Back to News

October 11, 2021

Theatrical Distribution Agreement

Essentially, the distribution company avoids any risk of loss related to the film, especially when the distribution company does not bear the distribution costs and the producer bears the total risk and reward for the success or failure of the film. Due to the lack of financial commitment from the distribution company and the limited benefit resulting from the low royalty, distributors have little incentive for distributors to properly market and push a film from rent to system, so that these films are often taking off. In most cases, the distribution company acquires worldwide rights in the long term with the delivery of the film. However, in some cases, rights are limited to a fixed term or a given territory (e.g. B the United States and Canada), or the exclusion of certain subsidiary rights may take place. In this regard, a negative pickup looks like a presale (see below), but it`s common to call the acquisition of U.S. rights a negative pickup and not a presale. M. Modification of the work. The distribution agreement should contain restrictions on the distributor`s rights to modify, modify, delete or modify your work without your consent, including the addition, modification or deletion of credits.

The rights to award the work may be correct depending on the nature of the work, for example. B modifications to add distributor credits to the work, add subtitles and/or synchronizations, shorten the work to meet airtime limitations and comply with local censorship law. Market. Some markets are more difficult to penetrate than others. If the distribution burden perceived in certain markets, such as.B. The film and foreign markets, which is high, can be justified by an increase in distribution costs to the distributor.. . . .