4. Distribution
• The Invisible Art – process known only
to those within the industry, barely
written about and also imperceptible to
everyone else.
Producers AudienceDistribution
5. David Wilkinson explains
distribution
• https://www.youtube.com/watch?v=JKObYf6
• Founder of UK based Guerilla Films –
who have distributed films such as;
Adam & Paul, Two Men Went To War
and “The Good Father”
6. What is it?
• Releasing and Sustaining a film in the market
place
• Worked best when the three key stages
(Production, Distribution, Exhibition) are
linked or controlled by the same company –
Vertical Integration
• UK system has more focus on marketing and
sustaining a film in the local market
• Independent Studios don’t ‘do’ vertical
integration
7. Independent Films
• Independent Studios don’t ‘do’ vertical
integration
• No formal connection between
Producers, distributors and exhibitors
• Collaboration – need to get a major
company on side
• £££££££££££££$$$$$$$$$$$$$$
8. Distribution Companies
• Determine how many copies (prints) of
a film to make
• Why might this be important?
• What might be some issues
surrounding this?
9. Who are the big
distribution companies?
• Viacom - $12.86 billion
• Paramount – one of the oldest (1912)
• United International Pictures (UIP) – covers
60 ‘territories’
• Time Warner – have over 5700 films
• New Line Cinema – ‘independent’ and foreign
films, home distribution
• Fox Entertainment Group – worth over $17.2
billion, 83% is owned by News Corp
10. Who are the big
distribution companies
• The Walt Disney Company – another very old
company
• Miramax – one of Americas largest internal
distribution companies
• Buena Vista International – distributes all Disney
films outside America
• Universal Studios Group – owned by the
European version of Time Warner (who made
their money from privatised water)
• The Sony Corporation – massive interests in
electronics
11. Seems like a lot but…..
• Viacom owns
Paramount and 33%
of UIP
• Time Warner owns
New Line Cinema
• Walt Disney owns
Miramax and BVI
• Fox
• Universal/Vivendi
• Sony
• Horizontal
Intergration
12. Distribution = Power
• Films can not be financed without the
help of distributors
• They have clout with theatre owners (or
are often the owners)
• Brand name recognition
• Own copyright
• Access to capital
13. It’s all about Money!
• Distribution Company and their
conglomerate owners are profit driven
so they must feel confident that they
can make sufficient return on
investment
• Films are expense to make
• How to do they avoid losses?
14. How much?
• How much do you think Bruce Willis
was paid for unbreakable?
• How much do you think Angelina Jolie
was paid for Tomb Raider – The Cradle
of life?
• Lets see who is the nearest!
15. The Cost
Unbreakable
•Story rights and Screenplay: $5,000,000
•Producers: $1,878,260
•Director (M. Night Shyamalan & Assistant):
$5,081,749
•Cast: $ 31,903,987
– Bruce Willis: $20,000,000Samuel L. Jackson:
$7,000,000Robin Wright Penn: $2,500,000
– Rest of Cast, Casting, Stunts, & Travel:
$5,568,388
•Production costs: $26,214,709
– Visual effects: $1,000,000
– Music: $2,253,456
16. Lara Croft Tomb Raider: The Cradle of Life
•Story rights and screenplay: $4 million
•Producers: $4 million
•Director (Jan de Bont): $5 million
•Cast: $17.25 million
– Angelina Jolie: $12 million Extras: $250,000
– Other (inc. Angelina's perks): $5 million
•Production costs: $67 million
– Set design and construction: $17.8 million
•Visual Effects: $13 million
•Music: $3.3 million
•Editing: $3 million
•Post Production costs: $1.5 million
•Total: $118 million
17. Terminator 3: Rise of the Machines
•Story rights (Carolco and Gale Anne Hurd): $19.5 million
•Screenplay: $5.2 million
– John D. Brancato & Michael Ferris: $1 million
•Director (Jonathan Mostow): $5 million
•Producers: $10 million
•Cast: $35 million
– Arnold Schwarzenegger: $29.25 million + 20% gross
profits
– Arnold's perks: $1.5 million
– Rest of principal cast: $3.85 million
– Extras: $450,000
•Production costs: $58 million
•Post-production costs: $4 million
•Visual effects: $20 million
•Music: $2 million
•Other costs: $33.6 million
18. Spider Man 2
•Story rights: $20 million
•Screenplay: $10 million
•Producers: $15 million
•Director (Sam Raimi): $10 million
•Cast: $30 million
– Tobey Maguire: $17 million
– Kirsten Dunst: $7 million
– Alfred Molina: $3 million
– Rest of cast: $3 million
•Production costs: $45 million
•Visual effects: $65 million
•Music: $5 million
– Composer (Danny Elfman): $2 million.
•Total: $200 million
19. Other Costs
• Promotion – often higher than
Production costs for a small $20 mill film
but dies become less for a higer budget
film
• Very hard to get accurate data
• Megamind cost between $130 - $145 m
and estimated Promotiom budget of
$65m
21. % of revenue from tickets
• Front Loaded Deals – on the decline
(bankruptcy and new revenue sources)
• ‘Standard Cut’ – but what that cut is
depends on the muscle of the distributor
• Around 50 – 55%
22. Other sources of money
• DVD’s – can add up to $100m and a
higher % goes back to the company
• TV Rights
• Merchandising
• But in 2009 theatrical box office
revenue was bigger than home video
revenue – piracy, Netflix, cost of 3D
tickets.
23. Task: Write an article for
“Totally Film Magazine”
• Include a description of all the stages
and their purpose
• Use a film (can be one of the ones
discussed during this session to detail
how much a film costs)
• Discuss the potential problems with the
current process
Editor's Notes
Most important part of the film industry. It is the connection between Producers and Audience
Each print costs at least $2000 – 3000. Screens $6mill in total for an average of 4000 (which is currently the trend)– was in the 100’s in the 1980s.
37000 screens in US
Majority of the opening weekend ticket sales goes to the PC 90%, by the four the week more like 50%
