to UK film distribution 2012

© 2011 Film Distributors’ Association Ltd.

No part of this publication may be reproduced in any form by any means or for any purpose without the express prior permission of FDA.

FDA thanks all contributors to this revised and updated edition of the Guide, which supersedes all previous editions.

Information correct at time of going to press but subject to change.

to UK film distribution 2012

Designed and printed in England for Film Distributors’ Association

by Wham Media Ltdwww.whammedia.co.uk

Foreword by David Oyelowo 2

The role of distribution by Lord Puttnam CBE 4

Distributors connect films with audiences 6

Acquisition 10

Planning a release 14

Film marketing and publicity 20

Licensing films to exhibitors 30

The wider picture 34

Working in film distribution 38

About Film Distributors’ Association 42

UK film and cinema factsheet 47

Contact FDA 48

Leaping into box-office action: Rowan Atkinson blasts back into cinemas for the October 2011 half-term in the comedy spy thriller,Johnny English Reborn. Eight years after his first big screen appearance, the unorthodox secret agent aims to rehabilitate himself in

MI-7 by protecting the Chinese premier from a group of international assassins. Directed by Oliver Parker, the film’s castincludes Rosamund Pike, Gillian Anderson, Dominic West and Ben Miller.

Universal

contents

foreword

by David Oyelowo

2

Heroes of all kinds – pilots, pirates, doctors, detectives, kings and queens – some possessing special powers, others with deep-rooted flaws.

It may be their eternal destiny, or they may be ordinary folk thrust into extraordinary situations. In any event, the cinema makes you want

to be the hero, to join in their larger-than-life adventures, reminding you who you are, were or could yet be.

I love working in the movies, there’s no medium or experience quite like it. I’ve enjoyed playing many contrasting roles from

The Last King of Scotland to Rise of the Planet of the Apes, The Help to Red Tails, with The Paperboy and others out in 2012.

Those three simple words – “out in 2012” – are easy to gloss over or take for granted. In a way,

rightly so: what matters most are the film and the experience of seeing it.

But the very fact that you’ve picked up this FDA guide suggests that you have some interest

in finding out how the film industry works. Between the “film” and the “experience” lies a vital

part of our industry – the distribution engine, which aims to attract you, the all-important

audience, to new releases week by week.

Distributors work hard – the heroes behind the scenes? – to convey every title as distinct and

compelling entertainment. This involves an array of risks and challenges, and without the skills

to meet them, there’d be no film industry. Please read on.

See you at the movies!

David Oyelowo

I have always loved the cinema for itscapacity to bring heroes to life.

3

the role of

distribution

4

Introduction by Lord Puttnam of Queensgate CBE,President of Film Distributors’ Association

5

Movies are capable of enriching pretty well every aspect of

our lives. They retain an extraordinary power to amaze as

much as amuse us. Beyond that, they influence the games we

enjoy, the music we play, and they inspire the fashions and

advertising images that spring up all around us.

But films can have an

impact, both commercial

and social, only to the

extent that they truly

connect with their

audience. Like any other

product, films only come

to life when they invade

the consciousness of the

citizens – consumers – for

whom they were

intended.

It is the task of

distributors to identify

and deliver the largest

possible audience for

every film.

This is no small task, particularly when so many other

entertainment options are available both inside and outside

the home; and that is in addition to the 500 or more titles

released in UK cinemas every year. But research confirms that

most cinemagoers know in advance which film they want to

see – and that’s principally due to competing distributors’

efforts to promote interest in the title(s) they are handling.

Tailor-made, audience-focused distribution is, and will

remain, vital to the prospects of individual films, and to the

industry as a whole, whatever the medium or format in

question. Every element of the communications and

entertainment industry has been – and is – undergoing

rapid change. The advent of ‘digital’ in the cinema sector has

not merely resulted in a change of format, with d-cinema

succeeding the long-standing 3 5mm presentation, but it

has had a transformative impact. Digital has remodelled

the ways in which films are released, promoted and

consumed, and it is reshaping the kind of entertainment

centre that a modern cinema can be.

Yet a few fundamentals remain rock-solid. Sharing great

stories has always been part of human nature, and filmed

stories look, sound and feel their very best in the cinema.

During the continual changes and challenges of recent

years, UK cinema-going has been remarkably resilient. In

fact when compared to many other sectors, it has

remained positively buoyant, thanks in no small measure

to the inability of any other medium to match the

immersive experience that the cinema offers.

With this guide, you can look through the eyes (or lens!)

of a distributor and consider how you might launch a

film. What sort of business considerations would you take

into account, and what are the key decisions you must

weigh up? It’s my most sincere hope that you enjoy

exploring the essential life of a film beyond its

production phase, and that this brief insight will make

you want to discover even more.

FDA/Getty Images

distributors connect

films with audiences

“As a filmmaker, I know only too well that films do notexist for their own sakes… they only exist when theyare experienced by an audience.” Sir Alan Parker CBE

6

7

More than a century after it was

invented, the cinema has

accumulated a phenomenal

heritage. Year after year, around the

world, a wonderful spectrum of

stories is created through the

camera. Audiences can experience

them at their best in the cinema,

feeling immersed in larger-than-

life adventures quite unlike

anywhere else.

There’s never been a better time to

be a film fan. The digital age brings

more choice than ever. And with so

much information available, you

may have read or heard a great

deal about actors and filmmakers.

You may be familiar with local

cinemas and many movie

websites. You may appreciate that

some films influence our culture,

shaping the ways we see ourselves

and the world around us.

But did you know that, right at the

heart of the film industry, there’s a

dynamic sector working to deliver

the largest possible audience to

every new release?

This is the distribution sector.

A campaign as bold as the filmitself: From a screenplay bySteven Moffat, Edgar Wright andJoe Cornish, Steven Spielbergdirected the groundbreaking,digitally animated familyadventure, The Adventures ofTintin (2011). Featuring motion-capture performances by DanielCraig, Jamie Bell, Simon Pegg andAndy Serkis, the film reflects thelook of the original stories byBelgian comics writer, Hergé.Daniel Craig, who also starred inDavid Fincher’s film of The GirlWith the Dragon Tattoo and will return as James Bond in autumn 2012, worked topromote his releases via freshinterviews and magazine photo-shoots (such as for Esquirebelow). Meanwhile, StevenSpielberg also directed the live-action adaptation of MichaelMorpurgo’s War Horse, scriptedby Lee Hall and Richard Curtis,and released in cinemas inJanuary 2012.

What distributors do

Distribution is the highly competitive business

of launching and sustaining films in the

market place. Films don’t become talking

points, or find their place in the world, by

accident. The distributor’s challenge is to

bring each one to market by:

Like other forms of entertainment, the film

business is product-driven: the films

themselves are the main reason for buying

tickets. There’s an insatiable, deep-rooted

desire for great stories on screen as well as in

print. But today more than ever, consumers

call the shots, deciding for themselves what

information or ‘content’ to receive or reject,

access or delete.

Paramount

The National M

agazine Company

� identifying its audience

� considering why they’d go and see it

� estimating the revenue potential

across all the formats of its release

� developing plans and partnerships

to build awareness of and interest in

the film

� aiming to convert as much interest

as possible into cinema visits

� persuading exhibitors (cinema

operators) to play the film

8

The film value chain

Around the world,

feature films usually

open first in cinemas.

A cinema release

remains the most

effective way to

bestow stature on

a film and create

demand to see it.

Filmmakers aspire

to have their stories

showcased in cinemas

where they have their

greatest impact and

where audiences can

share a uniquely immersive, uninterrupted experience. Great content

coupled with a great experience has always been a winning formula!

In an age when we’re bombarded with digital media choices, the cinema

presents films with a vital shop window. The profile raised on a theatrical

launch can endure and reap dividends throughout a film’s release cycle,

influencing the commercial value the film subsequently commands.

The cinema may be the first, important, link in the value chain, but it’s

not the only one. Audiences crave choice, quality and convenience in

every walk of life and film distributors’ integrated business plans must

take account of all the screens on which any given title may be viewed.

After an initial run in cinemas, films are released in fluid patterns across

a range of other formats so consumers may choose how, when and

where to watch:

In releasing films and delivering their audiences to cinemas and stores, distributors

are the vital linchpin of the ‘value chain’ that drives the entire film industry.

Team effort

Creative, commercial and professional skills are needed in all branches of the film

business, including distribution. The chart on page 9 outlines the overall lifecycle

of a film:

� digital home entertainment – films are made available to download or stream

on-demand from online stores and are packaged for retail (DVD and Blu-Ray)

� then, various forms of pay-per-view / subscription television

� finally, free-to-air television. A multitude of TV channels include films in their

programming and library titles may be scheduled repeatedly year after year

Times Newspapers Ltd

The rise of digital services: For more than adecade, films on DVD have been a highly popularform of home entertainment (see page 35). Nowfilms may be accessed and watched via anincreasing range of pristine quality digital platforms,at home and on the move. The UK’s videoentertainment market is very valuable, generatingmore than £5 billion year in retail sales includingcomputer games/accessories and DVD/Blu-Raydiscs. Newspapers including The Sunday Times (left)and other blue-chip brand partners such as Orangehave sought to boost the digital market by offeringfree downloads of movies to millions of customers.

