How Distribution in Film Works — Film Distributors Explained

Introduction: The Final Frontier of Filmmaking

Making a movie is like pulling off a small miracle. From the initial spark of an idea to the final cut, it’s a journey filled with creativity, challenges, and countless decisions. But what happens after you’ve yelled “That’s a wrap!” and the editing is complete? That’s where film distribution comes in – the often overlooked but crucial final stage of the filmmaking process.

Think of distribution as the bridge between your cinematic masterpiece and the audience you’ve been dreaming about. It’s the magic that transforms your labor of love from a file on a hard drive into a shared experience in theaters, on TV screens, and through streaming services worldwide.

In this article, we’re going to pull back the curtain on the world of film distribution. We’ll explore how movies make their way to different platforms, the key players involved, and the strategies filmmakers use to get their work seen. Whether you’re an aspiring filmmaker, a movie buff curious about the industry, or just someone who’s wondered why some films hit the big screen while others go straight to streaming, this guide is for you.

So grab some popcorn, silence your phones, and let’s dive into the fascinating world of film distribution!

Chapter 1: The Basics of Film Distribution

What Exactly is Film Distribution?

At its core, film distribution is all about getting a movie in front of an audience. It’s the process of making a film available for viewing, whether that’s in a theater, on a TV network, through a streaming service, or even on good old-fashioned DVDs (yes, those still exist!).

The film distribution process can be broken down into two main stages:

1. Distribution: This is where companies called distributors acquire the rights to a film and decide how and where it will be shown.
2. Exhibition: This involves the actual platforms or venues where audiences can watch the film, like movie theaters, TV channels, or streaming services.

It’s important to note that distribution isn’t just about the initial theater release. It includes all the different ways a movie can make money over time, from its theatrical debut to its life on various streaming platforms years later.

The Players: Distributors and Exhibitors

Let’s break down the key players in this process:

• Distributors: These are the companies that acquire the rights to films and work out how to get them in front of audiences. They’re like the movie’s agent, figuring out the best way to market and showcase the film.
• Exhibitors: These are the owners of the platforms where films are shown. This could be theater chains, TV networks, or streaming services like Netflix or Hulu.

Interestingly, there used to be a clear separation between these roles. Back in 1948, a Supreme Court decision called the Paramount Decree prevented movie studios from owning theaters. This was to prevent monopolies and ensure fair competition. However, this ruling expired recently, which means we might see some big changes in the industry, with studios potentially getting back into the theater business.

The Importance of Distribution

For filmmakers, especially independent ones, securing distribution is absolutely crucial. Without it, there’s no way to recoup the film’s budget or share their vision with the world. That’s why savvy filmmakers start thinking about distribution early in the process, sometimes even before they start shooting.

As theatrical booker Susanne Jacobson puts it: “You really have to have a plan from the outset. Just telling a story that you’ve always wanted to tell, yes, that’s wonderful. But does that mean it needs to play in theaters, especially since the pandemic? Probably not. Because an empty theater is a sad place.”

This brings us to an important point: not every film needs or benefits from a theatrical release. With the rise of streaming and changes in viewing habits, filmmakers need to think strategically about the best platform for their particular movie.

Chapter 2: How Films Find Distribution

Now that we understand what distribution is, let’s explore how films actually secure it. This process can vary widely depending on whether we’re talking about a big studio production or an independent film.

Big Studio Productions

For major studios like Disney or Warner Bros., distribution is typically handled in-house. They have their own distribution arms (like Walt Disney Studios Motion Pictures) that handle getting their films into theaters and onto other platforms.

These studios often use what’s called “pre-sale distribution.” This means they secure distribution deals before the film is even made, based on factors like big-name stars or the promise of a sequel to a hit movie. It’s a way of guaranteeing that the film will have a path to audiences (and profitability) before a single frame is shot.

Independent Films

For indie filmmakers, the path to distribution is often more challenging and varied. They typically have to shop their films around to different distribution companies. Here are some common strategies:

1. Film Festivals: Major festivals like Sundance, Cannes, or Toronto are prime hunting grounds for distributors. If a film generates buzz or wins awards, it’s more likely to catch a distributor’s eye.
2. Film Markets: These are events specifically designed for buying and selling films. Some happen alongside festivals (like the Cannes Film Market), while others stand alone (like the American Film Market).
3. Sales Agents: These are professionals who specialize in connecting films with distributors. They often represent films at markets and festivals and use their industry connections to secure deals.
4. Direct Outreach: Some filmmakers try reaching out to distributors directly. While it’s possible to find contact info on databases like IMDb Pro, most distributors don’t accept unsolicited submissions.
5. Aggregators: For filmmakers aiming for streaming platforms, aggregators can be a good option. These companies help get films onto streaming services, often for a fee or percentage of sales.
6. Self-Distribution: In some cases, filmmakers choose to handle distribution themselves. This gives them more control but also means taking on more financial risk and responsibility.

The Pitch: Selling Your Film

Whether at a festival, market, or in a one-on-one meeting, filmmakers need to be prepared to pitch their movie effectively. This usually involves:

• A compelling, brief verbal pitch (often called an “elevator pitch”)
• Eye-catching promotional materials like posters or stills
• A well-cut trailer or sizzle reel
• For unfinished films, a detailed plan of the project

Remember, different distributors specialize in different types of films or audiences. It’s crucial to research potential distributors and tailor your pitch to their specific interests and strengths.

Chapter 3: The Nitty-Gritty of Distribution Deals

Once a filmmaker has caught a distributor’s interest, it’s time to hammer out the details of the deal. This is where things can get a bit complex, and it’s often wise to involve an entertainment lawyer.

