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You can make a lot of money and also have considerable influence in the movie industry by becoming a film distributor. Your job is to ensure that great movies are accessible to the people who appreciate them.

You will be involved in the process of creating marketing strategies that will make it possible to reach a large percentage of the target audience. Some of the movies you will handle will be very popular while some will have modest popularity.

  • How Much do Film Distributors Make?
  • How do Film Distribution Make Money?
  • How Can I Make Money With my Film?
  • How do I Get Film Distribution Deal?
  • How do I Sell my Film to a Distributor?
  • Do Cinemas Pay to Show Films?
  • Does Netflix Buy Short Films?
  • What is a Distribution Strategy For Film?
  • How Can I Sell my Film Online?
  • Who Gets The Profit From a Movie?
  • Does Box Office Mean Profit?
  • Can I Sell my Series to Netflix?
  • How do Netflix Filmmakers Get Paid?
  • How do Film Distribution Deals Work?
  • Who Are The Major Film Distributors?
  • What Are The Distribution Strategies in Marketing?
  • Can I Sell a Movie Idea?
  • How Much Does Netflix Pay For Your Movie?
  • What Does Netflix Pay Writers?
  • How Does it Cost to License a Movie For Streaming?
  • Who Make The Most Money in The Movie Industry?
  • How Much Does a Movie Script Sell For?
  • How Much Can I Sell a TV Show Idea For?
  • Who is The Highest Paid Screenwriter?
  • How Much Does a Show Creator Make?
  • How do You Become a TV Show Creator?

How Much do Film Distributors Make?

There are two types of distribution: leasing and profit-sharing.

Leasing, the distributor agrees to pay a fixed amount for the rights to distribute the film.

Profit-sharing, the distributor gets a percentage of the profits made from the film. This percentage is usually between 10-50%. (Never go for the 50/50 split. You won’t make any money.)

Read Also: Making Money With Technology-focused Media

Either option has it’s pros and cons and depends mostly on how well your film does at the box office. It’s the job of the distribution company and the studio to decide which option will benefit them the most.

How do Film Distribution Make Money?

Studios and distributors generally make more from domestic revenue than from overseas sales because they get a larger percentage. Despite this arrangement, foreign ticket sales became more important in the early 21st century.

That is part of the reason why you see more sci-fi, adventure, fantasy, and superhero movies. Action and special effects require no translations. They’re easy to understand, whether you’re in Malaysia or Montana. It is much harder to build a foreign audience for an indie comedy.

They get their money from REGIONAL distributors (such as CANAL+ in France, ITC in the UK), from movie theaters (they generally get 80% of a new release ticket sales the first week, then it goes down to 20% after a few weeks), from Pay Per View networks, from HBO, Showtime, Starz, Netflix, Amazon Prime, Hulu, NBC, CBS, ABC. Then from places like TBS, Oxygen, etc.

NOW understand that Studios and Production Companies MAY have sold foreign distributions rights and first American rights IN ADVANCE to finance the movie. Which is why you see Canal+ on so many productions. The producers sold the French TV rights BEFORE one frame of film was shot. So the distributor has LOST that potential buyer.

But when no rights are sold the Distributor either has fixed contracts or negotiates with the streaming service or network.

The Distributor keeps a share (40–60%) of the total income they get and the rest goes to the Studio and Production Companies to recoup the costs of making the film.

So when you hear that the Avengers made 1 billion at the box office, it does not mean the studio made that much. It means that’s what was collected in ticket sales So you figure half to the distributor and then 40–60% of that goes to the studio.

That’s why they say the film made a loss.

The Avengers cost $220 million to make, and grossed 1.5 billion. Figure $750 million to the distributor and $300 to 400 million to the studio. So the film may have only made 80 million in profits, but with creative accounting, I’m sure the studio can prove they are still $500 million in the red on the Avengers (remember the studio floats a loan to stay in business and pays monthly interest payments and they charge that back to EACH movie, so each movie eats part of the $200 billion dollar loan they floated, so there goes that 80 million in net profits eaten up by monthly loan interest accrued over the four years it took to make The Avengers.)

How Can I Make Money With my Film?

What to expect in the business

Distributors are responsible for marketing as well as the circulation of movies to traditional and also emerging platforms. There is a lot of competition but it does not mean that you can’t make a name for yourself in the industry. Your business will be more profitable if you can secure movie placements at a large number of the most lucrative outlets.

Register your business

You have to incorporate your company by obtaining the necessary licenses. You need proper incorporation in order to be seen as a legal film distributor.  Once your company is incorporated, you have to take steps to publicize it.

You should design a press kit that clearly states the type of movies that you want to distribute and the media platforms that you will use. Investors will also like to see a sample of your strategy for distributing movies. This will show them that you have what it takes to make money with film distribution.

After incorporating your company, you need to get a good source for funds. Your business cannot be successful without reliable financial backing. You need a substantial amount of money to bid for films, pay for advertising, pay staff and so on. Do your research to find the most appropriate funding source for you.

Get in touch with producers and buyers

Look for movies that you have resources to distribute. For example, if you have a lot of contacts with independent movie producers, you should not waste your time with blockbusters. You will have to sign a distribution contract with each studio. You may either pay a flat rate for the rights or agree to share profits with the studio.

It is important to analyze these two options so that you can choose the one that is most profitable to you. When you have more experience, you may consider acquiring ancillary rights that will enable you to release the film to television networks as well as video audiences.

You can find a lot of deals by attending screenings and small film festivals. The films that are shown at the bigger film festivals may be too expensive for you. Furthermore, most of the established filmmakers are not likely to trust a new company with their product. Smaller film festivals will give you the opportunity to discover affordable new releases that will make it easy for you to make money with film distribution.

Contact buyers

The media outlets that you want to do business with should be contacted at this point. These will include theaters, buyers as well as online retailers. It is important to have a good business relationship with theater chains and independent theaters. Make sure you negotiate a good deal with them.

How do I Get Film Distribution Deal?

There is so much content on so many platforms nowadays, that it’s difficult to make a film that isn’t just white noise, regardless of how good it might be.

Even more frustrating, is that great films often don’t find their audience and few of them make money.

That’s why it’s your job, as a producer, to make sure your film is positioned to get in front of the right audience by getting the right Distribution Deal.

