Pre-Sales
Distribution agreements signed before a film is completed, providing upfront financing.
Definition
Pre-sales are distribution contracts signed before or during production, providing advances against future distribution revenue. Distributors commit based on the package (script, director, cast) rather than finished film. Pre-sale advances are used to finance production.
Pre-sales shift risk to distributors and provide production capital, but may limit producer participation in success.
Why It Matters
Pre-sales are foundational to independent film financing, converting anticipated distribution value into production capital. Strong packages (A-list talent, proven directors) command significant pre-sale commitments.
Without pre-sales, many independent films would never be financed.
Examples in Practice
An A-list cast attachment enables pre-sales covering 50% of budget before production begins.
A genre film with proven formula pre-sells to international territories familiar with the market.
Pre-sales to Netflix and other streamers increasingly replace traditional theatrical pre-sales.