What best describes pre-sales financing in film production?

• A. Financing to cover production costs after release
• B. Equity investments after distribution
• C. Securing distribution rights before production
• D. Tax incentives for international shoots

Answer: (C)

Pre-sales financing is the practice of securing distribution deals for a film before it is shot, by pre-selling rights to buyers in different territories through a sales agent. The upfront money from these pre-sold rights provides production capital and signals market interest to financiers, helping to fund the project with reduced risk. This approach is specifically about locking in distribution agreements before production, which is why it best describes pre-sales financing. It differs from funding that comes after release, from equity investments made after distribution, and from tax incentives, which are subsidies rather than pre-committed distribution revenue.