Sell distribution rights to broadcasters, platforms, or territories before completion. Funds production. Critical for indie films and co-productions.
Presales are the financial backbone of many independent productions — you sell film rights to distributors, television broadcasters, or streaming platforms before you've even shot a single second. The deal is based on a screenplay, a director, a cast, and realistic budget planning. This secures capital for production and minimizes the financial risk for your financiers.
In practice, it works like this: Your line producer and producer present the project at film festivals or in direct pitches to potential buyers — distribution companies, public broadcasters (especially in Germany and Scandinavia), or regional distributors. Each brings a package: territory (e.g., "German-speaking territories only"), media rights (theatrical, TV, VOD), and an advance payment. These partial sales are then stacked — you might need five to seven partners to finance the full production. The risk is distributed accordingly. The catch: You have to deliver. If your film goes over budget or the cast drops out, partners may still require their contracts to be fulfilled — this leads to conflicts that must be resolved through production insurance and contracts.
Typical presale scenarios include German-Austrian co-productions with ORF and ZDF, or Scandinavian films where public broadcasters cover 30-50% of the financing. Streaming players like Netflix or Amazon also now buy presale packages, usually with exclusivity windows. The advantage for you as a producer: You have money in the bank before post-production even begins. The disadvantage: Your creative decisions are now subject to the expectations of multiple contractual partners — cut length, ratings, target audience requirements. Some buyers demand cutting approvals or have screen rights that can restrict your creative actions.
Presales require realistic budgeting and credible project presentations. Too many promises lead to compliance problems, too few to financing gaps that then have to be closed through equity or in-kind contributions.