How to Negotiate a Movie Distribution Agreement

Getting a movie distributed is hard work for a filmmaker. After going through the long and difficult process of conceiving, filming and editing the film, take the necessary steps to ensure that it's released for viewing. Learn to negotiate a movie distribution agreement that suits your needs and gets your film to the audience.

Instructions

1. Research potential distributors. Identify the movie's genre and the audience it appeals to most. Find distributors that have released similar titles. Gather contract information.

2. Talk with distributors to determine if there is interest on both sides. Once you have selected the company to distribute the film, ask them to draft a generic distribution agreement for you to amend.

3. Consider the territory that the agreement covers. Use one distributor for the United States, Canada and their territories, a separate company for Europe, and another one for the market in China.

4. Discuss whether the distribution agreement covers theatrical screenings only or include DVD distribution, as well as the length of the terms. It is to the filmmakers advantage to have a short term--less than 5 years--with automatic extensions.

5. Include the amount of publicity and media the distribution company is obligated to perform on behalf of the film. This figure includes number of print materials and advertisements to be created to publicize the film, interviews, articles and reviews.

6. Agree upon the distribution fees. Filmmakers can either agree to a 50/50 split of the profits after the distributor recoups the costs of distributing and marketing the film. The alternative is to choose to accept royalties, in which a percentage of the money goes directly to the filmmaker.

Tips & Warnings

• You are not obligated to use the same company for world-wide distribution, but should choose companies with the appropriate contracts in each market.