9� filmmakers and producers, who are likely to

have nurtured their projects for years

through the development and production

stages

� cinema exhibitors who present the finished

films on their screens

� a host of external partners and suppliers such

as publicists, designers and media agencies

Production finance and cast and crew are confirmed

Principal photography takes place, in studios and/or on agreed locations,followed by some months of post-production, editing and scoring

Distributor develops release strategy, considers release date, and takes delivery of a master print of the finished film

Distributor presents the film to exhibitors and negotiates bilateral agreements to have it shown in cinemas

Distributor’s marketing campaign aims to create a ‘want to see’ buzz among the target audience and launches the film

Film prints including the British Board of Film Classification certificate are delivered to cinemas a few days before opening

Film’s run extends any number of weeks subject to demand, which may be augmented by additional marketing

Following its run in cinemas, the film is released in other formats (home entertainment, television) and quickly becomes a catalogue title

Producer/company acquires rights to film a story or treatment

Screenplay is developed by one or more writers

This generic guide to UK distribution focuses on how

films are launched in cinemas.

Distributors share and discuss their release plans

with:

acquisition

As films are creative works – intellectualproperty rather than physical goods – theircopyright is owned by the people ororganisations that produce or finance them.Copyright systems entitle creators to receive afair return for the risks they take in innovationand investment. In bringing films to market,distributors act under license on their behalf.

10

11

A distributor’s opinion on a film’s marketability

may, and really should, be sought even before it

goes into production. Generally it’s preferable for

a distribution deal to be in place before principal

photography begins. This may be viable on the

basis of a hot script, director and anticipated cast.

UK distributors obtain the films they release from

one or more of various sources:

� a third-party sales agent, acting on behalf

of a producer

� a continuous flow of new content from a

parent studio

� a studio or production company with

whom the distributor has negotiated an

output deal covering a slate of titles

� a single title acquired at any stage before,

during or after production

As in other countries, the UK has half a dozen

major distributors (directly affiliated to the

Hollywood studios) and many independent

(unaffiliated) distributors who tend to handle

films made outside the major studios. Any local

distributor of whatever ownership may compete

to pick up a film with available rights, so

competition to sign a hot property can be fierce.

When considering acquiring a new film,

distributors will look for distinguishing features

that may help sell it to audiences. Is there

something original or outstanding? A fresh idea or

‘hook’ that could be a springboard for a marketing

or publicity campaign?

Not for turning: The Iron Lady reunited Phyllida Lloyd andMeryl Streep, director and star of Mamma Mia! The Movie(2008). Released in UK cinemas in January 2012, it is theextraordinary story of Margaret Thatcher (British PrimeMinister 1979–90) and the price she paid for power. JimBroadbent, Richard E Grant, Anthony Head, Roger Allam andNicholas Farrell joined the strong cast.

20th Century Fox/Pathé

Distributors recognise the importance of localproduct.

British audiences naturally warm to good quality

British films, Irish audiences to Irish stories (such

as The Guard, a hit in 2011), and so on.

A film’s marketability (how it can be promoted to its

particular audience) and playability (how it actually

performs in the market place) are not necessarily

the same thing. Who is the target audience – who

does the film ‘speak to’ most of all, plus who else

might be attracted? Do the story, characters and

situation grip the intended audience? Does the film

‘deliver’ and justify the costs of a theatrical release?

STUDIOCANAL

The larger the production budget, the more likely

a film is to have a distributor signed up before all

its financing is confirmed; indeed, no distribution

pre-sales may make it harder to finance a new

production from other sources. In practice,

producers tend to seek finance from multiple

sources, including:

The distribution deal

Distributors sign a formal contract with the

producer, sales agent or studio, specifying the

rights they hold in respect of the title. These

normally include the right to release it in UK

cinemas and promote it in all media before and

during its release. There may also be provision for

the film to be edited locally (or not) in order to

secure a particular classification. The contract will

set out how the income from the release is to be

apportioned and accounted for, and set a date on

which the distribution license expires.

Distributors normally seek to

acquire all available rights in

their particular territory,

spreading the risk and

opportunity across

multiple platforms.

So importantly,

in addition

to the

theatrical

window, the

contract usually

includes the further

right to license the film for

online viewing and to UK

broadcasters. If, however, a

broadcaster has contributed to the

financing of a film, it is likely to have

pre-secured TV rights as part of the deal,

in which case the rights available to a

distributor would extend only to theatrical

and home entertainment media.

Some theatrical distributors do not handle

distribution in other formats, but they will have

sister companies or business partners that do so.

A note on film financing

No fixed formulae apply to film financing or

advances. Each case is affected by variables such

as the film property itself, the

script, cast and market

conditions.

Often a distributor becomes

a partner in a project,

contributing to its

development /

production costs

and later bringing

it to market.

In some cases,

the distributor

may pay an advance /

minimum guarantee

against future earnings

to the producer or sales

agent. An advance

commitment is made for

the distribution license rights

plus the costs of theatrical

prints and advertising (P&A).

12

� pre-sales to distributors in various

territories via a specialist sales agent

� bank loans (subject to prevailing

economic conditions)

� institutional investors

� private individuals

� beneficial tax schemes

(from HM Revenue & Customs)

� public subsidies (the available National

Lottery funding for film is awarded by the

British Film Institute – see www.bfi.org.uk)

Panda-monium: Kung Fu Panda 2, with Jack Black again voicing thetitle character, Po, was a big hit in cinemas worldwide in 2011. Thedigitally animated sequel grossed in excess of $650 million, witharound one-quarter of that total coming from the US/Canada box-office and three-quarters from the rest of the world. Animated films,often created and presented in 3D, attract broad audiences to cinemasin the UK, where the top-grossing animated film of all time to date isToy Story 3 (2010).

Paramou

nt

13

Real pulling power: The Inbetweeners transferredfrom TV (on E4 since 2008) to the big screen in 2011.Directed by Ben Palmer, the movie is the self-contained,coming of age story of four everyday 18 year-olds wholeave school and head off to Malia for their first lads’summer holiday without the parents. A home-grownBritish match for the gross-out teen comedy of, say,American Pie. The Inbetweeners Movie set a new openingrecord for a British comedy, generating £13.2m at theUK box-office in its first five days (starting with OrangeWednesday, 17 August 2011). Its smash-hit runcontinued: by the third week of release, for example,more than 5m people had seen the film in a UK cinema.

Distributors prepare reports

for the producer or rights

owner, detailing the

marketing spend, together

with forecast and actual

theatrical revenues. As laid

down in the distribution

contract, such reports are

submitted at least quarterly

in the first year following

launch and usually twice

yearly thereafter.

Market congestion

Individual distributors may

release any number

of films, sometimes just one

or two, or as many

as 25–30 a year.

A typical week sees around

ten new films opening in UK

cinemas. Inevitably, with well

over 500 releases a year

competing for screen time,

media space and audience

interest, the market place is

highly competitive, churning,

chopping and changing all

too quickly. Film distribution

is a risky business!

Entertainment

Golden Wonder / Tayto Group / Entertainment Evening Standard

planning a release

compare and contrast

discuss and decide

14

implement

monitor and report

analyse

Every film has its own tailor-made distribution plan,which the distributor develops in consultationwith the producers and/or studio as appropriate.

The most important strategic decisions adistributor makes are when and how to release afilm in order to optimise its chances. Through acombination of market knowledge, commercialexperience, statistical research and professionaljudgement, distributors gauge the audience foreach film and set clear targets for the release.

Who can be convinced to buy a cinema ticket to see it and why should they do so? Can the film bepositioned within a popular, recognisable genre?What sort of audiences have similar films attractedrecently? When were they released?

When distributors have estimated what a film may earn, they prepare a budget to release it (see page 19). As with every business plan, the goal is to recoup the costs and turn a profit. But launching films is expensive and risky –audiences have so many other choices – and inreality, most films do not make a profit from theirtheatrical runs alone.

When planning a new release, relying solely onconventional wisdom is never an option. Earlyinformation can be gleaned by reading the scriptand from discussions with the filmmakers, butevery release is a one-off and individuallyplanned given current circumstances. Sometimesfinal distribution plans may be confirmed onlywhen the finished film is available to view.

The distribution risk

Audience tastes are notoriously unpredictable and

traditional preferences may not count for much in

practice. Nobody can be absolutely sure what

makes a hit, or when and where it might happen.

Notwithstanding the best made plans, cinemagoers

discover particular films they like or dislike when

they open.

Market research may be conducted to probe

audience reactions at pre-release test screenings

or to evaluate alternative marketing campaigns –

fundamental considerations for every release.

Test screenings, after which the viewers complete

questionnaires, can help the distributor to be

more confident of the expected audience or

box-office prospects.

Occasionally a film becomes a ‘sleeper’ hit, playing for

longer and generating greater returns than expected.

But just because one romantic comedy or action

adventure plays successfully to a particular audience

is no guarantee that the next such release will do

likewise: it depends on the individual film and market

conditions. When planning a release, distributors

avoid pre-conceptions or assumptions and seek to try

new things, but they know it’s well nigh impossible to

entice people to a film in which they have no interest.

Inevitably, as it’s such an unpredictable, product-driven

business, each distributor’s earnings, market share and

profitability fluctuate year by year, reflecting the success

or otherwise of individual titles across all platforms.

