Distribution of a Motion Picture

In a past Communiqué, Capital Corp Merchant Banking outlined the stages of motion picture financing.  One important stage that we wish to elaborate on further here is distribution and the different options available to have a motion picture financed.

One opportunity would be for the studio to which the film was pitched/created to also step in to distribute the film to their affiliated distributors and support the P&A expenses.  Another scenario would be for the film producer to obtain financing for the fist stage of a motion picture and then go to a larger studio to complete production and distribution.

A third option is known as “negative pickup” in which the producer secures distribution agreements from studio(s) to distribute the film upon completion  (which will also be regarded as collateral to the lender).  

The last option would be for the producer to secure lending from an outside group for any gap in funding to planned distribution not addressed by one of the previous scenarios.

It should be noted each of the above options can be more ideal than the others based on the goals of the producer and film budget - two elements that must be taken into account.

Should you like to discuss your motion picture project financing needs in more detail, kindly contact us at info@capitalcorpmerchantbanking.com.