What is the Price for North American Rights for Film Acquisition?

When it comes to producing a film that uses copyrighted works. Such as a previously copyrighted script, a book. Or other source the filmmaker must acquire film rights in order to move forward with the production process. Although it all sounds reasonable enough, there’s a lot more to staking your claim and acquiring the rights to produce a film. In fact, if you’re considering the acquisition of film rights in North America? You’re almost certainly wondering! What is the price for North American rights for film acquisition?

What are Film Acquisition Rights?

Film acquisition rights represent the agreement made between the film producer and the distributor. Effectively transferring ownership of the film and all proprietary works associated with the film to the distributor for a set period of time (usually between 10 and 20 years).

Acquisition rights generally provide the right for the distributor to show a film within a particular geographical area. Such as in North America or in Europe, etc. 

Although the actual price that a distributor will pay for the rights for film acquisition may vary. Based on perceived value, estimates on marketing and advertising costs, and various other elements.

The overall process of film acquisition transfers the proprietary property relative to the motion picture to the distributor.

What is the Price for North American Rights for Film Acquisition?

The price paid for North American rights for film acquisition is largely based on the total cost of production. Or the estimated cost of production if production has yet to occur.

As well as the production company that produced the film. Additionally, the price for North American rights for film acquisition will likely be lower. Than if you were to seek rights for film acquisition outside of U.S. or North American territory. 

Worldwide, or multi-country/multi-continent film acquisition prices will certainly be higher. Versus the cost of acquiring the right to distribute a film within the United States and Canada or North American territories.

Consider This

Keep this in mind as you navigate the process. Seek an answer to the question, “What is the price for North American rights for film acquisition?”

Producers realize that distributors frequently seek to engage in profit sharing agreements which often use very creative methods of defining “net profits”. Which rarely result in the producer actually benefiting from the profit sharing agreement.

As such, most producers will seek to receive as much of an upfront payment for the film’s acquisition as possible. They will also typically aim to retain foreign distribution rights so as to prevent cross-collateralization and to retain rights to any foreign profits that could still be achieved.

Common Film Purchase Pricing

Distribution deals are generally negotiated either before, or during the production but sometimes the deal can be established post-production; it all really depends on the individual circumstances of the film. 

As such, it’s best for producers to keep quiet about the total cost spent on production. As touting low production rates could result in a distributor offering a much lower acquisition price.

The Takeaway

In terms of selling the screenplay, prior to production of the film, a producer will typically pay between 2-4% of the estimated cost of production for the rights to produce a screenplay.

Most distribution agreements represent a percentage price of the total box office sales. As you can see, in answering the question, “What is the price for North American rights for film acquisition?”

There really is no set value or pricing to define. The film industry, in North America especially, is a free market. In which producers are liable to sell film rights to distributors for whatever agreed upon rate or percentage that they find most suitable for their needs.

And distributors are able to offer whatever is most suitable to them, thus pricing can and always does vary.