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2012

istribution
to UK film d

Universal

UK film and cinema factsheet

About Film Distributors Association

Working in film distribution

The wider picture

Licensing films to exhibitors

Film marketing and publicity

Planning a release

Acquisition

Distributors connect films with audiences

The role of distribution by Lord Puttnam CBE

Foreword by David Oyelowo

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contents

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Leaping into box-office action: Rowan Atkinson blasts back into cinemas for the October 2011 half-term in the comedy spy thriller,
Johnny English Reborn. Eight years after his first big screen appearance, the unorthodox secret agent aims to rehabilitate himself in
MI-7 by protecting the Chinese premier from a group of international assassins. Directed by Oliver Parker, the films cast
includes Rosamund Pike, Gillian Anderson, Dominic West and Ben Miller.

foreword
by David Oyelowo

I have always loved the cinema for its


capacity to bring heroes to life.

Heroes of all kinds pilots, pirates, doctors, detectives, kings and queens some possessing special powers, others with deep-rooted flaws.

It may be their eternal destiny, or they may be ordinary folk thrust into extraordinary situations. In any event, the cinema makes you want

to be the hero, to join in their larger-than-life adventures, reminding you who you are, were or could yet be.

I love working in the movies, theres no medium or experience quite like it. Ive enjoyed playing many contrasting roles from

The Last King of Scotland to Rise of the Planet of the Apes, The Help to Red Tails, with The Paperboy and others out in 2012.
Those three simple words out in 2012 are easy to gloss over or take for granted. In a way,
rightly so: what matters most are the film and the experience of seeing it.
But the very fact that youve picked up this FDA guide suggests that you have some interest
in finding out how the film industry works. Between the film and the experience lies a vital
part of our industry the distribution engine, which aims to attract you, the all-important
audience, to new releases week by week.
Distributors work hard the heroes behind the scenes? to convey every title as distinct and
compelling entertainment. This involves an array of risks and challenges, and without the skills
to meet them, thered be no film industry. Please read on.
See you at the movies!
David Oyelowo

the role of
distribution

Introduction by Lord Puttnam of Queensgate CBE,


President of Film Distributors Association

FDA/Getty Images

Movies are capable of enriching pretty well every aspect of


our lives. They retain an extraordinary power to amaze as
much as amuse us. Beyond that, they influence the games we
enjoy, the music we play, and they inspire the fashions and
advertising images that spring up all around us.
But films can have an
impact, both commercial
and social, only to the
extent that they truly
connect with their
audience. Like any other
product, films only come
to life when they invade
the consciousness of the
citizens consumers for
whom they were
intended.
It is the task of
distributors to identify
and deliver the largest
possible audience for
every film.
This is no small task, particularly when so many other
entertainment options are available both inside and outside
the home; and that is in addition to the 500 or more titles
released in UK cinemas every year. But research confirms that
most cinemagoers know in advance which film they want to
see and thats principally due to competing distributors
efforts to promote interest in the title(s) they are handling.

Tailor-made, audience-focused distribution is, and will


remain, vital to the prospects of individual films, and to the
industry as a whole, whatever the medium or format in
question. Every element of the communications and
entertainment industry has been and is undergoing
rapid change. The advent of digital in the cinema sector has
not merely resulted in a change of format, with d-cinema
succeeding the long-standing 35mm presentation, but it
has had a transformative impact. Digital has remodelled
the ways in which films are released, promoted and
consumed, and it is reshaping the kind of entertainment
centre that a modern cinema can be.

Yet a few fundamentals remain rock-solid. Sharing great


stories has always been part of human nature, and filmed
stories look, sound and feel their very best in the cinema.
During the continual changes and challenges of recent
years, UK cinema-going has been remarkably resilient. In
fact when compared to many other sectors, it has
remained positively buoyant, thanks in no small measure
to the inability of any other medium to match the
immersive experience that the cinema offers.

With this guide, you can look through the eyes (or lens!)
of a distributor and consider how you might launch a
film. What sort of business considerations would you take
into account, and what are the key decisions you must
weigh up? Its my most sincere hope that you enjoy
exploring the essential life of a film beyond its
production phase, and that this brief insight will make
you want to discover even more.

distributors connect
films with audiences

As a filmmaker, I know only too well that films do not


exist for their own sakes they only exist when they
are experienced by an audience. Sir Alan Parker CBE

More than a century after it was


invented, the cinema has
accumulated a phenomenal
heritage. Year after year, around the
world, a wonderful spectrum of
stories is created through the
camera. Audiences can experience
them at their best in the cinema,
feeling immersed in larger-thanlife adventures quite unlike
anywhere else.
Theres never been a better time to
be a film fan. The digital age brings
more choice than ever. And with so
much information available, you
may have read or heard a great
deal about actors and filmmakers.
You may be familiar with local
cinemas and many movie
websites. You may appreciate that
some films influence our culture,
shaping the ways we see ourselves
and the world around us.

What distributors do
Distribution is the highly competitive business
of launching and sustaining films in the
market place. Films dont become talking
points, or find their place in the world, by
accident. The distributors challenge is to
bring each one to market by:
identifying its audience
considering why theyd go and see it
estimating the revenue potential
across all the formats of its release
developing plans and partnerships
to build awareness of and interest in
the film
aiming to convert as much interest
as possible into cinema visits
persuading exhibitors (cinema
operators) to play the film
Like other forms of entertainment, the film
business is product-driven: the films
themselves are the main reason for buying
tickets. Theres an insatiable, deep-rooted
desire for great stories on screen as well as in
print. But today more than ever, consumers
call the shots, deciding for themselves what
information or content to receive or reject,
access or delete.

Paramount

The National Magazine Company

But did you know that, right at the


heart of the film industry, theres a
dynamic sector working to deliver
the largest possible audience to
every new release?
This is the distribution sector.

A campaign as bold as the film


itself: From a screenplay by
Steven Moffat, Edgar Wright and
Joe Cornish, Steven Spielberg
directed the groundbreaking,
digitally
animated
family
adventure, The Adventures of
Tintin (2011). Featuring motioncapture performances by Daniel
Craig, Jamie Bell, Simon Pegg and
Andy Serkis, the film reflects the
look of the original stories by
Belgian comics writer, Herg.
Daniel Craig, who also starred in
David Finchers film of The Girl
With the Dragon Tattoo and
will return as James Bond
in autumn 2012, worked to
promote his releases via fresh
interviews and magazine photoshoots (such as for Esquire
below). Meanwhile, Steven
Spielberg also directed the liveaction adaptation of Michael
Morpurgos War Horse, scripted
by Lee Hall and Richard Curtis,
and released in cinemas in
January 2012.

Times Newspapers Ltd

The film value chain


Around the world,
feature films usually
open first in cinemas.
A cinema release
remains the most
effective way to
bestow stature on
a film and create
demand to see it.
Filmmakers aspire
to have their stories
showcased in cinemas
where they have their
greatest impact and
where audiences can
share a uniquely immersive, uninterrupted experience. Great content
coupled with a great experience has always been a winning formula!
In an age when were bombarded with digital media choices, the cinema
presents films with a vital shop window. The profile raised on a theatrical
launch can endure and reap dividends throughout a films release cycle,
influencing the commercial value the film subsequently commands.
The cinema may be the first, important, link in the value chain, but its
not the only one. Audiences crave choice, quality and convenience in
every walk of life and film distributors integrated business plans must
take account of all the screens on which any given title may be viewed.
After an initial run in cinemas, films are released in fluid patterns across
a range of other formats so consumers may choose how, when and
where to watch:

The rise of digital services: For more than a


decade, films on DVD have been a highly popular
form of home entertainment (see page 35). Now
films may be accessed and watched via an
increasing range of pristine quality digital platforms,
at home and on the move. The UKs video
entertainment market is very valuable, generating
more than 5 billion year in retail sales including
computer games/accessories and DVD/Blu-Ray
discs. Newspapers including The Sunday Times (left)
and other blue-chip brand partners such as Orange
have sought to boost the digital market by offering
free downloads of movies to millions of customers.

digital home entertainment films are made available to download or stream


on-demand from online stores and are packaged for retail (DVD and Blu-Ray)

then, various forms of pay-per-view / subscription television

finally, free-to-air television. A multitude of TV channels include films in their


programming and library titles may be scheduled repeatedly year after year

In releasing films and delivering their audiences to cinemas and stores, distributors
are the vital linchpin of the value chain that drives the entire film industry.

