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preselling distribution

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I was thinking of including it [Australian Distribution rights] as part of the compensation package to a potential DP, who is too expensive for me to hire at full rate but (since he is Australian) he might see the Australian rights as something of real value. My concern is that I don't know how the foreign sales world works and, if I end up with a good but marginal product, will I have shot myself in the foot by having given away a valuable English-speaking market and make my film an unwanted commodity. (I realize that if I manage to produce Pulp Fiction it won't matter -- and if my movie is awful it won't matter -- but I'm betting on a more mixed outcome).

We personally don't think you should promise rights to anything before you make your film. If you want to offer you DP a compensation package, offer him a percentage of the net profits of the film. It is more likely that the DP will sign on your project if he likes the script and thinks you have potential as a director rather than based on rights to possibly/could be/maybe lucrative distribution rights.

Remember, even if your film is wildly successful and you are able to cut a distribution deal, the distributors will take 80-85% of the profits. They most likely will want ALL of the distribution rights for the film. In any event, you will jeopardize your bargaining position if you divide up your distribution rights before you deal with distributors, if ever. If you come to deal with a distributor and tell them "I want to cut a deal for distribution rights but I already promised the Australian rights to so and so" they might not want to hassle with it at all.

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