DISTRIBUTION

&

ROYALTIES

Key elements of distribution agreements in the digital media, online, music, film, & television industries include advance payments (if any) and the right to review accounting records.  Often the one selling the program or music has little leverage over terms.

 

All the more reason she should look hard at whether there is an advance payment and rely on that solely for recoupment of costs and profit unless and until pleasantly proven wrong by strong distribution sales. 

 

Also, the right to review the distributor’s accounting records should be a deal breaker.  Other crucial terms include length of the contract, reversion rights and of course, royalty or revenue percentage payable.  

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