What does a film distributor pay for?

A distributor will usually be offered theatrical rights, for showing the film in cinemas; video rights, for video and DVD exploitation; and TV rights, if the distributor is able to sell the film to a broadcaster.

What does it mean when a company distributes a movie?

The distributor collects the amount due, audits the exhibitor’s ticket sales as necessary to ensure the gross reported by the exhibitor is accurate, secures the distributor’s share of these proceeds, surrenders the exhibitor’s portion to it, and transmits the remainder to the production company (or to any other [ …

What is a film distribution fee?

Distributor Fee A distribution company makes most of its money by charging a fee to distribute your film. This fee is paid out of the gross revenue from the film before any deductions or revenue split. The lower the distribution fee, the less gross revenue a film has to make before the filmmaker sees a share.

How do distribution companies make money?

The way a distribution company makes money is simple. The company buys the product at a lower price from the manufacturer and sells it at a higher price to a retailer or customer. A simplified example would be a product has a Manufacturer Suggested Retail Price (MSRP) of $50.

What is a production distribution agreement?

Production/Finance/Distribution Agreement: In a production/finance/distribution agreement, commonly referred to as a “PFD agreement,” a distribution company (e.g., a studio or VOD company) hires a production company to produce a film, and the distribution company agrees to directly finance production of, and to …

Does the distribution company own the movie?

In other words, film distribution companies control the majority of the marketing for that film and the distribution to either specific territories or global rights. Distribution deals agreements can be specific enough to cover only Video on Demand (VOD) or theatrical release in a single territory.

How do film distributors make money?

Distributors receive the returns from theater owners on a weekly basis. As if the film is released in multiplex, 50\% of the first week’s collection, 42\% in the second week, 37\% in the third week and thereafter fixed 30\% share is given to the film distributors.

How do movie profits get split?

The studio typical gets about half of the domestic box office, around 30-40\% of the foreign box office, and then from that total the studio has to deduct the production expenses and marketing costs, then pay off anyone who gets a percentage of the box office, and then pocket the rest.