In order to sell the right to distribute a film, a production company must enter into one or more acquisition and distribution agreements with a distributor. There are a number of different forms such distribution deals can take. These include (1) Foreign Pre-Sales or Territorial Distribution Agreements, (2) Negative Pickup, (3) Television Syndication, (4) Domestic Co-production, (5) New Media / Video-On-Demand (VOD) Distribution, (6) Foreign Co-production, (7) First-Look Deals, (8) Output Deals and (9) Production-Financing-Distribution Agreements.
Before a distributor agrees to a distribution contract, the distributor usually performs a due diligence analysis of the film project and the production team behind it in order to assess the project’s viability and the film’s overall box office and VOD potential. As part of this due diligence, the distributor would ask to see the script (distributors read screenplays) and for information about the producer, director, cast and other key members of the production team.