| Commentary

340 Worldwide distribution arrangements

| Commentary

340 Worldwide distribution arrangements

A worldwide distribution agreement is unlikely to be favourable to a producer, although it is a quick source of money as the producer will initially obtain a large advance or minimum guarantee. The distributor may, however, elect for a ‘safe’ distribution pattern which will maximise the distributor's chance of recouping the distribution advance at the expense of allowing some territories to remain unprofitable if their bad performance is offset by good performance of the film in other territories. As a distributor is normally able to cross-collateralise territories on a worldwide basis (off­setting losses in some territories

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