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IFH 374: Predatory Film Distributors - The Bankrupt Reboot Scam

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Synopsis

I've spoken about predatory film distributors before on the show (The Dark Underbelly of Predatory Film Distributors – BEWARE!) but I just discovered how some of these scumbags have figured out how to absolutely screw over filmmakers using a legal loophole. It's called the Bankrupt Reboot Distribution Scam.Here's how they do it. A predatory film distributor will prey on desperate indie filmmakers and will try to obtain the rights to as many low budget indie films as they can, usually for no money upfront in a short period of time. Let's say 1-2 years, if not faster. During that time they sell-off the rights in one big transaction to a bunch of different platforms, outlets, streaming, foreign agents, etc.Now here's the rub, rather than actually paying filmmakers what they are owed, the distributor files for bankruptcy protection, which is extremely easy to do in the United States. So you must be asking"If the distributor goes bankrupt, what happened to the rights of all those films?"Glad you asked. These botto