The International Territories That Are Buying Again
- Gato Scatena
- Jul 10
- 6 min read
If you had asked me a year ago whether the international market for independent films was in trouble, I wouldn't have hesitated.
It was.
Many buyers had effectively stepped away from acquiring low and mid-tier independent films altogether. Others were still buying, but only for nominal minimum guarantees that were difficult to justify. Deals that had once been routine suddenly became nearly impossible to close, and producers began asking whether international sales still had meaningful value outside of a handful of premium projects.
Today, that answer looks very different.
No, the international market hasn't returned to its glory days. We're not seeing a flood of six-figure MGs for middle-tier films, nor have buyers suddenly become less selective. But something has quietly changed over the past seven months that I believe many producers haven't yet recognized.
International buyers are buying again. Just not the way they used to.
What Changed?
The easy explanation would be to say that buyers simply regained confidence, but that isn't what happened. The collapse of the middle-tier independent film market left plenty of unhappy investors. Financing became more difficult, fewer films at these levels were produced, and the number of commercially viable independent titles entering the marketplace began to shrink.
So on the one hand, less supply certainly helped. But something else happened at the same time.
Rather than simply waiting for bigger films to arrive, many international distributors began looking inward at their own businesses. They started asking how they could reduce internal costs, streamline operations, and acquire films that previously wouldn't have generated enough revenue to justify the work required.
The result has been an increasing willingness to structure revenue-share partnerships where meaningful MGs once would have been required.
For many producers, that may sound like a step backward, but in reality, it's often the opposite.
A modest revenue-share deal that generates ongoing income is infinitely more valuable than earning absolutely nothing because a territory passed altogether. And when looking at the MG deals from a few years ago, those also deals also came with high distribution fees (often above 50%) – high expenses, MGs, and high distribution fees all contributed to making any real royalties a high mountain to climb. With these new direct distribution terms, the expenses are slashed and the distribution fees are low, so for decent performing movies, the year-one revenue can easily be higher than what the MG from yesteryear would’ve been.
The New Economics of International Sales
One of the biggest misconceptions I continue to hear is that if buyers aren't paying large MGs, the territory has somehow become irrelevant. That simply isn't true.
As discussed above, many territories have become profitable again—not because distributors suddenly have deeper pockets, but because they've changed how they acquire and exploit films.
Direct distribution arrangements, lower operating costs, streamlined localization workflows, and improved digital delivery have all helped make smaller acquisitions economically viable.
We've experienced this firsthand – we recently closed on a substantial package deal with a Japanese distributor involving 55 films! Individually, many of those titles were unlikely to secure meaningful Japanese distribution, but as a package, the economics became compelling enough for the buyer to move forward.
That's 55 films creating revenue opportunities in a territory where many otherwise would have generated exactly zero dollars. That's a meaningful change in the marketplace.
🔒 Continue reading to unlock:
The territories generating the most worldwide revenue in 2026
S&R's actual revenue ranges by country from this year's completed deals
Why Japan, Spain, Germany, Italy, and Latin America are becoming active again
The 55-title case study that reveals how international deals are getting done today
Why catalog size has become a competitive advantage in global sales
The markets still worth pursuing—and the ones to approach cautiously
Practical insights to help producers package films for today's international buyers, not yesterday's
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