SALES STRATEGYRevenue will accrue to investors from sales in Russia and internationally. Our SALES STRATEGY for MOSCOW NEVER SLEEPS is based on the film premiering at a major International film festival, providing a platform to launch the film internationally. The intention is to complete post-production in time for submission to CANNES in May 2014.
An international sales agent will be appointed to handle film sales during festivals. We have already received letters of intent from Hanway Films (Shame, A Dangerous Method, The Last Emperor) and Fortissimo Film Sales. Some sales will be expected to take place during the festival itself. Others will take longer to decide. Typically films are actively sold for 2 to 3 years.
The sales agent will typically take a 20% commission on deals they negotiate with distributors, although this can be negotiated anywhere from 15% to 25%. They may also take a administration and advertising fee from the sales amount. This could be anything from 25K to 150K and will be capped in agreement with the producers. The sales agent can also commit to paying a minimum guarantee to the producer if they believe the movie has significant financial sales potential and there is competition with other sales agents to represent the title.
A typical distribution deal involves a territorial purchase price, followed by a cut of TV or DVD sales and Box Office split. Once the distributor has recouped their P&A (prints and advertising) costs, and taken their percentage distribution fee, the balance is also returned to the collection account for disbursement to the sales agent and financiers.
Territorial Distribution deals vary in size and type. All deals are defined by territory and media. A typical distribution deal involves all media rights in one particular territory. Some deals involve DVD or Television only. The biggest territories for MOSCOW NEVER SLEEPS are listed below in order of size.
RUSSIAN DISTRIBUTIONRussia is a primary market for MOSCOW NEVER SLEEPS. Although Russia has only 2500 screens, compared to 4500 in Spain for example, its box office take in 2012 was over $1.2bn, well ahead of Spain’s.
The producers have identified three strong Russian distributors in the Russian market – FOX, UNIVERSAL and VOLGA FILMS, all of whom have read the script for MOSCOW NEVER SLEEPS and are keenly interested in the project.