Excerpt from Private Placement Memorandum
Producers of motion pictures must have a distribution and marketing plan for their films. The plan represents the best case scenario for the film and is designed to maximize exposure and profits for the production, and if possible, provide presales agreements and co-production financing for future projects. A distribution and marketing plan is essential in order to better define audience appeal and interest from film distribution companies. The plan covers the release of the film in the U.S. and Canada, and addressed the needs of the global market, including Europe, Central and South America, Oceania and Asia. The distribution and marketing plan is organized in steps as follows: (a) meet with a major film distributor; (b) negotiate rights; (c) attend film festival; (d) foreign sales, and; (e) television and cable sales, and; (f) DVD, Blu-ray, VOD and SVOD.
The theatrical release of a film is the most important and most prestigious effort that can be made for a feature length motion picture. A distribution deal for the United Stated and Canada can be successfully negotiated during post production or festivals showings of the film. Outside US/Canada, the global theatrical revenues can account for up to sixty percent of the total dollars in gross revenues to producers. Countries such as England, France, Germany, Italy, Spain, Japan, Mexico, and Brazil represent large markets for American films. Producers may want to engage a foreign sales company to represent their films or may find it advantageous to makes sales to all foreign territories on their own in an effort to increase potential returns.