How does a film get financed?

Recap from last lessonConnect

Before we look at the process of distribution, we must look at

company structuresKey words:• Conglomerate• Horizontal integration• Vertical integration• Parent company• Sister company• Subsidiary

Discover

Conglomerate

A large company or media institution that owns large numbers of companies in various mass media outlets

E.g

• Walt Disney Company• News Corporation

Discover

HORIZONTAL AND VERTICAL INTEGRATION

PRODUCTION

Often a single parent company will own multiple companies in the film

industry.This is divided into two types of

ownership:PRODUCTION PRODUCTION

HORIZONTALThe parent company owns multiple companies at the same stage of the film industry. A smaller company, owned by the parent is a subsidiary.

VERTICALThe parent company owns multiple companies across different stages of the film industry.

What are the advantages for a parent company of each type of ownership?

EXHIBITION

DISTRIBUTIONFor example Walt Disney also owns:•Miramax Films•Hollywood Pictures•Pixar Animation

For example Time Warner owns:•Warner Bros Studios (Production)•Warner Bros (Distribution)•Used to own Warner Bros Cinemas in the UK (Exhibition

Discover

Distribution

Discover

Distribution involves everything that happens in between production and exhibition. It involves all of the deals done to get films shown and promoted.

Marketing falls under distribution and we will explore this as a separate topic

Discover

Distribution

The distribution company is in charge of getting the film out to audiences, this involves organising for the film to receive an age certificate by regulation bodies, such as the BBFC and MPAA; arranging exhibition outlets globally and DVD/Television rights; arranging for prints of the film; and marketing, publicity and promotion of the film.

DistributionDiscover

DistributionOf course it has to sell things, but it doesn't rely on waiting, listening, responding to what audiences want and then delivering that to them. It relies on knowing which parts of the world and the media need its products and will pay for them.

Discover

There are five major distributors:

• United International Pictures, • Warner Brothers, • Buena Vista, • 20th Century Fox, and • Sony.

9 out of 10 films seen in the UK are from these distributors, and in most cases the distributors are directly linked to the Hollywood Production Companies who make the films.

DistributionDiscover

Pit Stop!

What is vertical integration?

What is horizontal integration?

Develop

20 minutes

Can you find out which subsidiaries are owned by Time Warner?

Who distributed ‘Pacific Rim’?

Develop

• This is good news for films like Pacific Rim: distribution is a done deal since WB are responsible for its production.

• Spare a thought for the independent producer: he/she might have enough money to make their film, but how are they going to get it into cinemas when companies like this control much of the industry?

Distribution

Develop

TaskCompare the production and distribution companies involved in ‘Pacific Rim’ and ‘A field in England’.

What does this tell you about:• The finance involved• The target audience• The logistics of distribution• The marketing and merchandise

Pacific Rim

A field in England

• Film distribution is not a helpful stage in the life of a film whereby distributors treat all films equally and ensure fair play in getting films to the public’s attention.

• The key players, the big companies who control much of the industry, control distribution of their own products, and of others.

DistributionDiscover

• Effectively, films are loaned out to cinemas for a limited period of time and released deals are done that secure access to a certain number of screens at a time.

• In the UK film market, an increase in the quantity of screens showing films has not led to an increase in the number of films shown.

Discover

Distribution

Watch the videos on simultaneous distribution

1. What does this tell you about the future of film distribution?

2. Did ‘A field in England’ benefit from this technique?

3. If so, how and why? 4. What does this tell you about the target audience

for this film?5. Who is the distributor? https://www.youtube.com/watch?v=_BSHK8d3ycw

https://www.youtube.com/watch?v=qrjXZrQBjvY

https://www.youtube.com/watch?v=wh4RlsSkbCg

DistributionDistribution also involves planning and organising the production and distribution of merchandise as well as exhibition formats such as DVD, Blue Ray and Ultra Violet.

• What products and formats can you find in association with ‘A field in England’ and ‘Pacific Rim’?

• Which audience are these targeted at?