Distribution & Exhibition

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There were 698 films released in cinemas in the UK and Ireland in 2013. The top 10 distributors account for 97% of the box office revenue. Just three companies (StudioCanal, eOne and Entertainment) control half of all box office income made on UK independent films. To be able to explain the production cycle (level 2) To be able to analyse the production cycle with reference to case studies (level 3) To be able to evaluate the production cycle with reference to detailed case studies (level 4)

Transcript of Distribution & Exhibition

Page 1: Distribution & Exhibition

• There were 698 films released in cinemas in the UK and Ireland in 2013.

• The top 10 distributors account for 97% of the box office revenue.

• Just three companies (StudioCanal, eOne and Entertainment) control half of all box office income made on UK independent films.

To be able to explain the production cycle (level 2)To be able to analyse the production cycle with reference to case studies (level 3)To be able to evaluate the production cycle with reference to detailed case studies (level 4)

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In 2013, the top 10 distributors controlled 96.5% of all the box office revenue. And despite the increase in the number of films on offer in cinemas,

this has barely changed in the past 16 years.

To be able to explain the production cycle (level 2)To be able to analyse the production cycle with reference to case studies (level 3)To be able to evaluate the production cycle with reference to detailed case studies (level 4)

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Unsurprisingly, the major Hollywood studios dominate the distribution business.

To be able to explain the production cycle (level 2)To be able to analyse the production cycle with reference to case studies (level 3)To be able to evaluate the production cycle with reference to detailed case studies (level 4)

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However, under the surface we can see that who’s on top changes most years.

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When we strip away the studio-backed films we see a very different scene. Together eOne, Entertainment and StudioCanal account for half of the box

office generated by UK independent films.

To be able to explain the production cycle (level 2)To be able to analyse the production cycle with reference to case studies (level 3)To be able to evaluate the production cycle with reference to detailed case studies (level 4)

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• Opens nationwide in a large number of cinemas, both multiplexes and independents.

• This is accompanied by an extensive, national advertising campaign.

• The film’s stars/director/budget guarantees a large audience and justifies the cost of distribution and advertising. A large return is expected.

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(Blanket Release)

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• The film is initially released in a small number of cinemas in major cities, with a concentrated advertising campaign (local to the release).

• In subsequent weeks, the film expands to additional screens and more rural areas.

• These films might not have immediate appeal to a mass market due to unknown actors or difficult subject matter.

• They can create a strong word-of-mouth buzz and develop a wider release.

• By limiting the release, the producers reduce the risk of losing money on a more expensive distribution campaign.

To be able to explain the production cycle (level 2)To be able to analyse the production cycle with reference to case studies (level 3)To be able to evaluate the production cycle with reference to detailed case studies (level 4)

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• Opens in a limited amount of cinemas – usually independents.

• There is little expectation that the film will have a wider release.

• The films usually have a small budget and the cost of distribution to return is uneconomical.

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Our cinemas are mainly populated with cinema from America and Britain. But just how much of these are from American?

Look at the cinema listings across several different cinemas.

How many American films were there, compared to British films?

Were there any other types of films?

Did you notice anything about the types of films that were shown at different cinemas?

Were any films difficult to classify?

To be able to explain the production cycle (level 2)To be able to analyse the production cycle with reference to case studies (level 3)To be able to evaluate the production cycle with reference to detailed case studies (level 4)

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Money – bigger films with mass appeal.

Blanket releases.

Large advertising budgets.

Familiarity – we know what we are getting and are comfortable with them.

Preference from exhibitors – they know they will sell.

Why the dominance of American cinema?

To be able to explain the production cycle (level 2)To be able to analyse the production cycle with reference to case studies (level 3)To be able to evaluate the production cycle with reference to detailed case studies (level 4)

Article.

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To be able to explain media ownership in the film industry (level 2)To be able to analyse media ownership with reference to case studies (level 3)To be able to evaluate media ownership with reference to detailed case studies (level 4)

Conduct some research into Disney and find out as much as you can about what they own. We will then put this onto a

group mind map.

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• Toy Story 3's budget was US$200 million.• It grossed over US$1 billion worldwide in theatres.• It grossed $110,307,189 in its opening weekend in the US.• It is the highest grossing animated film of all time and 11th highest grossing film of all

time.

Synergy in promoting Toy Story 3:Pixar made the film, funded by Disney. Disney then distributed the film in theatres through Walt Disney Studios Motion Pictures and on DVD through Walt Disney Studios Home Entertainment (vertical integration). The promotion of the film was aided by Disney being able to air trailers on the Disney Channel and ABC (owned by Disney). In terms of cross media convergence, it produced a soundtrack through Walt Disney Records, as well as toys and other merchandise through Disney Consumer Products, sold through the chain of Disney stores (synergy). Disney Interactive Studios also produced the game. This led to a second version of the game being released which crossed over with a new toy line.

To be able to explain media ownership in the film industry (level 2)To be able to analyse media ownership with reference to case studies (level 3)To be able to evaluate media ownership with reference to detailed case studies (level 4)

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To be able to explain media ownership in the film industry (level 2)To be able to analyse media ownership with reference to case studies (level 3)To be able to evaluate media ownership with reference to detailed case studies (level 4)

The budget was a whopping US$250 million, which was added to by the estimated US$100 million spent on marketing the film.

Considering it only took US$282,778,100, it is estimated that the film lost Disney US$160million.

Even with all of the potential synergy of the world's largest media conglomerate, it still bombed.

What does it say about Media ownership that a company can make such a profit on one film and a loss on another?

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Key Terms:

• Vertical Integration

When a parent company owns several subsidiaries across the production and distribution process.

• Horizontal Integration

When a parent company also owns subsidiaries in the same market – usually by buying out competitors.

• Cross-media Convergence

Two different Media platforms work together to use an idea that can be promoted, but that benefits both of them. They are released simultaneously.

• Synergy

This is similar to cross-media convergence, but can include non-media products such as merchandise.