What is the one thing that EVERY screenwriter, director, producer, investor, and pretty much any kind of filmmaker needs to know about if they're looking to get content optioned, financed, and produced?
Ask this question to different people and you’ll get lots of different responses, but to me the answer is clear: distribution.
Understanding what a distributor does and why they are essential can inform many of the decisions that a filmmaker will make regarding a project.
And yet, so many people try to sell their scripts, raise money for their films, or shoot their TV shows without any real idea of how the sales and distribution process works, or why it is so important.
So… What The Hell Is A Distributor?
In any kind of business, you can make a product – whether that is a car, a burger, a T-shirt, or anything else – but you will need to find a series of local distributors to license it in their territory, put it into stores, market it, and sell it to the public in each country around the world.
It’s the same with a film or TV show.
A ‘distributor’ (or ‘distribution company’) will acquire the rights to your project for distribution in a specific territory (or sometimes multiple territories). They might do this at one of the film markets that take place throughout the year (such as the the Marché du Film in Cannes, or the AFM in Los Angeles), or at any time in between.
They will then be responsible for putting your project into cinemas and DVD stores in their countries, as well as streaming platforms, TV channels, and much more.
Distributors And Territories
Each distributor is usually specific to a certain territory.
Each country will have its own set of distributors working in the same marketplace. If you produce a great film or TV show, they will all be competing to acquire the distribution rights so that they can be the ones to release it in their territory.
If you want your project to be seen in any country across the world, you will need to have a local distributor in place there.
So, you’ll need a French distributor in France, a Spanish distributor in Spain, a Mexican distributor in Mexico, a Japanese distributor in Japan, and so on…
Most distributors are specific to one primary territory, and you will generally be looking to sell the rights to your project on a territory-by-territory basis via your sales agent.
Distribution Fees
The distributor will usually have to pay some kind of fee for these distribution rights. How much this fee is depends on what you and your sales agent believe the rights are worth in each country.
If lots of distributors in the same territory want to acquire the rights to the same project, a bidding war may ensue, and the distributor that offers the most money and best terms can acquire the rights to distribute your project.
They will then look to put it out on as many media platforms as they believe makes financial sense.
Different Markets And Different Tastes
Just because a project finds a distributor in one country, that doesn’t necessarily mean it will find a distributor in another country. That’s why your friends in foreign countries might get to see films that you can’t find anywhere at home, and vice versa.
Why?
The audiences in many territories have distinctly different tastes. Projects are also marketed in different ways to different audiences and cultures.
For example, a film that works in France may not always work in Germany, and a TV series that is popular in the US might not be liked in Japan.
So, just because your project gets distributed in one territory, this does not guarantee that it will be distributed in any others.
Some titles may never see the light of day in certain countries because the material is just not suited to the local audiences there.
But certain elements (such as specific genres, or well-known actors) work well for a lot of different countries, so it’s important to think about this when developing and packaging your project.
The more distributors you get around the globe, the more widely your project will be seen. And the more people that see it, the more money it can make!
Why Is Distribution Important?
Having a good grasp of how distribution works is the key to understanding how projects make money, which in turn is the key to understanding how projects get financed and what investors are looking for.
Without distribution, nobody can see your film or TV show. And if nobody can see it, nobody can pay for it. And if nobody can pay for it, your project cannot make any money.
When you go out trying to raise money for a film or any other piece of content, you must be able to explain to an investor or financier how they will get their money back and make a profit, just as you would with any other kind of product. You simply can’t do that without understanding how the sales and distribution process works.
It's art, but it's also a business. You need to be able to strike the right balance between the two.
Outlining your distribution strategy, conveying that you know the market, and showing them that you have a plan is absolutely key to convincing them that your project is a good investment.
So, if you’re a filmmaker or a producer looking to get your project financed and produced, this is perhaps the most vital area of knowledge right now.
The above has been adapted from Book Two in our series on film and TV financing, HOW THE HELL… DO I Get My Film Financed: Book Two: Sales & Distribution by Ricky Margolis. For more information and other books in this series, check out all our current releases here.
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