The right deal will get your film to stand out.

So how do you position yourself for that deal?

1. Your Distribution Plan

Savvy producers do not wait until the film is finished to figure out what to do with it.

Rather, they do extensive development to make sure that the distribution plan is in place before the film is even made.

The Distribution Plan is where you construct the plan of getting your film the best deal possible.

It doesn’t mean that the film has to have pre-sale agreements or a papered distribution commitment prior to the making of the film. Few people, particularly in the indie world, are capable of that.

However, it does mean that you should have a strategic plan of attack that’s realistic and calculated so that by the time you’re accepting your festival accolades, the distribution wheels are already in motion.

First and foremost, it’s understanding the difference between what you want to do and what you have to do.

As filmmakers, we all have a relatively clear creative vision, but that is rarely aligned perfectly with what needs to be done to make a film that is distributable and can actually make money on a global scale.

By properly developing your film you learn how to gracefully navigate the middle ground between wantand have to which is more likely to result in a good Distribution deal.

2. Know What Your Film Is & Who It’s For

Knowing what your film is and who it’s for seems obvious but often filmmakers don’t explore that from a business perspective.

Some genres are always more lucrative and more in demand than others. So, if you’re working in one of the less desired genres, like drama or comedy, how can you personify the elements of your project to help overcome that obstacle?

More often than not independent filmmakers work within a hybrid of genres.

Knowing how to personify the genre elements that will be most appealing to audiences and distributors will help push the project into the right distribution scenario.

How do I Get Film Distribution Deal
3. Don’t Wait Until After the Festival Circuit to Seek a Deal

Far too often I meet independent filmmakers who have a clear creative vision and have made a good film but don’t have a clear (or realistic) idea of where to take it.

Those films and filmmakers often end up on a very lethargic and long-winded journey trying to “sell” their project.

The premium outlets and opportunities for distribution that should have been available to these films quickly become unavailable as the age of the film increases and suddenly the producer is spearheading a salvage effort.

If you do proper development & devise your Distribution plan early, you will be in a position to begin scouting a deal from day 1.

4. Get Feedback from a Sales Agent or Distributor

As filmmakers we crave being on set, working hard to make our creative vision a reality, but before diving into your next production head first, take some time to network with sales agents and distribution professionals in order to get some insight into what your film really is from a business perspective.

Talking to distribution professionals early and getting their feedback on your project can help you develop your next film in a way that is better groomed for the distribution effort.

Some of those distribution professionals may even help guide you along the way.

Always take it with a grain of salt of course.

Not everything a distribution professional may tell you is gospel, but it is a guideline for better development, which will in turn guide you toward a more successful filmmaking effort.

5. Present Your Film Well

Marketing is key. Your Trailer and Key Art are crucial when getting Sales Agents or Distributors to even consider your film.

This is not something you want to DIY (unless you are highly trained in this area).

You want to make sure you are appropriately representing your film in the way that the Sales Agents & Distributors want to see it.

Too many filmmakers miss the mark on this step & it prevents their film from getting a lucrative deal.

It doesn’t matter if your film is incredible. If your marketing materials are not what Sales Agents or Distributors want to see, your film might never get a deal.

On the other side, if your film is not so great but your marketing materials are on point, you could score a lucrative deal.

How do I Sell my Film to a Distributor?

There are different types of film distributors. Some only release major budget, feature films while others focus on specific genres or cater to niche audiences. When making a film, you should have an idea of who your target audience is. When finding a distributor, your goal is to work with someone who has sold similar projects (for example the same genre, budget, target audience, and language).

You can find a film distributor with a Google search or by using IMBD Pro. It may also be helpful to research into the distribution deals of contemporary films that are similar to yours. It’s crucial to remember that film distribution has changed over the past decade due to the rise of the internet, so this should be taken into account. 

Some film distributors even accept unsolicited/blind submissions. And this is especially true for smaller companies that specialize in niche genres such as:  LGBTQ+, Horror, Comedy, and Faith. If you have a commercial genre film, you might be able to contact a distribution company directly. Details on how to submit to each distributor are on their company websites. 

However, the majority of film distributors will only accept submissions if you go through a sales agent. A sales agent works on behalf of the producer to sell the rights of the film for distribution. They also promote and represent the film at festivals and markets. 

To sum up, you want to find a distributor who has worked with films similar to yours. You can contact distributors independently, but many film distributors prefer you to use a sales agent. 

Do Cinemas Pay to Show Films?

When it comes to movie theaters paying for films, there are a few things to consider.

Let’s dive a bit deeper.

Studio and Theater

Arrangements differ. 

However, the movie studio usually gets 60% of the proceeds from American box offices or anywhere from 20% – 40% overseas.

This depends on the film distribution arrangements, agreements, and other costs associated with foreign distribution. Theaters receive the remaining 40%. 

Distribution

The only direct costs for film exhibition are film hire costs. 

These depend on various factors. Such as the number of screens in the theater, the length of run, bargaining power with distributors, and the projected popularity of the film. 

In the UK, distributors have most of the power.

They decide which cinemas get which films and when, in order to maximize revenue. The percentage of film hire is anywhere between 25% and 60% of the box office.

Marketing & Promotion

High-profile movies need lots of advertising, even the suspected shockers. 

In case you are curious, this differential in ticket percentage going to the studios is a major reason why box office totals are reported in terms of money, and not in terms of tickets.

Does Netflix Buy Short Films?

Netflix isn’t known for short films and they don’t make them easy to find (a search for ‘short films’ won’t bring them all up), but you shouldn’t sleep on the quality of their catalog, which contains some true gems.

How long is a short film?

  • Short films can be anywhere between 15 seconds to 45 minutes in length, generally.
  • If you’re submitting your short film to festivals, this can vary as well. The Sundance Film Festival considers 50 minutes as a short film, while the Academy Awards consider 40 minutes a short film.

What is a Distribution Strategy For Film?

Perhaps you are preparing to make an independent film or maybe you already have a finished project sitting on the shelf waiting to get the attention it deserves. We will go through 5 of the main strategy you can take to plan out the distribution of your independent film.

