The pre-sale market has historically been the bedrock of independent film finance, allowing producers to sell distribution rights to various international territories before a film is even made. These contracts would then be “discounted” at a bank to provide the necessary cash flow for production. However, in the current landscape, this model is under significant pressure.

As global streamers consolidate power, the traditional “independent” distributor in territories like France, Germany, or Japan is struggling to compete for high-concept content. This has led to a “Big Crunch” where pre-sales are harder to secure because regional buyers are wary of being outbid or sidelined by a global streamer’s eventual acquisition.

The “global buyout” is the most significant structural change in content acquisition. When a streamer like Netflix acquires a project, they often demand “all-rights, all-territories, in perpetuity” (or for a long-term license). While this provides the producer with an immediate profit margin, it effectively kills the pre-sale market by removing the product from the global shelf.

This “Weaponized Distribution” strategy is designed to create a walled garden of exclusive content. However, as documented in the Vitrina Brief, we are entering a phase of “Co-opetition” where platforms like Amazon MGM are licensing Bond films back to Netflix to maximize ROI. This shift suggests that the “buyout” may eventually soften into a “rotational window” model, offering a glimmer of hope for future pre-sale activity.

For decades, the “pre-sale contract” was treated by banks like a government bond. It was a guaranteed promise of payment upon delivery of the film. However, global streamers rarely offer “gap” or “pre-sale” contracts in the same way. Their payments are often tied to milestones or total delivery, and they rarely allow the producer to carve out territory to sell to others.

Without these territorial contracts, banks have nothing to “discount.” This has led to a massive retraction in lending for independent projects. Producers are now forced to find “soft money” (tax credits) and private equity to cover the production gap—a process that is far more time-consuming and expensive than the traditional banking route.

While SVOD (Subscription Video on Demand) has eroded the pre-sale market, the rise of FAST (Free Ad-Supported Streaming TV) channels is creating a new, albeit smaller, opportunity. Platforms like Tubi, Pluto TV, and regional FAST providers in the Middle East and Southeast Asia are increasingly looking for “exclusive-first” windows for specific regions.

Smart producers are now aggregating multiple FAST pre-buys across different regions to build a financing slate that resembles the old territorial model. While the individual values are lower than a Netflix buyout, this “long-tail” approach allows the producer to retain IP and leverage Vitrina’s Deals Intelligence to track exactly where money is moving in the ad-supported space.