With distribution so hard to come by, festivals have become an increasingly important way for arthouse films to connect with audiences. Can filmmakers and sales agents make money from festival screening fees?
Few independent filmmakers need reminding that surging global production levels (a record 9,600 films were made in 2024) and falling distributor demand for movies have created huge challenges in getting their work seen. Securing a release — via theatres, streamers or TV — has become more difficult, particularly for international arthouse films trying to find audiences that are overwhelmed by digital distractions.
Festivals have long played an important role in raising awareness for a new film and securing distribution deals. But some in the industry are rethinking their approach. “I call the festival life of a film one of its windows of distribution,” says Lidia Damatto, co-founder of Barcelona and Sao Paulo-based sales agent MoreThan Films.
For arthouse titles, says Damatto, the festival run is generally the first window, with the hope it will lead to wider distribution. But for some films, she acknowledges that festivals will be their only window of distribution.
The lineups of many festivals contain a significant number of titles without a sales agent attached. Instead, these films might work with a consultancy that specialises in securing festival berths, using a long festival run to raise awareness, possible distribution and recoup some money from screening fees.
Meanwhile, a festival run can be a way for titles with sales representation to recoup the minimum guarantee (MG) if distribution deals are hard to come by — although the aim is always to use festivals to secure wider distribution.
So how much money can films make from a festival run? The answer depends on multiple factors. “Films can earn revenue from a festival run, but not huge amounts,” says Damatto, who points out that screening fees will never come close to recouping a production budget. “But for certain films, sometimes you end up making more money in screening fees than from minimum guarantees from sales, particularly for risky or more arthouse films.”
“Festivals can be an alternative form of distribution,” chimes Cecilia Pezzini, festivals and acquisitions manager at Paris and Berlin-based production and sales banner Coproduction Office. “A festival run brings visibility, establishes filmmakers and spreads the word. It does make some money, but we’re not talking crazy numbers. Nonetheless, for some films, festivals fees can be the main source of revenue.”
Premiering at an A-list festival such as Cannes, Berlin or Venice typically puts a film on the map, opening the door to invitations from subsequent events. Niche films — such as queer, genre or children’s movies — can have longer runs at specialised festivals.
Screening fees vary hugely by festival and country, typically ranging from $295 (€250) to $1,170 (€1,000). For bigger films, the rate might rise to $1,760 (€1,500). A small festival might offer as low as $175 (€150). The average is around $585 (€500). A very good festival run could last for two years and rack up close to 100 bookings, bringing in $58,500 (€50,000). A more likely run might take in 40 festivals and make $23,000 (€20,000).
These figures depend on several factors. For example, films that sell widely will have shorter festival runs as distributors curate their release strategy in their territory. Also, top A-list festivals do not pay screening fees; the prestige of selection is considered enough. However, these festivals will likely contribute travel and accommodation costs for the filmmakers.
For other events, sales executives say it is always worth negotiating on the screening fee. Some festivals will invite a film to play in a competitive section that offers prize money, and will try to negotiate no or small screening fees against the potential for prizes. Other festivals will contribute towards travel and accommodation in lieu of screening fees, or may provide support in the form of subtitling. National film agencies may help with travel and accommodation costs for certain festivals.
“I always try to negotiate a fee for the screening,” says Pezzini. “It is our job as sales agents to make sure the value of the film doesn’t get lost. We have a responsibility towards the rights holders.”
Karlovy Vary artistic director Karel Och confirms that screening fees are a “case-by-case negotiation”. He says: “Most of the sales companies are open to negotiate, especially when it comes to new titles where we can fly the filmmaker to the festival and host them there — we consider that as valuable as the fee itself. Naturally there is no discussion about a screening fee regarding the new films premiering in the official selection.”