15

We like it hot: Simon Curtis directed Michelle Williams(above) as Marilyn Monroe, Kenneth Branagh as Sir LaurenceOlivier and Julia Ormond as Vivien Leigh in this deliciousaccount of the tense relationship between Olivier andMonroe during the filming of The Prince and the Showgirl(1957). Shot in London, My Week with Marilyn (2011) wasbased on the memoirs of Colin Clark, Monroe’s assistant atthe time. Its powerhouse cast also includes Dame Judi Dench,Emma Watson, Eddie Redmayne and Dougray Scott.

Entertainment

16

Focus on the audience

A detailed understanding of the target audience –

age group and gender, but also lifestyles, social

networks, media consumption patterns – always

informs the subsequent decisions on how and

where a particular film is promoted.

Naturally the audience can vary considerably film by

film, for example from families with young children

to teenage males and/or females to older adults, or

sometimes a combination. Individual films may

appeal to people with particular interests – say in

history, cars, particular locations or authors – and

these groups can become important ‘opinion

formers’ for a film’s release. Generally, UK

cinemagoers are upmarket, especially for more

specialised fare, while cinemagoing is a shared

experience with an average of 3 people per party.

It’s important never to lose sight of a film’s core

target audience. But the distributor’s challenge is

always to attract as wide a spread as possible,

identifying niche interest groups too and ideally

helping a film to ‘break out’ and ‘cross over’.

The most frequent cinemagoers tend to be aged

15–25 – for teenagers, students and young adults,

the cinema is a favourite out-of-home leisure

activity. Digital media, including social network sites,

mobiles, games, TVs and multiplex cinemas, tend to

occupy central roles in their lives – they are the most

voracious media consumers of any age group.

Although a majority of 15–25 year-olds visit the

cinema at least once a month, overall just a

quarter of the population goes that often. But the

cinema audience is broadening as the population

ages and diversifies, and adults aged 35+ account

for a growing share of ticket sales.

The average number of cinema visits per person in

the UK works out at 2.7 a year, up from barely one

a year at the low point of the mid-1980s. Yet this is

still a lower frequency than in other countries such

as Ireland, Australia, the US and Canada, and the

industry is working to encourage more visits.

The better a film performs at the box-office,

the more likely it is to be attracting infrequent

cinemagoers and repeat visits. It’s a function of

the market that the more a film is aimed at an

audience beyond 15–25s or families – perhaps

an older, more discerning segment who don’t

frequent cinemas as much – the more

outstanding it has to be to sustain a theatrical life.

Infrequent cinemagoers tend not to come out for

the opening weekend but wait until later, raising

the challenge to distributors to sustain the run in

cinemas.

The competitive jungle

As well as the target audience, what other factors

do distributors take into account when developing

their release plans and assessing their risk?

� Competition is always a primary

consideration. Which films are other

distributors likely to release at the same time

and during the following weeks – especially

those targeted at a similar audience? Is there

space in the market for something different

– some ‘counter-programming’? Are the

most appropriate 2D and/or 3D screens for

this film available and likely to be offered?

Projected release dates often change as

competing distributors jockey for position

week by week.

� Is it an event film, a prospective mass market

blockbuster, or a specialised film for a more

discrete audience?

� Is there any star power among the cast?

What were the lead star’s last couple of films

and how were they received commercially

and critically? Is the film made by a ‘name’

director or producer?

� Are any cast members available for

UK/international publicity or to attend a

premiere?

� Will the film lead the media reviews of that

week’s new releases? This profile can be very

important for more specialised films.

17

Satisfying anticipated demandDifferent releases are managed in different ways. For example, a saturation

release ‘at cinemas everywhere’ may open simultaneously on 1,000 screens UK-

wide, playing at two or more screens per multiplex. This strategy, usually

deployed for ‘tentpole’ titles such as large-scale sequels or star-led holiday

releases, helps to accommodate mass audiences eager to see a film at the

earliest opportunity.

By contrast, specialised films offer a different cinematic experience. The UK

release of, say, a documentary, foreign language film or revived classic may

comprise 25 prints or fewer. Initially, it may play in selected locations where

local audiences are known to favour such titles before potentially touring

more widely in subsequent weeks. Very exceptionally, a film might be

‘platformed’ in a single location before rolling out – whatever strategy is

judged best to suit a particular release. Most films are released in the UK on

fewer than 100 prints.

London, with an increasingly diverse population of 7.5m people, accounts for

about a quarter of UK cinema admissions, although only 15% of screens are

situated in the capital.

� Is it a film for a holiday period? If so, which season? School holiday dates

vary around the UK, and with those in other countries. What kinds of films

have been released successfully in particular slots in previous years?

� Is it a film with hopes for award nominations? Contenders for the

Academy Awards®, Golden Globes and Orange British Academy Film

Awards often open in the UK between December–February, when

the annual awards season reaches its peak, although this can cause

a bottleneck in an already congested release schedule.

� Is there a buzz about the film, due to its stars or makers, a book on

which it is based, an early festival screening that attracted attention,

or perhaps some controversial subject matter? What is posted about

the film online?

� If it is a sequel or franchise entry, what elements distinguish it and

add contemporary resonance over and above its predecessor(s)?

� Has the film already opened elsewhere? Substantial success in the US,

reported via websites and other media, can contribute to positive word of

mouth in the UK – although this can work both ways, as a disappointing

performance overseas may adversely affect perceptions here.

� What certificate will the film have (see the five theatrical categories

above right)? The certificate awarded by the British Board of Film

Classification (BBFC) is important as it can affect the potential audience.

Distributors submit a copy of each film to the BBFC for classification as

soon as possible, paying a fee according to the film’s length. You’ll find

consumer advice about the content included in a panel on the film’s

advertising and at www.bbfc.co.uk

The BBFC celebrates its centenary in 2012.

18

The digital transformation

For many years, films were released in cinemas on 35mm celluloid prints – which whirred through

projectors on reels. Today’s industry standard is digital, with no celluloid involved.

For a digital release, specially encoded media files containing the film are delivered to cinemas either on

a hard drive or via a satellite link. At the cinema, the files are ingested into a powerful server and played

out through a state-of-the-art digital projector. Digital prints are significantly less expensive to duplicate

than 35mm copies, and the hard drives can be reused.

The digital images appear on screen in pristine

quality and do not deteriorate over time – there is

no wear and tear or scratches, as was inevitable with

35mm projection machinery. Digital remastering –

though time-consuming and costly – enables classic

films such as Kes and The African Queen (left) to

return to the big screen looking as good as new.

Digital cinema is transformative, involving much

more than merely a change of format. New releasing

and programming opportunities become available

to film distributors and cinema operators

respectively. Digital enables cinemas to redefine

themselves as modern entertainment centres able

to present sports, operas, live concerts, shows and

other events to local communities. This means films

must be scheduled in smarter, more flexible ways to

reach their maximum potential audience

Digital projectors may be adapted easily to show

content in 3D. 3D can enhance some films

dramatically with a spectacular, laser-sharp viewing

experience, and more and more films – live-action

and animation – are released in 3D as well as 2D.

Budgeting the release

As early as possible, the distributor views the

finished film and confirms the release plan.

UK distributors, who pay all the release costs

including marketing and making prints,

draw up a detailed budget covering both

the launch and sustaining of the film post-

release. The investment and projected

returns can be reassessed subject to

commercial performance week by week.

A theatrical distribution budget may be

itemised as shown opposite (page 19).

Total UK distribution expenditure can vary

from some thousands of pounds up to

£4m–£5m per film. Worldwide, a film that

cost $100–150m to produce can cost a

further $100m+ to release – and as all this is

committed before any income materialises,

the stakes are high.

In co-ordinating all these campaign

elements, often for several different releases

at a time, distributors must exercise

formidable project management skills.

Whereas it’s possible for a fine film to get

lost in the mêléewithout careful handling

and distinct promotion, even inspired

marketing can’t save a film for which the

public has no appetite.

Park Circus

Park Circus

19

Cost category £Film certification fee (payable to the BBFC)Digital cinema printsDigital Master costNo. digital prints in 2D and (if any) 3DDuplication cost

Digital trailer costsTransport to cinemasOther digital costs / charges

Prints in other formats (if any)No. and cost of 35mm printsNo. and cost of IMAX® printsTrailer print costsTransport to cinemas

Media (pre-launch, launch and sustain)TV advertisingOutdoor advertisingPress/print advertisingOnline advertisingRadio advertisingSocial media profilesOther media costs

PromotionsOn-air media promotion(s)Contribution to any retail partner/other promotion(s)

Sub-total (£) (carried forward)

Cost of encoding/encryption applications (including generating the codes needed to ‘unlock’ the digital files in the cinema servers to enable the film to play)

Cost category continued £Sub-total (£) (brought forward)PublicityPress screeningsTalker screeningsPremiere, if any

Festival screenings/travelPR agency fees & expensesPress kits Other publicity costs

Campaign productionFilm poster designPoster printingPrint advertising productionTV spots productionRadio spots productionFilm trailer productionSubtitles/audio description tracksContent for UK film website(s)Foyer POS display items origination & printPromotional leaflets/flyers, if anyOther production costs

OtherResearch screening/exit polling, if anyAdditional materials (specify)Couriers, copying, incidental expensesContingency

Total (£)

Visiting talent travel, accommodation andhospitality; junket venue hire

“We filmmakers rely greatly on our professionaldistribution colleagues to navigate the mostadvantageous path for our products into andthrough the brutally competitive market place.Having worked with many distribution teams, I’velong admired the brilliant designers who cancondense a feature film into a single posterimage, distinguishing it memorably from thepack. Likewise the skilled media and publicityplanners, who can devise effective campaigns thatinspire people to see a particular new release.” Tim Bevan CBE, Co-Chair, Working Title Films

20film marketing

and publicity

Complementing the distribution

plan, every film has a detailed

marketing plan.

