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Week 8: Industry and Genre, the business of selling the film to various…
Week 8: Industry and Genre
What is the distribution system and the Distributors?
:red_flag:
The copyright ownership and distribution contract
rights to use the film goes to the copyright holder
film producers can contractually license or rent the film to a distributor
for a specific length of time
producer can release all control of the film by shifting copyright to the distribution forever OR
license a specific right (eg. domestic, foreign, home video DVDs, streaming, television) to the distributor for a specific length of time.
Distributor collects rental monies and splits the producer's share.
:red_flag:
The distributor is an intermediary: buys films from filmmakers and re-sells them to consumers at a higher price
film distributors
are involved in making artistic decisions about the product, changing the name for marketing or obtaining pre-manufacturing financing
motion picture distributors have
tremendous power (especially in independent film)
Distributors have the ability to influence script changes, casting decisions, final edits, marketing strategies and financing the film
all these 'rights' are written in the distribution agreement
:ballot_box_with_ballot:
U.S. Box Office is the backbone in the chain of revenues for a film
driven by the domestic theatrical release, increases values
some products skip domestic markets and are shipped straight to home video or foreign markets.
Who Greenlights a Project?
:silhouette:
studio executives
stars
producers
TV: producer/writer/director
Directors (film, usually not TV. and if the director is formidable)
talent agencies/agents/executives
ability to package a deal based on who they represent (put a group of people to package a deal)
it's always about money. The ability to make money and who has box office draw, who plays well in merchandising opportunity, bring in audiences in a variety of ways
Studio Distribution & Financing
:check:
Major studios have
their own distribution divisions
The Functions:
send out promotional and advertising materials
arrange screenings of films
release their own films and acquire other films
make deals with domestic and foreign distributors
natural clout and power
:check:
Studios have offices in Foreign markets
studio will partner with a local distributor and release with both names
studio retains the copyright and licenses to foreign distributors for a specific length of time
:no_entry:
Studio has a lower chance of achieving a high net profit as compared to independent films
more films to cross-collateralize by offsetting the losses of one film with the profit of another
more unreasonable costs to float
:smiley:
Advantages of Studios
include:
ability to mass circulate films and its materials
several channels of publicity and advertising
sufficient clout to place producers, actors and directors on early-morning and late-night national interview television shows
able to inundate these shows with ads
:check:
Studios have been able to monopolize the chain movie theatres
some moved to theatre ownership
exhibitors often bow to studio pressure due to its ability to perform well
when independent films gain critical acclaim, they move up the distribution depth.
:computer:
Internet rights and Video on Demand rights need to be settled with distributors and copyright ownership on these platform can be held by producers to license to others
most of the time, theatrical release then VOD/internet is more successful
check with distributors and do not enter internet contracts without a distributor
Distributor Strategies
Wide Release
for Tentpole films
in a wide release: box office revenue for the first few weekends is important
wide = large number of theatres
Boxofficemojo website
Limited Release
for smaller films that are a challenge to market
niche topic, unknown topics
garners box office revenue overtime, gradually open up in more theatres
open in a festival and get attention and awards (builds on word of mouth)
initial releases in NY & LA (eligibility for Oscars)
Filmmaker Strategies
Independent Distribution
:red_flag:
Studios tried to emulate the success of independent films with lower-budgeted films
acquired independent companies
merged into specialty divisions within the studios
meanwhile new independent companies continue to appear
:red_flag:
Too many films on the market that are low-quality
not all films released by the studios were successful and there are too many bad independent films
3000 film entries into film festivals
562 films released by independent film companies compared to the 61 released by major studios
:check:
Independent distributors multitask by performing more roles than just distributing
they participate in creative decisions and contribute to the firm's financial resources, and they are usually handled by one person rather than a department
:check:
Independent companies release and distribute independent films
make and distribute OR pick up finished films to distribute OR deal with a smaller distributor for specialized marketing
highly capitalized and successful companies ebb and flow
:warning:
Distribution landscape is always changing
companies are acquired and dissolved
certain successes of films can move the company to the forefront of distributions
new companies emerge
:warning:
Important to know the history and personnel of the company to do business
dealmakers who are more interested in selling the company for a profit or being distributors who love film
always do research for choosing distributors
:house:
Domestic territory of distribution comprises U.S. and sometimes Canada
distributors often consider both to be North American package.
there may be output deals with Canada.
applies to both theatrical distribution and all other media (DVD, Cable, the Internet)
:globe_with_meridians:
Domestic distributors can distribute into foreign waters
pick up worldwide rights and sell off the other territories to sub-distributors
often includes all English-speaking territories
:earth_africa:
Foreign specialized distributors deal with networks of subdistributors all around the world
distributor is granted rights to the film for foreign markets
also known as a foreign sales agent
:classical_building:
Entertainment attorney is needed to negotiate film contracts with distributers and to protect producer's rights
Distribution deals in film are different from other areas of the entertainment industry
fees are usually 35% under
:confetti_ball:
Distributors pick up films at film festivals and pay upfront, depending on how higher return expected and how much they want the film
do not assume knowledge about another film's agreement and promise the same deal to your distributor
:moneybag:
Print and Ad money are usually taken on by the distribution
print = reels of film stock shipped to theatres to be displayed
conversion of film to digital is usually done by studios
Independent films typically have a platform release: open initially in a few regional or limited local theatres
Public Financing and Private Financing
Private
= corporate, studio financing,
pre-sales
(secure commitments before production) & distribution (capital advance from distirbution companies that covers production to post-production costs),
private equity
and hedge funds (provide funds in exchange for profit from box office revenue)
Public
= government and media institutions money
National film funds
(lotteries for co-productions, singapore film commission, tax contributions go towards country budget allocation)
Tax breaks & incentives (Various)
investor, labour, and production credits (submit receipts to rebate)
Release Dates
Considerations for release dates: maximizing the release times (holidays, thanksgiving, christmas)
competition from other films being released (release before or after your rival films)
counter-programming opportunity against an opposing genre. (balancing the genre trends etc.)
box office performance is important to studios
target audience (ratings/film classifications)
What role does film play in a studio's films?
tentpole release (most popular films that bring in all the money)
awards vehicle
both
the business of selling the film to various media
typically rare to have sole financing
Distributor does not equal to Exhibitor!!