FAQ: Cinema Distribution Rights

What are distribution rights?

Distribution rights grant a distributor the legal authority to market and exhibit a film in specified territories and platforms.

What types of distribution rights exist?

• Theatrical: Cinema/theater exhibition
• Home Video: DVD, Blu-ray
• VOD: Video on demand (SVOD, TVOD, AVOD)
• Television: Free-to-air and pay TV
• Airline/Hotel: In-flight and hospitality

How long do distribution agreements last?

Typically 5-15 years, depending on the territory and platform. Some deals are perpetual.

What is a Minimum Guarantee (MG)?

An upfront payment from the distributor to the rights holder, recouped from future revenues before profit sharing begins.

How are revenues shared?

Common splits range from 50/50 to 70/30 in favor of the rights holder, after the distributor recoups their MG and marketing costs.