Beware of Independent Film Distribution Scams

The purpose of a film distributor is to circulate movies all over the country. Distributors make money from theaters, the public, cable companies and other ancillary markets. They pay an advance on future profits or offer royalties to independent filmmakers. Royalties are calculated after the distributor deducts company expenses related to the film’s release. These expenses can include money allocated for marketing materials and standard operating costs.

Distributors who charge fees to filmmakers upfront are generally scams. There is no reason that a distributor should charge fees before distributing a film. When an independent film is picked up, movie distributors usually require items such as a film master, contracts, music cue sheets and other objects necessary for a successful film release. They never require money from independent filmmakers. I have noticed that some distributors have a requirement that filmmakers pay astronomical fees to be included in their catalog.

These particular film distributors are nothing more than partner-run companies that give false promises of distribution to vulnerable filmmakers. Warner Bros. studios is not going to charge $199 to be listed on their website or included in a newsletter that they send to potential customers. It is a ridiculous and unsatisfactory tactic that bogus distributors use to lure paying filmmakers unto their scam. Instead of paying a distributor, filmmakers can sell a film on their own.

Film distributors that have sneaky accounting practices are not trustworthy. Filmmakers who have entered into an agreement with a company that fits this description should examine everything thoroughly or try to cancel their contract. It is best not to even enter into an agreement with such a distributor. However, many independent filmmakers have come to this realization after a distribution agreement has been made.

Filmmakers should always have a reliable lawyer or some form of legal representation when dealing with a film distributor. Any company that has agreed to distribute an independent film in a theatrical or home video market should have thorough reports that accurately state how many units were sold. These reports should be made accessible to filmmakers and their attorneys.

If it seems that a distributor is dishonest about profits made or royalties that are due, filmmakers should take necessary actions to protect themselves from fraud. Many times, distributors will assemble a contract with clauses that allow them to do anything that they want with a particular film. That is why it is important for filmmakers to have an attorney. Independent filmmakers should not have to baby-sit their distributors.

Film distributors have the necessary tools, relationships and power to make sure that a film is seen by thousands of people. They have these abilities because they have established themselves in the entertainment and business industries. Distributors who are reasonably unknown will sometimes turn out to be illegitimate companies. There are many directories and trade magazines that list both large and small distributors.

Independent filmmakers should research an unknown company before allowing them to distribute a film. It is best to call the company and ask questions about their distribution process. Entertainment attorneys may be better suited for doing research on an unknown distributor. There have been numerous film distribution offerings from companies on the internet. While these opportunities may sound good, new distribution companies are usually a scam.

After finding a posting from a distribution company online, I went to their website. The company has a contact page that summarizes their offerings of distribution for independent films. However, when clicking on their movies button, there are no films in their library. There weren’t any films to be found anywhere on their website.

This should be a cause for concern among independent filmmakers. I wondered where the films were that this particular distributor had previously picked up. I also wondered if they had actually distributed any films at all. It is painful to imagine distributors stealing your independent film. Unfortunately, it happens more times than none.

When it comes to new prospects versus old opportunities, it is beneficial to stick with distributors that you have heard of before. There are so many reputable distributors available that filmmakers may want to ignore new company offerings altogether. If you can show your film to someone at Paramount, Warner Bros. or IFC, that is a better choice. These companies are well-known and they have already worked with hundreds of independent filmmakers before.

Film distribution scams are one of the worst experiences that an independent filmmaker can have with his or her film. After spending all of your money, time, relationships and favors on an independent film, you should do all that you can to protect yourself and your work. It is not pleasant to be cheated in a distribution agreement. Filmmakers must take precautions to stay away from film distribution scams.