Team effort
Creative, commercial and professional skills are needed in all branches of the film
business, including distribution. The chart on page 9 outlines the overall lifecycle
of a film:

Producer/company acquires rights to film a story or treatment


Screenplay is developed by one or more writers
Production finance and cast and crew are confirmed
Principal photography takes place, in studios and/or on agreed locations,
followed by some months of post-production, editing and scoring
Distributor develops release strategy, considers release date,
and takes delivery of a master print of the finished film

Distributors share and discuss their release plans


with:

filmmakers and producers, who are likely to


have nurtured their projects for years
through the development and production
stages

a host of external partners and suppliers such


as publicists, designers and media agencies

Distributor presents the film to exhibitors and negotiates


bilateral agreements to have it shown in cinemas
Distributors marketing campaign aims to create a want to see
buzz among the target audience and launches the film

This generic guide to UK distribution focuses on how


films are launched in cinemas.

cinema exhibitors who present the finished


films on their screens

Film prints including the British Board of Film Classification


certificate are delivered to cinemas a few days before opening
Films run extends any number of weeks subject to demand,
which may be augmented by additional marketing
Following its run in cinemas, the film is released in other formats
(home entertainment, television) and quickly becomes a catalogue title

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acquisition

As films are creative works intellectual


property rather than physical goods their
copyright is owned by the people or
organisations that produce or finance them.
Copyright systems entitle creators to receive a
fair return for the risks they take in innovation
and investment. In bringing films to market,
distributors act under license on their behalf.

UK distributors obtain 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
As in other countries, the UK has half a dozen
major distributors (directly affiliated to the
Hollywood studios) and many independent
(unaffiliated) distributors who tend to handle
films made outside the major studios. Any local
distributor of whatever ownership may compete
to pick up a film with available rights, so
competition to sign a hot property can be fierce.
When considering acquiring a new film,
distributors will look for distinguishing features
that may help sell it to audiences. Is there
something original or outstanding? A fresh idea or
hook that could be a springboard for a marketing
or publicity campaign?

Distributors recognise the importance of local product.


British audiences naturally warm to good quality
British films, Irish audiences to Irish stories (such
as The Guard, a hit in 2011), and so on.
STUDIOCANAL

A films marketability (how it can be promoted to its


particular audience) and playability (how it actually
performs in the market place) are not necessarily
the same thing. Who is the target audience who
does the film speak to most of all, plus who else
might be attracted? Do the story, characters and
situation grip the intended audience? Does the film
deliver and justify the costs of a theatrical release?

A distributors opinion on a films marketability


may, and really should, be sought even before it
goes into production. Generally its preferable for
a distribution deal to be in place before principal
photography begins. This may be viable on the
basis of a hot script, director and anticipated cast.

Not for turning: The Iron Lady reunited Phyllida Lloyd and
Meryl Streep, director and star of Mamma Mia! The Movie
(2008). Released in UK cinemas in January 2012, it is the
extraordinary story of Margaret Thatcher (British Prime
Minister 197990) and the price she paid for power. Jim
Broadbent, Richard E Grant, Anthony Head, Roger Allam and
Nicholas Farrell joined the strong cast.

20th Century Fox/Path

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The larger the production budget, the more likely


a film is to have a distributor signed up before all
its financing is confirmed; indeed, no distribution
pre-sales may make it harder to finance a new
production from other sources. In practice,
producers tend to seek finance from multiple
sources, including:
pre-sales to distributors in various
territories via a specialist sales agent
bank loans (subject to prevailing
economic conditions)
institutional investors
private individuals
beneficial tax schemes
(from HM Revenue & Customs)
public subsidies (the available National
Lottery funding for film is awarded by the
British Film Institute see www.bfi.org.uk)
The distribution deal
Distributors sign a formal contract with the
producer, sales agent or studio, specifying the
rights they hold in respect of the title. These
normally include the right to release it in UK
cinemas and promote it in all media before and
during its release. There may also be provision for
the film to be edited locally (or not) in order to

secure a particular classification. The contract will


set out how the income from the release is to be
apportioned and accounted for, and set a date on
which the distribution license expires.
Distributors normally seek to
acquire all available rights in
their particular territory,
spreading the risk and
opportunity across
multiple platforms.
So importantly,
in addition
to the
theatrical
window, the
contract usually
includes the further
right to license the film for
online viewing and to UK
broadcasters. If, however, a
broadcaster has contributed to the
financing of a film, it is likely to have
pre-secured TV rights as part of the deal,
in which case the rights available to a
distributor would extend only to theatrical
and home entertainment media.
Some theatrical distributors do not handle
distribution in other formats, but they will have
sister companies or business partners that do so.

Paramount

A note on film financing


No fixed formulae apply to film financing or
advances. Each case is affected by variables such
as the film property itself, the
script, cast and market
conditions.

Often a distributor becomes


a partner in a project,
contributing to its
development /
production costs
and later bringing
it to market.
In some cases,
the distributor
may pay an advance /
minimum guarantee
against future earnings
to the producer or sales
agent. An advance
commitment is made for
the distribution license rights
plus the costs of theatrical
prints and advertising (P&A).

Panda-monium: Kung Fu Panda 2, with Jack Black again voicing the


title character, Po, was a big hit in cinemas worldwide in 2011. The
digitally animated sequel grossed in excess of $650 million, with
around one-quarter of that total coming from the US/Canada boxoffice and three-quarters from the rest of the world. Animated films,
often created and presented in 3D, attract broad audiences to cinemas
in the UK, where the top-grossing animated film of all time to date is
Toy Story 3 (2010).

Distributors prepare reports


for the producer or rights
owner, detailing the
marketing spend, together
with forecast and actual
theatrical revenues. As laid
down in the distribution
contract, such reports are
submitted at least quarterly
in the first year following
launch and usually twice
yearly thereafter.
Market congestion
Individual distributors may
release any number
of films, sometimes just one
or two, or as many
as 2530 a year.
A typical week sees around
ten new films opening in UK
cinemas. Inevitably, with well
over 500 releases a year
competing for screen time,
media space and audience
interest, the market place is
highly competitive, churning,
chopping and changing all
too quickly. Film distribution
is a risky business!

Golden Wonder / Tayto Group / Entertainment

Entertainment

Evening Standard

Real pulling power: The Inbetweeners transferred


from TV (on E4 since 2008) to the big screen in 2011.
Directed by Ben Palmer, the movie is the self-contained,
coming of age story of four everyday 18 year-olds who
leave school and head off to Malia for their first lads
summer holiday without the parents. A home-grown
British match for the gross-out teen comedy of, say,
American Pie. The Inbetweeners Movie set a new opening
record for a British comedy, generating 13.2m at the
UK box-office in its first five days (starting with Orange
Wednesday, 17 August 2011). Its smash-hit run
continued: by the third week of release, for example,
more than 5m people had seen the film in a UK cinema.

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planning a release
analyse
compare and contrast
discuss and decide
implement
monitor and report

Every film has its own tailor-made distribution plan,


which the distributor develops in consultation
with the producers and/or studio as appropriate.
The most important strategic decisions a
distributor makes are when and how to release a
film in order to optimise its chances. Through a
combination of market knowledge, commercial
experience, statistical research and professional
judgement, distributors gauge the audience for
each film and set clear targets for the release.
Who can be convinced to buy a cinema ticket to
see it and why should they do so? Can the film be
positioned within a popular, recognisable genre?
What sort of audiences have similar films attracted
recently? When were they released?
When distributors have estimated what a film
may earn, they prepare a budget to release it
(see page 19). As with every business plan, the
goal is to recoup the costs and turn a profit.
But launching films is expensive and risky
audiences have so many other choices and in
reality, most films do not make a profit from their
theatrical runs alone.
When planning a new release, relying solely on
conventional wisdom is never an option. Early
information can be gleaned by reading the script
and from discussions with the filmmakers, but
every release is a one-off and individually
planned given current circumstances. Sometimes
final distribution plans may be confirmed only
when the finished film is available to view.

The distribution risk


Audience tastes are notoriously unpredictable and
traditional preferences may not count for much in
practice. Nobody can be absolutely sure what
makes a hit, or when and where it might happen.
Notwithstanding the best made plans, cinemagoers
discover particular films they like or dislike when
they open.
Market research may be conducted to probe
audience reactions at pre-release test screenings
or to evaluate alternative marketing campaigns
fundamental considerations for every release.
Test screenings, after which the viewers complete
questionnaires, can help the distributor to be
more confident of the expected audience or
box-office prospects.
Occasionally a film becomes a sleeper hit, playing for
longer and generating greater returns than expected.
But just because one romantic comedy or action
adventure plays successfully to a particular audience
is no guarantee that the next such release will do
likewise: it depends on the individual film and market
conditions. When planning a release, distributors
avoid pre-conceptions or assumptions and seek to try
new things, but they know its well nigh impossible to
entice people to a film in which they have no interest.
Inevitably, as its such an unpredictable, product-driven
business, each distributors earnings, market share and
profitability fluctuate year by year, reflecting the success
or otherwise of individual titles across all platforms.

Entertainment

We like it hot: Simon Curtis directed Michelle Williams


(above) as Marilyn Monroe, Kenneth Branagh as Sir Laurence
Olivier and Julia Ormond as Vivien Leigh in this delicious
account of the tense relationship between Olivier and
Monroe during the filming of The Prince and the Showgirl
(1957). Shot in London, My Week with Marilyn (2011) was
based on the memoirs of Colin Clark, Monroes assistant at
the time. Its powerhouse cast also includes Dame Judi Dench,
Emma Watson, Eddie Redmayne and Dougray Scott.

