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Been approached for digital distribution rights to my movie, how much should I ask for?

Discussion in 'BlackHat Lounge' started by kendra, May 28, 2013.

  1. kendra

    kendra Power Member

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    I've been approached by a streaming TV service (I don't want to say which one), and they have asked me for North American digital distribution rights to my movie. I produced the movie myself, it is entirely computer generated graphics and is under one hour in length.

    I had no clue this service would be interested in my work, so the request was totally unexpected for me. To be honest I have absolutely no idea about any of this, I don't even really know where to start researching. These streaming movie services are still only a few years old - so there isn't that much information available on the subject.

    So as Blackhat World is full of so much experience and talent I'm hoping that someone here might be able to point me in the right direction. I'm especially interested in what fee I should be asking these guys for the digital rights; what is a reasonable fee? What is the market average? All this stuff really is difficult to find out - so if anyone can give some advice I'd be really grateful!
     
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  2. ytr191

    ytr191 Regular Member

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    3.5% of each sale.
     
  3. Ricky Roma

    Ricky Roma Regular Member

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    Tell them to give you an offer.
     
  4. JimmyWong

    JimmyWong Registered Member

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    % rather than a fixed fee. Press for both if possible.
     
  5. JimmyWong

    JimmyWong Registered Member

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    Do you have any other work that they might want to buy off you in the future? Is this a hobby business or what you're about?

    So many questions.

    Do some due diligence now. Check what their companies worth. Do your background shit this instant before you have to negotiate.
     
  6. safaristyle

    safaristyle Regular Member

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    what movie ? where we can see it
     
  7. xtopzi

    xtopzi Regular Member

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    It's not the Smurfs is it?
     
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  8. JFoulds

    JFoulds Power Member

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    Ignore everything everyone on BHW says and get talking with some people who actually work in the industry, get their opinions.
     
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  9. ShadeDream

    ShadeDream Elite Member

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    Including you?
     
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  10. Ptrick125

    Ptrick125 Regular Member

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    Don't get a one-time payment, get a %
     
  11. steelballs

    steelballs BANNED BANNED

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    Digital rights management
    en.wikipedia.org/wiki/Digital_rights_management
     
  12. krzysiekz

    krzysiekz Senior Member

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    If someone like Netflix has approached him, how do you guys suppose they're going to give him a %?

    Anyway, I don't think any of the replies here are really helpful as no one seems to really know the industry very well. Everyone is throwing out "get a percentage" or "fixed price" but I don't think it's what you're looking for.

    I have no idea what to charge. I would first call around and try and find out what average fees for something like this would be. Then I personally would license it out a bit below average to ensure they snapped it up as the extra exposure of being part of their network might even get you some more deals in the future. Good luck with it!

    Edit: Steelballs snuck in on me. That looks like a good place to start!
     
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  13. WayneInc

    WayneInc Jr. VIP Jr. VIP

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    % rather than a fixed fee. in % you will get good money..​



     
  14. howard_hughes

    howard_hughes Elite Member

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    ask them to make an offer maybe and go from there? or talk to some actual people who've done this before:)
     
  15. SkyrocketSEO

    SkyrocketSEO Jr. VIP Jr. VIP Premium Member

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    Oh Kendra, nice to see you on BHW
     
  16. CTthatdude

    CTthatdude Newbie

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    percentage of the sales or stocks in the company if its a popular upstart. A set number money wise is only good if its a HIGH number like millions.
     
  17. kendra

    kendra Power Member

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    Thanks for all the replies.

    I will be negotiating the deal on the movie with them soon. Currently they are offering a fee for the rights to the movie - along with a percentage on revenue generated (I assume the percentage is based on the amount of views the movie gets). I'm happy with the percentage they are offering. But I'm still unsure what upfront fee to ask.

    To answer JimmyWong - the movie was made as part of my business. I own a small records label and have produced around 40 albums. The movie was a side project within the same niche.

    krzysiekz, one of the main attractions for the deal is indeed the extra exposure it will generate for my business. So whilst I'm keen to get the largest upfront fee possible. I'm also flexible on that simply to get onto their network.

    Unfortunately video and movie distribution is not an area I have any contacts in. I have some contacts that operate third party distribution services that feed into iTunes etc. But these new steaming services like Netflix are sill in their early days...so I'm finding it hard to find any real solid information.