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Foreign rights presales, which since the 1970s have been used by independent Hollywood producers to raise funds to get their movies shot, are quickly becoming a thing of the past. Credit Netflix for giving them a big shove out the door. So what does that mean for Hollywood's deal lawyers? Bigger rights deals — but fewer of them to go around.
“Who wouldn't want to do one big deal instead of 15 little ones?” says attorney Schuyler Moore, a film financing expert and partner at Stroock & Stroock & Lavan, and a member of the Board of Contributing Editors of Entertainment Law & Finance. While the paydays can be good for a lawyer who papers a contract with Netflix, the trend definitely means less business overall, Moore says.
Boosting movie and TV content, and making more of it available around the globe, has been a major ambition for Netflix CEO Reed Hastings. That's led his company to become increasingly aggressive in signing long-term streaming deals that eliminate the need for producers and their attorneys to pursue foreign rights presales, once a staple of indie film funding.
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