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Focus on the audience


A detailed understanding of the target audience
age group and gender, but also lifestyles, social
networks, media consumption patterns always
informs the subsequent decisions on how and
where a particular film is promoted.
Naturally the audience can vary considerably film by
film, for example from families with young children
to teenage males and/or females to older adults, or
sometimes a combination. Individual films may
appeal to people with particular interests say in
history, cars, particular locations or authors and
these groups can become important opinion
formers for a films release. Generally, UK
cinemagoers are upmarket, especially for more
specialised fare, while cinemagoing is a shared
experience with an average of 3 people per party.
Its important never to lose sight of a films core
target audience. But the distributors challenge is
always to attract as wide a spread as possible,
identifying niche interest groups too and ideally
helping a film to break out and cross over.
The most frequent cinemagoers tend to be aged
1525 for teenagers, students and young adults,
the cinema is a favourite out-of-home leisure
activity. Digital media, including social network sites,
mobiles, games, TVs and multiplex cinemas, tend to
occupy central roles in their lives they are the most
voracious media consumers of any age group.

Although a majority of 1525 year-olds visit the


cinema at least once a month, overall just a
quarter of the population goes that often. But the
cinema audience is broadening as the population
ages and diversifies, and adults aged 35+ account
for a growing share of ticket sales.
The average number of cinema visits per person in
the UK works out at 2.7 a year, up from barely one
a year at the low point of the mid-1980s. Yet this is
still a lower frequency than in other countries such
as Ireland, Australia, the US and Canada, and the
industry is working to encourage more visits.
The better a film performs at the box-office,
the more likely it is to be attracting infrequent
cinemagoers and repeat visits. Its a function of
the market that the more a film is aimed at an
audience beyond 1525s or families perhaps
an older, more discerning segment who dont
frequent cinemas as much the more
outstanding it has to be to sustain a theatrical life.
Infrequent cinemagoers tend not to come out for
the opening weekend but wait until later, raising
the challenge to distributors to sustain the run in
cinemas.
The competitive jungle
As well as the target audience, what other factors
do distributors take into account when developing
their release plans and assessing their risk?

Competition is always a primary


consideration. Which films are other
distributors likely to release at the same time

and during the following weeks especially


those targeted at a similar audience? Is there

space in the market for something different


some counter-programming? Are the
most appropriate 2D and/or 3D screens for
this film available and likely to be offered?
Projected release dates often change as
competing distributors jockey for position
week by week.

Is it an event film, a prospective mass market


blockbuster, or a specialised film for a more
discrete audience?

Is there any star power among the cast?

What were the lead stars last couple of films


and how were they received commercially

and critically? Is the film made by a name


director or producer?

Are any cast members available for


UK/international publicity or to attend a
premiere?

Will the film lead the media reviews of that


weeks new releases? This profile can be very
important for more specialised films.

Is it a film for a holiday period? If so, which season? School holiday dates
vary around the UK, and with those in other countries. What kinds of films
have been released successfully in particular slots in previous years?
Is it a film with hopes for award nominations? Contenders for the
Academy Awards, Golden Globes and Orange British Academy Film
Awards often open in the UK between DecemberFebruary, when
the annual awards season reaches its peak, although this can cause
a bottleneck in an already congested release schedule.
Is there a buzz about the film, due to its stars or makers, a 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 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 may adversely affect perceptions here.
What certificate will the film have (see the five theatrical categories
above right)? The certificate awarded by the British Board of Film
Classification (BBFC) is important as it can affect the potential audience.
Distributors submit a copy of each film to the BBFC for classification as
soon as possible, paying a fee according to the films length. Youll find
consumer advice about the content included in a panel on the films
advertising and at www.bbfc.co.uk
The BBFC celebrates its centenary in 2012.

Satisfying anticipated demand


Different releases are managed in different ways. For example, a saturation
release at cinemas everywhere may open simultaneously on 1,000 screens UKwide, playing at two or more screens per multiplex. This strategy, usually
deployed for tentpole titles such as large-scale sequels or star-led holiday
releases, helps to accommodate mass audiences eager to see a film at the
earliest opportunity.

By contrast, specialised films offer a different cinematic experience. The UK


release of, say, a documentary, foreign language film or revived classic may
comprise 25 prints or fewer. Initially, it may play in selected locations where
local audiences are known to favour such titles before potentially touring
more widely in subsequent weeks. Very exceptionally, a film might be
platformed in a single location before rolling out whatever strategy is
judged best to suit a particular release. Most films are released in the UK on
fewer than 100 prints.

London, with an increasingly diverse population of 7.5m people, accounts for


about a quarter of UK cinema admissions, although only 15% of screens are
situated in the capital.

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The digital transformation


For many years, films were released in cinemas on 35mm celluloid prints which whirred through
projectors on reels. Todays industry standard is digital, with no celluloid involved.

The digital images appear on screen in pristine


quality and do not deteriorate over time there is
no wear and tear or scratches, as was inevitable with
35mm projection machinery. Digital remastering
though time-consuming and costly enables classic
films such as Kes and The African Queen (left) to
return to the big screen looking as good as new.

For a digital release, specially encoded media files containing the film are delivered to cinemas either on
a hard drive or via a satellite link. At the cinema, the files are ingested into a powerful server and played
out through a state-of-the-art digital projector. Digital prints are significantly less expensive to duplicate
than 35mm copies, and the hard drives can be reused.
Park Circus

Park Circus

Digital cinema is transformative, involving much


more than merely a change of format. New releasing
and programming opportunities become available
to film distributors and cinema operators
respectively. Digital enables cinemas to redefine
themselves as modern entertainment centres able
to present sports, operas, live concerts, shows and
other events to local communities. This means films
must be scheduled in smarter, more flexible ways to
reach their maximum potential audience
Digital projectors may be adapted easily to show
content in 3D. 3D can enhance some films
dramatically with a spectacular, laser-sharp viewing
experience, and more and more films live-action
and animation are released in 3D as well as 2D.

Budgeting the release


As early as possible, the distributor views the
finished film and confirms the release plan.
UK distributors, who pay all the release costs
including marketing and making prints,
draw up a detailed budget covering both
the launch and sustaining of the film postrelease. The investment and projected
returns can be reassessed subject to
commercial performance week by week.

A theatrical distribution budget may be


itemised as shown opposite (page 19).

Total UK distribution expenditure can vary


from some thousands of pounds up to
4m5m per film. Worldwide, a film that
cost $100150m to produce can cost a
further $100m+ to release and as all this is
committed before any income materialises,
the stakes are high.

In co-ordinating all these campaign


elements, often for several different releases
at a time, distributors must exercise
formidable project management skills.
Whereas its possible for a fine film to get
lost in the mle without careful handling
and distinct promotion, even inspired
marketing cant save a film for which the
public has no appetite.

Cost category
Film certification fee (payable to the BBFC)
Digital cinema prints
Digital Master cost
No. digital prints in 2D and (if any) 3D
Duplication cost
Cost of encoding/encryption applications (including
generating the codes needed to unlock the digital
files in the cinema servers to enable the film to play)
Digital trailer costs
Transport to cinemas
Other digital costs / charges

Cost category continued


Sub-total () (brought forward)
Publicity
Press screenings
Talker screenings
Premiere, if any
Visiting talent travel, accommodation and
hospitality; junket venue hire
Festival screenings/travel
PR agency fees & expenses
Press kits
Other publicity costs

Other
Research screening/exit polling, if any
Additional materials (specify)
Couriers, copying, incidental expenses
Contingency

Prints in other formats (if any)


No. and cost of 35mm prints
No. and cost of IMAX prints
Trailer print costs
Transport to cinemas

Campaign production
Film poster design
Poster printing
Print advertising production
TV spots production
Radio spots production
Film trailer production
Subtitles/audio description tracks
Content for UK film website(s)
Foyer POS display items origination & print
Promotional leaflets/flyers, if any
Other production costs

Promotions
On-air media promotion(s)
Contribution to any retail partner/other promotion(s)

Total ()

Media (pre-launch, launch and sustain)


TV advertising
Outdoor advertising
Press/print advertising
Online advertising
Radio advertising
Social media profiles
Other media costs

Sub-total () (carried forward)

19

20

film marketing
and publicity

We filmmakers rely greatly on our professional


distribution colleagues to navigate the most
advantageous path for our products into and
through the brutally competitive market place.
Having worked with many distribution teams, Ive
long admired the brilliant designers who can
condense a feature film into a single poster
image, distinguishing it memorably from the
pack. Likewise the skilled media and publicity
planners, who can devise effective campaigns that
inspire people to see a particular new release.
Tim Bevan CBE, Co-Chair, Working Title Films

Complementing the distribution


plan, every film has a detailed
marketing plan.
The marketing objective is to
create visibility, raise awareness
and engage interest, cutting
through the blizzard of competing
messages.
Distributors must compete for a
significant share of voice not only
against other distributors but also
other leisure activities. However
large or small the marketing
budget, audiences must be
reached in compelling ways and in
environments where they are most
receptive to communication. They
should be persuaded that this is an
especially entertaining, must see
film. Their interest should peak as it
opens in cinemas.
Word of mouth
Social recommendation is key a
personal recommendation from a
friend, colleague, relative or trusted
online community can be the most
powerful stimulus for a cinema visit.
Pre-requisite for favourable word of
mouth are high levels of awareness
and strong interest. Negative word

of mouth is extremely difficult to


overcome. Post-release, hopefully,
a combination of positive buzz and
further advertising will give the film
legs. Even for big hits, theatrical runs
rarely exceed 68 weeks, and can
last much less. But distributors
campaigns are generally effective as
most cinemagoers know in advance
which film(s) they want to see
before setting off for the cinema.
When constructing a campaign,
distributors aim to reach as much
of their target audience as
possible, as frequently but costeffectively as possible. A variety of
complementary ad/pub
(advertising, publicity and other)
options is always considered:
Poster
The main image or artwork
distilling the appeal and
positioning of the film its stars,
genre, credits and often a tagline
to whet audiences appetites.
With often a dozen or more different
posters on display in a cinema at any
one time, distributors and their
designers must work hard to make
each one stand out.

