DISTRIBUTION: CONNECTING FILMS WITH AUDIENCES

 

FILM DISTRIBUTION: CONNECTING FILMS WITH AUDIENCES

In the film business, distributors play a wide-ranging, pivotal role. The distributor’s principal aim is to attract audiences to see the films they release – in the cinema and on many different platforms through which we, as viewers, now experience films and shows when and where we want. The well-being of the entire film business depends on a supply of films (production) and the extent to which they connect with audiences (distribution). 

When a film opens in cinemas, it has only a brief chance to make its mark. If its opening weekend is not successful – if not enough people pay to see it – then it will probably disappear from cinema screens all too rapidly. So the substantial investments made in the distributor’s advertising and publicity as well as in the production of the film itself, which may have been in development for years, can all hang on an opening weekend at the box-office. Distributors identify :

WHAT are the film's unique selling points or 'hooks' - its USPs; WHO the target audience is -  important considerations include comparison with films of a similar genre ; WHEN to release, to avoid undue competition and distractions ; HOW to release - which media and at what cost ; WHERE audiences view films & how this affects consumption.
From FDA Yearbook 2020 The impact of Covid on audiences and film making 
The end of 2019 year promised well for cinemas with choice and variety, with the start of 2020 showing strong demand: 
  • blockbusters / tentpole movies that traditionally drive footfall into cinema theatres Death on the Nile, No Time To Die, Wonder Woman 1984, Black Widow
  • family fare Peter Rabbit, Mulan, Secret Garden
  • action films Top Gun, Fast & Furious, Tenet, Dune, Ghostbusters
  • horror A Quiet Place, The Conjuring, Hallowe'en Kills
  • awards pictures crossing to become mainstream hits 1917, Parasite, Jojo Rabbit
Covid infections, restrictions, lockdown and public anxiety impacted the film industry harshly with cinema admissions falling to 0% by March 2020. With cinemas off-limits worldwide, some distributors pivoted to early streaming releases to ensure some financial return and capitalise on audiences at home in need of distraction. Universal's animated sequel Trolls Home Tour was a controversial example with cinema operators concerned about an 'opportunistic' move that would set the precedent for eroding the traditional theatrical release window. Others followed in a pattern that might have happened anyway in a long-anticipated paradigm shift: Scoobi!, Greyhound, Resistance, Hamilton, How To Build A Girl. 
The UK film industry worked on an extensive recovery campaign covering all sectors in order to get the production sector back up and running, with task forces, relief funds and inward investment working groups, but independent cinemas in particular suffered closures. When restrictions eventually relaxed,  there were initially not enough marquee films to tempt audiences back, but by July, attendances were growing week-on-week, with Black Water:Abyss, Unhinged, family-friendly Pinocchio, 100% Wolf and by late August Tenet which held the box office No.1 spot for 8 weeks. This would have been a remarkable achievement in another year, but only highlights the lack of tentpole competition at this point.
By autumn, teen romance After We Collided surprised the industry with its success with a well-targeted social media campaign despite virtually no reviews; the coming-of-age London-set Rocks championed a diverse raft of newcomers, amongst other releases, but box office revenues were down to £2-4 million compared to 2019 revenues of £18-20 million +. Calendar repositioning of blockbusters like No Time To Die reflected the bleak climate, with some exhibitors going into hibernation, others opening only at weekends and some releases skipping straight to streaming like Mulan on Disney+, followed by Pixar's Soul and Warner's announcement of all its 2021 slate going straight to their streaming service HBO Max. The year ended with the third national lockdown caused by the new COVID strain and only re-released Elf and Wonder Woman 1984 bringing in revenue.
2020 drew to a close with the worst box-office figures since records began.

Economic impact : the value of the creative industries and the spend of film distribution is described below



Ways in which audiences find out about films:

  • Social media channels
  • Film trailers
  • Film reviews
  • Radio
  • Websites
  • Internet banners with click-throughs
  • Television
  • Advertising on the side of buses
  • Magazines
  • Poster sites at bus stops or on the roadside
  • Newspaper advertising
  • Promotions on products, e.g. breakfast cereals
  • Word of mouth e.g. friends, family

Production (making), distribution (releasing) and exhibition (showing) are inter-linked in a complex way

Even before a film starts shooting, its producers will be mindful of who it is being made for. It is very important that everyone involved in a production shares the same vision of the film they are making. Generating cinema audiences is the job of the film distributor in a crowded marketplace. Together with the filmmakers and financiers, they must consider ‘Why will people want to see it?’ and ‘How do we make them want to see this film?’

There are two broad types of film distributor – ‘independents’ and ‘majors’. The former tend to often operate only in one country or territory (e.g. the UK/Ireland), while the latter operate worldwide. The ‘major’ distributors account for the lion’s share of filmgoing in the UK.

The major studios also act as distributors – Warner Bros., Walt Disney, Paramount Pictures, Universal Pictures and Columbia (owned by Sony) Pictures. Each of these US-based studios originated in the earliest days of the movies. These are known as the Majors.