Film Festivals

Film festivals are still the main distribution route for filmmakers. Traditionally these were the only way for your independent films to be seen by the public. A win at a major film festival (Cannes, Berlin, Sundance, Toronto, Venice) can lead to a distribution deal from a well-known production company. Distributors do attend film festivals so getting your film shown at a major to the mid-level festival is helpful.

Not all films will get selected at notable film festivals, as such getting your film shown at specialized or local festivals can still be beneficial. Film festivals at the least let you watch how your film plays out in front of a live audience and the opportunity to network with other filmmakers.

Distribution Companies  

Even if your film does not find distribution at a film festival you can still find and contact distributors directly. Simple have a search through IMBD and find distribution companies who have worked with films before that are similar to yours.

Email them politely asking if they would be interested in your film perhaps with a synopsis or trailer. If they reply back and wish to see a cut of your film you can create a password-protected video link with Vimeo. Launching films is a website that lists which distributors are working with what film. Find a list of film distribution companies here

Self Distribution

If the first two routes fail you can always self-distribute. You will have to plan out a solid strategy for this to be profitable. Screening your independent film at cinemas is very expensive and seeing as you don’t have a distributor you will have to pay for the film rating, trailer and marketing posters yourself.

Depending on your film you might find DVD sales worthwhile (I made a documentary five years ago and sold a few hundred in shops and online), you can also contact television companies directly. Keep in mind that self-distribution will rely on a solid marketing plan, find out who your ideal audience are and target them directly through the platforms they watch films on.

Streaming Platforms

Netflix and Amazon Prime are two of the world’s major streaming platforms. You will struggle to contact major streaming companies directly. luckily you can use a third-party film aggregator to get in contact with them for you. Film Hub is one of these services, you send them your film and they send it to all of the streaming platforms available to see if they are interested in screening your film. FilmHub takes 20% of the profits and has no upfront fee.

Creative North based in Sweden sold their documentary to Netflix after being screened at a festival. They have lots of information on making films and getting picked up for major streaming platforms via their YouTube channel.

Self Streaming

If you have no luck with the major streaming platforms self streaming might be your final option. You can profit from these services by putting a fee on watching your film via iTunes. For self-streaming to work there would need to be a reason for people to pay for your film, competing against so many free videos online.

How Can I Sell my Film Online?

Distributing your film online can cost next to nothing– if you choose an option that doesn’t have a setup fee or an annual fee (which unfortunately Vimeo does do– to the tune of $200/year regardless of whether you sell any downloads or not).

If you pick your distribution services right, you can get away with just paying a small percentage of each actual sale to the distributor. These tips work for indie filmmakers, whether you’re making shorts or feature-length movies.

Here are some of our favorite resources for selling a film online:
  • Gumroad – Set your own price and sell your film online. Gumroad works with either streaming or downloads and can do rentals as well. No annual fee, you only pay a tiny percentage of each sale. Quite cost effective for low budget documentary filmmakers and you can even bundle deleted scenes with your work. Integrates with your own website.
  • Square Merchant – Online and in-person credit card processing for your films, whether you’re selling DVDs online or at events, even comes with a free credit card reader that plugs into your iPhone or Android device. No annual fee and a much smoother checkout experience than PayPal. Integrates with your own website.
  • Amazon Createspace – Get your film in front of millions of Amazon customers. Unfortunately, you can’t quite set your own prices (Amazon sets them for you based on your request) but they can produce DVDs for you one by one and ship them to your customers, as well as video on demand streaming rental and purchases. No annual fee.
  • VHX – VHX is an online streaming distribution platform that allows you to upload your films and sell them to your audience without having to create a complicated website or deal with any of the tech stuff. VHX is especially great for episodic content because it can manage branded subscription services, not just one-off films. You can set your own prices, offer rentals and purchases and even build coupon codes. You can get started and sell for free, but once you’ve uploaded more than 10 hours of content you will need to begin paying.
  • Vimeo Pro – Once you pay a subscription fee of about $20/month (or a discounted flat rate for the year), a subscription to Vimeo Pro gives you tools to sell your films. You can set your own prices and upload art according to their specifications to create beautiful-looking sales pages with trailers, synopses, stills, and more. Note that unlike some other platforms with Vimeo Pro you’ll need to pay a monthly fee whether or not you actually make any sales. On the flip side, however, you also get access to expanded Vimeo video hosting features like advanced branding of color-schemes of the video embeds on your website, expanded analytics, and more.
  • YouTube – If you really and truly want to get as many eyeballs for your film as possible, nothing beats putting it up for free on YouTube, which allows you to monetize it through ads (or if you meet the eligibility requirements, you can offer it as paid content on YouTube). But even if you want to sell your movie through a more traditional route, putting a great film trailer up on YouTube with a link to purchase the film is a must.

Selling a streaming or downloadable version of your film online can be a great way to get the film out there for next to nothing and also get some buzz for yourself as a filmmaker. We also recommend collecting the email addresses of your buyers (which Square and Gumroad allow you to do– but Amazon does not) so you can let them know when your next film is out.

Here are some additional tips to consider, regardless of what platform you choose to sell your films online with.

Upload your trailer to YouTube – Whether or not you’re hosting the film on YouTube, it’s worth uploading the trailer there and tagging it with lots of related tags and giving it a nice, long keyword-rich synopsis in the description area. You should also include a link in the description to where people can purchase/stream the full film.

It’s also worth including a URL in the video itself as text on screen in case someone is watching it on a platform where they can’t see the description while they’re watching (like on a cell phone in full-screen mode or embedded in another website). Uploading your trailer to YouTube will make it much more findable.

Market your film to an email list – As you’re making your movie, keep a running list of email addresses from people who are interested in it that you interact with along the way. Send these people (along with crowd-funders or friends) regular updates on your progress as you go through the process. By the time your film is ready to be released online via streaming platforms, you may already have a built-in audience.

On your website, you can also include an email signup list for people who come across your film’s website and are interested in watching it once it’s finished. Make sure you also capture people’s first names in addition to their email addresses (but don’t make the signup form too long or complicated because fewer people will fill it out!).

Make the option to purchase your film easy to find on your website(s) – If you have an official film website, make sure it’s easy to find the page where people can buy the film. This means ideally putting it in the menu/navigation and also sprinkling links to it throughout the website on all sorts of other pages where it’s relevant.

