Percentage cut the distributor takes from box office or streaming revenue — typically 30–50 % theatrical, higher on platforms. Directly reduces producer and investor returns.
The distributor takes their cut before anything reaches the producer or investor — this is the distribution fee, and it's one of the most persistent cost factors in film financing. In theatrical distribution, this commission typically ranges between 30 and 50 percent of the box office gross, depending on how strong the distributor's position is and how much marketing they handle themselves. For smaller productions or weak openings, the distributor can also retain 60 percent or more — the argument then is that they also pay for flops.
In practice, it works like this: if your film grosses 5 million euros in Germany, the distributor immediately withholds 1.5 to 2.5 million. Added to this are the costs of print and advertising (P&A), DCP creation, marketing expenses, and cinema exhibition fees — all of which are deducted from the gross before it becomes net revenue. The producer thus quickly sees only a third or less of the ticket sales. This makes theatrical financing for smaller films extremely fragile. Therefore, experienced producers always plan for this scenario: first the distribution fee is gone, then production costs, then investor returns.
With streaming and premium VOD, it becomes even more drastic — here, the platform or digital distributor often collects 50 to 70 percent. Netflix, Amazon Prime, and the like have negotiating power because they provide the reach. A low-budget film that goes directly to a streaming service can expect a 60 percent fee. The producer's share then shrinks to the bare minimum for survival. This is also why many independent filmmakers now think hybrid: theatrical for prestige and amortization, streaming as a fallback for long-term revenue.
Negotiating room only arises in strong positions — big names, established directors, high budgets, festival awards. A-list distributors might calculate with 25–35 percent if they are convinced by the material and see good marketing potential. For everyone else, the rule is: the distribution fee is non-negotiable, it is systemic. Smart producers build this rate into their financing calculations from the outset and work backward — first the fee is gone, then they see what's left for the investor share. Anyone who doesn't do this will experience an unpleasant surprise on the first settlement day.