STUDIOCANAL

Calling the shots: Richard Ayoades feature film


directorial debut was the refreshing and acclaimed
comedy drama, Submarine, released in 2011. One of
its stars, Paddy Considine, went on to direct his own
first film, the hard-hitting drama, Tyrannosaur. Starring
Peter Mullan, Olivia Colman and Eddie Marsan, it
scooped three prizes at the 2011 Sundance Film
Festival. Paddy Considine is back before the cameras
in 2012, appearing in Now is Good and Stainless Steel.
STUDIOCANAL

Film posters may be created by


the studio or sales agent (as
applicable) and rolled out
internationally or adapted for
use locally. Alternatively, they
may be devised in the UK from
scratch, depending on what
approved materials are available
and how the film is best
positioned for local audiences.

A poster is produced for every


release, in quad format (the
traditional UK size of 30 x 40,
landscape orientation) or onesheet format (the US equivalent
with similar dimensions, portrait
orientation).

Many months before release, an


initial teaser poster may be
created to announce that a film
is coming and to whet the
audiences appetite.

Distributors also provide other


display materials for cinema foyers
prime space for advertising
current and future releases such
as cardboard standees, banners,
window clings and mini-posters.
As much of this material as
possible is recycled after use.

21

22

Trailers
Distributors usually have a range of audio-visual
content to work with as they prepare campaigns,
including film clips approved by the producers;
making-of material shot on set during
production; and one or more trailers. Probably
the single most cost-effective marketing technique,
trailers play both on the big screen to a captive
audience of active cinemagoers and also online
for any interested viewers.
Full trailers, screened shortly before a film opens,
may be preceded by early teasers (typically up to
90 seconds). Specialist agencies or production
companies are briefed by local distributors to
create a trailer from the available material.
Naturally, in aiming to sell the film, they want to
include a representative glimpse of the most
dramatic sequences but, early in the production,
the editing and special effects will not be
finished. Trailer making is a filmmaking art in its
own right.
Exhibitors, who programme their own screens,
select trailers appropriate to the feature film
before which theyre played. Distributors fund the
duplication, and often the production, of trailers;
a wide release will often have 2,000 copies
circulated to cinemas. Sometimes trailers for new
theatrical releases are added to the front of
compatibly targeted DVDs too.

Online and mobile

Fizzing with networks of film fans, the internet plays a pivotal role in shaping many cinemagoers

perceptions of new releases. Most films have an official website sometimes hosted by a partner

company or social network site offering trailers, stills galleries, production information and
behind-the-scenes footage.

The web helps distributors to start building awareness of a new film at an early stage. Even before

principal photography begins, they may post updates online containing news snippets or teaser

images, seeding interest among fans. During shooting, they may gradually accelerate the flow

Walt Disney

Warner Bros.

with video diaries or blogs from the set, so the core audience feels part of the filmmaking process.
Sony

Film clips are among the webs most searched-for content, available across many sites. Ever more

user-generated material, often including film or soundtrack grabs, draws comments on video sharing

sites. Sometimes filmmakers and distributors invite ideas online and bloggers suggestions have been
known to make it into finished films!

Film distributor websites direct traffic to exhibitor sites where tickets may be purchased online.

Members of databases receive weekly email reminders of the new films opening locally and
occasionally also surveys and special offers.

The immediacy of social media


The internet being a two-way street, the moment a film is
screened, comments are shared instantly and constantly around
the world, as online communities swap opinions and feedback in a
galaxy of chat rooms.

Paramount

Not just opinions, but content too, can spread virally like wildfire
via Facebook and Twitter, which have many millions of
participants. Distributors are eager for their films to be part of the
conversation in online networks, but word of mouth or word of
click! trends ebb
and flow very rapidly.
A social media profile
has become a must
for every film!

Broadcast, ambient and print media


Media proliferation and fragmentation have given all advertisers a multitude of
options. For example, the UK has approximately 250,000 poster sites by the roadside
or railway platforms, thousands of local newspapers and radio stations (each with
their own websites), and hundreds of digital TV channels where advertising and
promotions may be placed.

Advertising placed on broadcast channels, outdoor panels and in the press is usually
the largest expenditure item on a P&A budget. Television and outdoor can deliver
ubiquity relatively high coverage and frequency to films and brands that advertise
on them.

Terrestrial television is traditionally the most effective visual means of reaching a mass
audience. But TV advertising costs, running into many hundreds of thousands of
pounds or more for a package of spots in all regions, are prohibitive for most film
releases given their potential returns.

Event films/blockbusters with top stars need heavy advertising spends to support
their wide releases. But with limited budgets for any release, distributors try to work
up fresh, inventive ways to target specific audiences. TV viewers often fast-forward
through advertising that doesnt quickly engage their interest.

When planning their advertising schedules, distributors must bear in mind that
different audiences react to advertising, and reach their decision to see a film, in
different ways. Older audiences may respond best having seen the film advertised on
television or in the press, while for younger audiences its more appropriate to
promote it online and on radio stations or bus panels.

UK film distributors currently invest 170m a year in media advertising


alone to launch and sustain their releases. Television and outdoor, taken
together, account for 70% of expenditure. Entertainment companies overall
spend more than 0.5 billion on advertising each year.

23

24

Publicity
As readers tend to accept independently-written news items more
readily than paid-for advertising, editorial coverage of a film can be
highly persuasive. But column space and airtime are limited, and the
subject of heavy competition in their own right.

ShortList/20th Century Fox

Film publicists compile press kits for journalists, containing cast and
crew lists, biographies, notable facts about the production and a
synopsis. Its very important to have a selection of fine images from
the film approved for publicity use, taken during production by a
specially hired unit photographer. All these materials are disseminated
via online pressrooms and distributors pro-actively devise hooks or
angles for feature articles and media promotions. What are the key
themes of the film and what will get people talking about it?
ShortList/Paramount

The publicity team, frequently supported by specialist agencies, arranges media


interviews with available members of the films cast, and chaperones artists visiting
the UK for junkets or premieres. Creative talent and filmakers tend to have very
tight schedules and they may only be in the UK for a few hours. Many digital
channels and outlets are interested in entertainment news and features the more
the films talent is willing and able to support the worldwide publicity effort, the
better!

Warner Bros.

Screenings for national critics are normally held on the Friday, Monday and Tuesday
before a film opens to the public; those for journalists with longer lead-times are
scheduled further in advance. Although positive reviews are no guarantee of
commercial success, critics plaudits can still be important in helping to distinguish
and champion certain films, and extracts are often included in advertising.
Universal

Weve got it covered: Captain America and Rise of the Planet of the Apes were among the summer 2011 action thrillers, skewing towards male audiences, promoted via the cover of ShortList, the free weekly mens magazine.
That summer, Paul Feigs Bridesmaids and Todd Phillipss The Hangover: Part II were two of the comedies that achieved blockbuster status and some plaudits from reviewers.

Awards buzz: The build up to the major awards (see page 17) is an important time for publicists promoting the films vying for consideration. The season of

mounting speculation lasts up to five months before the Oscars, and costly trade campaigns unfold to secure voters attention to particular titles, performances

and craft contributions. Shortlists of nominations are announced 34 weeks prior to the presentation ceremonies, which deliver global profile and prestige.

Set visits: As with any product development, the film production process is conducted confidentially behind studio doors or on guarded locations. Film sets are

20th Century Fox

Flying high: Set in Brazil, Rio (2011) was a colourful, energetic animated adventure written and directed by Carlos Saldanha, a creator of the smash-hit
Ice Age series. With the fourth Ice Age film coming to cinemas in 2012, a UK promotion in Gap clothing stores celebrating Rios release offered as its
exceptional star prize the chance to record a character voice track for Ice Age 4.

normally strictly closed to the public. But distributors may have valuable opportunities to visit the set, especially of UK-based productions, along with key
journalists, exhibitors or marketing
partners. In making such visits,
arrangements will be made with the
unit publicists and producers.
Promotional partnerships
Depending on the films theme and
target audience, the distributor will
endeavour to arrange promotional
partnerships. Such tie-ins generate
displays for the film in places where
conventional advertising cannot
reach such as shops, restaurants or
on packs. They also enable
customers to interact with the film
characters by collecting premium
items or entering a competition.
Importantly, too, tie-in advertising
under license by a promotional
partner or a brand with product
placement in a film can add
substantial weight to the
distributors own campaign.

