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Finance11 min read

The Difference Between a Sales Agent, a Distributor, and an Aggregator

Two people reviewing a film distribution contract at a desk with documents and a laptop

Three Names That Mean Very Different Things

A first-time producer receives three emails in the same week after a strong festival premiere. The first is from a "sales agent" in London offering to represent the film. The second is from a "distributor" in Los Angeles offering to release the film theatrically. The third is from an "aggregator" offering to place the film on major streaming platforms for a flat fee.

The instinct is to treat these as three versions of the same offer and pick the best one. They are not. They are three structurally different relationships with different financial terms, different risks, and different outcomes. Choosing the wrong one at the wrong time can mean signing away territory rights for 15 years to someone who never actively works the film, or bypassing a legitimate sales opportunity because the terminology was unclear.

This post defines each role precisely, explains how each party earns money, and lays out the decision logic for which relationship makes sense at different stages of a film's career.

The definitions and deal structures described here align with the IFTA standard distribution agreement templates and standard practices as reported in the IFTA Member Directory and independent film distribution trade publications.

Role 1: The Sales Agent

A sales agent does not distribute films. A sales agent sells the rights to distribute films to distributors, territory by territory, on the filmmaker's behalf.

The sales agent takes the film to film markets (the American Film Market in November, the European Film Market at Berlinale in February, the Marche du Film at Cannes in May) and pitches it to buyers who represent distribution companies in individual countries or regions. When a buyer closes a deal, the sales agent receives a commission from the proceeds.

How a sales agent is compensated:

Sales agents typically charge a commission of 15% to 25% of the gross sales price for each territory deal they close. If the agent sells UK rights for $50,000, they retain $7,500 to $12,500, and the remaining amount flows to the producer (minus any recoupable expenses). The agent does not advance any money to the filmmaker and does not carry distribution risk.

Some sales agents also charge a sales advance or packaging fee, which is a non-recoupable amount paid upfront against future sales. This is distinct from a minimum guarantee paid by a distributor.

When you need a sales agent:

A sales agent is useful when your film has demonstrable market value: a world premiere at a significant festival, name talent, or a genre with proven international demand. Sales agents typically represent films with a realistic expectation of generating $100,000 to $500,000+ in territory sales. Films below that threshold are unlikely to attract a reputable sales agent, and a sales agent who eagerly takes a below-market film may be collecting fees without actively working the catalog.

Role 2: The Distributor

A distributor acquires rights from the filmmaker (or from a sales agent acting on the filmmaker's behalf) and handles actual distribution: theatrical booking, VOD platform licensing, broadcast sales, and home video. The distributor is the entity that gets the film in front of audiences.

Distributors operate territory-by-territory. A US distributor acquires North American rights. A UK distributor acquires UK rights. They may or may not pay a minimum guarantee (MG), which is an advance against future royalties. An MG of $50,000 against a 30% distribution fee means the distributor retains 30% of all revenue until both the MG and approved expenses are recouped, after which the filmmaker begins receiving backend royalties.

How a distributor is compensated:

Distribution fees range from 15% to 35% depending on the territory, deal type, and rights package. A theatrical-only deal in the US might carry a 20% fee. An all-rights deal including theatrical, VOD, and broadcast might carry a 30% to 35% fee on all revenue streams. The distribution fee is calculated on gross or net receipts depending on how "gross" is defined in the contract -- a critical distinction covered in the post Film Distribution Deals Explained: What Every Clause Actually Means.

When you need a distributor:

A distributor makes sense when you want a partner who will actively market and release the film in a specific territory. The trade-off is control: once you sign territory rights to a distributor, those rights belong to the distributor for the term of the agreement, typically 7 to 25 years. If the distributor underperforms, those rights are still locked up.

Role 3: The Aggregator

An aggregator is a digital distribution middleman. The aggregator's job is to get your film onto major streaming platforms (Netflix, Amazon Prime Video, Apple TV, Hulu, Tubi, Pluto TV, and others) that do not accept direct submissions from individual filmmakers.

Aggregators do not acquire rights. They act as a technical and commercial pipeline between the filmmaker and the platforms. The filmmaker retains all rights and can terminate the aggregator relationship according to the agreement terms.

How an aggregator is compensated:

Two models exist. The first is a flat fee: you pay $500 to $1,500 upfront per film, and the aggregator places the film on the agreed platform list. No ongoing commission. The second is a revenue share: the aggregator takes 10% to 20% of ongoing streaming revenue in exchange for free placement. Some aggregators combine both models.

Major aggregators as of 2025 include Filmhub (revenue share, no upfront fee), Quiver Digital (flat fee), and Bitmax (flat fee). The market for aggregators has changed significantly since the closure of Distribber in 2019, which left filmmakers with unpaid royalties.

When you need an aggregator:

An aggregator is the right choice when you want digital distribution without giving up rights, when your film does not have enough commercial market value for a traditional distribution deal, or when you want to retain direct control of your streaming revenue. Aggregator-placed films are unlikely to be featured or promoted by platforms -- they appear in catalogs but rarely receive algorithmic or editorial placement. Revenue expectations should reflect this reality.

