3. Most licences tend to state that the distributor has to pay royalties to the producer, taken from the profits that the film generates.
4.
5. The major studios around the world mostly have their very own offices in all the main distribution territories.
6. All the small independent producers have to sell their films to different distributors in each territory instead. Because the independent film companies are so small, they mostly lack the knowledge and the money to contact distributors in these territories.
7.
8. A cinema opening is generally viewed as the most effective way to build interest in a new film. It is still the optimum setting for a film for audiences and the filmmakers alike.
9. Some months following the films release, it will be released on DVD, then on various forms of pay television and eventually, two years after opening in cinemas, on terrestrial T.V. The value of the film built up by its release brings big benefits all through its release cycle, from DVD sale profits and selling to T.V stations.
10. At every stage, the distributor must have a good knowledge of the marketplace - which cinemas and broadcasters can draw the best audience for their films - and of the changing marketing costs involved in releasing a film.
![What is licensing? ,[object Object]](data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7)