If you have other websites, like a professional website as a director, consider putting links to buy the film there too. Generally speaking, the more links there are to that purchase page, the better.

Who Gets The Profit From a Movie?

It works like any other business. Most of the people who worked on the movie had a set salary that was agreed upon and paid before the movie ever came out. All the other costs of the movie were also paid long before it ever appeared in theaters. When it says that a movie made so much, that’s not actually what it made. That number represents ticket sales.

The theaters make a profit first. They buy the movie to show and keep all the money paid for admission, so their profit is all the proceeds minus the cost they paid to show the movie. So the money paid to the production company is the total of what all the theaters paid for the movie. You take that amount and subtract the total cost of making the movie. That is the profit that the production company gets to keep.

No one person “gets” the money. It goes into the company’s funds and is used again to make more movies. Everyone working for the company, from the CEO to the actors to the caterers, gets paid a salary from those funds. Everything else belongs to the company, and if it’s a public company, its shareholders.

Now there’s all sorts of formulas where it can be a 50–50 cut, or even as much as an 90–10 cut (some of the Star Wars movies demanded that), and that then changes with each passing week. Still, if a movie lasts about 3 to 4 weeks, it will average to that breakdown.

Now here is where the accounting gets tricky:

  • did the actors get any percentage of the gross?
  • did the producers or the directors get a percentage of the gross?
  • Are there any other special deals that might indicate part of the gross went to someone?

Top actor draws tend to get a piece of the gross, not the net amount. Jack Nicholson famously got a piece of the gross of the 1989 Batman movie instead of a salary and ended up taking home $40 million dollars for his take on the Joker.

So now the amount has dropped, the theatre money stays with the theatre. But the Studio money drops again. Now they have to cover production costs and marketing. After all that, the remaining money in a logical world becomes the NET profit.

However, it a Hollywood world, accountants do incredible magic with the numbers, so sometimes the NET amount, even if they hit big, actually somehow loses money.

There was a famous case about Hollywood accounting. The movie cost $39 million. It made $288 million, so after the theatre cut, it’s gross was $190 million. Subtract the production cost, and assume they paid as much for marketing, and the net SHOULD have been $112 million in profits.

But thanks to Hollywood accounting, they claimed that the movie actually LOST money. The original scriptwriter, Art Buchwald, then decided to sue the studio for stealing his idea and other stuff and demanded a cut of the profits.

But since the movie apparently lost money, they claimed there was no such money and it went to court (Buchwald v. Paramount) when the judge and the jury laughed their asses off and awarded Buchwald damaged.

Does Box Office Mean Profit?

There was a time not all that many years ago when the public didn’t generally know how much money a movie earned at the box office on its opening weekend. That made it possible for a film to start slowly and, if it had good word of mouth, become a hit over time.

Now, box office totals are widely reported.

But it’s important to remember that box office totals reflect how much people have paid theaters for tickets for a movie. And a film becomes profitable after the movie company has recouped all the money it spent not only making the movie but marketing it.

So, let’s take a hypothetical superhero movie based on the lesser-known DC character Marvelous Man. Due to the success of Aquaman, Marvelous Man: The Movie gets a green light and a budget of $100 million — a relatively small amount for a superhero film. And let’s further assume the movie actually comes in exactly on budget. At this point the studio is $100 million in the red.

It then has to let the public know the movie is coming. It does this by advertising, promotional tie-ins (like a Marvelous Man Happy Meal toy), and media junkets with the film’s stars. That all costs money too and that has to be recouped as well before the movie can be considered profitable.

Let’s pretend that another $50 million was spent on marketing Marvelous Man: The Movie – there’s no hard and fast rule for marketing budgets, but half of the production budget isn’t uncommon.

Now that movie has been made and promoted, it’s time for opening weekend. Say Marvelous Man: The Movie sells $100 million in tickets on opening weekend. It’s a big number, but it’s very important to remember that the studio does not receive all of that money — the theaters get a cut.

How much is that cut? It varies. For a huge film like a new Star Wars or Avengers movie, Disney has leverage. It can negotiate a bigger cut and demand the theater show the film on multiple screens. It can also ask for a higher percentage of the gross in succeeding weeks.

In general, the studio’s percentage gets lower the longer a film has been in theaters. That’s done to entice theaters to keep films playing longer.

So, in the first week of a film that’s not a sure thing, the company producing the film might get 60% of the box office. That means that on the shocking $100 million in tickets sold by Marvelous Man: The Movie at the domestic box office, the company that made the film gets paid $60 million… meaning it’s still $90 million in the red.

The foreign box office is even more complicated but it’s all based on the theaters getting a cut and the movie producers getting a cut. The math varies, but in a very broad sense movies haven’t made any money until their box office roughly equals twice the money spent on production.

Of course, a movie isn’t done once it leaves theaters. Money is paid for streaming rights — a number that can be challenging to actually apply to anyone movie since deals tend to be studio-based for multiple films. There’s also DVD sales, rentals, an eventual pay cable window, then maybe a free cable or broadcast deal. And don’t forget about licensing opportunities with the merchandise.

Can I Sell my Series to Netflix?

If you have an idea for a tv series or film, you may be curious how to send it to Netflix. Netflix only accepts submissions through a licensed literary agent, or from a producer, attorney, manager, or entertainment executive with whom we have a preexisting relationship. Any idea that is submitted by other means is considered an “unsolicited submission.”

Whether it is an idea that just came to mind or a fully developed script, Netflix does not accept unsolicited materials or ideas.

Any submission, even those we solicit, must come to Netflix through a licensed literary agent, or from a producer, attorney, manager, or entertainment executive who already has a relationship with Netflix.

If you have an idea, script, screenplay, or production already in development that you’d like to pitch to Netflix, you should work through a licensed literary agent, producer, attorney, manager, or entertainment executive who already has a relationship with Netflix.

If you do not have any of these resources available, Netflix will be unable to accept your unsolicited submissions.

How do Netflix Filmmakers Get Paid?

To keep growing its subscriber base, Netflix is constantly negotiating new licensing deals with TV shows, networks and film producers, or investing in its own content production.

Licensing content involves obtaining rights from the owners of a TV show or movie to stream the content through a service such as Netflix. A licensing agreement is established between the content owners and Netflix. Each agreement varies based upon the needs of both parties.

