Film Financing and Distribution deals. Pre-sales and Co-Productions!



At a sneak preview for - "Fork in the Road" - the filmmakers noted that they were seeking distribution for their project.

Well, without distribution, producers are just sittin' in the water.

There are two major ways to finance a film for distribution, says Stacey Parks (a book author) who has worked in independent film for over 10 years and is currently a sales executive at the BBC Worldwide in Los Angeles.

In a recent interview with Student Filmmaker Magazine, Ms. Parks noted she is familiar with the aggressive "down and dirty" philosophy of filmmakers who put together whatever funds they have, slap together something on a mini DV camera, use relatives as actors, then expect to land movie distribution.

So, Parks offered up a couple of solutions for the aspiring auteur.

For example, she suggests either a well-packaged pre-sale scheme or an International co-production.

A pre-sale, she notes, is literally a sale of the film to a particular territory before the film is made.

If a filmmaker has a script with actors signed on for the project, they are eligible for a pre-sale.

A U.K. distributor, for instance, might assess the film package and give it the nod if it has sales potential for their territory.

Parks adds that when a distributor pre-buys rights it is advantageous to them.

For example, if they know in advance the filmmaker has a hot property, they can secure the distribution rights up front instead of waiting until the film is completed to compete with other companies.

For this reason, distributors tend to get a good deal when they pre-buy because they are taking a risk once the contractual agreement is executed.

For filmmakers, this route is quite advantageous, too.

For one thing, it's a savvy way to raise funds for a film while securing a distributor at the same time.

Also, this approach gives the creators stature in the film community.

Why?

The theory is that since someone believed in the project to pre-buy for the territory, the project is a worthwhile investment.

As a result, there is an excellent PR advantage, as well.

One downside to pre-sales is obvious.

The filmmaker may have to bang on doors and secure the pre-sale on their own by submitting to distributors directly.

Understandably, Ms. Parks admits this form of financing is rarer to obtain.

In respect to International co-productions, she is quick to point out that distributor usually snaps up a larger stake of the film and becomes a co-producer of the project. But, such a lucrative deal is not always easy to secure, either.

A filmmaker's best bet is to work with a foreign sales agent, since they have relationships and know the intricacies in a co-production deal, including all the contract issues.

If these two options fail, then the producers may have to secure private investors, raise funds with family and friends, or max out credit cards.

In the event of the latter, a titanium American Express Card may come in handy!

A Plan B option is to go low budget with $250 K, for example.

Ms. Parks figures if the project turns out well, the filmmaker can - at a minimum - recoup that amount in U.S. DVD distribution sales over time.

In closing, Parks adds that it would be wise to cut a trailer or promo to preview to potential investors when pursuing pre-sale and international co-production deals.

One novel approach she offers up makes sense and is practical.

It is recommended, for instance, that a filmmaker shoot some footage of sample scenes with the aim of establishing what the production team hopes to accomplish with the feature.

In that event, present the footage as professionally as possible, to signal you're capable of turning out a quality product.

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