Rent a Distributor / Photo Credit: Joel McCay
WHAT IS A RENT-A-DISTRIBUTOR? (In the Entertainment industry.)
Renting a Distributor puts you in an entire new world of realizing profits than if you just got a distributor.
The key to success in Hollywood and with movies in general is to control content and be the person/company that (A) collects the money, (B) creates the accounting statement and (C) distributes the money.
The Movie Studios control content. They collect the monies; they make the accounting statements; and they decide if they are going to distribute any. The movie studios control content… Thus, they have power.
Now for you, a filmmaker, to have power, you must be able to not only make a film but also control it. With your own P&A money you can almost guarantee profits… P stands for “Prints” and A stands for Advertising.
When creating your budget, during pre-production, put in additional money (P&A money) so that when you’ve finished you don’t have to prey FIND A DISTRIBUTOR but you actually, with the P&A money, RENT A DISTRIBUTOR.
This means that you desire to not only be a Producer, but a Producer who either controls a distributor or, in the new internet world, self-distributes the product themselves.
Thus, expand your horizons and think about being either a “Rent-A-Distributor”, or a “Self-Distributor: Theatrical” or a “Self-Distributor: Internet” as an integral part of your business plan.
Not easy and in the 20th Century it was almost impossible. But today, 21st Century, with the Web, Social Media, cheap Broadband, Micro-Charging and On-Demand revenues that can be obtained directly from the viewer…. It is doable.
Avoid a 50-50 NET DEAL
The normal (aka: standard) Distribution Deal is, called the “50-50 Net Deal” …. and this is the deal that you Want-To-Avoid.
Which is the Distributor (A) first gets their Distribution Fee (usually 35%), then (B) recoups their expenses (the “P&A” they spent, which they inflate) and then (C) splits 50-50 on anything that is left over…. if, anything is left over.
There is much-much more to a Distribution Deal than what I just explained with the “50-50 Net Deal”, which is detailed in 4-5 of my other No-Bull Blogs… but that is enough for now.
So, you, the Filmmaker, with a feature film are going to festivals in hopes of being discovered and getting a “50-50 Net Deal” … which, you’ve heard the phrase “CREATIVE BOOKKEEPING”, which translates to there IS NEVER EVER ANYTHING LEFT OVER.
However, if you RENT-A-DISTRIBUTOR (you come with the Film and the P&A money) instead of GET-A-DISTRIBUTOR then you are RENTING-A-DISTRIBUTOR and are in control you can circumvent the “50-50 Net Deal” and can negotiate a 12.5% Distribution Fee (not 35% that they offer), you can also recoup your expenses (P&A) first (not allow them to skim), you can further get 65-85% of theatrical profits, and keep 100% of On-Demand money, 100% Cable money, 100% DVD money, etc.
Don’t Secure-A-Distributor; in your business plan, add $100,000 and don’t, if USA/Canada based try to distribute yourself, but Rent-A-Distributor and circumvent the horrible “50-50 Net” Deal.
Also, if you keep your feature films budget under $100,000 you might totally skip the theatres and go direct to the consumer (On-Demand, Pay-Per-View, Streaming, Archiving, etc.) via the web and again be your own distributor, cut out the middlemen entirely and keep the money.
References & Credits: Google, Wikipedia, Wikihow, WikiBooks, Pinterest, IMDB, Linked In, Indie Wire, Film Making Stuff, Hiive, History Channel, Film Daily, New York Film Academy, The Balance, Careers Hub, The Numbers, Film Maker, Film Site, TV Guide Magazine, Blurb, Media Match, Quora, Creative Skill Set, Chron, Investopedia, Variety, No Film School, WGA, BBC, Daily Variety, The Film Agency, Best Sample Resume, How Stuff Works, Studio Binder, Career Trend, Producer's Code of Credits, Truity, Production Hub, Producers Guild of America, Film Connection, Variety, Wolf Crow, Get In Media, Production Beast, Sony Pictures, Warner Bros, UCAS, Frankenbite, Realty 101, Careers Hub, Screen Play Scripts, Elements of Cinema, Script Doctor, ASCAP, Film Independent, Any Possibility, CTLsites, NYFA, Future Learn, VOM Productions, Mad Studios, Rewire, DP School, Film Reference, DGA, IATSE, ASC, MPAA, HFPA, MPSE, CDG, AFI, Box Office Mojo, Rotten Tomatoes, Indie Film Hustle, The Numbers, Netflix, Vimeo, Instagram, Pinterest, Metacritic, Hulu, Reddit, NATO, Mental Floss, Slate, Locations Hub, Film Industry Statistics, Guinness World Records, The Audiopedia, Imagination for People, Literary Devices, On Post Modernism, Forbes, Schuyler Moore, Film Escape, Jon Garon, Dov S-S Simens
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Rent a Distributor / Photo Credit: Joel McCay
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