Distribution - What is it?

Distribution

• Distribution is the third part of the supply chain 

• Distribution is often refereed to as the 'invisible art' 

• When discussing distribution, 'vertical integration' describes the three stages being seen as part of the same larger process, under the control of one company.

• Vertical integration is not so common in the independent sector. This is because producers tend not to have long term economic links with distributors, who likewise have no formal connections with exhibitors.

• The independent sector has three stages - licensing, marketing and logistics.

Licensing 

• Licensing referrs to the process by which a distributor aquires a legal right to exploit a film.

• There are two levels of licensing - International and local distribution

• Major US studios often have their own distribution offices. This comes as an advantage. 

• The three different types of rights you can acquire on a local level - theatrical, video, TV

• Royalties are when a film producer gains payment from film profit by the distributor

• Theatrical (cinema) openings are seen as the most effective way to increase interest in a film

• Two years after opening in cinemas, a film will reach 'free to air' 

Marketing 

• The two key questions surrounding the marketing of a film - when? and how?

• Typically, films are released on a Friday

• Before releasing a film on a Friday, a distributor will look at scheduling a release for the seasonality of the film 

• In terms of distribution, a 'light week' describes when there is both screen space and adequate review columns in the press

• When a film is positioned distinctively, it means it avoids a release date occupied with other films with similar traits

• This has become increasingly difficult in the UK because the release schedule has regularly featured over 10 releases in a week. 

• P&A describes the costs of theatrical distribution met by local distributors (prints and advertising) 

• P&A can range from costing less than £1000 up to over £1 million 

Marketing - Prints and Adverts 

• Typically, a specialized film will have fewer than 10 prints

• Mainstream films will often have over 200 prints

• A key factor in developing the profile of a film - favorable press response

• Awareness of a film can also be raised by advertising in magazines local or national newspaper

• Distribution in the UK is seen as risky because the cost of print advertising is comparably high 

• Companies are looking towards viral marketing to extend the reach of advertising and develop more effective communication with audiences at lower costs 

• A 'Talent visit' to create word of mouth and advance buzz around a film 

Logistics

• In the pre digital film age, a distributor was responsible for screening the film on certain 'play dates' and to arrange the transportation of a film to the cinema

• Typically, a 35mm print will cost £1000

• A typical feature print has 5 or 6 reels.

• 35mm prints get dammaged because they weigh 20-25 kg.

• prints are stored in a single hard case

• Theatrical release used to last around 6 months 

Digital Distribution

• Digital distribution began in the UK 

• The two advantages of digital distribution - 

• countries that adopted digital distribution early - 

• there were 211 screens that were digital in 2005 and 2K now

• digital distribution has radically altered the opening model of distributors 

• the typical release period for a dilm

• a loss leader is where a film is sold at below cost price and companies using cinema