How to Become a Distributor of Major Motion Picture Films
Becoming a successful distributor of a major motion picture requires not only financial acumen and the ability to effectively market creative materials, but also the ability to develop relationships with film producers. The relatively small nature of the film industry makes relationships a vital component of any business transaction, and will help you secure future projects. Developing a strong regional network of "exhibitors" is also beneficial to long-term success as a motion picture distributor.
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Instructions
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Network with as many film producers as you can at industry events. Locate a producer whose film you want to market and distribute. Explain to the producer that you would like to distribute the film.
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Create a legal agreement with the producer specifying that you have the rights to distribute the film. The agreement should clearly indicate the geographical areas in which you are allowed to distribute the film. This includes the United States versus Europe or Asia, for example, and may be more regionally specific, specifying your rights as a distributor within certain states or provinces.
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Agree in advance on the split of the gross receipts of the box office between you and the producer. There is no official industry standard, although a split of 70/30, with 70 percent of profits going to the distributor, and 30 percent to the producer, is common. This split allows the distributor to recoup his or her overhead costs first before splitting the profits.
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Locate "exhibitors," or places that theatrically show films, and market the film to them. Use your creative marketing skills to entice the exhibitor into wanting to show the film. Exhibitors do not want empty houses; they must believe that the film will draw an audience.
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Remit the agreed upon percentage of gross receipts to the producer once the film has finished its theatrical run with the exhibitor. Exhibitors will pay the distributor a rental fee to show the film. This rental fee is the ticket price, minus the "nut," or overhead expenses, of the exhibitor.
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Seek out other distribution projects with other producers. Build your reputation within the industry as a skilled distributor.
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Tips & Warnings
Festivals such as the annual AFM showcase in Santa Monica, California, present literally hundreds of films for distribution, and function as excellent networking opportunities. If you have never distributed a film before, attending festivals such as these is an excellent way to start. Always market films you believe in; marketing a creative product requires a significant investment of time and energy.
Be very careful when signing contracts. Make sure you and the producer understand exactly how the profit structure works before binding yourself to a legal contract. Due to the creative nature of the business, the financing behind major films is often very complex, and can easily lead to misunderstandings.
