Introduction
Two distributors have offered deals on your feature film. Distributor A offers a $50,000 Minimum Guarantee (MG) with a 30% fee and a $75,000 expense cap. Distributor B offers no MG, a 20% fee, and no expense cap but promises "aggressive marketing." You need to know at what revenue level each deal becomes more profitable for you, and which deal leaves more money in your pocket at realistic revenue projections.
The distributor comparison calculator lets you model two or more distribution deals side by side. Enter the fee structure, MG, and expense cap for each distributor, and see a clear comparison of your net revenue at any gross income level.
This tool provides estimates for planning purposes and does not constitute financial or legal advice.
What This Tool Calculates
The calculator accepts inputs for up to three distributors, each with their distribution fee percentage, Minimum Guarantee amount, expense cap (the maximum the distributor can deduct for marketing and delivery), and any additional fixed costs. You also enter projected gross revenue to compare outcomes.
Outputs include your net revenue after all deductions for each distributor, the break-even point where each deal starts returning money beyond the MG, a side-by-side comparison of net to you at your projected revenue, and the crossover point where one deal becomes more profitable than another.
The Formula and How It Works
The net revenue calculation for each distributor follows: Net to Producer = Gross Revenue minus Distributor Fee minus Expenses minus MG Recoupment.
The distributor first recoups their MG from your share of revenue. Then they deduct their fee percentage from gross. Expenses are deducted up to the cap. The remainder flows to you.
Detailed model for Distributor A ($50K MG, 30% fee, $75K expense cap) at $300,000 gross: Fee = $300,000 times 30% = $90,000. Expenses = $75,000 (at cap). MG already advanced = $50,000 (recouped from your share). Net to producer = $300,000 minus $90,000 minus $75,000 = $135,000. But the $50,000 MG was an advance against this net, so your total received = $135,000 (of which $50,000 was already paid as MG).
For Distributor B (no MG, 20% fee, no cap) at $300,000 gross: Fee = $60,000. Expenses = actual costs, say $120,000 with no cap. Net to producer = $300,000 minus $60,000 minus $120,000 = $120,000.
At $300,000 gross, Distributor A yields $135,000 and Distributor B yields $120,000. But if actual expenses for Distributor B reach $150,000 (common without a cap), net drops to $90,000. The expense cap protects you.
Real-World Examples
Sundance Premiere with Two Competing Offers
A Sundance drama received two acquisition offers. Distributor A: $200K MG, 35% fee, $150K expense cap, worldwide rights. Distributor B: $100K MG, 25% fee, $100K expense cap, North America only (international handled separately). At a projected $1.5M worldwide gross, the calculator showed Distributor A netting the producer $825K while Distributor B's North America-only deal netted $562K on a projected $900K domestic gross. The team chose Distributor A for simplicity and higher total return.
Micro-Budget Horror Self-Distribution vs. Aggregator
A micro-budget horror filmmaker compared self-distribution through direct TVOD uploads (0% fee, $5K marketing self-funded) versus an aggregator (15% fee, $2K delivery fee). At a realistic $40K gross, self-distribution netted $35K and the aggregator netted $31.6K. But the aggregator provided access to 12 additional platforms the filmmaker couldn't reach independently. The filmmaker chose the aggregator, accepting the $3,400 cost for expanded reach.
Documentary with Impact Distribution Deal
A social impact documentary compared a traditional distributor (25% fee, $50K expense cap) with an impact distribution firm (30% fee but including community screening infrastructure, $75K expense cap). At $200K gross over 3 years, the traditional deal netted $100K and the impact deal netted $87.5K. The producer chose the impact distributor because the community screening program generated $45K in additional speaking fees and consulting income not captured in film revenue.
Distribution Deal Comparison at Various Revenue Levels
| Gross Revenue | 30% Fee / $50K MG | 20% Fee / No MG | 15% Fee / $25K MG |
|---|---|---|---|
| $100,000 | $20,000 | $30,000 | $35,000 |
| $250,000 | $100,000 | $125,000 | $137,500 |
| $500,000 | $275,000 | $325,000 | $350,000 |
| $1,000,000 | $625,000 | $725,000 | $775,000 |
| $2,000,000 | $1,325,000 | $1,525,000 | $1,625,000 |
Pro Tips and Common Mistakes
Pro Tips
- The MG is not free money. It's an advance against your future earnings. A $50K MG from a distributor with a 35% fee means you don't see another dollar until the distributor has recouped that $50K from your net share. Model the recoupment timeline before celebrating the advance.
- Expense caps are the most important protective clause in a distribution deal. Without a cap, a distributor can spend unlimited amounts on marketing and deduct it from your revenue. A $500K marketing spend on a film that grosses $400K leaves you with nothing.
- Run the comparison at 3 revenue levels: worst case (your minimum realistic projection), expected case, and best case. The deal that looks best at $2M gross may be the worst deal at $200K gross.
- Factor in the time value of money. An MG paid today is worth more than the same amount paid over 3 years of quarterly distributions. If cash flow matters to your production company, weight the MG-bearing deal higher.
Common Mistakes
- Comparing deals purely on fee percentage without modeling expenses. A 20% fee with uncapped expenses can net you less than a 35% fee with a tight expense cap, depending on how aggressively the distributor markets the film.
- Ignoring the rights split. A worldwide deal at 30% gives you one check. A split-rights deal (domestic and international handled separately) may net more total but requires managing two distributor relationships and reconciling two sets of reports.
- Not reading the expense recoupment order. Some deals recoup expenses before calculating the fee. Others calculate the fee on gross before deducting expenses. The order changes your net significantly.
Frequently Asked Questions
What is a Minimum Guarantee in film distribution?
An MG is a guaranteed payment from the distributor to the producer, paid regardless of the film's performance. It's an advance against future revenue. The distributor recoups the MG from the producer's share of revenue before any additional payments are made. An MG de-risks the deal for the producer but reduces upside until the advance is earned back.
How do I know if a distribution fee is fair?
Industry standard distribution fees range from 15% for aggregators and sales agents to 35% for full-service theatrical distributors. The fee should reflect the scope of services: a 35% fee that includes P&A (prints and advertising) spend is different from a 35% fee that charges P&A separately. Compare fees only after accounting for what each distributor includes.
Can I negotiate the expense cap?
Yes, and you should. The expense cap is one of the most negotiable terms in a distribution deal. Push for a cap that limits the distributor's deductible expenses to a fixed dollar amount. Without a cap, there's no limit on what they can spend and charge back to your revenue. A common range is $50K to $150K for independent features.
What happens if the film doesn't earn back the MG?
In most deals, the MG is non-recoupable from the producer. You keep the money even if the film underperforms. The distributor absorbs the loss. This is why distributors offering MGs typically charge higher fees or require broader rights windows to increase their chance of recoupment through their share of revenue.
Start Calculating
Every distribution deal looks good on paper until you run the numbers at realistic revenue projections. Comparing deals side by side, with real fee structures, expense caps, and MGs, reveals which arrangement actually puts the most money in your pocket and on what timeline.
Model your current offers in the calculator above, then bring the output to your entertainment attorney. What's the most important factor you weigh when choosing between distribution deals?