All the studios are ‘integrated’, incorporating their own network of in-house distribution companies around the world, as well as production facilities in California. Their London offices are responsible for releasing the films produced by the studio, as well as any local pick-ups, in all media in the UK and Ireland.

Today, most of the major studios are themselves parts of bigger corporations with global interests in television, music and other media.

An independent distributor is one not affiliated to a major US studio – although they may still be part of international corporations. A number of these indies have grown considerably and are now known as ‘Mini Majors’ (e.g. StudioCanal, Entertainment One (eOne), Lionsgate).

The independents (or ‘indies’) tend not to have a single pipeline of films, but rather they acquire individual properties from producers or intermediaries known as ‘sales agents’ working on producers’ behalf.

Films may be acquired at any stage, from an initial script through to a finished work. But it is often a deal with a UK distributor, and the advance payment triggered, that helps to get independent film productions financed in the first place. It is a business based at every level upon working relationships and co-operation.

Some independent distributors specialise in particular kinds of films – e.g. documentaries or works with a social conscience.

Most UK distributors, whether independent or major, tend to release a wide-ranging slate of films, often around ten or twenty titles every year. The most popular – and most heavily marketed – releases are the high-grossing ‘blockbusters’, often the latest in a series or ‘franchise’ of related films.

The UK has around a dozen or so ‘leading’ distributors whose mainstream and specialised releases account for the vast majority (95% or more) of cinema visits. But there are many more than this, handling niche titles with very limited releases, at the margins of the business.


The role of the distributor

In most cases, the major studio distributors will have the right to distribute the film worldwide, through their own in-house network of distributors or affiliates around the world.

Independently made films, on the other hand, tend to be placed piece-meal with local distributors with expertise in handling such films.

As Mark Batey of Film Distributors’ Association has pointed out, the distributor needs to bring a film into the marketplace, creating an audience for it.

To do so, the distributor must determine:

  • What is the particular film that they are releasing (its positioning)
  • When to release the film
  • How much to spend on marketing and promoting the film – based on an estimate of what it might make when it is released to audiences
  • How many digital files of the film might be needed for the cinemas who agree to play it
  • A business plan tailor-made for each title. This will take into account the release of the film in all of the media in which the distributor holds rights, which may include cinema, home entertainment (on-demand services and DVD or Blu-ray discs) and television (paid-for and free-to-air).

The distributor will develop a detailed marketing and publicity plan to support the cinema release. This will usually include:

  • Paid-for media: Based on the desired audience, should there be TV or radio spots, outdoor posters or digital ads? And from that what advertising materials need to be created?

  • Owned media: Are there any outlets which the distributor already owns (including channels on, say, YouTube or Facebook) that might be utilized to support this film release?

  • Earned media: A publicity strategy to generate a social media profile, and editorial coverage for the film through interviews with the ‘talent’ (stars and filmmakers) placed appropriately online, on TV, radio and press; a premiere with red carpet photography and interviews; and other feature articles (about locations, vehicles, anything of interest) or news stories.

  • Media and brand partnerships: Tie-in promotions developed with partner brands (e.g. breakfast cereals, restaurant chains) to boost awareness of, and engagement with, the film and its characters.

  • As well as the ‘theatrical’ release of the film (in cinemas), the distributor will also look to manage the film’s home entertainment release (on DVD/Blu-ray or on-demand via a myriad of streaming platforms available for us to consume film in our own homes or on the move using our phones and tablets). There is also the licensing of the film to TV channels, both pay-TV and subsequently free-to-air channels (BBC, ITV, Channels 4 and 5).

UK distributors acquire 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

Alison Thompson, who is a sales agent for production companies, points out that there are certain moments in a film’s life when a distributor tends to come on board and license the rights to a film. These are at script stage, when a promo reel is available containing footage already filmed and when the film is completed.

If a distributor signs up when only the script is available (and perhaps some key actors and a director are ‘attached’), then the money that they pay for the rights can be used as part of the production budget. Alison Thompson from Cornerstone Films calls this the “Golden Goose moment”.

Theatrical, in this case, means cinema– so the ability to put it in the cineme . The home entertainment rights– home entertainment covering physical, DVD, electronic sale through VOD– so the kind of thing you’d get on iTunes, for example, through to subscription video demand like Netflix and Amazon, and free pay television– so BBC, Sky,

 The 'distribution rights' refers to

  • Theatrical (cinema) rights – so the ability to put it in the cinema which usually has something like a four month window surrounding it. In other words, you’re not allowed to exploit the other rights until the theatrical release has taken place.
  • The home entertainment rights – home entertainment covering physical, DVD (now dying), electronic sale through VOD – so the kind of thing you’d get on iTunes, for example,
  • TV rights - subscription video demand like Netflix and Amazon, and free pay television – so BBC, Sky and so on. If a broadcaster such as the BBC or Channel 4 has contributed to the financing of a film, it is likely to have pre-secured TV rights as part of their deal. In such cases, the rights available to the film distributor would exclude TV.

Markets and festivals

Distributors need to meet producers and agents in order to obtain the rights to films, and one key place where this happens is at trade events – international film markets and film festivals.