For example, the owner of a TV show could agree to allow Netflix to stream all seasons of its show for one, three or five years. The licensing agreement may limit Netflix to, or exclude it from, specified geographies.

A British crime show might be available for online distribution everywhere globally except the U.K., the producer’s home market. When the licensing agreement ends, both parties can negotiate a renewal, or Netflix could drop the show from its library if viewer interest doesn’t warrant the cost.

A content owner may license programming to multiple streaming platforms, such as Hulu or Amazon Prime Video, making the licensing agreements between parties non-exclusive. Licensing agreements that are non-exclusive are generally less expensive to obtain because the non-exclusivity diminishes the content’s value.

As competition continues to saturate the market, streaming service providers recognize the importance of exclusive content. Under an exclusive licensing agreement, the streaming distribution channel (sometimes referred to as a distribution window) is reserved for a single platform. Agreements can be for a set period or into perpetuity.

Exclusive licensing agreements are far more expensive compared with non-exclusive agreements, though they have the potential to drive greater subscriber numbers over time.

How do Film Distribution Deals Work?

Just how do those movies get from the motion picture studio to the theater? Find out the difference between negotiating and bidding, and finally understand why movie popcorn is so expensive!

Here’s the path a film usually takes to get to your local theater:

Someone has an idea for a movie.
They create an outline and use it to promote interest in the idea.
A studio or independent investor decides to purchase rights to the film.
People are brought together to make the film (screenwriter, producer, director, cast, crew).
The film is completed and sent to the studio.
The studio makes a licensing agreement with a distribution company.
The distribution company determines how many copies (prints) of the film to make.
The distribution company shows the movie (screening) to prospective buyers representing the theaters.
The buyers negotiate with the distribution company on which movies they wish to lease and the terms of the lease agreement.
The prints are sent to the theaters a few days before the opening day.
The theater shows the movie for a specified number of weeks (engagement).
You buy a ticket and watch the movie.

At the end of the engagement, the theater sends the print back to the distribution company and makes payment on the lease agreement.

Who Are The Major Film Distributors?

Market Share for Each Distributor 1995-2021
RankDistributorMoviesTotal Box OfficeTicketsShare
1Walt Disney586$40,089,446,5385,709,428,24716.97%
2Warner Bros.818$36,118,788,6915,184,404,59915.29%
3Sony Pictures742$28,876,822,2084,267,957,43212.22%
4Universal531$27,911,922,3143,986,433,11211.81%
520th Century Fox525$25,857,839,7563,792,474,71910.94%
6Paramount Pictures491$24,297,334,8163,640,029,63010.28%
7Lionsgate423$9,622,399,2961,220,268,8424.07%
8New Line208$6,195,218,0241,116,400,9512.62%
9Dreamworks SKG77$4,278,649,271760,431,3491.81%
10Miramax384$3,835,978,908714,099,6261.62%
11MGM239$3,709,491,745664,449,6071.57%
12Fox Searchlight227$2,608,358,365364,763,3901.10%
13Focus Features201$2,372,795,191309,385,7131.00%
14Weinstein Co.173$2,207,186,458279,587,7210.93%
15Summit Entertainment40$1,667,022,795217,204,3460.71%
16Sony Pictures Classics528$1,206,257,818181,910,5570.51%
17STX Entertainment45$1,113,874,671124,109,9120.47%
18Miramax/Dimension28$1,035,673,230177,909,4850.44%
19Relativity46$932,540,326115,548,3080.39%
20Open Road54$837,375,484100,704,2770.35%
21A2498$494,381,58455,730,7920.21%
22Roadside Attractions160$484,268,05856,590,8960.20%
23Newmarket Films27$471,871,94776,373,4590.20%
24IFC Films478$441,137,10267,666,3520.19%
25CBS Films30$427,346,19952,387,4770.18%
26FilmDistrict16$382,933,03047,522,1120.16%
27Artisan58$379,586,14671,872,9090.16%
28Paramount Vantage87$378,914,27055,626,5460.16%
29United Artists23$363,791,16343,095,3900.15%
30Overture Films23$342,696,13245,769,7880.15%
31IMAX Films84$328,459,26458,548,8290.14%
32USA Films29$296,660,60753,311,7440.13%
33Gramercy59$294,697,47164,740,0150.12%
34Weinstein/Dimension12$292,964,78240,767,8500.12%
35Pure Flix Entertainment16$176,257,88520,533,9850.07%
36Bleecker Street46$173,575,73319,530,0130.07%
37Magnolia Pictures389$157,982,81420,749,5800.07%
38Picturehouse30$155,411,95622,299,8880.07%
39Polygram9$150,730,12832,271,9960.06%
40Warner Independent26$149,630,06023,182,6680.06%
41MacGillivray Freeman Films7$148,322,80929,116,1810.06%
42Neon43$145,879,85015,974,5310.06%
43Focus/Rogue Pictures10$143,951,66822,414,9370.06%
44Fine Line77$137,992,50127,866,5800.06%
45Entertainment Studios Motion Pictures13$137,706,95215,185,1050.06%
46Samuel Goldwyn Films91$124,061,03617,075,3940.05%
47Eros Entertainment145$120,569,98316,086,8330.05%
48Sony/TriStar10$120,306,71524,284,6160.05%
49Freestyle Releasing107$116,564,25415,722,3590.05%
50FUNimation14$113,802,30812,537,2830.05%
51October Films45$105,688,54222,150,2420.04%
52Annapurna Pictures11$105,430,19011,590,2330.04%
53Broad Green Pictures17$92,623,12510,725,2610.04%
54UTV Communications99$89,313,91011,337,0380.04%
5520th Century Studios3$89,193,6359,737,2950.04%
56Aviron Pictures7$77,768,8588,576,6920.03%
57Yash Raj Films61$77,063,18910,352,6710.03%
58Orion Pictures15$73,232,04313,941,3550.03%
59Music Box Films143$71,992,9928,987,9910.03%
60Savoy10$65,656,82815,092,8000.03%
61Rocky Mountain Pictures29$65,628,0768,741,0480.03%
62Filmways Pictures1$65,233,36910,176,8120.03%
63ThinkFilm105$61,702,3759,529,5340.03%
64National Geographic Entertainm ent29$60,552,1048,049,2770.03%
65Yari Film Group Releasing13$56,140,2328,417,8600.02%
66Alliance Films43$56,137,8458,489,8110.02%
67Goldwyn Entertainment33$56,058,09511,806,4850.02%
68Trimark28$55,942,52211,883,3120.02%
69Destination Films5$55,116,32610,225,6610.02%
70Amazon Studios27$54,165,8695,933,1830.02%
71Compass International1$47,274,0005,160,9170.02%
72Well Go USA118$46,871,5745,260,3490.02%
73EuropaCorp7$46,155,3945,384,2770.02%
74Giant Screen Films7$45,662,6237,719,0130.02%
75nWave Pictures27$42,486,0617,042,4860.02%
76First Look51$41,348,1947,455,7850.02%
77Global Road4$40,515,2674,447,3380.02%
78FIP26$36,660,1144,117,4000.02%
79RADiUS-TWC27$35,623,2344,298,0680.02%
80BH Tilt4$35,225,8703,906,5540.01%
81High Top Releasing12$33,003,3233,840,6920.01%
82Greenwich29$30,130,0073,298,1170.01%
83Apparition8$29,941,5633,907,5810.01%
84Clarius Entertainment5$29,119,8173,555,7250.01%
85Zeitgeist123$28,922,7884,369,3380.01%
86IDP/Goldwyn/Roadside19$28,285,1774,360,7640.01%
87101 Studios5$27,448,6212,996,5720.01%
88Focus / Gramercy1$26,594,2613,074,4810.01%
89The Orchard56$23,932,5042,710,5440.01%
90GKIDS56$23,822,3622,689,2390.01%
91New Yorker103$23,661,1654,219,4480.01%
92IDP Distribution17$23,644,3613,933,0490.01%
933D Entertainment7$23,621,5653,315,4520.01%
94Fathom Events14$23,476,5892,615,4260.01%
95China Lion Film Distribution86$23,102,4582,690,9960.01%
96Great India Films3$22,469,8842,498,5410.01%
97Cohen Media Group71$22,364,0582,638,1550.01%
98WellSpring48$22,138,2543,664,3190.01%
99Oscilloscope Pictures119$21,926,7312,639,5960.01%
100Alchemy32$21,556,2662,671,9540.01%

