Even before unprecedented disruptions to the theatrical market, established film buyers and sellers were under tremendous financial pressure after spendthrift streamers elbowed in to populate their sparse film catalogs and vie for Oscar gold.
In an already contracting exhibition market for independent films, virtual film festivals and markets enforced over two years at Sundance, Cannes, and elsewhere were a disaster for most traditional international sales agencies and distributors.
- During Disruptions, Demand Outstripped Supply
- Worldwide Film & Television Distribution Intelligence
- Film Financiers Hold Back Rights for Rich Suitors
- Notable Sundance Distribution Deals (2017-2023)
- Amazon Steps Back from Film Festivals
- FilmTake Away: Innovative Distribution Options Abound
- Your Inside Source for What Streamers Pay for Films
During Disruptions, Demand Outstripped Supply
Existing and new streamers buoyed by theater closures, stay-at-home orders, and screening restrictions were voraciously buying content in 2021 and 2022 to meet captive demand while most theatrical and all-rights buyers sat on the sidelines, unclear if or when theaters would return to normalcy.
Streamers were frantically licensing content to supply the millions relegated in their homes through remote working arrangements and lockdowns. However, with global production capabilities halted or severely restricted, demand far outstripped supply.
The territorial presales and distribution marketplace that existed just three years ago is becoming obsolete unless conditions rapidly improve.
Worldwide Film & Television Distribution Intelligence
Get unparalleled access to market intelligence reports that draw on financial data and insights from dozens of content distribution deals worldwide between key industry participants, including — Distributors, Producers, Broadcasters, MPVDs, Pay Television Providers, and Streaming Exhibitors.
Film and Series distribution rates and terms deriving from dozens of agreements for rights to transmit films and episodic television via PayTV and SVOD.
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Licensing Terms & Included Programs:
Pay-1 & SVOD Rate Cards for Motion Pictures and Series Exhibited Worldwide in Multiple Availability Windows
- Motion Pictures: Pay-1, First Run, Second Window Features, Recent Library Features (Tiers AAA,A,B,C), Library Features (Tiers AAA,A,B,C), Current and Premium Made-For-TV Films and Direct-To-Video Films, covering many license periods over the last decade
- Episodic TV: Current, Premium, Premium Catalog (1HR & 1/2HR), Catalog Series (1HR & 1/2HR), and Catalog Miniseries + Case Studies on Current Mega Hit, Catalog Mega Hit, and Premium Catalog, covering many licensing terms from 2012-2024
- Because most-favored-nation rates operate in practice, the rates and terms apply to a diverse range of content and distributors worldwide in multiple availability windows.
Film Financiers Hold Back Rights for Rich Suitors
The lifeblood of much of the independent world is now at risk since many financiers and producers keep worldwide rights open in the hopes of hitting the streaming lottery with a big deal from Netflix or Apple. But like all lotteries, the multimillion megadeal only goes to the lucky few.
Most deep-pocketed streaming services realized early into their respective film journeys that it is much cheaper and far easier to acquire in-vogue films at festivals than to develop and produce them in-house.
A near ironclad rule since the streamers hit the markets was if one streamer was interested, the others were too, resulting in more than a few bidding wars. In the end, a $20 million or even $30 million buy from Netflix, Amazon, and Apple is a rounding error as opposed to many independent distributors making ends meet in the ruins of a decimated theatrical market.
At a festival or market, you’re accountable to colleagues and counterparties that you see several times daily in and out of screenings and meetings. However, in a virtual Zoom environment where all you have to do is close your laptop, there is no urgency to make deals, especially in an atmosphere where Amazon, Apple, and Netflix are your competitors.
Notable Sundance Distribution Deals (2017-2023)
Amazon Steps Back from Film Festivals
Before Sundance this year, one of the big open questions was whether Amazon, as the fresh owners of Metro-Goldwyn-Mayer, would go on a spending spree acquiring theatrical rights for MGM and streaming rights for Prime Video. The answer to both was an emphatic no.
Currently, MGM has 13 films on its 2023 slate and is not likely looking to get burned again in the heightened environment of a festival.
Under more competent management, Amazon avoided the fool’s gold it fell for in 2019 when it spent $46 million at Sundance to acquire rights to just five films. The e-commerce giant only made one minor acquisition in 2023 for a small foreign-language wartime film.
Burned by the massive miscalculations by its then-newly appointed head of the film division with $15 million and $14 million blunders for Late Night and Brittany Runs a Marathon in 2019, Amazon has seemingly abandoned film markets leaving it to Netflix, Apple, Miramax, Disney’s Searchlight, and A24.
FilmTake Away: Innovative Distribution Options Abound
One of the few silver linings in this transitional period for established and new producers, distributors, and sales agencies is that far more licensing options and variations are within reach.
Now that the cobwebs have been shaken off, there are more opportunities than ever to create different windows, rights, and terms than just a few years ago. Streamers are still untouchable in terms of upfront fees, but there are a ton of innovative options when approaching dealmaking.
With the most significant content distributors reversing their plans to make content exclusive on their in-house platforms and Netflix originals falling flat, Netflix will again lead the way in third-party licensing and once again become Hollywood’s aggregator.
Unstoppable declines in linear television subscribers coupled with challenges in achieving profits in freshly minted streaming services have led most media companies on the road to consolidation. Over the next 12 months, Paramount, Warner Bros. Discovery, and NBCUniversal will likely be impacted by consolidation.