Distribution fees vary by territory and media. For a domestic theatrical release, a distributor may ask for a fee of 35% of gross revenues. For domestic home video, there are several  formulas: either a 50/50 net deal, or a royalty deal. The 50/50 net deal allows the distributor to deduct distribution expenses from gross revenues, and then split the remaining balance 50/50 with the filmmaker. The royalty approach pays the filmmaker a royalty, often in the range of 20-25% of wholesale price for each cassette sold. Thus, for every cassette sold to blockbuster for $30.00, the filmmaker might receive six dollars. The distributor bears all distribution expenses. Keep in mind that the price charged retailers for some films are at a much lower, so-called sell-through price (e.g., $9.00 per cassette) to encourage customers to buy a cassette rather than rent it. The royalty rate may be lowered to 10-15% for such sell-through product. At other times, DVDs are sold to retailers on a revenue-sharing basis. 

From the filmmaker's point of view, the royalty approach has the advantage of ensuring that the filmmaker shares in revenue even if sales are modest. Moreover, since the filmmaker's royalty is calculated on the number of units sold, less returns, there is much less room for creative accounting. If sales are robust, however, the filmmaker might receive more under a 50/50 net deal, assuming the distributor has reasonable expenses and honestly accounts to the filmmaker.

The distribution fee for arranging for a domestic television license is often 25% of the license fee but can vary from 10-40%. Licensing a film for television may entail little more than contacting HBO and offering them the film. Delivery is accomplished by sending a video sub-master, accompanied by artwork and perhaps chain of title documents. More effort is involved in selling to the numerous pay per view, pay cable, basic cable and broadcast outlets. A distributor may be able to arrange for a series of sales to different distributors, giving each a "window" of time to exhibit the film. Care must be taken to ensure that the windows are coordinated so that there are no conflicts, and to ensure that maximum revenue is obtained. Once a film has been exhibited on basic cable, for example, it may not be desirable to pay cable buyers. The advent of streaming has disrupted the usual order of how films are distributed, and in some instances, the streamer may demand worldwide rights. 

marklitwak 

FILM LOGISTICS WORLDWIDE