Can films make good money from a decent festival run?
With distribution so hard to come by, festivals have become an increasingly important way for arthouse films to connect with audiences.
Source: Screen Daily · September 30, 2026 at 8:02 PM · AI-assisted report
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BERLIN, 1 OCTOBER 2026 —
Arthouse filmmakers are turning to film festivals as a last resort to earn money and secure distribution, a trend that has intensified as the global market for new releases becomes increasingly saturated.
Market Impact
In 2024, a record 9,600 films were produced worldwide, yet distributors are tightening their focus, making it harder for independent titles to find a theatrical, streaming or television outlet.
Festivals, which have long been a platform for raising a film’s profile, are now being viewed as a potential revenue stream as well as a distribution gateway.
The financial reality of a festival run is that screening fees rarely cover a production budget. “Films can earn revenue from a festival run, but not huge amounts,” says Lidia Damatto, co‑founder of MoreThan Films.
“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.” Damatto notes that for some titles the festival circuit may be the only window of distribution, especially when a film has no sales agent attached.
In such cases, a consultancy that specialises in securing festival berths can use a long run to raise awareness, attract potential distributors and recoup some money from screening fees.
Cecilia Pezzini, festivals and acquisitions manager at Coproduction Office, echoes this view. “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, festival fees can be the main source of revenue.” Pezzini adds that a premiere at an A‑list festival such as Cannes, Berlin or Venice can put a film on the map and open the door to invitations from subsequent events, while niche films—queer, genre or children’s titles—may enjoy longer runs at specialised festivals.
Screening fees vary widely by festival and country. They typically range from $295 (€250) to $1,170 (€1,000), with larger films sometimes paying $1,760 (€1,500). A small festival might offer as low as $175 (€150). The average fee is around $585 (€500). A very successful festival run could last two years and rack up close to 100 bookings, bringing in $58,500 (€50,000). A more typical run might involve 40 festivals and generate $23,000 (€20,000).
These figures depend on several factors. Films that sell widely will have shorter festival runs as distributors curate their release strategy in their territory. Top A‑list festivals do not pay screening fees; the prestige of selection is considered enough, though they may contribute travel and accommodation costs for the filmmakers. Other events may negotiate no or small screening fees against the potential for prizes, or offer support in the form of subtitling.
National film agencies may help with travel and accommodation costs for certain festivals.
Pezzini says, “I always try to negotiate a fee for the screening. 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.” Karel Och, artistic director of Karlovy Vary, confirms that screening fees are a “case‑by‑case negotiation.” He adds, “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.”
The logistics of a festival run are complex. “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.”
Playing at a major A‑list festival can come with significant costs. Expenses for bigger films can range from yachts to outfits and hotel stays, and 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 minimum guarantee, 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…,” the source cuts off.