Film Distribution Lecture No.1

Film Distribution
Lecture 01: Introduction to Film Distribution

By Danish Maqsood
Film Distribution
• Film distribution is the process of making a movie available for viewing by
an audience. This is normally the task of a professional film distributor, who
would determine the marketing strategy for the film, the media by which a film
is to be exhibited or made available for viewing, and who may set the release
date and other matters. The film may be exhibited directly to the public either
through a movie theater or television, or personal home viewing (including
DVD, video-on-demand, download, television programs through broadcast
syndication). For commercial projects, film distribution is usually accompanied
by film promotion.
Distribution
• Distribution is one of the four elements of the
marketing mix. Distribution is the process of making a
product or service available for the consumer or
business user who needs it. This can be done directly
by the producer or service provider, or using indirect
channels with distributors or intermediaries.
What is the main purpose of
Film Distribution?
Modes of Film Distribution
1. Standard Release
• The standard release routine for a movie is regulated by a business
model called "release windows". The release windows system was first conceived
in the early 1980s, on the brink of the VHS home entertainment market, as a
strategy to keep different instances of a movie from competing with each
other, allowing the movie to take advantage of different markets (cinema, home
video, TV, etc.) at different times.
• In the standard process, a movie is first released through movie theaters (theatrical
window), then, after approximately 16 and one-half weeks. It is released
to VHS and VOD services (entering its video window). After an additional number
of months, it is usually released to Pay TV, and approximately two years after its
theatrical release date, it is made available for free-to-air TV.
2. Simultaneous Release
• A simultaneous release takes place when a movie is made available on many media
(cinema, DVD, internet...) at the same time or with very little difference in timing.
• Simultaneous releases offer great advantages to both consumers, who can choose
the medium that most suits their needs, and production studios that only have to run
one marketing campaign for all releases. The flip side, though, is that such distribution
efforts are often regarded as experimental and thus do not receive substantial investment or
promotion.
• In the course of the years simultaneous release approaches have gained both praise,
with Mark Cuban claiming movies should simultaneously be made available on all media
allowing viewers to choose whether to see it at home or at the theater, and disapproval,
with director M. Night Shyamalan claiming it could potentially destroy the "magic" of
movie-going.
• Cinema owners can be affected seriously in case they have to share
their opportunity window, specially at the beginning of the movie
lifecycle, since, according to Disney, about 95% of all box office
tickets for a film are sold within the first six weeks after initial
distribution.
• Among relevant simultaneous release attempts are Bubble (2006) by
Academy Award-winning director Steven Soderbergh, EMR (2005) by
James Erskine & Danny McCullough, and The Road to
Guantanamo (2006).
• Cinema owners can be affected seriously in case they have to share
their opportunity window, specially at the beginning of the movie
lifecycle, since, according to Disney, about 95% of all box office
tickets for a film are sold within the first six weeks after initial
distribution.
• Among relevant simultaneous release attempts are Bubble (2006) by
Academy Award-winning director Steven Soderbergh, EMR (2005) by
James Erskine & Danny McCullough, and The Road to
Guantanamo (2006).
3. Straight-to-video release
• A straight to video (or straight-to-DVD or straight-to-Blu-ray
depending on the media upon which the movie is made available)
release occurs when a movie is released on home video formats (such
as VHS, DVD, etc.) without being released in theaters first, thereby
not taking into consideration the "theatrical window".
• As a result of strong DVD sales, Direct-to-video releases also
achieved higher success and have become a profitable market
lately, especially for independent moviemakers and companies.
4. Internet Release
Internet release is still new when it comes to the film distribution
platform. The volume of downloaded movies is difficult to find but
none compares to the even more problematical discovery of their origin.
5. Festival Releases
Independent films are unique in that they do not have the financial backing
of a major studio, and they often target a specific audience. Due to the
financial challenges, independent film makers must often pursue both
traditional and non-traditional methods of distributing their movies to
audiences. More conventional independent film distribution methods usually
involve securing the movie's release in theaters, usually by limited release or
through an independent production company. Film festivals present another
opportunity for exposure and potential independent film distribution. In
addition, self-distribution represents an expanding pathway to securing an
audience, and these methods include online avenues and DVD creation.
Shrinking of the theatrical window
While originally conceived for a six months duration, the theatrical
window has today been reduced to an average of four weeks. Major
movie studios have reportedly been pushing to shrink the duration of the
theatrical window in an attempt to make up for the substantial losses in
the DVD market they've been suffering from since the 2004 sales peak.
These attempts have encountered the firm opposition of theater owners,
whose profits depend solely upon attendance and therefore benefit from
keeping the movie available on their screens
Shrinking of the theatrical window
In early 2010, Disney announced it would be putting out the DVD and Blu-ray
