How do studios distribute movies




















However, merchandising is a cash cow for big-budget films that appeal to kids and Comic-Con fans alike. On the other hand, some analysts suggest remaining on the lookout for movie fatigue. Kids are increasingly attracted to newer types of entertainment, such as video games and YouTube. When a producer cobbles together the budget for an independent film, selling the distribution rights in foreign territories is crucial. Independent filmmakers can actually make money if they have a great foreign sales agent who can sell their movies in key overseas markets.

Once upon a time, it was all about DVD sales. Films have to leave the theater at some point, but they can remain evergreen on TV. As for VOD, revenue from these deals should add hundreds of millions to a studio's bottom line. Many films that don't have the special effects and big-name stars to lure people to the theater often profit from this model. Streaming video is a new source of revenue for Hollywood movies. VOD revenues tend to dry up after a few years, but movie studios can still make money from older films by licensing them to Netflix or Amazon Prime.

However, the success of original content on the streaming services also draws audiences away from traditional movies. As the saying goes, nobody knows anything in Hollywood. The film industry is in flux, and ticket sales alone don't drive revenue.

So who knows, the little indie that you invest in could just be the next "Little Miss Sunshine. In Hollywood, there are no guarantees. Motion Picture Association of America. Accessed Aug. The Numbers. Smithsonian National Air and Space Museum. NDP Group. Alternative Investments. Company Profiles. Actively scan device characteristics for identification.

Use precise geolocation data. Select personalised content. Create a personalised content profile. Measure ad performance. Select basic ads. Create a personalised ads profile. Select personalised ads. Apply market research to generate audience insights. Measure content performance. Develop and improve products. Find out the difference between negotiating and bidding, and finally understand why movie popcorn is so expensive!

Someone has an idea for a movie. They create an outline and use it to promote interest in the idea. A studio or independent investor decides to purchase rights to the film. People are brought together to make the film screenwriter, producer, director, cast, crew. The film is completed and sent to the studio. It might also be the wrong time of year for a particular type of movie. For example, a heartwarming Christmas story is not likely to do well opening on Memorial Day weekend.

All of these factors help the distributor determine the number of prints to make. Many of the 37, screens in the United States are concentrated in urban areas. A popular movie might fill the seats in several theaters in the same city while another movie would have a much smaller audience. Most theaters use buyers to represent them in negotiating with the distribution companies.

Large chains such as AMC Theatres or United Artists employ buyers while small chains and independent theaters contract with a buyer. The negotiating process is very political. The buyers often will accept a movie that the theater is not very interested in to make sure they get a film they really want. Distributors try to balance the movies they lease to theaters in the same local area to make sure all of the theaters will continue to work with them.

Sometimes a theater will get an exclusive or special engagement to premiere a movie in its area. Once a buyer is interested in a movie, the lease terms are discussed. Sign up for our Newsletter!

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