DISTRIBUTION

What is Media Distribution?

Media distribution is the process of getting a finished media product (film, music, news, etc.) to its audience. It often includes marketing, and comes after production and before exhibition.

Types of Distribution (by Industry)

Film:

  • Theatrical – Released in cinemas.

  • Home Media – DVD, Blu-ray.

  • Streaming/VOD – Netflix, Disney+, Amazon Prime.

  • Non-Theatrical – Educational or private showings.

Music:

  • Traditional – Vinyl, CDs, cassettes.

  • Digital – Streaming platforms (Spotify, Apple Music).

News:

  • Traditional – Print newspapers.

  • Digital – Websites, apps, social media, citizen journalism.

How Film Distribution Works

1. Licensing

  • Distributors sign contracts with studios/filmmakers to handle release.

  • Types of contracts:

    • Leasing – Fixed fee, regardless of profits.

    • Profit-sharing – Revenue split.

    • Hybrid – Combination of both.

  • Distributors try to sell rights globally, often via regional partners.

2. Marketing

  • Handled by distributor: posters, trailers, press kits, social media.

  • Scale depends on the film's commercial potential (blockbuster vs indie).

3. Delivery

  • Films are sent to platforms via DCP (Digital Cinema Package).

  • Previously done using physical film reels.

Role of Distribution Companies

  • Negotiate contracts with cinemas/streaming platforms.

  • Manage marketing campaigns and strategy.

  • Decide release platforms, regions, and dates.

  • In conglomerates (like Disney), this is often done in-house (vertical integration).

Independent Film Distribution

  • Film festivals (e.g., Sundance) help attract distributor attention.

  • Sales agents help secure deals.

  • Self-distribution via Amazon, iTunes, limited cinema runs, or platforms like Film Hub.

  • Must choose distributors carefully—check reputation, marketing plan, and hidden costs.

The Rise of Digital Distribution

  • Streaming platforms dominate (e.g., Netflix, Spotify).

  • Audiences can self-distribute (e.g., YouTube).

  • Piracy is a major challenge.

  • Traditional formats (cinema, physical media) still exist but are declining.

Historical Context and Industry Trends

Early Film Distribution

  • Films shown only in cinemas (nickelodeons).

  • States rights: Sold regionally with unlimited showings.

  • Roadshows: Exclusive showings in major venues.

Home Media Evolution

  • Videocassettes (1970s) → DVDs → Blu-ray → Streaming.

Theatrical Window

  • Traditional delay between cinema and other formats (~90 days).

  • Box office revenue now a smaller part of total income (e.g. 26% by 2000).

Simultaneous Releases

  • Some films now released in cinemas and streaming at the same time.

  • Controversial with cinemas (loss of exclusivity).

  • Examples: Beasts of No Nation (2015), Bubble (2006).

Impact of COVID-19 on Distribution

  • Major shift toward online releases.

  • Films like The Invisible Man and Onward released digitally during lockdowns.

  • Warner Bros. released entire 2021 slate on HBO Max + theaters.

  • Post-2022: Return of shorter exclusive windows (~45 days).

Alternative Distribution Methods

  • Direct-to-video: Used to be low status, now viable for indie films.

  • Internet releases: YouTube and niche streaming platforms.

  • E.g. Life in a Day, Zeitgeist.

Summary

  • Distribution connects media to audiences and includes licensing, marketing, and delivery.

  • While digital distribution is dominant, traditional methods still matter for certain audiences and formats.

  • Indie creators face challenges but can use festivals, agents, or self-distribution to succeed.

  • The film industry continues to evolve with shrinking theatrical windows, streaming, and new business models.


1. What are the different types of releases?

Film release types include:

  • Theatrical Release:
    Films are shown in cinemas. This is the traditional and most prestigious form of release.

  • Home Release (Direct-to-Video):
    Released on DVD or Blu-ray, often after a cinema run or directly for lower-budget films.

  • Video-on-Demand (VOD)/Streaming:
    Digital releases through platforms like Netflix, Disney+, or Amazon Prime. Can be after the cinema release or simultaneous.

  • Non-Theatrical Release:
    Includes educational screenings, airplane viewings, or community centers.

  • Simultaneous Release ("Day-and-Date"):
    A film is released in cinemas and on streaming platforms at the same time (e.g. Beasts of No Nation).

  • Self-Distribution:
    Independent filmmakers may release directly via platforms like YouTube, Amazon, or Film Hub.

2. How have release strategies changed with the development of technology?

  • Shrinking Theatrical Windows:
    The time between cinema release and home/streaming release used to be several months. Now it's often 45 days or less due to streaming demand and declining DVD sales.

  • Streaming Disruption:
    Platforms like Netflix have enabled films to bypass cinemas entirely or offer simultaneous releases. This boosts accessibility but threatens cinema exclusivity.

  • COVID-19 Impact:
    Accelerated change—films like Wonder Woman 1984 were released online and in cinemas simultaneously. Studios now often prioritise digital-first or hybrid strategies.

  • Rise of Self-Distribution:
    Filmmakers can now upload directly to platforms like YouTube or use digital marketplaces like Film Hub, reducing reliance on traditional distributors.

  • Marketing Evolution:
    Digital marketing (trailers on social media, influencer partnerships) now dominates over traditional print/posters.