What Are The Distribution Strategies in Marketing?

Let’s examine some of the factors that go into each of these cutting-edge distribution strategies so you can determine which practice is best for your primary customer base.

Direct Distribution

Direct distribution is a strategy where manufacturers directly sell and send products to consumers. There are a few different ways to implement this method. Some organizations may opt to take a more modern approach and use an e-commerce website where users can make a purchase online.

This is an effective option for companies with a client base that’s moderately knowledgeable about technology, requests a specific solution to meet needs or is devoted to a particular brand.

Another direct distribution method is through catalogs or phone orders. This option may target an older customer base or users in specific industries that are attuned to placing orders this way.

One important factor to consider when implementing a direct distribution strategy is the amount of investment required. For example, manufacturers will need to add warehouses, vehicles and delivery staff to their portfolio to effectively distribute goods on their own.

Indirect Distribution

The term “middleman” often gets a bad reputation, but in the case of distribution, these organizations can be helpful in getting goods to consumers. Indirect distribution strategies involve intermediaries that assist in the logistics and placement of products so that they reach customers swiftly and in an optimal location based on consumer habits and preferences.

We will discuss the different types of intermediaries and their specific benefits later in this article, but business needs, targeted clients and type of product are typically behind the reasoning for using this strategy. Low commitment or routine purchases are often something that customers grab absentmindedly in a department store without any specific brand loyalty.

A tube of toothpaste is a good example of a routine purchase. For these types of products, an indirect distribution method that places a large number of items in multiple retail locations may be a company’s best bet.

Intensive Distribution

Products are put into as many retail locations as possible with the intensive distribution strategy. For example, gum is a product that typically uses this strategy. You can find gum at gas stations, grocery stores, in vending machines and at retail locations like Target.

This method hinges on making a large number of goods available in multiple locations. These items don’t typically necessitate an involved purchase decision where the customer does research before making a purchase. Rather, these items are routine purchases that involve very minimal effort to sell.

Exclusive Distribution

When manufacturers opt for exclusive distribution, they make a deal with a retailer to sell a product through that specific storefront only. Businesses may also sell goods directly through their own branded stores, which is another example of exclusive distribution. For example, customers can’t buy a Lamborghini at any location — they need to go to a Lamborghini dealership to purchase new luxury vehicles.

An example of an exclusive distribution deal where a manufacturer and a retailer teamed up is the previous agreement that Apple had with AT&T in distributing iPhones. This agreement caused people to forgo their phone plans with other companies so they could get their hands on this exclusive product. This distribution strategy works especially well for highly coveted, exclusive items.

Selective Distribution

Selective distribution is a middle-ground option between intensive and exclusive distribution. With this strategy, products are distributed in more than one location, but not as many as with an intensive distribution strategy. For example, clothing from different brands may be offered selectively.

A brand like Gucci may choose to distribute its items to its own stores in addition to a few selected department stores rather than placing its products in a range of locations such as Walmart or Target. This can help craft an implicit high-end brand message while also increasing the opportunity for shoppers to purchase one of its products.

Can I Sell a Movie Idea?

While taking your own movie idea from script to screen is challenging, it is not impossible. Once you have an awesome story, your next step is to create a screenplay, a production schedule and then a budget. From there you’ll create a business plan and start your search for prospective investors.

Because making movies is cool, there are many prospective investors outside of Hollywood who would be interested in funding movie projects. Story aside, some people are interested in backing a project because they think it will help them find love, make more money or simply give them something to brag about on the golf course.

Everybody in Hollywood has an idea for a movie. Everybody thinks they can write screenplays. Everybody thinks they are special. Everybody is crossing their fingers, waiting and praying that SOMEONE ELSE will recognize their talent and sprinkle them with Hollywood famous fairy dust.

Ideas are everywhere and ideas are worth less than something tangible. If you want to be taken seriously, make sure you have more than an idea. I suggest having the rights to an outstanding story, or some money in the bank, or the interest of a NAME actor. Or an awesome screenplay. At least this is something.

