What is film distribution

What film distributors do:

• identifying its audience
• considering why they'd go and see it
• estimating the revenue potential across all the formats of its release
• persuading exhibitors (cinema operators) to play the film
• developing plans and partnerships to build awareness of and interest in the film
• aiming to convert as much interest as possible into cinema visits

Negotiate with film studios

Large film companies will work with other companies to aid them and have a share of the profit as the smaller companies (with potential) who have perhaps smaller audiences or are more independent will achieve higher revenue.


Negotiate with cinemas/exhibitors

Exhibitors' websites, which attract large cinema-going audiences, can be powerful promotional platforms for a highlighted film. Given so many competing releases at any one time, a strong prize promotion with an exhibitor can help to distinguish a particular film and boost its visibility online for a day, which can be a cost-effective use of the distributor's budget.

Distributors recognise the importance of local product. They know that British-made films are better appreciated by the British public, and American-made films are going to be more popular with Americans, although this is clearly not exclusive as audiences will watch any film as long as they understand the language/accent of the prominent dialogue. They will focus on the target audience- who the film "speaks to" the most and who else will be attracted towards the film. They need to think about who will associate with the film using stereotypes such as gender, nationality etc. Does the film "deliver" and make a profit to justify the cost of releasing the film to cinemas?

Negotiate with other media to promote films 

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.


Creates 'product' merchandising to sell

Many releases, particularly family films, have merchandising programmes co-ordinated by specialist licensing agencies or occasionally, from the studio itself. Manufacturers may be licensed to use approved logo devices, symbols, images or character likenesses on specific products, normally in exchange for an advance fee set against subsequent royalty payments. Sometimes, licensing fees may be waived if the brand undertakes significant levels of advertising in support of the film's release or sustaining campaign.

Licensed merchandise, on sale to the public in stores and online, helps to enhance the film's profile. Ranges may include action figures, ringtones, clothing, stationery, food, calendars, anything. Films regularly have official soundtracks, games and books, which can generate significant revenues in their own right.

What kind of film is it?

•   Is it an event film

•   Is there any star power among the cast

•   Are any cast members available

•   Could the film get media reviews of that week

•   Will it win an award/nomination

•   Is there already a buzz

•   How is it different from its prequel (if its  sequel)

•   Has it already been released elsewhere 

•   What certificate will it have

•   Will it be limited by the certificate, for example the box office may be increased if the certificate is a 12 rather than an 18 as more people are able to see it

When /where should the film be released?

The film distributors need to consider which other film distributors are releasing films at certain times to avoid sending out their film at the same time as other films. 

As distributors review what kind of film they have, they will begin to form assumptions as to the type of release they need. In total, across the UK and Republic of Ireland, 850 cinemas with more than 4,000 screens are available.

You will need to consider the time it is released, for example whether it is released on a particular date, such as valentines day or whether it is within a holiday period, school holiday period and the season. Within the UK 25% of the people who go to the cinema are all based in London, as a result of this it is important to release the film in many cinemas in London so they are able to make the maximum profit they are able to.
 

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. These are called DCPs (Digital Cinema Prints). The DCP is ingested into a powerful server at the cinema and played out through a state-of-the-art digital projector.

Once the DCP is received at the cinema, the projectionist normally needs to ask the film's distributor for a Key Delivery Message (KDM), a security key encryption system. This will generally be formatted to reflect the agreement affecting that film, i.e. the screen/s it may play on, what time of day it may play (particularly important for preview screenings), and within which dates.

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 to return to the big screen looking as good as new.

Digital equipment 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. As 3D films can command a ticket price premium, there is a potential for enhanced box-office returns. In 2012, 3D accounted for 18% of the total UK box-office.

Digital prints are significantly less expensive to duplicate than the old 35mm copies, and the hard drives can be reused. So wider releases, and the logistics of hard drives moving from cinema to cinema, become easier to manage. However, there are currently other costs associated with digital prints, meaning that they are not quite as cheap an option as they might appear – notably Virtual Print Fees (VPFs).

VPFs are the most widely used method of financing the conversion of cinemas from 35mm to digital. The VPF is built on the premise that a digital copy of a film costs less to make than a 35mm print, so the saving is used to contribute to the costs of the digital cinema equipment. The VPF is paid by a distributor each time a film is booked into a cinema that has a conversion deal in place and continues until the cost of the digital installation is paid off (normally around 5–10 years). The costs involved are set out in confidential commercial contracts between the parties on a case by case basis.
 

By the spring of 2013, practically all of the 3,750 cinema screens in the UK had installed a digital projection system.