Week 8: Industry and Genre
What is the distribution system and the Distributors?
- the business of selling the film to various media
- typically rare to have sole financing
Studio Distribution & Financing
Distributor Strategies
Filmmaker Strategies
Independent Distribution
🚩 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.
🚩 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
🗳 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.
✅ 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
✅ 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
⛔ 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
😃 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
✅ 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.
Distributor does not equal to Exhibitor!!
🚩 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
🚩 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
✅ 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
✅ 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
⚠ 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
⚠ 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
🏠 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)
🌐 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
🌍 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
💻 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
🏛 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
🎊 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
💰 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
Who Greenlights a Project?
👤
- 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)
- 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
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
- 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)