The rights being granted
A film distribution agreement licenses or assigns the right to exploit a picture, and the scope is defined by territory, media, and term. Media can include theatrical, streaming, television, home video, airline, and other formats, and new formats tend to cause disputes when the agreement does not say whether they are covered. Producers often split rights among different distributors by territory or media, so the definitions in each deal must fit together without overlaps. The term and reversion provisions decide when rights return to the producer, including what happens if the distributor stops exploiting the film or fails to account properly.
How the money works
Distributors commonly pay a minimum guarantee or advance, then recoup it along with distribution fees and expenses before the producer sees further revenue. The definitions of gross receipts, allowable expenses, and caps on marketing spending largely determine whether overages are ever paid. Cross-collateralization, where losses on one territory or film offset earnings on another, can reduce what reaches the producer. Accounting statements, the frequency of reports, and audit rights give the producer a way to check the numbers, and the agreement should set a realistic window and cost allocation for audits. Holdbacks and windows between release formats also affect revenue, particularly in streaming deals.
Delivery, chain of title, and negotiation
Distributors usually require a long delivery schedule of materials, plus proof of chain of title and errors and omissions insurance, before paying the balance of any advance. Missing music licenses, unclear underlying rights, or unsigned releases are frequent reasons delivery stalls. Bring the deal memo, the chain-of-title documents, the financing and sales agency agreements, and any existing distribution deals for other territories. We review how the new agreement fits with obligations already made to financiers, guilds, and other distributors, and where the definitions leave room for disputes over money later. Sales agents' commissions and any obligations to guilds or collecting societies should be accounted for in the waterfall, too.
