Distribution - What Is It?

What Is Distribution? 

What part of the supply chain is distribution? 

The third part of the supply chain is the distribution.

What is distribution often referred to as? 

Distribution is often referred to as 'the invisible art'.

What does 'vertical integration' mean when discussing distribution? 

In the practice of Hollywood and other forms of industrial cinema, the phases of production, distribution and exhibition operate most effectively when 'vertically integrated', where the three stages are seen as part of the same larger process, under the control of one company.


Why isn't 'vertical integration' so common in the independent sector? 

Producers tend not to have long-term economic links with distributors, who likewise have no formal connections with exhibitors.


What three stages are involved in the independent sector? 

Licensing, marketing and logistics.


Licencing 

What is licencing? 

Licensing is the process by which a distributor acquires the legal right to exploit a film.

What are the two levels of licencing? 

International distribution (ensures that films find their way to the 90+ market 'territories' around the world) and 'local' distribution (involves the distributor acquiring the licence to release and exploit the film in a particular country).

What is the advantage of being a major US studio? 

The major US studios generally have their own distribution offices in all the major territories.

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 broadcaster.


What are royalties? 

In addition to paying a fee to secure the film, the licence will stipulate that the distributor will also pay royalties to the producer, taken from the profits that the film generates. A local distributor will conventionally share profits equally with the producer for the theatrical leg, pay back higher royalties for broadcast rights, and lower for video/DVD.

What is the most effective way to increase interest in a film? 

A theatrical opening is seen as the most effective way to create interest in a new film. The big screen is still the optimum setting for a film for both audiences and the filmmakers.


How long does it take for a film to reach 'free to air' TV? 

Two years after opening in cinemas, on free-to-air television.


Marketing 

What are the two key questions surrounding the marketing of a film? 

'When?' and 'How?'


What day are films typically released on? 

Fridays.


What will a distributor look at before releasing a film on a Friday? 

A distributor will assess this schedule to identify a Friday release date where there are only a few films scheduled for release.


What is a 'light' week in terms of distribution? 

'Light' week will ensure that there will be both screen space and adequate review column inches in the press allocated to any potential release.


What does it mean to 'position' a film distinctively? 

Position the film distinctively and avoid a release date occupied by other films with similar traits (story, subject, country of origin).


Why has this become increasingly difficult in the UK? 

The release schedule has regularly featured over 10 new releases in a week (more films).


What are P&A? How much can P&A cost? 

P&A are the nuts and bolts of marketing and distributing films into cinemas, the tools used by the distributor to create a public for its film. P&A also represent the bulk of the distributor's investment, after paying the initial fee for rights, and can range from less than £1,000 to over £1 million for the release of a film in the UK.


Marketing - Prints And Adverts 

Typically how many prints will a 'specialised' film have? 

Specialised films will often be released with fewer than 10 prints into key independent cinemas, with these prints subsequently 'toured' over a 6-month period to all parts of the UK.


How many will mainstream films have? 

Commercial mainstream films will often open on over 200 prints, simultaneously screening in all major UK towns and cities.


What is a key factor in developing the profile of a film? 

Favourable press response is a key factor in developing the profile and desirability of a film. Distributors consider both the quality and breadth of coverage, and this is often inscribed into the nature and scale of a press campaign.


How else can awareness of a film be raised? 

Advertising in magazines, national and local newspapers works in tandem with press editorial coverage to raise awareness of a release.


Why is distribution in the UK seen as risky? 

The cost of print advertising in the UK is comparatively high, and is seen as making distribution in the UK a riskier business than in most other countries.


Why are companies looking towards viral marketing? 

In order to extend the reach of advertising and develop more effective communication with audiences at low cost, distributors are looking increasingly to 'viral marketing' - different forms of electronic word-of-mouth via the internet, email and mobile phones.


What are the benefits of a 'talent visit'? 

The use of talent - usually the director and/or lead actors - wins significant editorial coverage to support a release. The volume of coverage can far outweigh the cost of talent visits.


Logistics 

In the pre digital film age what was a distributor responsible for? 

It is the responsibility of the distributor to arrange the transportation of the film to the cinema, as part of its wider coordination of print use across the UK.


How much does a 35mm print typically cost? 

Each print can cost around £1,000 - or twice that if subtitled - so a degree of care is required of everyone involved in handling the print.


How many reels is a typical feature print? 

5 or 6 reels.


Why do 35mm prints get damaged? 

35mm theatrical prints invariably suffer cumulative damage as they pass through different projectors, and the hands of various projectionists.


Where are prints stored? 

There are also overheads incurred by the distributor for the storage of prints at the UK's central print warehouse in West London.


How long did a theatrical release used to last? 

Distributor will invest in sufficient prints to provide optimum coverage through the first period of theatrical release, usually lasting up to 6 months.


Digital Distribution 

When did digital distribution begin in the UK? 

Towards the end of 2005, the UK distribution and exhibition sectors were starting to move towards digital distribution and exhibition.


Name two advantages of digital distribution 

In distribution terms, the advantages of digital technology are even clearer, though perhaps longer term. Digital technology is seen to offer a more cost effective and logistics-light alternative to the tried and trusted, but unwieldy model of 35mm print distribution described above.


Which countries adopted digital distribution early and why? 

Digital distribution and exhibition on a large scale has started to appear in certain parts of the world, notably China and Brazil, where conventional logistics cannot, for one reason or another, efficiently bring together supply and demand.


How many screens were digital in 2005 and how many are now?

2005 the UK Film Council Digital Screen Network launched in the UK by Arts Alliance Media creating a chain of 250 2K digital cinema systems. The roll out was completed in 2006. As of 31 March 2015, 38,719 screens (out of a total of 39,789 screens) in the United States have been converted to digital (15,643 of which are 3D capable), 3,007 screens in Canada have been converted (1,382 of which are 3D), and 93,147 screens internationally have been converted (59,350 of which are 3D).


Why has digital distribution radically altered the operating model of distributors? 

There is little doubt that the advent of digital distribution has the potential radically to alter the modus operandi of distributors around the world. The comparatively low cost of film copies and additional logistical effectiveness of digital distribution provide the distributor with greater flexibility. It will be less expensive in the coming years to offer a wide theatrical opening with many copies, and also conversely, to screen a film for just one performance at any cinema.


What has happened to the typical release period for a film? 

All this suggests that in the future, more titles, both mainstream and specialised, will receive wide theatrical openings, and that this broadening of access at the point of release will dramatically reduce the overall theatrical period from 3-6 months to perhaps 1-3 months.


What is a loss leader and why are companies using the Cinema as a potential loss leader?

A loss leader is a product sold at a loss to attract customers. A strategy in which an institution offers a product or service at a price that is not profitable for the sake of offering another product/service at a greater profit or to attract new customers. This is a common practice when a film or institution first enters a market; a loss leader introduces new customers to a service or product in the hope of building a customer base and securing future recurring revenue.