Distribution - What is it?

Distribution:
What part of the supply chain is distribution?

Distribution is the third part of the film supply chain after production and
exhibition.
What is distribution referred to as?
Known as the invisible art as it is only a process that is known and
involved with those who are directly involved within the film project.
What does vertical integration mean when discussing
distribution?
Where the three stages (production, distribution and exhibition) are
merged together and seen as one larger process under the control of the
film company.
Why isnt vertical integration so common in the independent
sector?
Producers dont really tend to have long-term economic links with their
distributors in the independent sector nor professional, formal links with
the exhibitors (unlike larger, collaborative companies).
What three stages are involved in the independent sector?
Licensing, marketing and logistics

Licensing:

What is licensing?
The process a distributor has to go through in order to get the legal rights
to exploit a film.
What are the two levels of licensing?
International and local distribution
What is the advantage of being a major US studio?
They have their own distribution offices and operations in all the major
marketing territories which makes the process easier as they have their
own people.
What three different types of rights can you acquire on a local
level?
Theatrical rights (for showing the film in cinemas), Video rights (for video
and DVD exploitation) and TV rights (if the distributor is able to sell the
film to a TV broadcaster)
What are royalties?
A fee paid to the producer by the distributors that comes from the profit
that the film generates. A local distributor will tend to share the profit
equally with the producer due to the theatrical side, e.g.: higher royalties
for broadcast rights and lower for DVD/video.
What is the most effective way to increase interest in a film?

A theatrical opening is the most effective way to generate interest in a film

as the big screen is still seen as the optimum setting for both audiences
and film makers.
How long does it take for a film to reach free to air TV?
2 years after opening in cinemas.

Marketing:

What are the two key questions surrounding the marketing of a

film?
When and How
What day are films typically released on?
Fridays (theatrically)
What will a distributor look at before releasing a film on a Friday?
They will look for a Friday where fewer films are due to be released to
ensure that they can get both more audience and screen availability.
What is a light week in terms of distribution?
A week where few films are scheduled for release
What does it mean to position a film distinctively?
To schedule a films release so that it doesnt overlap with another films
that have similar traits which might jeopardise the films audience intake.
Why has this become increasingly difficult in the UK?
The films schedules in the UK tend to have around 10 new releases a
week, making it difficult to get a space for a specific film to be featured.
What are P&A?
Prints and Advertising, the tools used by the distributor to make a public
for its film.
How much can P&A cost?
From less that 1,000 to over 1 million on new releases in the UK.

Marketing Prints and Adverts:

Typically, how many prints will a specialised film have?

Fewer than 10 prints into key independent cinemas
How many will mainstream films have?
Often they will open will over 200 prints which are screened
simultaneously all over the UK
What is a key factor in developing the profile of a film?
Favourable press response is a key factor in creating desirability for a film
How else can awareness of a film be raised?

Through cinema posters, underground advertising and PR

Why is distribution in UK seen as risky?

The cost of print advertising is very high.
Why are companies looking towards viral marketing?
To extend the reach of low cost, effective advertising towards an audience
who can advertise through word-of-mouth.
What are the benefits of a talent visits?

Increases publicity and attracts an audience to the film by directly

exploiting what they will see when they choose to see the film, e.g.: the
actor.

Logistics:
In the pre digital film age what was a distributor responsible for?
It is the responsibility of the distributor to arrange transportation for the
film to the cinema.

How much does a 35mm print typically cost?

Around 1,000 per print
How many reels are in a typical feature print?
5 or 6 reels weighing in at around 20-25kgs.
Why do 35mm prints get damaged?
They get damaged as they pass through different projectors and hands of
different projectionists.
Where are prints stored?
UKs Central print warehouse in west London
How long did a theatrical release last?
Usually 6 months.

Digital distribution:

When did digital distribution begin in the UK?

Towards the end of 2005
Name two advantages of digital distribution:
Offers a more cost effective way of keeping logistics light and allows for
films to be shown in a non-theatrical setting such as schools.
Which countries adopted digital distribution early and why?
China and Brazil use digital distribution as it is efficient in terms of
bringing together supply and demand.
How many screens were digital in 2005 and how many are now?
There were 250 in the UK in 2005 and there are now around 93,147
internationally (59,350 are 3D)
Why has digital distribution radically altered the operating model
of distributors?
It gives a greater logistical effectiveness to the distributor, giving them
more flexibility
What has happened to the typical release period for a film?
It had reduced the overall theatrical period from 3-6 months to around 1-3
What is a loss leader and why are companies using the cinema as
a potential loss leader?
A loss leader is something that causes the company to lose out on money
however they make it back through other means. Cinema allows for a
larger adverting opportunity which could help the company to make the
money back.