Distribution

Distribution 

Distribution is the third part in the supply chain. Distribution is often referred to as "the invisible art". When discussing distribution vertical integration means Distribution is about releasing and sustaining films in the market place. In the practice of Hollywood and other forms of industrial cinema, the phases of production, distribution and exhibition operate most effectively when 'vertically integrated', where the three stages are seen as part of the same larger process, under the control of one company. Vertical intergeration isn't so common in the independent sector.. Producers tend not to have long-term economic links with distributors, who likewise have no formal connections with exhibitors. There are three stages involved with distribution- licensing, marketing and logistics.

Licensing 

Licensing is the process by which a distributor acquires the legal right to exploit a film. There are two levels of distribution. The major US studios generally have their own distribution offices in all the major territories. By contrast, independent producers have to sell their films to different distributors in each territory. Independent production companies are usually small concerns, sometimes set up for one film and often lacking the necessary knowledge or contacts of each of the territories around the world. The three different types of rights that can be aquired 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.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.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.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
The marketing of a film release revolves around two key questions: 'When?' and 'How? In the UK, new films are released theatrically on Fridays. A distributor will assess this schedule to identify a Friday release date where there are only a few films scheduled for release. 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.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.

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. P&A also represent the bulk of the distributor's investment, after paying the initial fee for rights, and can range from less than £1,000 to over £1 million for the release of a film in the UK.

Marketing- prints and adverts 

Specialised films will often be released with fewer than 10 prints into key independent cinemas, with these prints subsequently 'toured' over a 6-month period to all parts of the UK.  Mainstream films will often open on over 200 prints, simultaneously screening in all major UK towns and cities.or the majority of releases, favourable press response is a key factor in developing the profile and desirability of a film. Distributors consider both the quality and breadth of coverage, and this is often inscribed into the nature and scale of a press campaign.The cinema poster - in the UK this means the standard 30" x 40" 'quad' format - is still the cornerstone of theatrical release campaigns. Numerous recent examples indicate that the poster design is highly effective in 'packaging' the key attributes of a film for potential audiences. Distributors will also consider other poster campaigns, ranging from Underground advertising to billboards.The cost of print advertising in the UK is comparatively high, and is seen as making distribution in the UK a riskier business than in most other countries. In order to extend the reach of advertising and develop more effective communication with audiences at low cost, distributors are looking increasingly to 'viral marketing' - different forms of electronic word-of-mouth via the internet, email and mobile phones.he use of talent - usually the director and/or lead actors - wins significant editorial coverage to support a release. The volume of coverage can far outweigh the cost of talent visits.

Logistics 

 It is the responsibility of the distributor to arrange the transportation of the film to the cinema, as part of its wider coordination of print use across the UK. 35mm theatrical prints invariably suffer cumulative damage as they pass through different projectors, and the hands of various projectionists. There are also overheads incurred by the distributor for the storage of prints at the UK's central print warehouse in West London.Distributor will invest in sufficient prints to provide optimum coverage through the first period of theatrical release, usually lasting up to 6 months. 

Digital Distribution

Towards the end of 2005, the UK distribution and exhibition sectors were starting to move towards digital distribution and exhibition. Digital technology is seen to offer a more cost effective and logistics-light alternative to the tried and trusted, but unwieldy model of 35mm print distribution described above. It will, eventually, be cheaper and much less stressful to send films as computer files to cinemas across the UK, than to transport 20-25kg tins of film in the back of a van.Digital distribution and exhibition on a large scale has started to appear in certain parts of the world, notably China and Brazil, where conventional logistics cannot, for one reason or another, efficiently bring together supply and demand.The force of this change, coupled with the new capacity of technology to replicate 35mm imaging, has led the UK Film Council to establish a digital distribution and exhibition programme for the theatrical sector at the end of 2005. Entitled the Digital Screen Network (DSN), it will eventually support new facilities in 211 screens across the country (out of a total of just over 3,300 screens in the UK), and is seen as a small but important step change towards full digital cinema.There is little doubt that the advent of digital distribution has the potential radically to alter the modus operandi of distributors around the world. The comparatively low cost of film copies and additional logistical effectiveness of digital distribution provide the distributor with greater flexibility. It will be less expensive in the coming years to offer a wide theatrical opening with many copies, and also conversely, to screen a film for just one performance at any cinema. In theory at least, it will be possible for both distributors and exhibitors to respond more precisely to audience demand.All this suggests that in the future, more titles, both mainstream and specialised, will receive wide theatrical openings, and that this broadening of access at the point of release will dramatically reduce the overall theatrical period from 3-6 months to perhaps 1-3 months. Thereafter, films will enter into a second-run and repertory programming market aided by lower costs.

Digital film distribution in the UK

The physical distribution and exhibition of movies in UK cinemas has changed hugely in the last five years.  The 125-year-old era of 35mm celluloid film is over, giving way to a digital future. Here are some of the key facts to stay up to speed with the recent changes in UK cinema exhibition…

1. 35mm distribution may end this year
2. Fortunately 92% of UK cinema screens are digital
3. And 41% are equipped with 3D
4. You only need 2k resolution for nearly all screens
5. 4k resolution is not always better than 2k
6. But screening at 4k can lead to better reviews
7. Vue have the most 4k screens in Europe
8. 4k storage is 11 times more expensive than 35mm film
9. Bonus fact: The best cinema seats are 1.5 times the height of the screen away from the screen with a viewing angle of 37 degrees