value when the thing you’re selling can be replicated infinitely. If the supply is infinite, there’s no way to have enough demand to increase the value of the content. Exclusivity helps maintain the value of the content.

5. Revenue Split/MG

A Minimum Guarantee (MG) would be the payment a filmmaker receives upfront. These are something that filmmakers can receive, but it’s somewhat rare. Generally, you’ll need recognizable talent and a hot genre in order to get one.
The revenue split the Sales Agent takes, as opposed to what the Filmmaker takes.
These splits generally vary between 20% and 35%. Generally, sales agents don’t like to negotiate this deal too much. There are other ways to negotiate these deal points.

6. Recoupable Expense

These are the expenses a distributor can charge before paying a filmmaker. Travelling to film markets gets quite expensive, often costing in the mid-5 figures to the low-mid 6 figures. As such, film they should always have a cap. If there was an MG, this would be part of the Recoupable Expenses.
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Generally, these should be somewhere between 20 and 50 thousand, that’s not including any MG. That number could also be substantially higher if there’s a theatrical release involved.

7. Exit Conditions

This is how you exit the contract should things not go well.   This is much more complex than simply including an arbitration clause.  If The arbitrator only arbitrates based on the initial contract, so if you don't have exit clauses you're not in a great place.  There are lots of different provisions for this, far too many for a blog post, but here are a few things you could include.

• Optional Reversion if X% of the budget not meant by 18–24 months after deal signing.

  • This would mean that if you haven’t made a certain percentage back by a certain date, then the rights would revert to you. Generally, you’d put this number at 30–50%.

  • In an all-rights deal. It’s your film, you deserve to get paid.

  • While you deserve to be paid, this clause is harder to negotiate in than it once was.

• Optional Reversion if the company is wholly acquired by a third party, or goes bankrupt.

  • International sales is a risky game, and often the newer players in it don’t last long. Because of this, it’s important to make sure that you include this clause.

As I said at the top, I’m not a lawyer and this isn’t leagal advice. These are simply the best practices I’ve learned from a decade in distribution. If you found this useful want to better prep for success in film distribution, you should make sure you grab my FREE indiefilm business reseource pack. It’s got distributor contact tracking templates, research guides, deck templates, and a whole lot more. Get it for free below.

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