What is distribution?

Distribution


What is it?
Distribution is the action of sharing something out among a number of recipients.

What part of the supply chain is distribution?
Distribution is the third part of the supply chain, it is often referred to as 'the invisible art', a process known only to those within the industry , barely written about and almost imperceptible to everyone else. 

What is distribution often referred to as?
'The invisible art'.

What does 'vertical integration' mean in terms of distribution?
Vertical integration means the 3 stages of production, distribution and exhibition are seen as working as a whole large process under the control of one institution. 

Why isn't 'vertical integration' so common in the independent sector?
In the independent film sector, vertical integration does not operate so commonly. Producers tend not to have long-term economic links with distributors, who likewise have no formal connections with exhibitors. Here, as the pig-in-the-middle, distribution is necessarily a collaborative process, requiring the materials and rights of the producer and the cooperation of the exhibitor to promote and show the film in the best way possible.


What three stages are involved in the independent sector? 
In this sector, distribution can be divided into three stages - licensing, marketing and logistics.



Licencing

What is licencing?
Licensing is the process by which a distributor acquires the legal right to exploit a film. In distribution, licensing itself can take place on two levels.

What are the two levels to licencing?
'International' distribution and 'Local' distribution. International distribution ensures that the films find their way to the 90+ market 'territories' around the world. Local distribution involved the distributor acquiring the licence to release and exploit the film in a particular country. The distributor will usually pay the producer a minimum guarantee for the licence. This fee will vary depending on the status and perceived commercial potential of the film, and on the range of rights that the distributor chooses to exploit.

What is the advantage of being a major US studio?
The major US studios generally have their own distribution offices in all the major territories.

What three different types of rights can you acquire on a local level?

The distributor will usually pay the producer a minimum guarantee for the licence. This fee will vary depending on the status and perceived commercial potential of the film, and on the range of rights that the distributor chooses to exploit. A distributor will usually be offered theatrical rights, for showing the film in cinemas; video rights, for video and DVD exploitation; and TV rights, if the distributor is able to sell the film to a broadcaster.

What are royalties?

In addition to paying a fee to secure the film, the licence will stipulate that the distributor will also pay royalties to the producer, taken from the profits that the film generates. A local distributor will conventionally share profits equally with the producer for the theatrical leg, pay back higher royalties for broadcast rights, and lower for video/DVD.

What is the most effective way to increase interest in a film?

Once the licence has been agreed, it is then the distributor's job to launch the film. In the UK, feature films are released initially theatrically (in cinemas). A theatrical opening is seen as the most effective way to create interest in a new film. The big screen is still the optimum setting for a film for both audiences and the filmmakers.

How long does it take for a film to reach 'free to air' TV?

Some months following the theatrical release, a film will be packaged and released on DVD and VHS video, then on various forms of pay television and eventually, two years after opening in cinemas, on free-to-air television.

Marketing

What are the two key questions surrounding the marketing of a film?

The marketing of a film release revolves around two key questions: 'When?' and 'How?'

What day are films typically released on?

In the UK, Fridays.

What will a distributor look at before releasing a film on a Friday?

A distributor will assess this schedule to identify a Friday release date where there are only a few films scheduled for release. 

What is a 'light' week in terms of distribution?

Finding a 'light' week will ensure that there will be both screen space and adequate review column inches in the press allocated to any potential release. A further consideration for scheduling a release is the seasonality of the film. For example, it is widely assumed within the industry that specialised films have the greatest potential to reach audiences during the academic year.

What does it mean to 'position' a film distinctively?

Finally, the distributor will try to position the film distinctively and avoid a release date occupied by other films with similar traits (story, subject, country of origin). In recent years in the UK, these two aspects of release planning have become increasingly difficult, as the release schedule has regularly featured over 10 new releases in a week.

After setting a release date, the distributor works towards the theatrical release, investing in the materials and the marketing campaign to support it.

Why has this become increasingly difficult in the UK?

In recent years in the UK, these two aspects of release planning have become increasingly difficult, as the release schedule has regularly featured over 10 new releases in a week.

After setting a release date, the distributor works towards the theatrical release, investing in the materials and the marketing campaign to support it.

What are P&A?

The costs of theatrical distribution, met by local distributors, are often referred to as 'P&A', or Prints and Advertising. P&A are the nuts and bolts of marketing and distributing films into cinemas, the tools used by the distributor to create a public for its film.

How much can P&A cost?

Less than £1,000, but up to £1 million, depending on the quality.