25

26

Merchandising
Many releases, particularly family films, have
merchandising programmes co-ordinated by
the film company or an external consultancy.
Manufacturers may be licensed to use approved
logo devices, images or character likenesses on
specific products, normally in exchange for an
advance fee set against subsequent royalty
payments.
Tie-in merchandise can embrace toys (below),
action figures, ringtones, clothing, stationery,
calendars, anything. Films regularly have official
soundtracks, games and books, which can
generate significant revenues in their own right.
Media promotions, placed on an appropriate
channel or publication, can make effective
use of film merchandise or location holidays
as prizes. Such exposure helps
to stretch the film campaign
and create additional
talking
points.
Walt Disney

Occasionally, a film becomes a ubiquitous event,


saturating the media as well as appearing in advertising,
partner campaigns and other outlets. It may develop
into a popular cultural phenomenon and become an
international news item. That audiences worldwide can
take a new set of characters to their hearts, often within
a very short period of time, indicates how powerful and
influential a storytelling medium the movies can be.
Premieres and experiences
Perceived as glamorous and exclusive, but
painstaking and expensive to organise! Distributors
publicists organise premieres as an official launch
for a film, reflecting an event stature and providing
a platform for photo opportunities and red carpet
interviews. At premieres, fans can enjoy exceptionally
close access to film stars and collect autographs
and photos.

Star-studded premieres and after-show


parties are covered by celebrity publications
and news media, and often transmitted
worldwide.

A gala screening in aid of charity can raise a


substantial sum via ticket sales and donations,
while from the distributors professional
perspective the main goal of a premiere is to
give the film a high-profile, entertaining
launch, boosting the all-important buzz factor.

Most premieres in the UK around 50 a year


take place in Londons Leicester Square, which
has recently had a substantial make-over.

In addition to premieres, distributors may


consider other experiental events where
fans and visitors
can interact with
the film characters
or situations, for
example via
touring displays
in shopping
centres or themed
presentations at
movie conventions.
Ideally these
activities are bigscale but essentially
simple, and able to
be delivered well
at short notice.

Entertaining the generations: Lego is a classic brand that refreshes its mass appeal by launching
new ranges themed to family movies, including Harry Potter, Star Wars, Cars 2 and Pirates of the
Caribbean (above). Danish-based Lego accounts for as much as 7% of global toy sales.

Preview screenings
A useful way to fuel pre-release word of mouth among
audience segments that the distributor wants to motivate to
see the film. Preview screenings are targeted carefully, with
tickets offered to readers of a particular print/online
publication, or listeners of a radio programme, matching the
films core audience.
Sometimes a film is previewed widely to the public a few days
before its official release date. This is a way to satisfy demand
to see it as soon as possible and boost the opening box-office.
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 presently at Sundance, Berlin, Cannes,
Venice and Toronto.
These festivals, 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 films poster can add prestige
but may also pigeon-hole it as arty;
a high-profile platform where films can be showcased
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 (below) in May, which accommodates many premieres and junkets. Trade
papers publish daily editions in print and online for industry members and journalists. Other
important events in the international calendar include the American Film Market in Santa
Monica, and the Mercato International Film e Documentario (MIFED) in Milan.

Dozens of film festivals


take place around the
UK, with a variety of
themes and purposes.
The top festivals, aimed
mainly at public
audiences in Edinburgh
(summer) and London
(autumn), showcase a
panorama of new cinema
from Britain and around
the world but neither
has a market attached.

FDA

27

28

Tracking and refining


Research companies working for the distributors track
levels of awareness among younger/older, male/female
audiences as a release date approaches. With four or
five weeks to go there may be low awareness: each
campaign is effectively a new product launch,
generally running in the media for a few intense weeks.
Distributors hold weekly marketing meetings,
reflecting on the films they have in current release and
progressing plans for forthcoming titles. Some aspects
of marketing, such as a major promotional partnership,
can require a years lead-time, while others, such as
running extra advertising to capitalise on good reviews
or awards nominations/wins, may be turned around at
very short notice.

Film Education/FDA

Inspiring young audiences


The film industry reaches out to young people the next generation of filmmakers and film
audiences in various ways. For example, distributors may commission study resources themed to a
new release, which is then offered to primary and secondary teachers as appropriate, for use in class.
An organisation named Film
Education also promotes
schools use of local cinemas
by arranging screenings for
school parties, special events
such as the annual National
Schools Film Week, and
teacher training seminars.
Schools can also join a national
Film Club scheme which
supports film screenings on
DVD out of lesson time.
Film Education

Film Education/FDA

Warner Bros.

Paramount

Accessible cinema
Hundreds of films are released each year with digital subtitles
and audio description. New titles are made available to cinemas
every week as a service to cinemagoers with less than perfect
sight or hearing. Some film trailers are presented online in
accessible formats too.
Paramount

20th Century Fox

Walt Disney

Whenever you see these symbols (above) on a film advertisement,


youll know that subtitles and audio description tracks have
been produced for its release. Around 700 screenings of
subtitled films, and many thousands of shows with audio
description, take place in UK cinemas every week.
For current information, please visit: www.yourlocalcinema.com

Entertainment

Sony

Do you want to have an adventure?: Hugo Cabret (Asa Butterfield) is a 12 year-old orphan living within the walls of a Paris
railway station. His very survival depends on secrecy and anonymity, but his destiny changes when he gets engulfed in a mystery
involving young Isabelle, a heart-shaped locket, a robot, a fierce station master and his late father. A 3D family adventure, Hugo
was made by award-winning director Martin Scorsese, usually associated with dramatic thrillers such as Shutter Island (2010)
and The Departed (2006). Released in cinemas for Christmas 2011 and subsequently on other formats, Hugo made extensive use
of studio facilities and locations in the UK as well as Paris. Its fine cast has Ray Winstone, Sir Ben Kingsley, Sir Christopher Lee,
Sacha Baron Cohen, Emily Mortimer and Jude Law. Meanwhile, Anonymous (also 2011) is a spectacular thriller, brimming with
mystery and intrigue, from director Roland Emmerich, best known for his apocalyptic disaster movies, 2012 (2009) and The Day
After Tomorrow (2004). Set in the reign of Elizabeth I, Anonymous deals with who actually wrote the plays of William Shakespeare.
Its stars include Rhys Ifans, Jamie Campbell Bower, David Thewlis, Sir Derek Jacobi and Vanessa Redgrave.

29

30

licensing films
to exhibitors

A key consideration in any distribution plan is


where the film should play. Which sorts of cinemas
and screens are most appropriate? Given the intended
audience, how can the theatrical release achieve its
greatest impact? How many screens and prints are
likely to be sustainable?

Every theatrical release is effectively a


joint-venture: the distributor supplies the
film, the exhibitors provide the screens,
and the arrangements are reviewed from
week to week. Like all retailers, cinema
operators must be persuaded to stock
the product. Distributors screen their
forthcoming titles for cinema bookers,
discuss release dates and make
marketing campaign presentations.
The distributors sales and marketing
strategies go hand in glove, with the
films target audience kept front of mind.
For each film, the sales team negotiates a
confidential license agreement bilaterally
with each exhibitor interested in playing
the film. Under English law, the
maximum booking period for a new
release is two weeks, after which, by
mutual agreement, the film may
continue to play week by week if it is
drawing a significant audience.
Many cinemas aim to show a broad
spectrum of titles. Others may specialise
in particular segments of film according
to their catchment area. Potential
blockbusters tend to be booked into
every available multiplex simultaneously,
while for smaller releases, particular
screens are likely to be identified and the
release nurtured carefully week by week.

Walt Disney

When we are put to the test, it is the one thing we must always be: Brave is the
2012 release from the Pixar team behind Toy Story 3 (2010), Cars 2 (2011) and a
string of other much-loved animated blockbusters. Set in a rugged, mythical
Scotland, Brave is the tale of impetuous Princess Merida, who pursues her passion
for archery against her parents will and inadvertently unleashes a danger that
jeopardises her fathers kingdom. Among the stars in the voice cast are Kelly
Macdonald (as Merida), Emma Thompson, Robbie Coltrane, Billy Connolly and Julie
Walters. A full year prior to its UK cinema release, a teaser trailer had already
notched up millions of viewings online.

Print management
Distributors technical managers arrange for a
print to be despatched to each cinema playing
the film. As films are locked (completed and
signed off) ever closer to their release dates, so
the time available to make and transport prints
gets tighter. Strict quality control procedures are
applied to ensure the film directors intentions
regarding colours and tones are matched.

