Questions to Ask Before Signing an Exclusive Distribution Deal

Signing an exclusive distribution deal is a big step for your film. It gives one distributor the sole right to distribute your work in a specific market or territory. But exclusivity comes with risks. Before committing, ask the right questions to make sure the deal works for you.

Key Questions to Ask

1. What Is the Length of the Agreement?

Understand how long the distributor will control the rights. Ask:

• What is the exact start and end date of the agreement?
• Can the term be renewed or extended?
• What happens to the rights when the term ends?

2. Which Territories Are Covered?

Check where the distributor has exclusive rights. Clarify:

• Is the deal for a single country, region, or worldwide?
• Are there exceptions for specific markets (e.g., festivals or direct sales)?

Ensure the distributor has expertise in the selected regions.

3. What Rights Are You Giving Up?

Exclusivity often includes multiple rights. Ask:

• Does the deal cover all platforms (theatrical, streaming, DVD)?
• Can you retain certain rights, like merchandising or international sales?
• What happens if the distributor doesn’t use all the rights?

4. What Is the Revenue Split?

Money is a key factor. Ask about:

• The percentage of gross or net revenue you’ll receive.
• How the distributor calculates net revenue (e.g., deducting marketing costs).
• Any upfront payments, advances, or guarantees.

5. How Will the Film Be Marketed?

Marketing can make or break a film. Clarify:

• What marketing strategies the distributor will use.
• How much they will spend on promotions.
• Whether you have approval over marketing campaigns.

6. What Are the Distributor’s Performance Obligations?

Ensure the distributor has clear responsibilities. Ask:

• When will the film be released?
• Will there be a minimum number of theaters or platforms?
• What happens if the distributor doesn’t meet their obligations?

Include penalties or termination rights for poor performance.

7. How Will Revenue Be Reported?

Transparency is crucial. Ask:

• How often you’ll receive financial reports.
• What details will be included (e.g., gross sales, expenses)?
• If you’ll have the right to audit their accounts.

8. What Happens If There’s a Dispute?

Disagreements can happen. Clarify:

• How disputes will be resolved (e.g., arbitration or mediation).
• Which jurisdiction and laws apply.
• What happens to the film rights during a dispute?

9. What Are the Terms for Termination?

Know how to exit the deal if things go wrong. Ask:

• What constitutes a breach of contract?
• Can you terminate if the distributor fails to perform?
• What happens to unpaid revenue or marketing materials after termination?

10. Does the Distributor Have a Proven Track Record?

Research the distributor’s reputation. Ask:

• What similar films have they handled before?
• What results did those films achieve?
• Do they have relationships with key platforms or theaters?

A distributor with experience in your genre or market is more likely to succeed.

11. Are There Additional Fees or Hidden Costs?

Some deals include extra expenses. Ask:

• Are you responsible for marketing costs?
• Will you be charged for delivery materials or legal fees?
• Are there penalties for missing deadlines?

12. Can You Still Promote Your Film?

Even with exclusivity, you may want to promote your work. Ask:

• Can you attend festivals and press events?
• Are you allowed to advertise on social media?
• What restrictions apply to your promotional activities?

Conclusion

Before signing an exclusive distribution deal, ask these questions. They’ll help you spot potential issues and ensure the deal meets your needs. Take your time, and always consult a lawyer before committing. A well-negotiated contract is key to a successful film release.