Doing Business Internationally
 International Sales |
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Page 3 of 4 Movie Pricing Whether the movie is finished or is being pre-sold (after packaging, before shooting), the sales agent sets a price based on its budget and the size of territory being sold. Budget-related formulas (e.g. France at 8%) tend to be more closely followed for pre-sold movies than for finished ones. The sales agent usually gives you a list of “ask” and “take” prices. Often the contract between producer and sales agent is written so that the sales agent cannot accept an offer under the “take” price without producer approval. But pricing is an inexact science. What the sales agent sets and what the market will bear (for better or worse) may be two different things. If the movie is very low budget and very appealing, it may earn its budget back several times over in the international market. (An exceptional scenario, granted, but possible.) On the other hand, films often sell for well below the minimum take price – or not at all. Commissions Sales agents have a very wide range of commission, from 30% to… well, far less. Typically, big-budget star vehicles are sold for much lower commission than low-budget independent movies. In discussing commissions, here are some of the key elements to keep in mind:
The processHow the agent sells your movie internationallyThe process depends on the movie. If it is most likely to find its home in ancillary markets – television and home video – your sales agent will probably want to by pass the festival route and focus on movie markets such as the American Film Market (AFM) and the Cannes Market, as well as TV markets such as MIP and MIP Com. Continued... |
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