For most screens, now digitally equipped, a hard


drive is despatched and the data are ingested into
a server connected to a digital projector. These are
completely different machines from the 35mm
projectors which they have largely replaced. The
screens content for each playweek can be loaded
in advance to run at pre-programmed times.

A quite different procedure applies where IMAX


(large-format) prints are needed or 35mm
capacity is retained. These celluloid prints are
delivered broken down into reels contained in
sealed cans. On arrival at the cinema a few days
before first playdate, the reels are physically
joined together and laced on to the projectors.

Security protocols adopted across the industry


ensure that film prints are kept safe throughout
the theatrical run. After use, the hard drives are
returned and reused. Eventually most celluloid
prints are destroyed under supervised conditions
with as much material as possible recycled. A
print is usually archived for future generations.

31

32

No second chances
A film can only be launched once. Its first
weekend in cinemas is crucial to further progress,
because if it is deemed to have opened below
par, it is likely to lose screens or switch to screens
with smaller capacities very quickly.
The distributors marketing effort builds up to the
opening weekend, which normally draws by far
the largest audience of any weekend in the
theatrical run. Its quite common for a film to
generate 30% or more of its entire box-office
during the first three days of release. Although
films conventionally start in UK cinemas on
Fridays, distributors quite often open on other
days or run previews the weekend before.
Around 60% of cinema visits take place over
the weekend (FridaySunday), with the other
four weekdays accounting for 912% each.
Monday is traditionally the least busy
day; Orange Wednesday has become the
busiest weekday. Courtesy of Rentrak, you
can keep track of the top films at the UK
box-office every week via FDAs website,
www.launchingfilms.com, and elsewhere.
Distribution plans usually assume that the
revenues and number of screens on which a film
plays will decline, often rapidly, as competing
titles are launched in successive weeks. But such

plans are necessarily flexible: better than


expected grosses may lead to a quick investment
in some extra advertising and the film may even
be scheduled into more screens than on its
opening weekend. An impressive opening frame
with a box-office running into millions can
become a news story.
Box-office returns
Since every film is its creators intellectual
property, the prints are rented to, or hired under
license by, the exhibitors, rather than being sold
outright as with most packaged or manufactured
goods. Exhibitors, many of whom have long used
computerised box-office/ticketing systems,
submit a weekly return for each title, indicating to
its distributor how many tickets were sold and at
what price. Cinema ticket prices are always set by
the individual exhibitor.
Box-office takings the gross receipts including
VAT are often reported in the press. But the
sums that distributors actually earn are
substantially less than these figures. Revenue
from ticket sales is normally shared between the
distributor and exhibitor. The percentage each
party takes varies film by film and week by week.
Very generally, UK distributors receive 2540% of
the gross. So, if a film grosses 5m in cinemas, its
distributor may eventually collect around 1.5m,
allowing for the deduction of VAT which

Golden boy: As well as


appearing in Captain
America, My Week with
Marilyn and The Devils
Double (in two chilling
roles) in 2011, Londoner
Dominic Cooper also
voiced a character in the
3D animated adventure,
A Turtles Tale (left). He
has a strikingly different
thriller, Abraham Lincoln:
Vampire Hunter, set for
release in 2012.

Icon

exhibitors must pay for each ticket sold. This net


share is traditionally known as the distributors
rentals.

STUDIOCANAL

Out of the net share, the distributor aims to


recoup any minimum guarantee plus the
P&A costs incurred in releasing the film.
Any outstanding balance is then shared
with the producers according to a preagreed formula set out in the distribution
contract. Alternatively, the distributor may
simply retain a distribution fee, with all net
proceeds remitted to the producers.
Distributors do not participate in
exhibitors revenues from advance
booking fees or the drinks,
confectionery and popcorn sold in
cinema bars and foyers, or in any
proceeds from screen advertising.
Distributors businesses depend
on the income they receive from
licensing content.
The hold-over challenge
Computerised till systems enable the
performance of any film, in terms of ticket
sales and advance bookings, to be tracked
hour by hour. On Monday morning, with
the weekends box-office takings collated,
the distributors sales team discusses with
each exhibitor the hold-over of current
releases for a further week from Friday
(four days later).

A vital fixture in the working week, these bilateral negotiations take


into account:
all the new releases coming into the market
any previews planned for the coming weekend, intensifying
the competition for the available screens
the screen average (the average box-office gross receipts
per screen) of every film on current release, with only those
ranked at or near the top likely to retain screens

Dogwoof

Sustaining a release week by week, and keeping it in a screen with


appropriate capacity, is one of the key challenges in such a fastchurning market place. Films can be years in the planning and
production phases, and then barely a few weeks in cinemas.

Universal

Screen legends: The late, great Ayrton Senna and Bobby Fischer were both world champions in
motor racing and chess, respectively. Documentaries made for the cinema, such as Asif Kapadias
Senna and Liz Garbuss Bobby Fischer Against the World (both 2011) can captivate audiences as
tightly as a suspense thriller.

Competition beyond
other films
During the year, films in
cinemas face competition
from major sports events
such as the Olympics, World
Cup or Wimbledon
(especially when theres
strong home interest!);
massively popular TV shows
such as the live finals of The
X-Factor, Britains Got Talent
and Strictly Come Dancing;
and the launch of a hot
PC/video game.

The weather can also be a


factor: very hot
temperatures which entice
people outdoors, or
extreme winter conditions
with the opposite effect,
will affect any titles
commercial destiny from
day to day. As leisure
experience venues, cinemas
compete with restaurants,
wine bars, clubs and
shopping malls as well as
entertainment options in
the home.

33

34

the wider picture

The UK is an important hub for both film production


and consumption. Cinemagoing as a form of quality
escapist entertainment has proven to be resilient
during times of economic downturn.

The global filmed entertainment business (all


forms of consumption) has annual revenues of
approximately $100 billion. The UK is one of the
worlds largest filmed entertainment markets with
a 7% share, behind the US/Canada (41%) and
Japan (9%). Significant growth potential remains,
especially in large markets such as Brazil, Russia,
India and China, and of course analysts expect the
rising trend towards online consumption of films
and other content to continue.
The film industry has never been one to stand
still. Over the last century, new media
technologies have successively opened up fresh
ways to make, share and market films.
Many films secure their production finance from
more than one source. The US studios may share
the costs of a big production or split the
distribution rights between, say, the US/Canada
(domestic) and the rest of the world
(international). Some films are licensed piecemeal,
territory by territory; others are handled by the
same company via a network of offices
worldwide. For local distributors, dubbing or
subtitling may be an additional release cost.
Accelerating distribution patterns
Traditionally, films would open first in US cinemas,
then roll out gradually in other countries. Its now
common for films to earn more internationally
than domestically, another trend that will endure.

In todays digital world, in an effort to capitalise


on global publicity and combat piracy, there is
often no gap at all between the US and
international releases as more and more films
open practically day and date in many parts of
the world. With master prints arriving in each
country ever closer to launch date, such
releases represent huge logistical and technical
exercises for the distributors involved.
Economic multiplier effects
With box-office ticket sales currently worth
more than 1 billion a year, the UK is the
leading cinema market in Europe and one of
the most valuable in the world after the
US/Canada. In addition to the UK, cinemas in
the Republic of Ireland yield annual box-office
receipts equivalent to about 100m.
When you factor in the extra spending during a
cinema visit on food, drink, travel and other
items, the theatrical market alone pumps well
over 3 billion a year into the UK economy.
The performance of British films here in their
local market can have a significant influence on
the attention they receive and their commercial
prospects overseas. Nevertheless, releases that
perform well in one countrys cinemas will not
necessarily do well in all countries, and may
need to be positioned and marketed differently.

Distributors expert knowledge of local tastes,

cultural sensitivities and market conditions

guides a film through its openings around the


world.

Cinema release boosts subsequent prospects

Although most films dont recover their

production and launch costs from the theatrical

release alone, there are other opportunities in

the business model. In fact, the cinema box-

office constitutes just over a quarter of overall

filmed entertainment revenues.

With a titles profile and stature established,

significant and much needed income may be

derived from the release for home

entertainment. This is well established as the

largest slice of the film revenue pie, currently

yielding around 1.5 billion of gross value a

year. DVD or Blu-Ray discs remain the leading

formats for home viewing but there is more and

more inter-operability between digital formats.

Indeed, further big shifts in home film

consumption patterns are anticipated as the

increased uptake of internet-enabled

televisions opens up the potential for direct

online delivery of films to TVs and other

devices. As viewing on physical media (discs)

continues to dip over time, downloading /

streaming on demand will increase.

