Foreign Sales
International distribution rights licensing to generate revenue from global territories outside domestic markets.
Definition
Foreign sales involve licensing distribution rights to international territories outside the domestic market, typically managed by specialized sales agents who maintain relationships with global distributors and exhibitors.
These sales often occur at international film markets and festivals, where sales agents present content to territory buyers seeking programming for their regional distribution networks including theatrical, television, and streaming platforms.
Why It Matters
Foreign sales can represent 60-70% of total film revenue for many projects, making international distribution strategy crucial for project financing and overall profitability calculations.
Successful foreign sales enable producers to recoup production investments and finance future projects while providing distributors worldwide with content tailored to their audience preferences and platform requirements.
Examples in Practice
Independent films frequently rely on foreign sales to achieve profitability, with sales agents presenting projects at Cannes, Berlin, and other major film markets to secure international distribution deals.
Genre films often perform exceptionally well in foreign sales, as action and horror content can transcend language barriers and appeal to global audiences across diverse cultural markets.
Streaming platforms increasingly compete in foreign sales markets, acquiring international content for original programming while also licensing their productions to global territory partners.