Presales
Distribution deals secured before production, providing financing against future delivery.
Definition
Presales are distribution agreements finalized before a film is completed, with distributors committing to purchase territorial rights based on package elements—script, cast, director—rather than finished product. These commitments provide production financing and reduce investor risk.
Presale values depend on package strength and market conditions, with A-list talent attachments commanding significant premiums.
Why It Matters
Presales are fundamental to independent film financing, providing the committed revenue that banks and investors require before funding production. Understanding presale dynamics helps producers package and finance projects.
Market conditions significantly affect presale values, influencing which projects can achieve adequate financing.
Examples in Practice
A strong package with recognizable stars might presell major territories covering 50% or more of budget before cameras roll. Film markets like Cannes, Berlin, and the American Film Market facilitate presale transactions.
Presale commitments typically involve delivery requirements and specifications that productions must meet.