3. What are ancillary rights?

Ancillary rights refer to additional ways a film can make money beyond the original theatrical release. These include:

  • Merchandising (e.g., toys, books, games)

  • TV broadcasting rights

  • Streaming/VOD licensing

  • DVD/Blu-ray sales

  • International sales

  • Product placement deals

  • Theme park or experience rights (e.g., Star Wars at Disney parks)

They are crucial for profit, especially in franchise filmmaking, and are often part of distribution contracts.

4. What is a theatrical window?

A theatrical window is the exclusive period during which a film is only available in cinemas before it can be released on other platforms (like streaming or DVD).

  • Traditionally: ~90 days

  • Recently: ~45 days or less (due to streaming and changes in audience behavior)

  • Shorter windows help studios capitalise on marketing buzz but have been controversial with cinemas, who want longer exclusivity to attract ticket sales.



Film Distribution: Summary of Key Concepts

1. Difficulty of Securing Distribution
Getting a film distributed is often harder than making it. Distributors only invest if they believe the film will be profitable. Big studios, famous directors, or stars make a film more attractive. Independent filmmakers often rely on film festivals to attract distributors.

2. Distribution Agreements
There are two main financial models for distribution deals:

  • Leasing: The distributor pays a fixed fee for the film rights.

  • Profit-sharing: The distributor takes a percentage of the film’s profits (usually 10–50%).

Both models have risks and benefits depending on the film’s success.

3. Studio Distribution
Major studios often use their own distribution companies (e.g., Disney uses Buena Vista). This gives them full control and profit—but also full risk if the film fails. Sometimes, studios partner with others to share the risk, as in Star Wars: Episode I, which was produced by Lucasfilm but distributed by Fox.

4. Ancillary Rights
Distributors often acquire additional rights beyond theatrical release, such as:

  • Home media (DVD, Blu-ray)

  • TV and streaming

  • Merchandise (toys, soundtracks, posters, etc.)

These help increase profits beyond box office returns.

5. Planning a Film's Release (Opening)
The distributor must plan how to open the film, considering:

  • Studio backing

  • Target audience

  • Star power

  • Buzz (public anticipation)

  • Seasonal timing

All these affect how many prints are made and how wide the release is. Prints are expensive (up to $2,000 each), so the distributor must be strategic, especially since opening on 3,000 screens could cost $6 million.

6. Theaters and Negotiation
Theaters (especially big chains) have buyers who negotiate with distributors. The relationship is political: theaters may accept films they don’t want to get the ones they do. Distributors often balance film leases in a region to keep relationships smooth.

7. Leasing a Movie: Bidding vs. Percentage Deals
There are two ways a theater can lease a film:

  • Bidding: The theater pays a fixed fee (rare today due to financial risk).

  • Percentage deals: More common. Distributors take a set percentage of box office revenue—either from gross or net earnings (after expenses called the "nut").

Typically, the distributor gets the larger share, especially in the first few weeks.

8. How Theaters Make Money
Theaters often lose money on the films themselves and rely on concessions (popcorn, drinks) for profit. That’s why food prices are so high. Films are considered loss leaders to get audiences in the door.

9. Lease Extensions and Second-Run Theaters
If a movie does well, the theater may extend the lease ("Held over").
Second-run theaters, which show older films, get better leasing deals but face more competition from first-run theaters keeping movies longer.


1. What are the two different financial models that distribution agreements are based on?

The two financial models are leasing and profit-sharing.

2. Describe what they both entail.

  • Leasing: The distributor pays a fixed, upfront fee to acquire the rights to distribute the film, regardless of how well the film performs.

  • Profit-sharing: The distributor receives a percentage (usually 10–50%) of the net profits generated by the film after its release.

3. What are ancillary rights?
Ancillary rights are additional distribution rights beyond the theatrical release, such as rights to distribute the film on DVD, Blu-ray, cable and network TV, as well as rights for merchandise like soundtracks, toys, posters, and games.

4. What is the definition of the film's 'opening' and what factors are taken into account when making decisions about a film's opening?
The film's opening is its official debut or initial release to audiences. Factors considered when planning the opening include: the studio backing the film, the target audience, star power, the amount of buzz (public interest), and the season or timing of the release.

5. What does it mean if a film has 'legs'? What factors might determine this?
A film with "legs" is one that is expected to maintain popularity and audience interest over a longer period after release, rather than just performing well initially. Factors that determine this include word-of-mouth, critical reception, broad appeal, and marketing.

6. At the time of this article, how many theatres were there across the USA and where are they mostly located?
There were about 37,000 screens (theaters) across the USA, with most concentrated in urban areas.

7. What role does a 'buyer' play and what are some of the terms they negotiate?
A buyer represents theaters in negotiations with distributors. They decide which movies the theaters will show and negotiate terms such as the percentage split of box office revenue, house allowance (covering theater expenses), and length of the movie’s engagement.

8. What are the 2 ways a theatre may release a movie? Explain how they work.

  • Bidding: The theater agrees to pay a fixed amount upfront for the right to show the movie during a set period. This is risky because if ticket sales don’t cover the cost, the theater loses money.

  • Percentage deals: The theater and distributor agree on a percentage split of the box office earnings, either from gross or net revenue. This is more common and shares financial risk between both parties.

9. What is meant by a 'loss leader'?
A loss leader refers to a film that the theater itself does not make money from directly, often breaking even or losing money on ticket sales. The goal is to attract audiences to the theater, where the theater makes profits primarily from selling concessions like popcorn and drinks.

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