INDIE FILMMAKING
Don’t sign a distribution deal without reading this first
Navigating a film distribution deal can be hairy. It’s both the most exciting time in a filmmaker’s life and the most anxious, as they await the future of the film and potentially their career.
Every agreement is different, and there is no one-size-fits-all when he comes to film distribution. But let me clue you in on the five key things you should argue for in your distribution deal and two things that you should just let go.
Minimum Guarantee
The minimum guarantee, or advance, is how much a distributor pays you to buy the rights to your film for the territory and the term. In some cases, the minimum guarantee will be the only money that you receive from your movie. You need to make sure that this is as high as you can get, but remember to be realistic.
A majority of the independent distributors nowadays are paying much lower minimum guarantees and giving a higher percentage of the revenue. Having a higher share of the income is great, but what happens if your film doesn’t find an audience? Or the distributor fails to market it correctly?
Independent films can get anywhere from $10,000 to $200,000 depending on the star power and quality of the film. More notable films that screen at the Sundance Film Festival can earn anywhere from $3 million to $20 million in minimum guarantees. But that is a long shot.
Remember, the higher minimum guarantee you have, the more the distributor must recoup before you see any revenue share.
Expense Cap
This term puts a cap on the amount of recoupable money a distributor can spend on your film without the filmmaker’s approval.
An acceptable expense cap is $25,000 for a non-theatrical release or up to $75,000 for a theatrical release. This number is not how much a distributor WILL spend, but how much they COULD spend before you get a say.
