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Explains how film distribution works. Used as part of the WJEC Film Studies AS course (FM2)
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The HollywoodFilm Industry
Traditional Distribution
Key Companies
Profit making
The Production Cycle
• Production Company
Distribution Company
Exhibitors
Audience
Profit finance Returns
TV/ DVD sales
The Conglomerate
Film Production CyclePre production
ProductionPost Production
Distribution
Exhibition
Marketing!
Distribution
• The Invisible Art – process known only to those within the industry, barely written about and also imperceptible to everyone else.
Producers AudienceDistribution
What is it?• Releasing and Sustaining a film in the market
place• Worked best when the three key stages
(Production, Distribution, Exhibition) are linked or controlled by the same company – Vertical Integration
• UK system has more focus on marketing and sustaining a film in the local market
• Independent Studios don’t ‘do’ vertical integration
Independent Films
• Independent Studios don’t ‘do’ vertical integration
• No formal connection between Producers, distributors and exhibitors
• Collaboration – need to get a major company on side
• £££££££££££££$$$$$$$$$$$$$$
Distribution Companies
• Determine how many copies (prints) of a film to make
• Why might this be important?
• What might be some issues surrounding this?
Who are the big distribution companies?
• Viacom - $12.86 billion• Paramount – one of the oldest (1912)• United International Pictures (UIP) – covers 60
‘territories’• Time Warner – have over 5700 films• New Line Cinema – ‘independent’ and foreign
films, home distribution• Fox Entertainment Group – worth over $17.2
billion, 83% is owned by News Corp
Who are the big distribution companies
• The Walt Disney Company – another very old company
• Miramax – one of Americas largest internal distribution companies
• Buena Vista International – distributes all Disney films outside America
• Universal Studios Group – owned by the European version of Time Warner (who made their money from privatised water)
• The Sony Corporation – massive interests in electronics
Seems like a lot but…..
• Viacom owns Paramount and 33% of UIP
• Time Warner owns New Line Cinema
• Walt Disney owns Miramax and BVI
• Fox• Universal/Vivendi• Sony
• Horizontal Intergration
Distribution = Power
• Films can not be financed without the help of distributors
• They have clout with theatre owners (or are often the owners)
• Brand name recognition
• Own copyright
• Access to capital
It’s all about Money!
• Distribution Company and their conglomerate owners are profit driven so they must feel confident that they can make sufficient return on investment
• Films are expense to make
The CostUnbreakable
•Story rights and Screenplay: $5,000,000•Producers: $1,878,260•Director (M. Night Shyamalan & Assistant): $5,081,749•Cast: $ 31,903,987
– Bruce Willis: $20,000,000Samuel L. Jackson: $7,000,000Robin Wright Penn: $2,500,000
– Rest of Cast, Casting, Stunts, & Travel: $5,568,388•Production costs: $26,214,709
– Visual effects: $1,000,000– Music: $2,253,456
•Total: $73,243,106
Lara Croft Tomb Raider: The Cradle of Life•Story rights and screenplay: $4 million•Producers: $4 million•Director (Jan de Bont): $5 million•Cast: $17.25 million
– Angelina Jolie: $12 million Extras: $250,000– Other (inc. Angelina's perks): $5 million
•Production costs: $67 million – Set design and construction: $17.8 million
•Visual Effects: $13 million•Music: $3.3 million•Editing: $3 million•Post Production costs: $1.5 million•Total: $118 million
Terminator 3: Rise of the Machines•Story rights (Carolco and Gale Anne Hurd): $19.5 million•Screenplay: $5.2 million
– John D. Brancato & Michael Ferris: $1 million•Director (Jonathan Mostow): $5 million•Producers: $10 million•Cast: $35 million
– Arnold Schwarzenegger: $29.25 million + 20% gross profits– Arnold's perks: $1.5 million– Rest of principal cast: $3.85 million– Extras: $450,000
•Production costs: $58 million•Post-production costs: $4 million•Visual effects: $20 million•Music: $2 million•Other costs: $33.6 million•Total: $187.3 million[3]
Spider Man 2•Story rights: $20 million•Screenplay: $10 million•Producers: $15 million•Director (Sam Raimi): $10 million•Cast: $30 million
– Tobey Maguire: $17 million– Kirsten Dunst: $7 million– Alfred Molina: $3 million– Rest of cast: $3 million
•Production costs: $45 million•Visual effects: $65 million•Music: $5 million
– Composer (Danny Elfman): $2 million.•Total: $200 million
Other Costs
• Promotion – often higher than Production costs for a small $20 mill film but dies become less for a higer budget film
• Very hard to get accurate data
• Megamind cost between $130 - $145 m and estimated Promotiom budget of $65m
How do they make money?
% of revenue from tickets
• Front Loaded Deals – on the decline (bankruptcy and new revenue sources)
• ‘Standard Cut’ – but what that cut is depends on the muscle of the distributor
• Around 50 – 55%
Other sources of money
• DVD’s – can add up to $100m and a higher % goes back to the company
• TV Rights
• Merchandising
• But in 2009 theatrical box office revenue was bigger than home video revenue – piracy, Netflix, cost of 3D tickets.