There 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 at Sundance (January), Berlin (February), Cannes (May), Venice (August) and Toronto (September). The annual American Film Market is another large gathering that takes place in November. These events, 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 be perceived by a more mainstream audience as not being for them ie. an ‘art house’ film;
  • a high-profile platform where films can be showcased to influential media prior to release.

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 on the French Riviera, which accommodates many premieres and junkets.

The slate

Most distributors need to have a ‘slate’ – a line-up of various films – to release in any year. Normally this would be a mix of different genres of films and the mix would depend on the distributor.

In the US, the studios often work with major producers and have on-going ‘first look’ deals on the films they want to produce. The studio will finance a chosen production, providing shooting and post-production facilities. In due course it will then distribute the film in the domestic market (US and Canada) and/or international (the rest of the world).

Occasionally, and most often with big-budget blockbusters, a studio may sell off the international rights to another distributor(s), to disperse the risk among more participants.

On its slate, a major studio will probably have a number of big-budget “tentpole” films, usually for release during a holiday period such as the summer or Christmas. They would probably also have a number of mid-budget films for release outside the holiday season.

The studio itself will have many projects in development – particularly franchise films or adaptations of bestselling novels. 

Video interview with Spiro Markensinis of eOne: 

We’ve probably currently in the UK around about the mid to high 20s (films on the slate). And again, it will be a variety of films. We will need some, frankly, some big budget drivers for the slate, the ones that we think could do 20, 30 million at the box office. They’re very hard to come by, frankly, in the independent world, but we’re very keen to make sure we have those, which is one of the reasons why we have our Amblin partnership. So we do need the ones which have the potential big box office, the ones that appeal to a mass audience. We will want to support a whole bunch of other types of films well. From local British cinema, we have films from Chris Morris, Armando Iannucci, Mike Leigh, Ken Loach. Those are not only successful and they can be successful, but they also bring certain prestige as well as a support for the British film industry.

Video interview with Sophie Doherty (sales and exhibition specialist, Disney): 

Up until 2020, we have a slate lined up at Disney. So it’s all kind of mapped out when you’re at a big studio. And Disney really led the way in terms of that tent pole releasing strategy. So years ago, when I was a film booker, some of the distributors came to me and they said, look, we really think the future is we’re going to a tent pole releasing strategy. So I’m really sorry, but we’re not going to have as many small films anymore, the ones that you love and you get passionate about. There’ll be less of those. It’s going to be tent poles. But Disney are the ones who actually have ended up delivering on that. So through the five studios that are in the banner of Disney– we’ve got Marvel, we have Pixar, we have Lucasfilm, we have Disney Animation and Disney Live Action. And within those, it’s just such a clear structure that cuts through all the clutter of releases, and we can map them out. And we have mapped them out, up until 2020 at this point. Very different to an indie.

The crowded marketplace


Ian George points out that one of the biggest challenges facing a distributor is finding a place for their film (when and how to release it most appropriately) in an overcrowded market.
Around 800 feature films, plus 100 live events, were released in UK cinemas in the 52 weeks of 2019 alone. Market polarisation means that he top 20 films accounted for nearly 50% of the overall box-office in 2019:


With the number of titles released soaring and box office admissions dipping, that means considerable challenges for distributors:

Positioning a film

Given that the marketplace is so crowded, it is vital that the film distributor correctly positions each film – by which we mean they define what the finished film is, what genre(s) it adheres to, who it will most appeal to, and how to bring its selling points to life.

In preparing a distribution plan, the questions that a distributor might weigh up include:

  • Is this an event film, a prospective mass market blockbuster, or a specialised film for a more discrete audience? Distributors will naturally seek to turn every release into an event.

  • Is the film made by a ‘name’ director, producer or writer?

  • 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? Do those stars have an engaged online audience/followers on social media?

  • Are any cast members available for UK/international publicity or to attend a premiere?

  • Could the film lead the media reviews of that week’s new releases? This profile can be very important for more specialised films.

  • Is it a film with hopes for award nominations? Contenders for the Academy Awards®, Golden Globes and EE British Academy Film Awards often open in the UK between October and February, when the annual awards season reaches its peak – although this can cause a bottleneck in an already congested release schedule.

  • Is there already a buzz about the film, due to its stars or makers, a bestselling 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 in the US or 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 can all too rapidly diminish perceptions here.

Marketability and Playability 

Two distinct factors are assessed for every film: their overall marketability and playability:

Marketability refers to the film’s potential to be marketed effectively, e.g. having clear selling points such as stars, genre or director that can be turned into a strong advertising campaign and a feeling of ‘want to see’ among the target audience.

Playability refers to audience reaction to the film. If an audience has enjoyed it, they will encourage friends and contacts to go and see it too. This allows the film to grow and sustain itself in the marketplace.

Distributors will often carry out market research in the form of pre-release test screenings. These may aim to measure an audience’s reaction to the film (its playability) or to evaluate different marketing campaigns (its marketability).

The carefully selected/invited audiences at these screenings are usually asked to complete questionnaires. These give the distributor valuable insights as to what the audience most liked/disliked – the story, the star(s), the pacing, the ending. Audience reactions to a preview might well shape a distributor’s marketing campaign.










 

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