A Comparison of All Three Roles

Sales AgentDistributorAggregator
What they doSell rights to distributorsDistribute the filmPlace film on platforms
Advance / MGRarelySometimesNever
Commission15-25% of sales15-35% of revenue10-20% or flat fee
Rights acquiredNo (acts as agent)Yes, by territoryNo
Rights termPer deal closed7-25 yearsUsually 1-3 years
Best forFestival films with market valueFilms with theatrical potentialFilms without distributor interest
Market accessFilm markets worldwideTerritory-specificDigital platforms only

The most important row is "Rights acquired." A sales agent does not take your rights. A distributor does. Understanding this distinction before signing any agreement is the single most valuable thing this post can communicate.

Three Scenarios Showing the Decision

Scenario 1: Documentary feature, Sundance premiere, offers from two territories.

This film has demonstrable market value. A sales agent is the appropriate first relationship. The agent represents the film at EFM and AFM, closes deals in 8 territories totaling $340,000 in gross sales. The agent takes 20% ($68,000) and the producer receives $272,000 minus recoupable expenses. No direct distributor relationship is needed: the sales agent negotiates with distributors on behalf of the filmmaker.

Scenario 2: Narrative feature, regional festival premiere, limited commercial appeal.

No sales agent interest. A US distributor offers a VOD-only deal with no MG, a 30% distribution fee, and a 10-year term. The producer signs and the film is placed on Amazon Prime and Tubi. Three years later the film generates $12,000 in streaming revenue, the distributor retains $3,600, and the filmmaker has no ability to pursue other platforms because the rights are locked.

Scenario 3: Documentary short, no sales agent interest, strong critical reception.

The filmmaker uses an aggregator with a flat fee of $800 to place the film on Amazon, Apple TV, and Tubi. The film generates $3,200 in streaming revenue over two years. The filmmaker retains all rights and withdraws the film after 2 years to enter it in an educational streaming deal that pays better.

Pro Tips and Common Mistakes

Pro Tip: Always ask a sales agent for their current client list before signing a representation agreement. A legitimate sales agent represents films with documented sales history. Ask for 2 to 3 recent titles and look them up on IMDb Pro to verify territory sales are listed.

Pro Tip: When evaluating a distribution offer with an MG, model the recoupment scenario before signing. If the MG is $30,000 and the distribution fee is 30%, the film must generate $100,000 in distributor-received gross before you see a single dollar of backend. Know the number.

Pro Tip: With aggregators, the flat fee model is usually safer for films with limited streaming revenue potential. A 15% ongoing commission on a film that earns $2,000 per year costs $300 annually, compounding over a multi-year term. The flat fee of $800 to $1,000 is cheaper over 3 to 5 years for most catalog titles.

Common Mistake: Signing with an aggregator that also takes a physical rights option or a broadcast rights window. A legitimate aggregator acquires only the digital rights specifically listed in the agreement. Any aggregator agreement that includes physical, theatrical, or broadcast rights should be reviewed by an entertainment lawyer before signing.

Common Mistake: Treating "interest" from a sales agent as a representation deal. A sales agent expressing interest in your film is not a binding agreement. A representation agreement is a separate, signed contract with defined terms. Do not turn down distributor conversations while waiting for a sales agent to finalize representation.

Frequently Asked Questions

Can the same company be both a sales agent and a distributor?

Yes. Some companies operate both functions, selling rights in some territories and distributing directly in others. In these cases, it is critical to understand in which capacity they are acting on your specific film and to have separate agreements that reflect each role. A combined representation and distribution deal can create conflicts of interest where the company's interests as your agent diverge from their interests as your distributor.

What happens if a sales agent sells rights to a territory and then the distributor in that territory goes out of business?

This situation is more common than filmmakers expect. When a distributor becomes insolvent, the rights revert to the sales agent and, if the agreement specifies it correctly, back to the filmmaker after a defined cure period. Ensure your sales representation agreement includes a reversion clause stating that territory rights revert to you if the distributor fails to pay within a defined number of days of a payment due date.

Is a festival screening agreement the same as a distribution deal?

No. A festival screening agreement grants the festival a non-exclusive, limited right to screen the film during the festival period. No distribution rights transfer. Always read the festival agreement carefully to confirm that it does not include any rights beyond the specific festival screenings. Some festivals, particularly online festivals, include streaming windows that extend beyond the event dates.

How do I know if a distribution offer is legitimate?

Check the distributing company's film catalog on IMDb Pro, verify their FilmFreeway or IFTA membership, and look for reviews from other filmmakers who have worked with them. The IDA's distributor guide and the Independent Filmmaker Project (IFP) membership community are both useful resources for vetting smaller distribution companies.

The Film Distribution Companies Directory on this site lists active distributors across multiple territories. For a clause-by-clause analysis of what happens inside a distribution agreement after you sign, see Film Distribution Deals Explained: What Every Clause Actually Means. For filmmakers weighing the financial argument for self-distribution versus signing with a traditional distributor, the post The Real Revenue Math of Self-Distribution for Indie Films runs the comparison with worked examples.

The Right Tool for the Right Stage

A sales agent, a distributor, and an aggregator are not competing options for the same outcome. They serve different films at different stages of commercial development. A first film with a strong festival premiere and no market track record needs a sales agent. A film with a defined US theatrical opportunity needs a distributor for that territory. A film that has exhausted its festival run and wants to generate passive streaming revenue needs an aggregator.

Matching the right relationship to the right stage of your film's distribution life is more valuable than negotiating a better deal within the wrong category.

If you have worked with all three types of partners on the same film, which relationship produced the most unexpected outcome -- positive or negative?