versions of Tim Burton's Alice in Wonderland 14 weeks after the movie's release date
(instead of the then usual 17) in order to avoid competition from the 2010 World
Cup. In response to such statements, theater owners made threats not to show the
movie on their screens, but later reconsidered their position before the movie was
released.
Other strategies are also being deployed in order to make up for slow DVD sales.
Most major studios have considered making movies available to VOD services
shortly after their theatrical release for a premium price. In July 2010 Netflix secured
a deal with Relativity Media in which the latter agreed to distribute a number of
major movies to the aforementioned VOD service before Pay TV.
How Movie Distribution Works?
• Here's the path a film usually takes to get to your local theater:
• Someone has an idea for a movie.
• They create an outline and use it to promote interest in the idea.
• A studio or independent investor decides to purchase rights to the
film.
• People are brought together to make the film (screenwriter, producer,
director, cast, crew).
• The film is completed and sent to the studio.
• The studio makes a licensing agreement with a distribution company.
• The distribution company determines how many copies (prints) of the film to
make.
• The distribution company shows the movie (screening) to prospective buyers
representing the theaters.
• The buyers negotiate with the distribution company on which movies they wish to
lease and the terms of the lease agreement.
• The prints are sent to the theaters a few days before the opening day.
• The theater shows the movie for a specified number of weeks (engagement).
• You buy a ticket and watch the movie.
• At the end of the engagement, the theater sends the print back to the distribution
company and makes payment on the lease agreement.
• The distribution company determines how many copies (prints) of the film to
make.
• The distribution company shows the movie (screening) to prospective buyers
representing the theaters.
• The buyers negotiate with the distribution company on which movies they wish to
lease and the terms of the lease agreement.
• The prints are sent to the theaters a few days before the opening day.
• The theater shows the movie for a specified number of weeks (engagement).
• You buy a ticket and watch the movie.
• At the end of the engagement, the theater sends the print back to the distribution
company and makes payment on the lease agreement.
The Art of the Deal
• It has been said that making a movie is not nearly as difficult as getting it
distributed. Because of the enormous amount of cost in money and time
involved in distributing a movie, a distributor must feel confident that they
can make a sufficient return on their investment. Having the backing of a
major studio or a well known director or star can greatly improve the
chances of securing a good distribution deal. Independent filmmakers often
use film festivals as an opportunity to get the attention of distributors. Once
a distributor is interested in a film, the two parties arrive at a distribution
agreement based on one of two financial models:
• Leasing
• Profit sharing
The Art of the Deal
• In the leasing model, the distributor agrees to pay a fixed amount for
the rights to distribute the film. If the distributor and the studio have
a profit-sharing relationship, on the other hand, the distributor gets a
percentage (typically anywhere from 10 to 50 percent) of the net
profits made from the movie. Both models can be good or bad,
depending on how well a movie does at the box office. The goal of
both the studio and the distribution company is to predict which model
will benefit them the most.
The Art of the Deal
Most of the major studios have their own distribution companies. For
example, Disney owns Buena Vista, a major distributor. The obvious
advantages of this are that it is very simple to set up a distribution deal
and the parent company doesn't have to share the profits with another
company. The big problem is when an expensive movie is a flop --
there's no one else to share the costs. That's the main reason several
studios have partnered on major movies in recent years. For
example, "Star Wars: Episode One" was produced entirely by Lucas Film
but distributed by Fox.
The Art of the Deal
• The next big step occurs once the distribution company has rights to the film. Most
distributors not only provide the movie to theaters, but obtain ancillary rights to
distribute the movie on VHS, DVD, cable and network TV. Other rights can include
soundtrack CDs, posters, games, toys and other merchandising.
• When a distributor has leased a movie, they will try to determine the best strategy
for opening the movie. Opening refers to the official debut of a movie. There are
several factors to consider:
• Studio
• Target Audience
• Star power
• Buzz
• Season
The Art of the Deal
Obviously, a movie that has everything -- major studio backing, big
stars and a great story -- is probably going to open big and do very well.
If it has big stars but doesn't appear to have legs (meaning that it will
not stay popular for long), the distributor may opt to put the movie in as
many theaters as possible during its first engagement. Fewer theaters
will be interested in a movie with an unknown cast or
poor buzz (unofficial information about the movie). Sometimes a movie
has gotten good buzz, but isn't likely to have mass appeal because of the
audience it is directed at..
The Art of the Deal
It might also be the wrong time of year for a particular type of movie.
For example, a heartwarming Christmas story is not likely to do well
opening on Memorial Day weekend.
All of these factors help the distributor determine the number of prints
to make.

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What is the main purpose of Film Distribution?

What are the different modes of Film Distribution?

Film Distribution

Lecture 01: Introduction to Film Distribution

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