The marketing objective is to

create visibility, raise awareness

and engage interest, cutting

through the blizzard of competing

messages.

Distributors must compete for a

significant share of voice not only

against other distributors but also

other leisure activities. However

large or small the marketing

budget, audiences must be

reached in compelling ways and in

environments where they are most

receptive to communication. They

should be persuaded that this is an

especially entertaining, must see

film. Their interest should peak as it

opens in cinemas.

Word of mouth Social recommendation is key – a

personal recommendation from a

friend, colleague, relative or trusted

online community can be the most

powerful stimulus for a cinema visit.

Pre-requisite for favourable ‘word of

mouth’ are high levels of awareness

and strong interest. Negative word

of mouth is extremely difficult to

overcome. Post-release, hopefully,

a combination of positive buzz and

further advertising will give the film

‘legs’. Even for big hits, theatrical runs

rarely exceed 6–8 weeks, and can

last much less. But distributors’

campaigns are generally effective as

most cinemagoers know in advance

which film(s) they want to see

before setting off for the cinema.

When constructing a campaign,

distributors aim to reach as much

of their target audience as

possible, as frequently but cost-

effectively as possible. A variety of

complementary ‘ad/pub’

(advertising, publicity and other)

options is always considered:

Poster

The main image or artwork

distilling the appeal and

positioning of the film – its stars,

genre, credits and often a tagline

to whet audiences’ appetites.

With often a dozen or more different

posters on display in a cinema at any

one time, distributors and their

designers must work hard to make

each one stand out.

Film posters may be created by

the studio or sales agent (as

applicable) and rolled out

internationally or adapted for

use locally. Alternatively, they

may be devised in the UK from

scratch, depending on what

approved materials are available

and how the film is best

positioned for local audiences.

A poster is produced for every

release, in quad format (the

traditional UK size of 30” x 40”,

landscape orientation) or one-

sheet format (the US equivalent

with similar dimensions, portrait

orientation).

Many months before release, an

initial teaser poster may be

created to announce that a film

is coming and to whet the

audience’s appetite.

Distributors also provide other

display materials for cinema foyers

– prime space for advertising

current and future releases – such

as cardboard standees, banners,

window clings and mini-posters.

As much of this material as

possible is recycled after use.

21

STUDIOCANAL

STUDIOCANAL

Calling the shots: Richard Ayoade’s feature filmdirectorial debut was the refreshing and acclaimedcomedy drama, Submarine, released in 2011. One ofits stars, Paddy Considine, went on to direct his ownfirst film, the hard-hitting drama, Tyrannosaur. StarringPeter Mullan, Olivia Colman and Eddie Marsan, itscooped three prizes at the 2011 Sundance FilmFestival. Paddy Considine is back before the camerasin 2012, appearing in Now is Good and Stainless Steel.

22

Trailers

Distributors usually have a range of audio-visual

content to work with as they prepare campaigns,

including film clips approved by the producers;

making-of material shot on set during

production; and one or more trailers. Probably

the single most cost-effective marketing technique,

trailers play both on the big screen to a captive

audience of active cinemagoers and also online

for any interested viewers.

Full trailers, screened shortly before a film opens,

may be preceded by early teasers (typically up to

90 seconds). Specialist agencies or production

companies are briefed by local distributors to

create a trailer from the available material.

Naturally, in aiming to sell the film, they want to

include a representative glimpse of the most

dramatic sequences but, early in the production,

the editing and special effects will not be

finished. Trailer making is a filmmaking art in its

own right.

Exhibitors, who programme their own screens,

select trailers appropriate to the feature film

before which they’re played. Distributors fund the

duplication, and often the production, of trailers;

a wide release will often have 2,000 copies

circulated to cinemas. Sometimes trailers for new

theatrical releases are added to the front of

compatibly targeted DVDs too.

Online and mobile

Fizzing with networks of film fans, the internet plays a pivotal role in shaping many cinemagoers’

perceptions of new releases. Most films have an official website – sometimes hosted by a partner

company or social network site – offering trailers, stills galleries, production information and

behind-the-scenes footage.

The web helps distributors to start building awareness of a new film at an early stage. Even before

principal photography begins, they may post updates online containing news snippets or teaser

images, seeding interest among fans. During shooting, they may gradually accelerate the flow

with video diaries or blogs from the set, so the core audience feels part of the filmmaking process.

Film clips are among the web’s most searched-for content, available across many sites. Ever more

user-generated material, often including film or soundtrack grabs, draws comments on video sharing

sites. Sometimes filmmakers and distributors invite ideas online and bloggers’ suggestions have been

known to make it into finished films!

Film distributor websites direct traffic to exhibitor sites where tickets may be purchased online.

Members of databases receive weekly email reminders of the new films opening locally and

occasionally also surveys and special offers.

Sony Walt Disney Warner Bros.

23

Broadcast, ambient and print media

Media proliferation and fragmentation have given all advertisers a multitude of

options. For example, the UK has approximately 250,000 poster sites by the roadside

or railway platforms, thousands of local newspapers and radio stations (each with

their own websites), and hundreds of digital TV channels where advertising and

promotions may be placed.

Advertising placed on broadcast channels, outdoor panels and in the press is usually

the largest expenditure item on a P&A budget. Television and outdoor can deliver

ubiquity – relatively high coverage and frequency – to films and brands that advertise

on them.

Terrestrial television is traditionally the most effective visual means of reaching a mass

audience. But TV advertising costs, running into many hundreds of thousands of

pounds or more for a package of spots in all regions, are prohibitive for most film

releases given their potential returns.

Event films/blockbusters with top stars need heavy advertising spends to support

their wide releases. But with limited budgets for any release, distributors try to work

up fresh, inventive ways to target specific audiences. TV viewers often fast-forward

through advertising that doesn’t quickly engage their interest.

When planning their advertising schedules, distributors must bear in mind that

different audiences react to advertising, and reach their decision to see a film, in

different ways. Older audiences may respond best having seen the film advertised on

television or in the press, while for younger audiences it’s more appropriate to

promote it online and on radio stations or bus panels.

UK film distributors currently invest £170m a year in media advertisingalone to launch and sustain their releases. Television and outdoor, takentogether, account for 70% of expenditure. Entertainment companies overallspend more than £0.5 billion on advertising each year.

The immediacy of social media

The internet being a two-way street, the moment a film is

screened, comments are shared instantly and constantly around

the world, as online communities swap opinions and feedback in a

galaxy of chat rooms.

Not just opinions, but content too, can spread virally like wildfire

via Facebook and Twitter, which have many millions of

participants. Distributors are eager for their films to be part of the

conversation in online networks, but word of mouth – or word of

click! – trends ebb

and flow very rapidly.

A social media profile

has become a must

for every film!Paramount

24

The publicity team, frequently supported by specialist agencies, arranges media

interviews with available members of the film’s cast, and chaperones artists visiting

the UK for junkets or premieres. Creative talent and filmakers tend to have very

tight schedules and they may only be in the UK for a few hours. Many digital

channels and outlets are interested in entertainment news and features – the more

the film’s talent is willing and able to support the worldwide publicity effort, the

better!

Screenings for national critics are normally held on the Friday, Monday and Tuesday

before a film opens to the public; those for journalists with longer lead-times are

scheduled further in advance. Although positive reviews are no guarantee of

commercial success, critics’ plaudits can still be important in helping to distinguish

and champion certain films, and extracts are often included in advertising.

We’ve got it covered: Captain America and Rise of the Planet of the Apes were among the summer 2011 action thrillers, skewing towards male audiences, promoted via the cover of ShortList, the free weekly men’s magazine.That summer, Paul Feig’s Bridesmaids and Todd Phillips’s The Hangover: Part II were two of the comedies that achieved blockbuster status and some plaudits from reviewers.

PublicityAs readers tend to accept independently-written news items more

readily than paid-for advertising, editorial coverage of a film can be

highly persuasive. But column space and airtime are limited, and the

subject of heavy competition in their own right.

Film publicists compile press kits for journalists, containing cast and

crew lists, biographies, notable facts about the production and a

synopsis. It’s very important to have a selection of fine images from

the film approved for publicity use, taken during production by a

specially hired unit photographer. All these materials are disseminated

via online pressrooms and distributors pro-actively devise ‘hooks’ or

‘angles’ for feature articles and media promotions. What are the key

themes of the film and what will get people talking about it?

ShortList/Paramount ShortList/20th Century Fox Universal Warner Bros.

25

Awards buzz: The build up to the major awards (see page 17) is an important time for publicists promoting the films vying for consideration. The season of

mounting speculation lasts up to five months before the Oscars®, and costly trade campaigns unfold to secure voters’ attention to particular titles, performances

and craft contributions. Shortlists of nominations are announced 3–4 weeks prior to the presentation ceremonies, which deliver global profile and prestige.

Set visits: As with any product development, the film production process is conducted confidentially behind studio doors or on guarded locations. Film sets are

normally strictly closed to the public. But distributors may have valuable opportunities to visit the set, especially of UK-based productions, along with key

journalists, exhibitors or marketing

partners. In making such visits,

arrangements will be made with the

unit publicists and producers.