How Much Does Netflix Pay For Your Movie?

Typical they don’t disclose that information. Through extensive research about 3 or 4 years ago we did come across some Filmmakers discussing their deals. The low-end Netflix would pay at that time was between $40,000 and $60,000 US.

However, since then, Netflix has become a creator of content. They no longer want many low-budget movies. They still are releasing independent movies, but mostly purchasing them at major film festivals. Netflix now makes a ton of its own content, I think the number for 2018 was 93 original movies and tv shows.

In order to get a movie to Netflix, you need to go through a distributor, pay a fee and get ready for rejection.

What Does Netflix Pay Writers?

Netflix is a Writer’s Guild Signatory so they pay Writer’s Guild Adjusted Rates for low-budget movies and non-network production companies.

We’re looking at $12,000 for a half-hour script. $22,000 for an hour script. $50,000 for a feature script. $95,000 for a feature script with treatment.

Plus residuals for syndication.

You make more at the networks or for a feature budgeted over $10,000,000

It’s commissioned or freelance.

The staff works at production company offices. Staff writers are probably paid $3,500 a week or so.

But you have to be in the union. If you’re not in the union they can pay you as little as $500 a week and call you a story editor.

How Does it Cost to License a Movie For Streaming?

Varies widely doesn’t even begin to cover it. Too, deals are cut by territory or region, with the most mature streaming markets commanding the biggest fees. FYI, the next Netflix/Starz deal will likely be in the neighborhood of $250-300M/year.

For reference, you should check out the free TBI Vision pricing guide app for iDevices. The prices therein are for broadcast rights, but VOD rights (especially exclusives) don’t come cheap. In the States, you could pay several thousand dollars or more for VOD titles, though your focus on niche content will lower the price.

As a new service, your best bet is to offer minimum guarantees versus revenue-share for your preferred titles. Too, be sure to come to the table with as many details as possible on service rollouts, marketing support, user interface, number of subs, and potential reach of your target platforms.

Your focus on niche content is a good thing. But without a ton of eyeballs to use for leverage with producers/distribs, you’ll need to show them the money.

Who Make The Most Money in The Movie Industry?

Hollywood would have you believe everyone in film production is rich. This, however, is not the case! In fact, according to the Screen Actors Guild, the median income for actors is $5,000 a year – indicating that most actors do, indeed, have “day jobs”.

So, what are the highest-paying jobs in film production? Let’s take a look at five of them.

Executive Producer

Top of the list is the executive producer – the person who controls the entire project. Most producers start as film production assistants or script readers. Some might start making small movies and build up to bigger ones, although that requires having some budget. The average annual salary for a film producer is $109,860, but that doesn’t take into account other earnings.

Director

Second, of course, is the director, who works out how to visually present the film, instructs actors and then helps the editor. Directors are paid about the same as producers, and generally start by working on smaller projects. You can start while still in school to see if this is the right path for you to take.

Screenwriter

Screenwriters can also make a lot of money – many start writing in other media or as journalists, but it is very hard to break in. Many writers wear multiple hats and do all kinds of other writing while trying to get in the door.

Editor

Then, there’s editing. The editor takes what might be hundreds of hours of footage and pieces scenes together into a movie… sometimes working as part of a team. Editors get paid about $75K, and put in a lot of time for it. Broadcast media courses often include the ability to focus on film editing.

Other opportunities

Those are the obvious ones, but there are some other career directions you might want to consider. Art directors are often paid well, because there are so few of them. They need to be artists, administrators, and highly creative. In fact, there are less than 2,000 art directors working. If you can build up those skills, then you could be in high demand. Construction managers are also paid well – something you can work up to from building sets.

How Much Does a Movie Script Sell For?

Let’s be clear: most screenplays—like most books—do not sell. Unlike books, however, those screenplays that do sell, tend to sell for a lot.

Though the WGA minimum is in the $130,000 range, the typical selling price for a spec script (a screenplay written on speculation, with no committed buyer) hovers in the neighborhood of $300-$600,000, plus bonuses.

Because directors, actors (and in some cases producers) are paid far more than writers, the overall prices of such hyphenate-deals (which sometimes include a percentage of the gross) do not accurately reflect the price paid for the script.

SCRIPTPRICEWRITERSRELEASED AS
Deja Vu$5.6 millionTerry Rossio
and Bill Marsilii
Deja Vu
The Long Kiss Goodnight$4 millionShane BlackThe Long Kiss Goodnight
Snow White and the Huntsman$3.2 millionEvan DaughertySnow White and the Huntsman
Bright$3 million plusMax LandisBright
Basic Instinct$3 millionJoe EszterhasBasic Instinct
Medicine Man$3 millionTom SchulmanMedicine Man
Bad Dog$3 millionDale Launer(unproduced)
Married in the Morning$3 millionHarry Elfont
and Deborah Kaplan
(unproduced)
Panic Room$3 millionDavid KoeppPanic Room
Mozart and the Whale$2.75 millionRon BassMozart and the Whale
Jackson$2.5 millionBrandon Camp
and Mike Thompson
(unproduced)
Jade$2.5 millionJoe EszterhasJade
The Superconducting
Supercollider of
Sparkle Creek, Wisconsin
$2.5 millionDavid Koepp
and John Kamps
(unproduced)
Twister$2.5 millionMichael Crichton
and Anne-Marie Crichton
Twister
Untitled Will Davies
Romantic Comedy
$2.5 millionWill Davies(unproduced)

How Much Can I Sell a TV Show Idea For?

If you’re not a member of the Writer’s Guild, then you’re not subject to receive Guild minimums for the sale of your material. You’re at the mercy of whatever the buyers want to pay.

These are the general parameters of how much money you should expect depending on the kind of material you’re selling. Remember these are estimates and represent the minimums that you should receive.

If you sell an idea or a storyline, you can expect to get $5,000 on the front-end and about $20,000 on the back-end if the movie gets produced.

If you sell a treatment, you should expect around $15,000 on the front end and $30,000 on the back-end.

Finally, if you manage to sell a screenplay, you should receive at least $40,000 upfront and $75,000 on the back-end.