35

36

The third slice of the film revenue pie


television accounts for just over
1 billion of gross value similar to
that of cinemas. Licenses to pay-TV
channels currently account for just
over half of this value, while those to
other (free-to-air) channels deliver
the rest. Its important to distributors
that TV stations acquire a broad
range of films during the year and
that the publics widespread interest
in the world of film along with
other leisure pursuits is reflected in
TV programmes.
Older films can deliver strong ratings
on television when scheduled to
coincide with the cinema release of
a new sequel. Some films, especially
in the action or horror genres, may
perform better, relatively, in the
home entertainment arena than
in cinemas.
Notwithstanding the haemorrhage
from film theft (see opposite page),
cinemagoing has been positively
affected by new digital media
formats. Most films that succeed
theatrically go on to do well
throughout their release cycle
the relationship is symbiotic, the
audiences complementary.

Warner Bros.

Global phenomenon: The world premiere of Harry Potter and the Deathly Hallows:
Part 2, held in Londons Trafalgar Square on 7 July 2011, had worldwide media
coverage including live streaming of the red carpet arrivals on an official YouTube
channel. The eighth and last in the sensationally successful series of British films
that began in 2001, it quickly amassed the biggest box-office of them all, due partly
to its release in digital 3D as well as 2D and IMAX formats. A behind-the-scenes
tour revealing The Making of Harry Potter opens in 2012 at the vast studio
complex in Leavesden, near London, where the series was produced please visit
www.wbstudiotour.co.uk

Intellectual property theft


So-called film piracy but actually just
a form of theft is of great concern to
people employed in the entertainment
industry.
Although its sometimes difficult to
see, especially when transacted via
computers, piracy feeds organised
crime networks to the tune of
hundreds of millions of pounds a year.
It also cheats people of the full viewing
experience and can reduce local jobs
and future investment. Without
revenues via distribution, further films
simply cant be made.

Discover more at:


www.copyrightaware.co.uk
www.fact-uk.org.uk
www.allianceagainstiptheft.co.uk
www.findanyfilm.com
You can also report film piracy anonymously at any
time. Call Crimestoppers on 0800 555 111 or visit
www.crimestoppers-uk.org

Love cinema? Hate piracy: These images are from the shoot of FDAs latest
anti-piracy trailer, which was written and directed in 2011 by Jae-ha Myung,
a student filmmaker from the National Film & Television School. Called The
Last Cinema, the piece imagines a dark near-future world in which film theft
has rendered the shared experience of cinema a thing of the past.

FDA/NFTS

Distributors take steps to protect the


security and integrity of the properties
they are releasing. Its a criminal offence
to record a film from the cinema screen
onto a mobile phone or other device
and rightly so how would you feel if it
was your work being copied and
exploited for criminal gain without
your permission? But films remain
especially vulnerable to illegal copying
during the early or pre-release stages
of their existence, and pirated copies
may be disseminated very quickly via
file-sharing websites and on DVD.

Tangled webs: A Separation (2011), written and directed by Iranian, Asghar


Farhadi, dealt with the dilemmas facing a couple deciding whether or not to
leave Iran for Europe for the sake of their daughter, Termeh. The films realistic
portrayal of human conflicts attracted awards and acclaim, including from
Mark Kermode on Kermode and Mayos Film Reviews, broadcast weekly on BBC
Radio 5 Live and available online as a podcast. Films from dozens of countries
are launched in UK cinemas each year.

37

FDA/NFTS

Artificial Eye

38

working in film
distribution

A challenging career releasing films in a fastmoving market place how does that grab you?

The film distribution sector is small, considering the


scale, profile and influence of its output. Fewer than
500 people work in UK theatrical distribution about
1% of the film/cinema industrys total workforce
although people working at media, PR and design
agencies collaborate closely on the planning and
execution of their clients film campaigns.

Acquisitions

Soda

Digital rights management


A distributors managing director normally supervises a
small staff with specialist roles:
Marketing &
promotions

Finance &
accounting

Legal & business


affairs

Sales
Administration

Publicity &
media relations

Technical

In some ways, these departments function similarly


to their demand-side
counterparts in any industry,
seeking to work as sustainably
and efficiently as possible.
But for film distributors, the
products they handle are
among the most thrillingly
creative, emotionally charged,
technologically advanced and
hotly anticipated anywhere
see the selection on the right!
Sony

eOne

Icon

Eros

Eros

39

40

Diversity fundamentally good for business


The UK today is made up of many communities.
Its not just desirable, its essential, for film
distributors to stay in tune with audiences tastes
and wider culture and society, and to appreciate
peoples differences as well as their similarities.
Distributors strive to recruit from as wide a talent
pool as practical so that their companies remain
competitive in the future. As opportunities arise,
considering suitable candidates with various
perspectives and backgrounds helps distributors
to remain lively hubs of contemporary ideas.
Sharpen your skills
Distributors offices often contain stacks of film
scripts. Each one is read carefully, either because
the project is being considered for acquisition or
because the film is already in production and a
release campaign is being prepared. Being able to
appreciate and evaluate a script is an important
skill read widely among different writers and
genres to get into practice.
Good experience for a film industry marketing
position may be gained at an advertising or
media planning agency, especially by working
with a film or entertainment client, or by projectmanaging in another area of intellectual property.
As a marketing team member, youd be a bold,
creative thinker and a fast, careful worker, able to
justify your plans to colleagues and those
involved in the films production. Lots of ideas and
sound judgement are called for when developing

both the creative and media elements of a film


campaign, and decisions are carefully evaluated.
If youre into design, why not consider movie
posters, an art form in themselves. But youre
unlikely ever to have a completely free hand
depending on the film stars, there may be tight
restrictions on what can and cant be done, and
there is sure to be a list of mandatory elements
such as credits to include in a particular order or
style.
For publicity, prior experience as a journalist or
press officer is useful. No two days are the same,
but you should be able to write succinctly and
imaginatively, and to remain level-headed under
pressure. Knowledge of todays evolving media
landscape is crucial, as are good professional
relationships with journalists and TV producers.
Sometimes distributors need specialist public
relations or event management expertise to help
arrange a premiere or a junket, and external
agencies may be assigned to a particular project.
Sales staff, who deal with the licensing of films to
exhibitors, use various strategies depending on
the film and the agreed scale of its release. Clear
commercial instincts, cool negotiation skills,
absolute discretion and the ability to get on with
a range of customers are vital attributes.
Key administrative roles include invoicing
exhibitors or paying suppliers; ordering and
checking film prints, trailers and posters; and

arranging for materials to be delivered to the


right place at the right time. You must be well
organised with lots of drive and stamina.

If youre working on the technical or operational


aspects of a release, youll need current
knowledge of digital formats, 3D and IMAX
presentation, servers and their storage capacities,
and laboratory processes. Its vital that films are
supplied for exhibition on time and in superlative
quality.

Getting started
As you would expect, competition to break into
the film industry is fierce. Being passionate about
films is a great start. But its only a start, not
enough on its own.

The distribution business offers relentless yet


rewarding work and sheer tenacity is an important
quality in itself. If youre really determined, keep at it!
Note how and where different genres of film are
advertised and discussed, and on which local
screens they tend to play. Try to keep informed
about media trends and developments as well as
the films themselves.

Some distributors employ runners and holiday relief


to help out, while from time to time others offer
work placements. Inevitably, vacancies in a small
sector like distribution are relatively few and far
between. A digest of placement opportunities is
posted at FDAs website, www.launchingfilms.com

It may also help to keep an eye on


publications where media jobs and
placements are advertised. A little
relevant experience can count for a lot.
Once youre in and have shown your
aptitude, you may find that training
courses are offered to help refine your
knowledge and skills. Sometimes, in
due course, opportunities arise to work
in head offices or affiliates overseas.
For anyone who is in,
or thinking of getting into,
the creative industries,
Skillset exists to support
UK-wide workforce training
and skills development.
Visit www.skillset.org
As many filmmakers are quick
to point out, the vital blueprint
for a film is its screenplay. FDA
commissions training sessions
to help distributors refine their
script reading skills. We work
with training experts The
Script Factory: more at
www.scriptfactory.co.uk

Best of luck.

Warner Bros.

Warner Bros.

A Game of Shadows: Guy Ritchie directed Robert Downey Jr. and Jude Law in a second big-screen Sherlock Holmes thriller, shot in London for cinema release at
Christmas 2011. With schools, universities and many workplaces on holiday, this is a peak period for cinemagoing (UK cinemas are open every day except Christmas
Day). Other treats lined up for a spectrum of audiences during the festive season: Arthur Christmas, Happy Feet 2, Puss in Boots, Hugo, Alvin and the Chipmunks:
Chipwrecked, Mission Impossible: Ghost Protocol, The Girl With the Dragon Tattoo, and more.

41

42

about Film
Distributors
Association

FDA is the trade association for UK theatrical


distributors. Films released by our member
companies account for 96% of UK cinema
admissions.

FDAs mission is to give our member


companies and other contacts the generic
support they need to make the most of their
individual business opportunities.
What we do
FDA has a busy work programme including
audience research, sector training and one
voice representations on behalf of our sector
where appropriate. We produce editorial
planning tools for the media, such as central
schedules of pre-release screenings for critics
and preview events for other journalists.