Making money from festival runs is not easy. For sales agents and consultants, it takes a huge amount of organisation and builds on years of market knowledge about the pros and cons of each event. Most sales agents have dedicated festival managers who oversee festival strategy, relations, submissions, materials and delivery. “There is a lot of work to do,” says Ruta Svedkauskaite, festival manager at Films Boutique. “You have to put in the time and energy. If you don’t know the festivals, it is much harder.”
Festivals are also under pressure amid cost inflation and funding cuts, and many will offer reduced screening fees as a result. It is often a challenge for festivals in low or middle-income countries to pay the required screening fees — and there are complaints about the prices. Documentary festivals typically pay less, reflecting the challenges of the non-fiction sector. Other festivals have cut back the number of films they programme, meaning greater competition for slots.
There is also greater demand for new, high-profile films that can sell tickets and boost festival revenues. “The life of a film is getting shorter. Everybody is looking for the new, buzzy thing,” says Svedkauskaite. “Sometimes the autumn festivals will think a film from the beginning of the year is a little old, which is crazy but they are often under financial pressure and want to fill seats.”
Hefty costs
There are other factors to take into account. Playing at a major A-list festival can come with significant costs, with expenses for bigger films ranging from yachts to outfits and hotel stays. These costs can easily hit $58,500-$82,000 (€50,000-€75,000), wiping out any subsequent screening fees earned on a long festival run. This is particularly the case for films that premiere at major festivals in quick succession, such as the Venice-Telluride-Toronto run.
“If you are in that situation, you splash out — you have to put resources into it,” says one executive at a leading sales company.
Typically, screening fee revenues are shared 50:50 between the sales agent and the majority producer, who distributes their share with other co-producers. But the sales agent will first recoup its MG, so in practice takes a greater proportion.
Sales companies say it is crucial to work out a festival strategy early on, and recommend filmmakers look to secure sales representation long before the premiere.
“You are always strategising, but it’s not as if you can have a fixed strategy. You have to adapt as you go because it depends on which festivals you are selected for and what path the film takes,” says Damatto.
Some Middle East events, such as Red Sea (postponed until 2027) and Doha, are picked out as competitive payers. In India, where it is a challenge for European arthouse films to secure distribution, a run at events such as Pune, Mumbai, IFFI Goa and Delhi’s Habitat festival is an effective way to reach audiences. In China, it might be Shanghai, Beijing, Pingyao, Hainan or Hong Kong.
The range is huge, from high-profile festivals such as Busan and Rome through to genre events such as Sitges and Fantasia. Germany is cited as a strong festival territory, with a raft of events including Mannheim-Heidelberg and Munich.
Some festivals are effective springboards for continuing runs. Locarno, for example, cites research by new festival submission platform Miralot, which tracked 311 features selected for its lineup between 2020 and 2025 and mapped their subsequent journeys, totalling 3,131 selections across 443 festivals. Sao Paulo leads the list, screening 29.6% of Locarno films, ahead of Viennale at 19.9% and Thessaloniki at 17.7%. Göteborg, Busan, New Horizons, IFFI Goa, Ghent, Vancouver and Melbourne complete the top tier.
Sophy Romvari’s Blue Heron, for example, won Locarno’s best first feature award last year. Its festival run continues a year later, having recently had its Australian premiere at Melbourne. In total, sales agent MoreThan Films has managed 65 festival plays around the world, but estimates that it has screened at close to 100 when taking into account festival screenings organised by distributors that have acquired the film.
Och also talks up the journey of films that first premiere at Karlovy Vary. “I just spoke with Miro Remo, director of Better To Go Mad In The Wild [the festival’s 2025 Crystal Globe winner], which travelled to some 70 film festivals after its premiere in Karlovy Vary. In general, the films in both of our competitions have a substantial festival life around the world after the Karlovy Vary premiere.”
As for the financial returns from a festival run, the real upside still comes from securing distribution deals over the supporting role of screening fees. “There is money in the festival circuit, but not a lot,” says Pezzini. “And you really have to push for it sometimes.”
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