The front-end means the money you will get at the point of sale as soon as the deal closes. The back-end means the money that will be paid to you if and only if the project gets produced. Produced means when principal photography commences and the movie gets shot. The film does not have to be released for the writer to get paid. Once they shoot it, the screenwriter gets paid the back-end.

This is an example of how the front and back end work. Let’s say you sell a screenplay and the deal is $40,000 against $75,000. You would receive $40,000 upfront at the time of the sale, and receive another $35,000 if the movie goes into production. That’s a total of $75,000.

Who is The Highest Paid Screenwriter?

Aaron Sorkin Net Worth: $80 Million One of the biggest names in screenwriting, Aaron Sorkin is the brilliant mind who dreamed up some of your favorite films.

One may also ask, do screenwriters make a lot of money? Screenwriters’ incomes can vary wildly. A screenwriter working for a WGA signatory can be paid anywhere between scale and — well — anything. First-time writers’ paydays generally tend to hover around scale, but there are certainly exceptions. Experienced writers can make upwards of a million dollars for a screenplay.

Accordingly, what is the average salary of a screenwriter?

It’s common for low-budget films to pay around $60,000, and high-budget films to pay well over $100,000. Comic book scriptwriters can make an average of $100 – $300 per page, and scriptwriters who specialize in writing for video games can make about $20,000. Those with years in the industry can make much more.

How much do top screenwriters make?

According to the WGA West, screenwriters in Hollywood earned a combined total of $331 million last year, down nearly 25 percent from 2009. But some of them are doing pretty well. A screenwriter who sells a draft to a major studio can earn about $100,000, and a hot writer can score $1 million or more.

How Much Does a Show Creator Make?

Usually, the writer/creator will receive more than scale and pilot writing fees can range from $50,000 (for a relatively inexperienced writer) to $250,000 or higher for an A-level television writer (i.e., one who has already created at least one successful series, such as David Milch).

How much do TV screenwriters make? TV screenwriters make $26,566 per 30-minute episode and $39,072 per 60-minute episode on a prime time network or high budget programming channel. This number changes every year according to the WGA (Writers Guild of America).

According to Payscale.com, the average yearly salary for a television executive producer is between approximately $57,000 and $126,000. In larger markets such as New York and Los Angeles, the average yearly salary ranges between $89,000 and $175,000 (New York) and between $74,000 and $153,000 (Los Angeles).

How do You Become a TV Show Creator?

TV screenwriters prepare scripts for television shows, documentaries and commercials. Depending on the job, they may use their own ideas or adapt existing ideas and stories. Staff writers work as part of a team and have less creative control over the script.

Generally, producers seek writers who can emulate the voice and style of the show they’re making. That’s why it’s important to know what network you’re targeting and then choose the correct format for your script.

If you’re a staff writer, you may have to build the story based on other people’s ideas. Freelance TV writers have more control over their work but may still need to edit and adjust the script as directed. They are also responsible for pitching ideas, conducting research and meeting deadlines.

Sometimes, they may be asked to adapt existing materials, such as comic books, into a movie or television series. ​The Handmaid’s Tale, Pretty Little Liars, Westworld, Game of Thrones​ and other popular TV shows are all based on books or novels.

Most times, freelance television writers often use spec scripts to break into this industry. Spec scripts, or speculative screenplays, are unsolicited materials that you don’t get paid to write. They reflect your creative vision and allow you to prove your worth. As you gain experience, you may get the chance to write commissioned scripts and earn a steady income.

Your earning potential depends largely on your skills and experience. The U.S. Bureau of Labor Statistics reports that writers, including those working in the television industry, make around ​$63,200​ per year, but it’s possible to earn over ​$122,000​. If you’re just getting started, you may need a second job or third job to make ends meet.

Learn the Craft of Screenwriting

Grand Canyon University states that screenwriting requires passion, persistence and flexibility. Knowing your craft is just as important. It could take you months or years to write a script that sells. To master this art, learn about the television industry and study successful screenwriters. Subscribe to trade publications, attend screenwriting workshops and take courses.

The best TV writers have a good grasp of filmmaking. They also know how to properly format a screenplay, use screenwriting software and sell their ideas. One way to learn these things is to take screenwriting courses, such as those offered by the New York Film Academy (NYFA).

Its students can sign up for workshops, courses, seminars and online training programs. For example, if you’re on a tight schedule, you may attend NYFA’s 12-week evening screenwriting workshop, which takes place every Monday, Tuesday and Thursday.

The University of California, Los Angeles has more than 60 courses in film and television writing. Its training programs are designed for all skill levels, from beginner to advanced. Depending on the course selected, you study how to write spec scripts for short TV series, maximize drama, or turn an existing story into a script. Most courses can be completed online in as few as 10 weeks.

Another option is to complete a degree program in screenwriting, film production or fine arts. The University of Southern California, for example, offers both undergraduate and graduate programs that teach students how to write powerful scripts for comedy shows, dramas, single- and multi-camera TV series, web series and video games.

If you’re still in high school, consider taking pre-college courses in TV writing and production. These are usually offered by film schools and private institutions, such as Emerson College.

Become an Insider

TV writing books and courses cannot replace hands-on experience. Consider joining a writers’ group early in your career. Look for production studios and talent agencies that hire interns. These opportunities can help you grow your professional network, get feedback and develop the skills needed to succeed in this industry.

Read Also: Make Money Marketing Environmentally-Friendly Laundry Detergent

If you don’t have a portfolio yet, write a few spec scripts and share them with a writers’ group. Use scriptwriting software programs, such as StudioBinder, WriterDuet and Final Draft, to streamline your work. The Nashville Film Institute recommends thinking outside the box when writing a spec script. Unleash your creativity and make unusual choices to make your story stand out.

When you’re done writing the script, take a break for a week before doing any edits. You may also try to create spec pilots of TV shows and mix different genres to diversify your portfolio. In the meantime, focus on building connections with directors, producers and other industry professionals.

IMBdPro, for example, connects members of the entertainment industry, from actors and screenwriters to entertainment companies. Another useful resource is InkTip, an online platform that allows TV screenwriters to sell their work and gain exposure.

As your portfolio grows, you may apply for TV writer jobs or other roles in the film industry. You could start out as a production assistant or script reader so you can build connections and learn the ropes.

About Author

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