FDA

As well as this Guide, we also publish a


Yearbook and some best practice guidelines.
Under FDAs
auspices, senior
representatives of
our member
companies meet to
discuss matters of
generic (noncommercial) interest
to the sector and the
industry as a whole.
We promote the cinema line-up for the next
season via media supplements (above right),
online vodcasts (right) and compilation trailers.
With launch events hosted by Alex Zane (above)
and others, our campaigns motivate a range of
audiences to consider extra cinema visits.

FDA

FDA is actively engaged in the fight against film


theft, which threatens the jobs of people
working in the film business here in the UK and
restricts the choices available to audiences. We
work closely with the Federation Against
Copyright Theft (FACT) and other industry bodies
such as the Alliance Against Intellectual Property
(IP) Theft, the Creative Coalition and the Industry
Trust for IP Awareness.
Were also a member of organisations such as
AIM (All Industry Marketing for Cinema), the
British Screen Advisory Council (BSAC), the
International Federation of Film Distributors
Associations (FIAD) and the European Digital
Cinema Forum (EDCF). And we are proud to be a
long-standing sponsor of the UKs National Film
and Television School whose graduates populate
the crews of many films released in cinemas.

FDA

FDA

43

44

Dogwoof Ltd. > www.dogwoof.com


Unit 211, Hatton Square Business Centre, 16-16a Baldwins Gardens, London EC1N 7RJ | Tel: 020 7831 7252

Artificial Eye Film Co. Ltd. > www.artificial-eye.com


2022 Stukeley Street, London WC2B 5LR | Tel: 020 7240 5353

FDA members

BFI

Entertainment One UK Ltd. (eOne) > www.entertainmentone.co.uk


120 New Cavendish Street, London W1W 6XX | Tel: 020 7907 3773

Entertainment Film Distributors Ltd. > www.entertainmentfilms.co.uk


Eagle House, 108110 Jermyn Street, London SW1Y 6HB | Tel: 020 7930 7744

Eros International Ltd. > www.erosentertainment.com


Milner House, 13 Manchester Square, London W1U 3PP | Tel: 020 7935 2727

Icon Film Distribution Ltd. > www.iconmovies.co.uk


Charlotte Building, 17 Gresse Street, London W1T 1QL | Tel: 020 7927 6900

Metrodome Group plc > www.metrodomegroup.com


Garfield House (2nd Floor), 86-88 Edgware Road, London W2 2EA | Tel: 020 7535 7300
Momentum Pictures > www.momentumpictures.co.uk
20 Soho Square (2nd floor), London W1D 3QW | Tel: 020 7534 0400
Paramount Pictures UK > www.paramountpictures.co.uk
12 Golden Square, London W1A 2JL | Tel: 020 7534 5200
Park Circus Ltd. > www.parkcircus.com
1 Park Terrace, Glasgow G3 6BY | Tel: 0141 332 2175
Path Productions Ltd. > www.pathe.co.uk
6 Ramillies Street (4th floor), London W1F 7TY | Tel: 020 7323 5151

Reliance Big Entertainment Private Ltd. > www.reliancepictures.co.in


2628 Hammersmith Grove (4th floor), London W6 7BA | Tel: 020 8834 1250
Revolver Entertainment Ltd. > www.revolvergroup.com
48-49 Princes Place, Holland Park, London W11 4QA | Tel: 020 7243 4300
Soda Pictures Ltd. > www.sodapictures.com
17 Blossom Street, London E1 6PL | Tel: 020 7377 1407
Sony Pictures Releasing > www.sonypictures.co.uk
Sony Pictures Europe House, 25 Golden Square, London W1F 9LU | Tel: 020 7533 1111
STUDIOCANAL Ltd. > www.studiocanal.co.uk
50 Marshall Street, London W1F 9BQ | Tel: 020 7534 2700
Twentieth Century Fox Film Co. Ltd. > www.fox.co.uk
Twentieth Century House, 3132 Soho Square, London W1D 3AP | Tel: 020 7437 7766
Universal Pictures UK > www.universalpictures.co.uk
Oxford House, 76 Oxford Street, London W1D 1BS | Tel: 020 7307 1300
Verve Pictures Ltd. > www.vervepics.co.uk
Kenilworth House, 79-80 Margaret Street, London W1W 8TA | Tel: 020 7436 8001
Walt Disney Studios Motion Pictures, UK > www.disney.co.uk
3 Queen Caroline Street, Hammersmith, London W6 9PE | Tel: 020 8222 1000
Warner Bros. Entertainment Ltd. > www.warnerbros.co.uk
Warner House, 98 Theobalds Road, London WC1X 8WB | Tel: 020 7984 5200
The Works UK Distribution Ltd. > www.theworksmediagroup.com
Fairgate House (5th floor), 78 New Oxford Street, London WC1A 1HB | Tel: 020 7612 1080

Bauer

Future Publishing

45

46

film everywhere
Here are a few UK websites you may like to explore, depending on your particular areas of interest:
Accessible cinema: > www.yourlocalcinema.com
Alliance Against IP Theft: > www.allianceagainstiptheft.co.uk
Annual film awards round-up: > www.filmoftheyear.co.uk
BBC Films: > www.bbc.co.uk/film
British Academy of Film and Television Arts: > www.bafta.org
British Board of Film Classification: > www.bbfc.co.uk
British Federation of Film Societies: > www.bffs.org.uk
British Film Institute: > www.bfi.org.uk
British Screen Advisory Council: > www.bsac.uk.com
British Video Association: > www.bva.org.uk
Cinema Exhibitors Association: > www.cinemauk.org.uk
Cinema and Television Benevolent Fund: > www.ctbf.co.uk
Coming soon to UK cinemas: > www.moviepreviewguide.com (right)
Department for Culture, Olympics, Media and Sport: > www.culture.gov.uk
Fastest way to find any film in any format: > www.findanyfilm.com (above right)
Federation Against Copyright Theft: > www.fact-uk.org.uk
Film 4: > www.film4.com
Film Club: > www.filmclub.org
Film Education: > www.filmeducation.org
Film London: > www.filmlondon.org.uk
Free preview screenings: > www.seefilmfirst.com
Industry Trust for IP Awareness: > www.copyrightaware.co.uk
National Film and Television School: > www.nfts.co.uk
Producers Alliance for Cinema and Television: > www.pact.co.uk
Rentrak: > www.rentrak.com
Skillset: > www.skillset.org

A wider range of links and information is available at FDAs website, www.launchingfilms.com

findanyfilm.com

FDA

UK film and cinema factsheet

Every person watches an average of 81 films a year. The vast majority (around 80%) of these viewing occasions are when films are
shown on television, especially among people aged 40+. Cinemas account for around 3.5% of total film viewings, with the home
entertainment sector delivering the rest.

In early 2011, the UK had 716 cinemas a familiar and welcome part of urban landscapes accommodating 3,671 screens, most of
which are now equipped to show digital content.

62% of the UK population goes to the cinema at least once a year. 19% goes at least once a month. There are 14m cinema visits in an
average month, with holiday periods tending to be the peak times.

Every week, 1011 films are released in UK cinemas, generating annual box-office gross receipts (including VAT) of about 1 billion.

Distributors invest more than 300m a year to bring all these titles to market, launching and sustaining them in cinemas. 170m of
this is allocated to media advertising, the rest to film prints, advertising production, publicity, premieres and related costs.

In terms of total gross value, a cinema release accounts for just over a quarter of the filmed entertainment business, home
entertainment 4045% and television the rest.

The highest grossing film of all time in cinemas is Avatar, released in December 2009. Its UK cinema admissions were equivalent
to a quarter of the population.

The filmed entertainment industries as a whole employ around 48,500 people in the UK, nearly two-thirds of them working in production.

Of the top 200 films released in cinemas worldwide over the last decade, no fewer than 34 were based on stories and characters
created by British writers one indication of the UKs hugely impressive creative track record in the world of film.

The total public funding of film amounts to around 260m a year, including fillm production tax relief, lottery funding and
broadcasters investments.

47

48

contact FDA
FDA welcomes any approach where UK film
distributors generic interests are concerned.
If you have a general enquiry, or feedback on
this Guide, please email info@fda.uk.net
You can also write to us:
Film Distributors Association Ltd.
22 Golden Square, London W1F 9JW
We aim to respond appropriately within
three working days of receiving your enquiry.
To keep in touch with the fast-evolving world
of UK film distribution, visit FDAs website,
www.launchingfilms.com
Youll find a weekly film release schedule to
download or search, a bank of industry data,
a gateway of links and much more.

FDA

Get the insiders views of the film business

You can explore UK film distribution further, and


watch some people who work in the business talk
about their roles, at our dedicated website:

www.launchingfilms.tv

2011 Film Distributors Association Ltd.


No part of this publication may be reproduced in any form by any means or for any purpose without the express prior permission of FDA.
FDA thanks all contributors to this revised and updated edition of the Guide, which supersedes all previous editions.
Information correct at time of going to press but subject to change.

2012
istribution
to UK film d

Designed and printed in England


for Film Distributors Association
by Wham Media Ltd
www.whammedia.co.uk

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