Dear Leslie:
Do you have any information on international video and broadcast distribution?
Signed,
Expanding Horizons

Dear Expanding Horizons:

     International distribution can be tricky. Most foreign companies require a format other than VHS for video viewing. It is important to understand the complications that can ensue when you become involved with foreign legal issues. There are people who are expert in the field of international distribution. Consult with them. Be sure that you understand the contract you are signing and are clear on all of the terms and conditions that are included. All contracts vary and are negotiable.

   There are brokers who work on a percentage of the sale of the video and broadcast rights to foreign countries. Normally, there is a flat fee paid to the video producer for all rights to use a program within a specific country. The broker who arranges such a deal gets a percentage of the sale. (Percentage splits vary.) Back-end royalties can be negotiated with some contracts. These brokers represent several videos at a time and have the ability to sell to more than one country at a time. They often represent these videos in a booth at conventions where buyers go to acquire such rights.

     It is, also, possible for a producer to negotiate directly with one broker that is located in a specific foreign country; i.e. Japan, Australia, England, etc.  Again, a one-time fee is paid to the producer, by the broker, for the use of all of the rights to the program in a specific country. Once the producer is paid, the company that purchased the rights to the video is then responsible for all packaging, duplication and distribution of the program. Under this scenario, there are no additional royalties paid for the program to the producer. (Sometimes, back-end royalties can be negotiated.)

     In some cases, it is possible to ship finished goods to other countries and to control the rights. The producer is then responsible for the duplication in the proper format, as well as the packaging. The producer will be paid for the product on a per piece basis, or, given a royalty payment. Again, this depends on the deal that is negotiated.  

     Finding a reputable international broker is not always easy. You can attend the applicable trade shows and visit such exhibits. This is often costly. You can contact exclusive video distribution companies and solicit their advice. You can contact other independent producers to see how they handle international distribution. Oftentimes, with an effective domestic publicity and marketing campaign, international distributors will find you!

    There are always variables to all types of distribution, so ask questions and do solicit the help and advice of someone who knows the industry and someone who you trust.

Happy travels!

Leslie McClure