The work itself. Advances and fees increase (or distribution costs decrease) for works with more episodes, higher production values, known talents, good performances, a wide audience in other markets, successful sequels or popular works such as best-selling novels and works on topical topics. The distributor`s performance. What happens if the distributor does not distribute your work correctly? What recourse do you have? One option is to negotiate a performance requirement in the contract. This provision requires the distributor to generate certain levels of sales in certain periods and gives you the right to terminate the contract if the distributor does not. If you receive an advance, the distributor may limit your right to terminate until the distributor has recovered its advance. Recovering your rights from a distributor who has not been able to provide an adequate service is not an ideal situation. Often the work is time-consuming. In most cases, interest in a stock declines rapidly after publication and initial marketing efforts. At the time of reversion, you may find that the duration of use of your work has expired. But the performance clause can still be useful because it keeps the merchant`s feet on fire, and gives you a second chance to put the work on the market. There are many reasons why you may need an advance.

For example, you may be indebted to third parties for the production of the plant, or you need funds to meet the delivery requirements of the distribution contract, or you have music in the work that must be “liberated” (licensed) for the contracts awarded to the distributor. The initiative also invests the distributor in the work and shows its commitment. Of course, it is two different things to need progress and to be able to negotiate a breakthrough. Producers must analyze the type of distribution agreement that maximizes their final result. Most distribution contracts are “gross” agreements for which the distributor`s royalty comes from the tip; Distribution costs are then deducted. the balance is paid to the manufacturer. In the case of “net” agreements, expenses are deducted from the tip and the balance is shared with the distributor in an agreed report (usually 50/50). Distribution costs for television and theatre exhibitions range from 20% to 40% (before expenses). Non-theatrical agreements and home video are generally 15% – 25% of the gross for the producer. To determine the best type of agreement, the producer must make certain revenue and expenditure assumptions and calculate whether a gross or net transaction is preferable. The role of the entertainment lawyer is to represent a client in: negotiating the terms of the distribution contract; Reviewing the distributor`s contract; and advice to the manufacturer on the entire contracting process.

Experienced lawyers are familiar with precedents in this area and rely on favourable precedents to obtain a reasonable contract. However, the lawyer is not a magician and cannot guarantee that all the producer`s points will be earned. The amount of the advance. If you receive a significant advance, the distributor is exposed to a greater risk and may therefore justify charging a higher (or lower) sales charge. Even if you see an advance during the production period before the dealer and allow the paid work (which is unusual these days), the distributor takes a greater risk, which would also justify his argument of taking a larger sales royalty or reducing your royalties. Commercial: As part of this agreement, a distributor acts as an agent of the film owner in exchange for a commission. There is therefore no allocation of rights from the owner to the seller. However, if the salesperson is exclusive and is entitled to enter into licenses for and on behalf of the owner, the salesperson is similar to a licensee. Since a sales agent does not pay the owner in advance and the commercial`s distribution costs are generally relatively low, the salesperson is generally entitled to a relatively low sales charge.