Promotional partnerships

Depending on the film’s theme and

target audience, the distributor will

endeavour to arrange promotional

partnerships. Such tie-ins generate

displays for the film in places where

conventional advertising cannot

reach such as shops, restaurants or

on packs. They also enable

customers to interact with the film

characters by collecting premium

items or entering a competition.

Importantly, too, tie-in advertising

under license by a promotional

partner or a brand with product

placement in a film can add

substantial weight to the

distributor’s own campaign.20th Century Fox

Flying high: Set in Brazil, Rio (2011) was a colourful, energetic animated adventure written and directed by Carlos Saldanha, a creator of the smash-hitIce Age series. With the fourth Ice Age film coming to cinemas in 2012, a UK promotion in Gap clothing stores celebrating Rio’s release offered as itsexceptional star prize the chance to record a character voice track for Ice Age 4.

26

MerchandisingMany releases, particularly family films, have

merchandising programmes co-ordinated by

the film company or an external consultancy.

Manufacturers may be licensed to use approved

logo devices, images or character likenesses on

specific products, normally in exchange for an

advance fee set against subsequent royalty

payments.

Tie-in merchandise can embrace toys (below),

action figures, ringtones, clothing, stationery,

calendars, anything. Films regularly have official

soundtracks, games and books, which can

generate significant revenues in their own right.

Media promotions, placed on an appropriate

channel or publication, can make effective

use of film merchandise or location holidays

as prizes. Such exposure helps

to stretch the film campaign

and create additional

talking

points.

Occasionally, a film becomes a ubiquitous event,

saturating the media as well as appearing in advertising,

partner campaigns and other outlets. It may develop

into a popular cultural phenomenon and become an

international news item. That audiences worldwide can

take a new set of characters to their hearts, often within

a very short period of time, indicates how powerful and

influential a storytelling medium the movies can be.

Premieres and experiencesPerceived as glamorous and exclusive, but

painstaking and expensive to organise! Distributors’

publicists organise premieres as an official launch

for a film, reflecting an event stature and providing

a platform for photo opportunities and red carpet

interviews. At premieres, fans can enjoy exceptionally

close access to film stars and collect autographs

and photos.

Star-studded premieres and after-showparties are covered by celebrity publicationsand news media, and often transmittedworldwide.

A gala screening in aid of charity can raise asubstantial sum via ticket sales and donations, while from the distributor’s professionalperspective the main goal of a premiere is togive the film a high-profile, entertaininglaunch, boosting the all-important buzz factor.

Most premieres in the UK – around 50 a year – take place in London’s Leicester Square, which has recently had a substantial make-over.

In addition to premieres, distributors mayconsider other ‘experiental events’ where

fans and visitors can interact withthe film charactersor situations, forexample via touring displays in shopping centres or themedpresentations atmovie conventions.Ideally theseactivities are big-scale but essentiallysimple, and able tobe delivered well at short notice.

Walt D

isne

y

Entertaining the generations: Lego is a classic brand that refreshes its mass appeal by launchingnew ranges themed to family movies, including Harry Potter, Star Wars, Cars 2 and Pirates of theCaribbean (above). Danish-based Lego accounts for as much as 7% of global toy sales.

27

Preview screeningsA useful way to fuel pre-release word of mouth among

audience segments that the distributor wants to motivate to

see the film. Preview screenings are targeted carefully, with

tickets offered to readers of a particular print/online

publication, or listeners of a radio programme, matching the

film’s core audience.

Sometimes a film is previewed widely to the public a few days

before its official release date. This is a way to satisfy demand

to see it as soon as possible and boost the opening box-office.

FestivalsThere are dozens of busy film festivals in towns and cities

worldwide, but the main annual events attended by

thousands of international film buyers and sellers, and almost

as many journalists, are presently at Sundance, Berlin, Cannes,

Venice and Toronto.

These festivals, each with their own personality, serve various

functions:

� a market, where distributors seeking to acquire

product may meet with sellers (agents, producers,

studios);

� a competition, where new titles may be screened to

juries of filmmakers and awarded prizes. Such

accolades flashed on a film’s poster can add prestige

but may also pigeon-hole it as ‘arty’;

� a high-profile platform where films can be showcased

prior to release.

Dozens of film festivals

take place around the

UK, with a variety of

themes and purposes.

The top festivals, aimed

mainly at public

audiences in Edinburgh

(summer) and London

(autumn), showcase a

panorama of new cinema

from Britain and around

the world but neither

has a market attached.

Distributors sometimes choose to launch films at a suitable international festival, where

critics and insiders may discover them and go on to champion them in early reviews and

columns. The eyes of the film world and the mass media are focused on the leading festivals,

such as Cannes (below) in May, which accommodates many premieres and junkets. Trade

papers publish daily editions in print and online for industry members and journalists. Other

important events in the international calendar include the American Film Market in Santa

Monica, and the Mercato International Film e Documentario (MIFED) in Milan.

FDA

28

Tracking and refining

Research companies working for the distributors track

levels of awareness among younger/older, male/female

audiences as a release date approaches. With four or

five weeks to go there may be low awareness: each

campaign is effectively a new product launch,

generally running in the media for a few intense weeks.

Distributors hold weekly marketing meetings,

reflecting on the films they have in current release and

progressing plans for forthcoming titles. Some aspects

of marketing, such as a major promotional partnership,

can require a year’s lead-time, while others, such as

running extra advertising to capitalise on good reviews

or awards nominations/wins, may be turned around at

very short notice.

Film Education/FDA Film Education/FDA

Inspiring young audiences

The film industry reaches out to young people – the next generation of filmmakers and film

audiences – in various ways. For example, distributors may commission study resources themed to a

new release, which is then offered to primary and secondary teachers as appropriate, for use in class.

An organisation named Film

Education also promotes

schools’ use of local cinemas

by arranging screenings for

school parties, special events

such as the annual National

Schools Film Week, and

teacher training seminars.

Schools can also join a national

Film Club scheme which

supports film screenings on

DVD out of lesson time.Film Education

“Do you want to have an adventure?”: Hugo Cabret (Asa Butterfield) is a 12 year-old orphan living within the walls of a Parisrailway station. His very survival depends on secrecy and anonymity, but his destiny changes when he gets engulfed in a mysteryinvolving young Isabelle, a heart-shaped locket, a robot, a fierce station master and his late father. A 3D family adventure, Hugowas made by award-winning director Martin Scorsese, usually associated with dramatic thrillers such as Shutter Island (2010)and The Departed (2006). Released in cinemas for Christmas 2011 and subsequently on other formats, Hugomade extensive useof studio facilities and locations in the UK as well as Paris. Its fine cast has Ray Winstone, Sir Ben Kingsley, Sir Christopher Lee,Sacha Baron Cohen, Emily Mortimer and Jude Law. Meanwhile, Anonymous (also 2011) is a spectacular thriller, brimming withmystery and intrigue, from director Roland Emmerich, best known for his apocalyptic disaster movies, 2012 (2009) and The DayAfter Tomorrow (2004). Set in the reign of Elizabeth I, Anonymous deals with who actually wrote the plays of William Shakespeare.Its stars include Rhys Ifans, Jamie Campbell Bower, David Thewlis, Sir Derek Jacobi and Vanessa Redgrave.

Accessible cinema Hundreds of films are released each year with digital subtitles

and audio description. New titles are made available to cinemas

every week as a service to cinemagoers with less than perfect

sight or hearing. Some film trailers are presented online in

accessible formats too.

Whenever you see these symbols (above) on a film advertisement,

you’ll know that subtitles and audio description tracks have

been produced for its release. Around 700 screenings of

subtitled films, and many thousands of shows with audio

description, take place in UK cinemas every week.

For current information, please visit: www.yourlocalcinema.com

29

Entertainment Sony

Paramount Paramount

20th Century Fox

Walt Disney

Warner Bros.

licensing films

to exhibitors

A key consideration in any distribution plan iswhere the film should play. Which sorts of cinemasand screens are most appropriate? Given the intendedaudience, how can the theatrical release achieve itsgreatest impact? How many screens and prints arelikely to be sustainable?

30

31

Every theatrical release is effectively a

joint-venture: the distributor supplies the

film, the exhibitors provide the screens,

and the arrangements are reviewed from

week to week. Like all retailers, cinema

operators must be persuaded to ‘stock

the product’. Distributors screen their

forthcoming titles for cinema bookers,

discuss release dates and make

marketing campaign presentations.

The distributor’s sales and marketing

strategies go hand in glove, with the

film’s target audience kept front of mind.

For each film, the sales team negotiates a

confidential license agreement bilaterally

with each exhibitor interested in playing

the film. Under English law, the

maximum booking period for a new

release is two weeks, after which, by

mutual agreement, the film may

continue to play week by week if it is

drawing a significant audience.

Many cinemas aim to show a broad

spectrum of titles. Others may specialise

in particular segments of film according

to their catchment area. Potential

blockbusters tend to be booked into

every available multiplex simultaneously,

while for smaller releases, particular

screens are likely to be identified and the

release nurtured carefully week by week.

Print management

Distributors’ technical managers arrange for a

print to be despatched to each cinema playing

the film. As films are ‘locked’ (completed and

signed off) ever closer to their release dates, so

the time available to make and transport prints

gets tighter. Strict quality control procedures are

applied to ensure the film director’s intentions

regarding colours and tones are matched.

