Why Deliverables Are Marked Up 700% (And How the Industry Hides It)

Most filmmakers don’t realize they’re being overcharged.

Because by the time deliverables show up, the leverage is already gone.

Deliverables are not marked up 30%.
They’re not marked up 100%.
They are routinely marked up 300%–700% — sometimes more.

And the reason filmmakers don’t fight it is simple:

They don’t know what deliverables actually are, or what they really cost.

The Deliverables Illusion

Distributors frame deliverables as:

complicated
proprietary
unavoidable
“industry standard”

So when a filmmaker is told:

“Your deliverables package will cost $40,000”

They assume that’s just the price of entry.

It isn’t.

It’s a control mechanism.

What Deliverables Actually Cost (In Reality)

Here’s the part no one says out loud.

Modern deliverables, when understood and controlled, cost a fraction of what distributors charge.

Common markups include:

QC encoding
caption generation
audio compliance
metadata assembly
artwork formatting
file wrapping

Each of these is routinely outsourced, rebundled, and resold back to the filmmaker at extreme margins.

The markup isn’t for labor.
It’s for ignorance.

Why the Markup Reaches 700%

The markup explodes because distributors:

bundle services you don’t need
force preferred vendors
hide line items
delay disclosure until after signing
recoup costs before you’re paid

Once you’re locked in, price stops being negotiable.

Deliverables become a toll booth between you and your own film.

The Most Dangerous Myth “But I Got Paid” —

This is where filmmakers get confused.

A filmmaker recently said:

“My distributor didn’t charge me anything. I got paid $2,000 on my $5,000 film.”

On the surface, that sounds like a win.

It isn’t.

Here’s what was missing:

no LLC
no screenplay registration
no chain of title
no deliverables ownership
no master file control
no reversion rights

He didn’t avoid deliverable costs.

He gave up the film.

That $2,000 wasn’t profit.
It was a buyout — whether he realized it or not.

How “No Deliverables Fees” Actually Works

When distributors don’t charge deliverables, it’s because:

they absorb the cost
they control the assets
they own the masters
they own the metadata
they own the reporting

You didn’t save money.
You paid with ownership.

That’s the trade.

Deliverables Are Power — Not Files

Whoever controls deliverables controls:

where the film lives
how it’s delivered
how it’s updated
how it’s reported
how it’s monetized

That’s why distributors guard this knowledge.
It’s not technical.
It’s strategic.

👉Metadata is Money

Why Film Schools Never Teach This

Because deliverables expose the business model.

Film schools teach:

how to make films
how to pitch films

They do not teach:

how films enter systems
how costs are manufactured
how ownership quietly transfers

That ignorance keeps filmmakers dependent.

👉Is Film School Worth It? What They Don't Teach You

How Neo Hollywood™ Kills the Upcharge

In Neo Hollywood™, filmmakers:

build deliverables into production
generate masters themselves
control captions and metadata
pass QC without third parties
retain ownership of all assets

AI didn’t remove standards.
It removed excuses.

This is why the old model is collapsing.

The Line Filmmakers Must Draw

If someone says:

“We’ll handle deliverables for you”

The correct response is:

“Under what terms — and who owns the assets?”

If the answer isn’t clear, the cost isn’t financial.

It’s permanent.

The Reality No One Warns You About

You don’t lose films because you can’t afford deliverables.

You lose films because you never learned they were leverage.

That’s the difference between:

getting paid once
and owning revenue forever