Types of Distribution Deals
Three main distribution deal structures: (1) Acquisition—a distributor buys all rights for a fixed price (minimum guarantee or MG). The filmmaker gets a lump sum but gives up most future revenue. Common for festival breakouts: a $200K film might sell for $1-5M at Sundance. (2) Licensing—the distributor licenses specific rights (theatrical, streaming, territories) for a period, paying an advance against future royalties. The filmmaker retains more control and long-term upside. (3) Service deal—the filmmaker pays the distributor a flat fee or percentage (15-25%) to distribute, keeping most revenue but bearing the marketing cost. Each suits different situations: acquisitions for films with festival buzz, licensing for moderate-profile films, service deals for filmmakers with existing audiences.