Film Rights Explained: What Filmmakers Need to Know Before Signing a Deal

When people talk about film distribution, one of the most confusing parts for filmmakers is film rights. And honestly, that confusion is where a lot of bad deals start. So let’s slow it down and walk through this in a simple way. This is film rights explained, without legal talk or fancy words—just how it actually works in the real world.

Most of the time, when filmmakers get burned, it’s not because their movie wasn’t good. It’s because they didn’t fully understand what rights they were giving away, to who, and for how long. If you’re planning to sell your film, go to a market, or talk to a distributor or sales agent, this stuff matters.

Domestic vs. International Film Rights

The first thing you need to understand is how film rights are usually split up.

In the U.S., when distributors say domestic rights, they’re almost always talking about the United States and Canada. That’s it. That’s domestic.

Everything outside of that—Latin America, Europe, Asia, Australia—that’s considered international rights.

This is important because domestic and international rights can be sold separately. One company might handle your U.S. and Canada release, while another company sells the film everywhere else in the world. That’s very common, especially for independent films.

Film Rights Explained: Worldwide and All-Rights Deals

Now let’s talk about worldwide rights, sometimes called all-rights deals.

When a distributor or sales agent takes worldwide rights, it means they control everything. Domestic. International. All platforms. All territories.

That can be good or bad, depending on who you’re dealing with and what they actually plan to do with the film. If they’re strong worldwide and actively selling to different platforms and countries, great. If not, your film might just sit there.

This is why it’s so important to understand what someone can realistically exploit. Just because someone wants worldwide rights doesn’t mean they’re equipped to use them well.

Split Rights Deals and When They Make Sense

Sometimes, splitting rights is the smarter move.

You might have one company take domestic rights and another handle international sales. Or you might keep certain rights back altogether. There’s no one right answer—it depends on the movie, the cast, the genre, and the strategy.

The key thing is this: you don’t have to give everything to one company just because they ask for it. Rights can be divided in ways that make sense for your film.

Platform-Specific Film Rights: AVOD, TVOD, and More

Another big area filmmakers miss is platform-specific rights.

Some companies don’t want everything. They might only want:

  • AVOD (ad-based video on demand)
  • FAST channels (free ad-supported TV)
  • Theatrical rights
  • TVOD (rent and buy platforms)
  • SVOD (subscription platforms)

In these cases, they’re licensing only those specific rights. They’re not taking your whole movie across every platform. And that can be a good thing if you’re building a smart release plan.

Understanding this helps you avoid giving away rights you didn’t need to give away.

Why Understanding Film Rights Really Matters

At the end of the day, your film rights are the foundation of how your movie makes money.

If you don’t understand them, you can’t protect yourself. And if you can’t protect yourself, you’re relying on other people to always do the right thing. That’s risky.

Before you go to a film market. Before you sign with a distributor. Before you hand your movie over to a sales agent—you should clearly understand what rights you own and which ones you’re licensing out.

That knowledge alone can save you years of frustration and a lot of lost revenue.


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ARTICLE BY Tom Malloy

Tom Malloy is a film producer, actor, and writer. Over the course of his career, he has raised over twenty-five million dollars to produce, and distribute multiple feature films. If you're ready to "level up" your film producing, make sure to check out Movie Plan Pro. The video training and downloadable film business plan template will provide you with the same tools Malloy uses when approaching prospective film investors.