For most screens, now digitally equipped, a hard

drive is despatched and the data are ingested into

a server connected to a digital projector. These are

completely different machines from the 35mm

projectors which they have largely replaced. The

screen’s content for each playweek can be loaded

in advance to run at pre-programmed times.

A quite different procedure applies where IMAX®

(large-format) prints are needed or 35mm

capacity is retained. These celluloid prints are

delivered broken down into reels contained in

sealed cans. On arrival at the cinema a few days

before first playdate, the reels are physically

joined together and laced on to the projectors.

Security protocols adopted across the industry

ensure that film prints are kept safe throughout

the theatrical run. After use, the hard drives are

returned and reused. Eventually most celluloid

prints are destroyed under supervised conditions

with as much material as possible recycled. A

print is usually archived for future generations.

Walt Disney

When we are put to the test, it is the one thing we must always be: Brave is the2012 release from the Pixar team behind Toy Story 3 (2010), Cars 2 (2011) and astring of other much-loved animated blockbusters. Set in a rugged, mythicalScotland, Brave is the tale of impetuous Princess Merida, who pursues her passionfor archery against her parents’ will and inadvertently unleashes a danger thatjeopardises her father’s kingdom. Among the stars in the voice cast are KellyMacdonald (as Merida), Emma Thompson, Robbie Coltrane, Billy Connolly and JulieWalters. A full year prior to its UK cinema release, a teaser trailer had alreadynotched up millions of viewings online.

32

No second chances

A film can only be launched once. Its first

weekend in cinemas is crucial to further progress,

because if it is deemed to have opened ‘below

par’, it is likely to lose screens or switch to screens

with smaller capacities very quickly.

The distributor’s marketing effort builds up to the

opening weekend, which normally draws by far

the largest audience of any weekend in the

theatrical run. It’s quite common for a film to

generate 30% or more of its entire box-office

during the first three days of release. Although

films conventionally start in UK cinemas on

Fridays, distributors quite often open on other

days or run previews the weekend before.

Distribution plans usually assume that the

revenues and number of screens on which a film

plays will decline, often rapidly, as competing

titles are launched in successive weeks. But such

plans are necessarily flexible: better than

expected grosses may lead to a quick investment

in some extra advertising and the film may even

be scheduled into more screens than on its

opening weekend. An impressive opening frame

with a box-office running into millions can

become a news story.

Box-office returns

Since every film is its creators’ intellectual

property, the prints are rented to, or hired under

license by, the exhibitors, rather than being sold

outright as with most packaged or manufactured

goods. Exhibitors, many of whom have long used

computerised box-office/ticketing systems,

submit a weekly return for each title, indicating to

its distributor how many tickets were sold and at

what price. Cinema ticket prices are always set by

the individual exhibitor.

Box-office takings – the gross receipts including

VAT – are often reported in the press. But the

sums that distributors actually earn are

substantially less than these figures. Revenue

from ticket sales is normally shared between the

distributor and exhibitor. The percentage each

party takes varies film by film and week by week.

Very generally, UK distributors receive 25–40% of

the gross. So, if a film grosses £5m in cinemas, its

distributor may eventually collect around £1.5m,

allowing for the deduction of VAT which

Around 60% of cinema visits take place overthe weekend (Friday–Sunday), with the otherfour weekdays accounting for 9–12% each.Monday is traditionally the least busyday; Orange Wednesday has become thebusiest weekday. Courtesy of Rentrak, youcan keep track of the top films at the UKbox-office every week via FDA’s website,www.launchingfilms.com, and elsewhere.

Golden boy: As well asappearing in CaptainAmerica, My Week withMarilyn and The Devil’sDouble (in two chillingroles) in 2011, LondonerDominic Cooper alsovoiced a character in the3D animated adventure, A Turtle’s Tale (left). He has a strikingly differentthriller, Abraham Lincoln:Vampire Hunter, set forrelease in 2012.

Icon

STUDIOCA

NAL

exhibitors must pay for each ticket sold. This net

share is traditionally known as the distributor’s

‘rentals’.

33

� all the new releases coming into the market

� any previews planned for the coming weekend, intensifying

the competition for the available screens

� the screen average (the average box-office gross receipts

per screen) of every film on current release, with only those

ranked at or near the top likely to retain screens

Out of the net share, the distributor aims to

recoup any minimum guarantee plus the

P&A costs incurred in releasing the film.

Any outstanding balance is then shared

with the producers according to a pre-

agreed formula set out in the distribution

contract. Alternatively, the distributor may

simply retain a distribution fee, with all net

proceeds remitted to the producers.

The hold-over challenge

Computerised till systems enable the

performance of any film, in terms of ticket

sales and advance bookings, to be tracked

hour by hour. On Monday morning, with

the weekend’s box-office takings collated,

the distributor’s sales team discusses with

each exhibitor the hold-over of current

releases for a further week from Friday

(four days later).

Competition beyond

other films

During the year, films in

cinemas face competition

from major sports events

such as the Olympics, World

Cup or Wimbledon

(especially when there’s

strong home interest!);

massively popular TV shows

such as the live finals of The

X-Factor, Britain’s Got Talent

and Strictly Come Dancing;

and the launch of a hot

PC/video game.

The weather can also be a

factor: very hot

temperatures which entice

people outdoors, or

extreme winter conditions

with the opposite effect,

will affect any title’s

commercial destiny from

day to day. As ‘leisure

experience’ venues, cinemas

compete with restaurants,

wine bars, clubs and

shopping malls – as well as

entertainment options in

the home.

A vital fixture in the working week, these bilateral negotiations take

into account:

Sustaining a release week by week, and keeping it in a screen with

appropriate capacity, is one of the key challenges in such a fast-

churning market place. Films can be years in the planning and

production phases, and then barely a few weeks in cinemas.

Distributors do not participate inexhibitors’ revenues from advancebooking fees or the drinks,confectionery and popcorn sold incinema bars and foyers, or in anyproceeds from screen advertising.Distributors’ businesses dependon the income they receive fromlicensing content.

Screen legends: The late, great Ayrton Senna and Bobby Fischer were both world champions – inmotor racing and chess, respectively. Documentaries made for the cinema, such as Asif Kapadia’sSenna and Liz Garbus’s Bobby Fischer Against the World (both 2011) can captivate audiences astightly as a suspense thriller.

Universal Dogwoof

the wider picture

The UK is an important hub for both film productionand consumption. Cinemagoing as a form of qualityescapist entertainment has proven to be resilientduring times of economic downturn.

34

The global filmed entertainment business (all

forms of consumption) has annual revenues of

approximately $100 billion. The UK is one of the

world’s largest filmed entertainment markets with

a 7% share, behind the US/Canada (41%) and

Japan (9%). Significant growth potential remains,

especially in large markets such as Brazil, Russia,

India and China, and of course analysts expect the

rising trend towards online consumption of films

and other content to continue.

The film industry has never been one to stand

still. Over the last century, new media

technologies have successively opened up fresh

ways to make, share and market films.

Many films secure their production finance from

more than one source. The US studios may share

the costs of a big production or split the

distribution rights between, say, the US/Canada

(domestic) and the rest of the world

(international). Some films are licensed piecemeal,

territory by territory; others are handled by the

same company via a network of offices

worldwide. For local distributors, dubbing or

subtitling may be an additional release cost.

Accelerating distribution patterns

Traditionally, films would open first in US cinemas,

then roll out gradually in other countries. It’s now

common for films to earn more internationally

than domestically, another trend that will endure.

In today’s digital world, in an effort to capitalise

on global publicity and combat piracy, there is

often no gap at all between the US and

international releases as more and more films

open practically ‘day and date’ in many parts of

the world. With master prints arriving in each

country ever closer to launch date, such

releases represent huge logistical and technical

exercises for the distributors involved.

Economic multiplier effects

With box-office ticket sales currently worth

more than £1 billion a year, the UK is the

leading cinema market in Europe and one of

the most valuable in the world after the

US/Canada. In addition to the UK, cinemas in

the Republic of Ireland yield annual box-office

receipts equivalent to about £100m.

When you factor in the extra spending during a

cinema visit on food, drink, travel and other

items, the theatrical market alone pumps well

over £3 billion a year into the UK economy.

The performance of British films here in their

local market can have a significant influence on

the attention they receive and their commercial

prospects overseas. Nevertheless, releases that

perform well in one country’s cinemas will not

necessarily do well in all countries, and may

need to be positioned and marketed differently.

Distributors’ expert knowledge of local tastes,

cultural sensitivities and market conditions

guides a film through its openings around the

world.

Cinema release boosts subsequent prospects

Although most films don’t recover their

production and launch costs from the theatrical

release alone, there are other opportunities in

the business model. In fact, the cinema box-

office constitutes just over a quarter of overall

filmed entertainment revenues.

With a title’s profile and stature established,

significant and much needed income may be

derived from the release for home

entertainment. This is well established as the

largest slice of the film revenue pie, currently

yielding around £1.5 billion of gross value a

year. DVD or Blu-Ray discs remain the leading

formats for home viewing but there is more and

more inter-operability between digital formats.

Indeed, further big shifts in home film

consumption patterns are anticipated as the

increased uptake of internet-enabled

televisions opens up the potential for direct

online delivery of films to TVs and other

devices. As viewing on physical media (discs)

continues to dip over time, downloading /

streaming on demand will increase.

