Dear Swimming:

There are two different types of video distributors: exclusive and non-exclusive.

EXCLUSIVE DISTRIBUTION:

     In an exclusive distribution agreement, the producer will usually license the video to the distributor for 5 to 10 years. The distributor will then package (or re-package) the existing program under the distributor label. The producer will receive a royalty fee from the distributor. The royalty is usually paid on a quarterly basis.  Contracts and royalty percentages vary from distributor to distributor.

     Under the exclusive distribution agreement, the distributor controls the product. The distributor is responsible for all sales, and, the majority of marketing for the video. (The producer should be involved and available to help with the marketing whenever possible.)

     Exclusive distribution contracts do vary so check around within the industry to be sure that the company you sign with is best suited to market and sell your video. Ask about other videos they have represented to be sure they are a match with your subject matter. Additionally, you want to be sure that other producers have received their scheduled royalty payments. You want to feel comfortable with the distributor that you choose. Be sure you can get your phone calls returned and have access to their books, if necessary.

  An exclusive distribution deal is just that: exclusive to that label. You cannot sign a deal with another distributor. However, in most cases, you can negotiate certain rights that you want to keep; i.e. mail order, educational, or some niche markets. When signing an exclusive distribution deal, be sure that you understand the contract. Consult an expert for advice.

NON-EXCLUSIVE DISTRIBUTION:

     If you choose to self-distribute your video, then you will want to place the video with as many non-exclusive distributors as possible. You are responsible for all packaging, duplicating, marketing and sales of the video. 

Most non-exclusive distributors will encourage you to get as many other non-exclusive distributors as possible to help you get the product into the marketplace. Distributors will welcome all of your marketing and publicity efforts. These efforts will help to create a larger demand for your program and help facilitate distributor orders.

There are several non-exclusive video distributors. Some require a contract. Some do not. Some are expert in retail sales. Some have strengths in the school and library market. Others are expert in catalog placements.

     Non-exclusive distributor discounts tend to vary somewhere between a 50 to 60 percent discount off the suggested retail price that you have set. 

     As you wind your way through the distribution maze of the video industry, other distribution concerns will most likely arise. Ask questions! Be sure you understand the terms. Look before you leap. Patience and persistence will prevail. I have attempted to give you a general overview of the total distribution process. However, there are still many specifics that I did not have the space to address. Please do not hesitate to contact me again with additional questions. I wish you the best of luck!

Leslie McClure