Types of Distribution Agreements

There are two main types of distribution agreements:

1. Leasing Agreements: In this setup, the distributor pays a fixed price for the rights to distribute the film. The production company usually covers distribution expenses like advertising.
2. Profit-Sharing Agreements: Here, the distributor gets a percentage of the profits earned by the film, typically between 10% to 50%. While this might mean less upfront money for the filmmaker, it can incentivize the distributor to work harder to maximize the film’s success.

Key Elements of Distribution Deals

When negotiating a distribution deal, there are several important factors to consider:

• Rights: Will the distributor get primary rights (theatrical release), secondary rights (TV, streaming, etc.), or both? Sometimes it’s strategic to hold back certain rights for future negotiations.
• Exclusivity: An exclusive deal means only one distributor can release the film in a specific territory. Non-exclusive deals allow multiple distributors but can be trickier to negotiate.
• Territory: Will the distribution be international, national, or regional?
• Term Length: How long will the distributor have the rights to the film? These terms can be quite long, sometimes up to 15 years.
• Expenses: It’s crucial to clearly define and limit what can be counted as expenses, especially in profit-sharing agreements.

Entertainment lawyer Melissa Dagodag emphasizes the importance of clear definitions in contracts: “It really doesn’t matter what you call it. What always matters is what are the details of that definition? Like what expenses does this person get to take out before they pay me? And how do I limit those expenses? So I get more money. That’s what’s crucial.”

Doing Your Homework

Before signing any deal, it’s important for filmmakers to do their research. Look at the distributor’s track record with similar films. Are they able to effectively market and distribute films like yours? At the same time, be wary of distributors who might overspend on marketing, eating into potential profits.

Remember, the goal is to find a distributor who believes in your film and has the skills and resources to get it in front of the right audience.

Chapter 4: From Deal to Screen – The Exhibition Process

Once a distribution deal is signed, it’s time to get the film ready for its audience. This process involves several steps and considerations.

Delivery: Getting Your Film to Exhibitors

Before a film can be shown, it needs to be delivered to exhibitors in the right format. Today, this usually means creating a Digital Cinema Package (DCP). A DCP is a collection of digital files used to store and convey digital cinema audio, image, and data streams.

DCPs are high-resolution files that allow exhibitors to show a film at its highest quality. They’re formatted according to specific industry standards to ensure consistent playback across different theaters. Creating a DCP is a specialized process, often outsourced to companies that specialize in this work.

For the rare films still shown on actual film stock, reels need to be physically delivered to theaters. This is becoming increasingly uncommon in the digital age.

Working with Exhibitors

Distributors work closely with theatrical bookers to decide when and where a film will be shown. This involves negotiations about:

• Release Dates: Choosing the right date is crucial. You don’t want to open against a blockbuster that will steal your audience!
• Number of Screens: Will it be a wide release (over 600 theaters) or a limited release?
• Platform Release: Some films start small in New York and LA to build buzz before expanding.
• “The Split”: This refers to how box office revenues will be divided between the exhibitor and distributor. Jacobson explains, “Generally speaking, first-run percentages can run between, let’s say on average, 50 to 60%, where that 50 to 60 percent would go back to the distributor. Generally, on the alternative side or indie side, you’ll see 35 to 40 percent split where that 35 and 40 percent is what’s going back to the distributor.”

Release Windows and Strategies

The “window” refers to how long a film is available on a specific platform before moving to the next. Traditionally, films would have a theatrical window of several months before moving to home video, then to pay TV, and finally to network TV. However, these windows have been shrinking, especially for mid and low-budget films.

Some films now use a “day and date” release strategy, where they premiere on streaming platforms the same day they hit theaters. This approach has become more common, especially since the COVID-19 pandemic changed viewing habits.

Jake Isgar, a programmer at Alamo Drafthouse, explains the evolving landscape: “How long is this on screen before it’s available by other means? Other means being digital rental, digital download, and then there’s also, you know, when can this be available on streaming, which is another secondary window.”

Ratings and Their Impact

In the U.S., most films need to be rated by the Motion Picture Association (MPA) before wide release. A film’s rating can significantly impact its distribution:

• G, PG, and PG-13 ratings allow for the widest audience reach.
• R-rated films may have a more limited audience but can still be very successful.
• NC-17 ratings can severely limit a film’s theatrical release, as many theaters won’t show these films.

Filmmakers often aim for specific ratings based on their target audience and distribution goals. For example, most big-budget blockbusters aim for a PG-13 rating to maximize their potential audience.

Conclusion: The Evolving World of Film Distribution

As we’ve seen, film distribution is a complex, multifaceted process that plays a crucial role in getting movies from the set to the screen. It’s the often-unseen bridge that connects filmmakers with their audiences, and it can make or break a film’s success.

The world of film distribution is constantly evolving. Streaming services have dramatically changed the landscape, offering new opportunities for films to find audiences but also challenging traditional theatrical models. The COVID-19 pandemic accelerated many of these changes, pushing the industry to adapt quickly to new viewing habits.

For filmmakers, understanding distribution is more important than ever. It’s not enough to make a great film; you need to have a plan for how that film will reach its audience. This might mean aiming for a traditional theatrical release, focusing on streaming platforms, or crafting a hybrid strategy that leverages multiple channels.

As audiences, understanding distribution can give us a deeper appreciation for the journey each film takes to reach us. The next time you sit down to watch a movie, whether in a theater or on your favorite streaming service, take a moment to consider the complex web of decisions, negotiations, and strategies that brought that story to your screen.

The world of film is magical, but it’s also a business. Distribution is where art meets commerce, where creative vision meets market realities. It’s a challenging, exciting, and essential part of the filmmaking process – one that ensures that the stories we love can find their way to the audiences who will cherish them.