35

36

The third slice of the film revenue pie

– television – accounts for just over

£1 billion of gross value – similar to

that of cinemas. Licenses to pay-TV

channels currently account for just

over half of this value, while those to

other (free-to-air) channels deliver

the rest. It’s important to distributors

that TV stations acquire a broad

range of films during the year and

that the public’s widespread interest

in the world of film – along with

other leisure pursuits – is reflected in

TV programmes.

Older films can deliver strong ratings

on television when scheduled to

coincide with the cinema release of

a new sequel. Some films, especially

in the action or horror genres, may

perform better, relatively, in the

home entertainment arena than

in cinemas.

Notwithstanding the haemorrhage

from film theft (see opposite page),

cinemagoing has been positively

affected by new digital media

formats. Most films that succeed

theatrically go on to do well

throughout their release cycle –

the relationship is symbiotic, the

audiences complementary.

Warner Bros.

Global phenomenon: The world premiere of Harry Potter and the Deathly Hallows:Part 2, held in London’s Trafalgar Square on 7 July 2011, had worldwide mediacoverage including live streaming of the red carpet arrivals on an official YouTubechannel. The eighth and last in the sensationally successful series of British filmsthat began in 2001, it quickly amassed the biggest box-office of them all, due partlyto its release in digital 3D as well as 2D and IMAX® formats. A behind-the-scenes tour revealing The Making of Harry Potter opens in 2012 at the vast studio complex in Leavesden, near London, where the series was produced – please visitwww.wbstudiotour.co.uk

37

Intellectual property theft

So-called ‘film piracy’ – but actually just

a form of theft – is of great concern to

people employed in the entertainment

industry.

Although it’s sometimes difficult to

see, especially when transacted via

computers, piracy feeds organised

crime networks to the tune of

hundreds of millions of pounds a year.

It also cheats people of the full viewing

experience and can reduce local jobs

and future investment. Without

revenues via distribution, further films

simply can’t be made.

Distributors take steps to protect the

security and integrity of the properties

they are releasing. It’s a criminal offence

to record a film from the cinema screen

onto a mobile phone or other device –

and rightly so – how would you feel if it

was yourwork being copied and

exploited for criminal gain without

your permission? But films remain

especially vulnerable to illegal copying

during the early or pre-release stages

of their existence, and pirated copies

may be disseminated very quickly via

file-sharing websites and on DVD.

Discover more at:

www.copyrightaware.co.uk

www.fact-uk.org.uk

www.allianceagainstiptheft.co.uk

www.findanyfilm.com

You can also report film piracy anonymously at any

time. Call Crimestoppers on 0800 555 111 or visit

www.crimestoppers-uk.org

Love cinema? Hate piracy: These images are from the shoot of FDA’s latestanti-piracy trailer, which was written and directed in 2011 by Jae-ha Myung,a student filmmaker from the National Film & Television School. Called “TheLast Cinema”, the piece imagines a dark near-future world in which film thefthas rendered the shared experience of cinema a thing of the past.

FDA/N

FTSFD

A/N

FTS

Artificial Eye

Tangled webs: A Separation (2011), written and directed by Iranian, AsgharFarhadi, dealt with the dilemmas facing a couple deciding whether or not toleave Iran for Europe for the sake of their daughter, Termeh. The film’s realisticportrayal of human conflicts attracted awards and acclaim, including fromMark Kermode on Kermode and Mayo’s Film Reviews, broadcast weekly on BBCRadio 5 Live and available online as a podcast. Films from dozens of countriesare launched in UK cinemas each year.

working in film

distribution

A challenging career releasing films in a fast-moving market place – how does that grab you?

38

39

The film distribution sector is small, considering the

scale, profile and influence of its output. Fewer than

500 people work in UK theatrical distribution – about

1% of the film/cinema industry’s total workforce –

although people working at media, PR and design

agencies collaborate closely on the planning and

execution of their clients’ film campaigns.

Digital rights management

A distributor’s managing director normally supervises a

small staff with specialist roles:

In some ways, these departments function similarly

to their demand-side

counterparts in any industry,

seeking to work as sustainably

and efficiently as possible.

But for film distributors, the

products they handle are

among the most thrillingly

creative, emotionally charged,

technologically advanced and

hotly anticipated anywhere –

see the selection on the right!

� Marketing &

promotions

� Publicity &

media relations

� Sales

� Technical

� Acquisitions

� Legal & business

affairs

� Finance &

accounting

� Administration

ErosIconSoda Sony

eOne Eros

40

Diversity – fundamentally good for businessThe UK today is made up of many communities.

It’s not just desirable, it’s essential, for film

distributors to stay in tune with audiences’ tastes

and wider culture and society, and to appreciate

people’s differences as well as their similarities.

Distributors strive to recruit from as wide a talent

pool as practical so that their companies remain

competitive in the future. As opportunities arise,

considering suitable candidates with various

perspectives and backgrounds helps distributors

to remain lively hubs of contemporary ideas.

Sharpen your skillsDistributors’ offices often contain stacks of film

scripts. Each one is read carefully, either because

the project is being considered for acquisition or

because the film is already in production and a

release campaign is being prepared. Being able to

appreciate and evaluate a script is an important

skill – read widely among different writers and

genres to get into practice.

Good experience for a film industry marketingposition may be gained at an advertising or

media planning agency, especially by working

with a film or entertainment client, or by project-

managing in another area of intellectual property.

As a marketing team member, you’d be a bold,

creative thinker and a fast, careful worker, able to

justify your plans to colleagues and those

involved in the film’s production. Lots of ideas and

sound judgement are called for when developing

both the creative and media elements of a film

campaign, and decisions are carefully evaluated.

If you’re into design, why not consider movie

posters, an art form in themselves. But you’re

unlikely ever to have a completely free hand –

depending on the film stars, there may be tight

restrictions on what can and can’t be done, and

there is sure to be a list of mandatory elements

such as credits to include in a particular order or

style.

For publicity, prior experience as a journalist orpress officer is useful. No two days are the same,

but you should be able to write succinctly and

imaginatively, and to remain level-headed under

pressure. Knowledge of today’s evolving media

landscape is crucial, as are good professional

relationships with journalists and TV producers.

Sometimes distributors need specialist public

relations or event management expertise to help

arrange a premiere or a junket, and external

agencies may be assigned to a particular project.

Sales staff, who deal with the licensing of films to

exhibitors, use various strategies depending on

the film and the agreed scale of its release. Clear

commercial instincts, cool negotiation skills,

absolute discretion and the ability to get on with

a range of customers are vital attributes.

Key administrative roles include invoicingexhibitors or paying suppliers; ordering and

checking film prints, trailers and posters; and

arranging for materials to be delivered to the

right place at the right time. You must be well

organised with lots of drive and stamina.

If you’re working on the technical or operational

aspects of a release, you’ll need current

knowledge of digital formats, 3D and IMAX®

presentation, servers and their storage capacities,

and laboratory processes. It’s vital that films are

supplied for exhibition on time and in superlative

quality.

Getting startedAs you would expect, competition to break into

the film industry is fierce. Being passionate about

films is a great start. But it’s only a start, not

enough on its own.

The distribution business offers relentless yet

rewarding work and sheer tenacity is an important

quality in itself. If you’re really determined, keep at it!

Note how and where different genres of film are

advertised and discussed, and on which local

screens they tend to play. Try to keep informed

about media trends and developments as well as

the films themselves.

Some distributors employ runners and holiday relief

to help out, while from time to time others offer

work placements. Inevitably, vacancies in a small

sector like distribution are relatively few and far

between. A digest of placement opportunities is

posted at FDA’s website, www.launchingfilms.com

41For anyone who is in,

or thinking of getting into, the creative industries, Skillset exists to support

UK-wide workforce trainingand skills development. Visit www.skillset.org

As many filmmakers are quickto point out, the vital blueprintfor a film is its screenplay. FDAcommissions training sessionsto help distributors refine theirscript reading skills. We workwith training experts TheScript Factory: more atwww.scriptfactory.co.uk

Warner Bros.Warner Bros.

A Game of Shadows: Guy Ritchie directed Robert Downey Jr. and Jude Law in a second big-screen Sherlock Holmes thriller, shot in London for cinema release atChristmas 2011. With schools, universities and many workplaces on holiday, this is a peak period for cinemagoing (UK cinemas are open every day except ChristmasDay). Other treats lined up for a spectrum of audiences during the festive season: Arthur Christmas, Happy Feet 2, Puss in Boots, Hugo, Alvin and the Chipmunks:Chipwrecked, Mission Impossible: Ghost Protocol, The Girl With the Dragon Tattoo, and more.

It may also help to keep an eye onpublications where media jobs andplacements are advertised. A littlerelevant experience can count for a lot.

Once you’re in and have shown youraptitude, you may find that trainingcourses are offered to help refine yourknowledge and skills. Sometimes, indue course, opportunities arise to workin head offices or affiliates overseas.

Best of luck.

about Film

Distributors’

Association

FDA is the trade association for UK theatricaldistributors. Films released by our membercompanies account for 96% of UK cinemaadmissions.

42

FDA’s mission is to give our member

companies and other contacts the generic

support they need to make the most of their

individual business opportunities.

