distribution offer on short film

[Hairy Lime]

Looking for a little advice. We just got a distribution offer for a short film from a Canadian distributor. It looks like they're offering a deferred deal - 50% of net profits. I suspect this means we'll never see a dime. My friends who have gotten distribution offers have gotten offers on features, which is a completely different ball of wax. Anyone here have advice on distribution offers for short films? What should we realistically expect? If we accept a deferred payment agreement, what rights should we attempt to retain, etc?

Many thanks for all advice.

 

[Jason Ramsey]

I really have no experience on this, but from the things I have read, your gut may be right. Often times, they will continue to say that they are still recouping losses, etc, etc.

I have heard recommended that you try to get some kind of up front cash from them. That way they have a little motivation to go out and try to make some money off of your film, if they actually have an investment in it.

This is entirely speculation.

Jason

 

[Owen]

Is it for distro in Canada only? If so then retain all other territories.

Ask for an advance on royalties. How much of an advance depends on what you expect the movie to make... maybe figure out what you hope to make in the next 12 months from this deal and ask for an advance of at least half of that. Often the advance is the only money you ever see, so make it worthwhile.

 

[Hairy Lime]

Distribution is for all territories and all media. We've since received an offer from another company with a firm cash price for North American TV rights for 3 years. Obviously, we're going to accept that offer and attempt to negotiate with the other company. A third company has requested a copy of the DVD, but has not yet made an offer.

We've got our NY premier in a couple weeks and are waiting to hear from Sundance.

*fingers crossed*