Distribution Fee
The percentage of revenue that distributors retain for releasing and marketing films.
Definition
Distribution fees compensate distributors for release expertise, relationships, and infrastructure. Theatrical fees typically range from 25-35%; home entertainment fees vary by format and territory.
Fees are deducted before calculating producer and participant revenues. Understanding fee structures is essential for evaluating distribution offers.
Why It Matters
Distribution fees significantly impact profit calculations. A film earning $100 million might see $30 million immediately deducted before any other participants.
For independent filmmakers, negotiating fair fees can mean the difference between profit and loss.
Examples in Practice
A studio might charge 30% theatrical distribution fee plus 25% home entertainment fee. Independent distributors often negotiate lower fees for completed films.
Streaming acquisitions work differently—flat fees paid upfront rather than percentage-based distribution.