What we do

FDA has a busy work programme including

audience research, sector training and ‘one

voice’ representations on behalf of our sector

where appropriate. We produce editorial

planning tools for the media, such as central

schedules of pre-release screenings for critics

and preview events for other journalists.

As well as this Guide, we also publish a

Yearbook and some ‘best practice’ guidelines.

Under FDA’s

auspices, senior

representatives of

our member

companies meet to

discuss matters of

generic (non-

commercial) interest

to the sector and the

industry as a whole.

We promote the cinema line-up for the next

season via media supplements (above right),

online vodcasts (right) and compilation trailers.

With launch events hosted by Alex Zane (above)

and others, our campaigns motivate a range of

audiences to consider extra cinema visits.

43

FDA is actively engaged in the fight against film

theft, which threatens the jobs of people

working in the film business here in the UK and

restricts the choices available to audiences. We

work closely with the Federation Against

Copyright Theft (FACT) and other industry bodies

such as the Alliance Against Intellectual Property

(IP) Theft, the Creative Coalition and the Industry

Trust for IP Awareness.

We’re also a member of organisations such as

AIM (All Industry Marketing for Cinema), the

British Screen Advisory Council (BSAC), the

International Federation of Film Distributors’

Associations (FIAD) and the European Digital

Cinema Forum (EDCF). And we are proud to be a

long-standing sponsor of the UK’s National Film

and Television School whose graduates populate

the crews of many films released in cinemas.

FDA FDA

FDA

FDA

44

Artificial Eye Film Co. Ltd. > www.artificial-eye.com20–22 Stukeley Street, London WC2B 5LR | Tel: 020 7240 5353

Dogwoof Ltd. > www.dogwoof.comUnit 211, Hatton Square Business Centre, 16-16a Baldwins Gardens, London EC1N 7RJ | Tel: 020 7831 7252

Entertainment One UK Ltd. (eOne) > www.entertainmentone.co.uk120 New Cavendish Street, London W1W 6XX | Tel: 020 7907 3773

Entertainment Film Distributors Ltd. > www.entertainmentfilms.co.ukEagle House, 108–110 Jermyn Street, London SW1Y 6HB | Tel: 020 7930 7744

Eros International Ltd. > www.erosentertainment.comMilner House, 13 Manchester Square, London W1U 3PP | Tel: 020 7935 2727

Icon Film Distribution Ltd. > www.iconmovies.co.ukCharlotte Building, 17 Gresse Street, London W1T 1QL | Tel: 020 7927 6900

Metrodome Group plc > www.metrodomegroup.comGarfield House (2nd Floor), 86-88 Edgware Road, London W2 2EA | Tel: 020 7535 7300

Momentum Pictures > www.momentumpictures.co.uk 20 Soho Square (2nd floor), London W1D 3QW | Tel: 020 7534 0400

Paramount Pictures UK > www.paramountpictures.co.uk12 Golden Square, London W1A 2JL | Tel: 020 7534 5200

Park Circus Ltd. > www.parkcircus.com1 Park Terrace, Glasgow G3 6BY | Tel: 0141 332 2175

Pathé Productions Ltd. > www.pathe.co.uk 6 Ramillies Street (4th floor), London W1F 7TY | Tel: 020 7323 5151

FDA members

BFI

45

Reliance Big Entertainment Private Ltd. > www.reliancepictures.co.in

26–28 Hammersmith Grove (4th floor), London W6 7BA | Tel: 020 8834 1250

Revolver Entertainment Ltd. > www.revolvergroup.com

48-49 Princes Place, Holland Park, London W11 4QA | Tel: 020 7243 4300

Soda Pictures Ltd. > www.sodapictures.com

17 Blossom Street, London E1 6PL | Tel: 020 7377 1407

Sony Pictures Releasing > www.sonypictures.co.uk

Sony Pictures Europe House, 25 Golden Square, London W1F 9LU | Tel: 020 7533 1111

STUDIOCANAL Ltd. > www.studiocanal.co.uk

50 Marshall Street, London W1F 9BQ | Tel: 020 7534 2700

Twentieth Century Fox Film Co. Ltd. > www.fox.co.uk

Twentieth Century House, 31–32 Soho Square, London W1D 3AP | Tel: 020 7437 7766

Universal Pictures UK > www.universalpictures.co.uk

Oxford House, 76 Oxford Street, London W1D 1BS | Tel: 020 7307 1300

Verve Pictures Ltd. > www.vervepics.co.uk

Kenilworth House, 79-80 Margaret Street, London W1W 8TA | Tel: 020 7436 8001

Walt Disney Studios Motion Pictures, UK > www.disney.co.uk

3 Queen Caroline Street, Hammersmith, London W6 9PE | Tel: 020 8222 1000

Warner Bros. Entertainment Ltd. > www.warnerbros.co.uk

Warner House, 98 Theobald’s Road, London WC1X 8WB | Tel: 020 7984 5200

The Works UK Distribution Ltd. > www.theworksmediagroup.com

Fairgate House (5th floor), 78 New Oxford Street, London WC1A 1HB | Tel: 020 7612 1080

Bauer

Future Publishing

46

Accessible cinema: > www.yourlocalcinema.comAlliance Against IP Theft: > www.allianceagainstiptheft.co.ukAnnual film awards round-up: > www.filmoftheyear.co.ukBBC Films: > www.bbc.co.uk/filmBritish Academy of Film and Television Arts: > www.bafta.orgBritish Board of Film Classification: > www.bbfc.co.ukBritish Federation of Film Societies: > www.bffs.org.ukBritish Film Institute: > www.bfi.org.ukBritish Screen Advisory Council: > www.bsac.uk.comBritish Video Association: > www.bva.org.ukCinema Exhibitors’ Association: > www.cinemauk.org.ukCinema and Television Benevolent Fund: > www.ctbf.co.ukComing soon to UK cinemas: > www.moviepreviewguide.com (right)Department for Culture, Olympics, Media and Sport: > www.culture.gov.ukFastest way to find any film in any format: > www.findanyfilm.com (above right)Federation Against Copyright Theft: > www.fact-uk.org.ukFilm 4: > www.film4.comFilm Club: > www.filmclub.orgFilm Education: > www.filmeducation.orgFilm London: > www.filmlondon.org.ukFree preview screenings: > www.seefilmfirst.comIndustry Trust for IP Awareness: > www.copyrightaware.co.ukNational Film and Television School: > www.nfts.co.ukProducers’ Alliance for Cinema and Television: > www.pact.co.ukRentrak: > www.rentrak.comSkillset: > www.skillset.org

Here are a few UK websites you may like to explore, depending on your particular areas of interest:

A wider range of links and information is available at FDA’s website, www.launchingfilms.com

film everywhere

FDA

findanyfilm.com

47

� Every person watches an average of 81 films a year. The vast majority (around 80%) of these viewing occasions are when films are

shown on television, especially among people aged 40+. Cinemas account for around 3.5% of total film viewings, with the home

entertainment sector delivering the rest.

� In early 2011, the UK had 716 cinemas – a familiar and welcome part of urban landscapes – accommodating 3,671 screens, most of

which are now equipped to show digital content.

� 62% of the UK population goes to the cinema at least once a year. 19% goes at least once a month. There are 14m cinema visits in an

average month, with holiday periods tending to be the peak times.

� Every week, 10–11 films are released in UK cinemas, generating annual box-office gross receipts (including VAT) of about £1 billion.

� Distributors invest more than £300m a year to bring all these titles to market, launching and sustaining them in cinemas. £170m of

this is allocated to media advertising, the rest to film prints, advertising production, publicity, premieres and related costs.

� In terms of total gross value, a cinema release accounts for just over a quarter of the filmed entertainment business, home

entertainment 40–45% and television the rest.

� The highest grossing film of all time in cinemas is Avatar, released in December 2009. Its UK cinema admissions were equivalent

to a quarter of the population.

� The filmed entertainment industries as a whole employ around 48,500 people in the UK, nearly two-thirds of them working in production.

� Of the top 200 films released in cinemas worldwide over the last decade, no fewer than 34 were based on stories and characters

created by British writers – one indication of the UK’s hugely impressive creative track record in the world of film.

� The total public funding of film amounts to around £260m a year, including fillm production tax relief, lottery funding and

broadcasters’ investments.

UK film and cinema factsheet

48

FDA welcomes any approach where UK film

distributors’ generic interests are concerned.

If you have a general enquiry, or feedback on

this Guide, please email info@fda.uk.net

You can also write to us:

Film Distributors’ Association Ltd.

22 Golden Square, London W1F 9JW

We aim to respond appropriately within

three working days of receiving your enquiry.

To keep in touch with the fast-evolving world

of UK film distribution, visit FDA’s website,

www.launchingfilms.com

You’ll find a weekly film release schedule to

download or search, a bank of industry data,

a gateway of links and much more.

Get the insiders’ views of the film business

You can explore UK film distribution further, andwatch some people who work in the business talkabout their roles, at our dedicated website:

www.launchingfilms.tv

FDA

contact FDA

to UK film distribution 2012

© 2011 Film Distributors’ Association Ltd.

No part of this publication may be reproduced in any form by any means or for any purpose without the express prior permission of FDA.

FDA thanks all contributors to this revised and updated edition of the Guide, which supersedes all previous editions.

Information correct at time of going to press but subject to change.

to UK film distribution 2012

Designed and printed in England for Film Distributors’ Association

by Wham Media Ltdwww.whammedia.co.uk