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  • Making a film can feel like a miracle.

  • This series demystifies the entire filmmaking process.

  • In our previous episode, we looked at marketing.

  • Today, we look at filmmaking's final stage.

  • These are the Stages of Filmmaking.

  • Distribution.

  • Before we begin our theatrical release, subscribe to StudioBinder

  • and enable notifications to stay up to date on all our filmmaking videos.

  • Today, we're joined by entertainment lawyer Melissa Dagodag,

  • theatrical booker Susanne Jacobson,

  • and Alamo Draft House programmer Jake Isgar.

  • Let's begin.

  • Getting a film in front of an audience involves two stages.

  • Distribution.

  • And Exhibition.

  • A film distributor gets a film into different exhibition settings

  • whether it be a theater, TV, streaming service, or DVD.

  • An exhibitor, meanwhile, owns these platforms where the film can be shown.

  • As such, distribution does not just pertain to getting a movie into theaters.

  • It includes ancillary markets where a movie can make money for years

  • after the initial theatrical release.

  • Since the Paramount decision in 1948, studios could not own the means of

  • production, distribution, and exhibition.

  • For most studios, this meant selling off their theaters.

  • But that decision has recently expired

  • so some studios are once more getting involved in exhibition.

  • - We are back, baby.

  • - We are back. - We're back.

  • - For many films and filmmakers, landing a distributor is by no means a given.

  • They must navigate the challenging process of finding distribution.

  • Distribution begins with acquisition.

  • This is where a film ends up in a distributor's hands.

  • In other words, the distributor obtains the rights to a film from

  • its copyright holder, which is typically a producer or studio.

  • These deals outline what territories the distributor can operate in and for how long.

  • Without any distribution, it isn't possible to make

  • any of a film's budget back.

  • So it's a good idea to have distribution in mind early on.

  • As Susanne Jacobson notes...

  • - 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.

  • Does that mean that it needs to play in theaters, especially since the pandemic?

  • Probably not.

  • Because an empty theater is a sad place.

  • - A film can secure a distributor when it's still in development or pre-production.

  • This is referred to as pre-sale distribution, a guarantee from

  • a distributor that they will acquire a film upon completion.

  • This typically happens for movies

  • that have big stars or are sequels to big hits.

  • For more on pre-sales, check out our episode on development.

  • For big studios, distribution is typically done in-house.

  • Disney, for example, has the Walt Disney Studios Motion

  • Picture Distribution Company.

  • - If a studio makes a film, they're going to distribute it themselves, or

  • they already have a deal in place to co-distribute it with another studio,

  • another big production company.

  • - Indie studios, meanwhile, will have to shop their film around

  • to multiple different firms.

  • Independent filmmakers have a few different options to

  • try to get distribution.

  • Festivals, film markets, sales agents, and self-distribution.

  • Indie filmmakers will typically utilize a combination of these strategies.

  • Most distributors are only present at highly prestigious festivals,

  • such as the Big Five, Venice, Cannes, Berlin, Toronto, and Sundance.

  • There, buzzy films that get audience or critical attention will be

  • approached by distribution companies.

  • Film markets have the primary purpose of selling a film to distributors.

  • Sometimes, these markets occur within a larger festival,

  • such as Cannes Marché du Film.

  • But there are others that stand on their own, like the American

  • film market and Hot Dogs.

  • A film can be a good route if your film can't get into the highly

  • selective, prestigious festivals.

  • Many films bought at markets are not finished, often only

  • in the development stage.

  • Distribution reps at markets are called acquisition executives, and

  • getting their attention requires a strong, brief pitch

  • along with enticing materials like a trailer, scene, or collection of stills.

  • Often filmmakers at festivals and markets will be partnered with sales

  • agents who specialize in selling films to distribution companies.

  • They will usually represent films at markets and festivals as well as use

  • their own well-established connections.

  • Filmmakers who are not established typically have to wait until their

  • movie is finished to land a sales agent.

  • It is possible to reach out to potential distributors cold using

  • IMDb Pro, though few distributors accept unsolicited submissions.

  • Different distributors have different areas of expertise.

  • Some specialize in certain audiences or genres.

  • Therefore, it is a good idea to have a target audience in mind when

  • meeting with distribution companies.

  • If a filmmaker doesn't need a theatrical release for their movie and is

  • content with a straight-to-streaming release, they can target aggregators.

  • Aggregators are companies that will approach streamers on a film's behalf.

  • And they do not require distributors or sales agents.

  • They do, however, typically require either an upfront fee or a percentage of sales.

  • The final option is self-distribution.

  • With self-distribution, all avenues of exhibition are still open.

  • But they will be at the financial risk of the filmmaker.

  • A theatrical release is possible, for example, but it will cost a lot of money

  • since the filmmaker will have to cover ads, posters, certification, and more.

  • A filmmaker typically needs a sales agent to get a deal with a TV network.

  • These deals can result in a lot of profit but are typically lengthy.

  • Self-distribution also includes posting work onto platforms like

  • YouTube Movies or Vimeo On Demand.

  • These services allow filmmakers to sell their films directly

  • to consumers at little to no cost.

  • Once a method of distribution is procured, a filmmaker must then decide on licensing.

  • Nearly all independent distribution requires some form of licensing.

  • This is an agreement between the creator or rights owner of a film

  • and a distributor with set terms for compensation and duration.

  • To best navigate this process, using an entertainment lawyer is a good idea.

  • Melissa Dagodag explains a role.

  • - I handle production contracts for independent films, and I form the

  • business entity that usually owns the film and enters into all the

  • contracts on behalf of the filmmaker.

  • So that and registering trademarks, brand names are huge parts of what I do.

  • I also register copyrights once the film is in the can.

  • And for screenplays, of course, I also register the scripts with the copyright office.

  • And I work with a lot of creative people across the board.

  • - For major studios with their own in house distribution

  • licensing can be more straightforward

  • since the rights stay within the parent company.

  • However, distribution licensing can take many forms

  • for independent filmmakers and smaller production companies.

  • Before entering into any kind of distribution agreement the producers

  • of a film need to ensure that they have all of the clearing rights for the project.

  • Dagodag explains that process.

  • - What that work involves is reviewing the screenplay and reviewing the film to make

  • sure that there's nothing in it that could trigger a copyright infringement lawsuit.

  • So what could that be?

  • Strangely enough, I'll give you an example.

  • It could be like you have a building.

  • A lot of people don't realize that buildings like the Disney Concert Hall

  • can be subject to copyright protection.

  • Moreover, there's trademark issues that could trigger

  • infringement lawsuits as well.

  • And that could be like.

  • Oh, you have the brand name of a store appearing in the background, you know, and

  • that could be something where you have to get a license to have that name appearing.

  • So there's lots of intellectual property issues that need to be spotted.

  • - Clearing rights also means having a firm grasp on the chain of title for

  • all the IPs involved in your project.

  • - Chain of title is really the way that you prove that you own all the rights

  • that you're representing and warranting that you do own in and to the film.

  • So that comes down to contracts with all the talent, all the above-the-line, below

  • the line people in your film, making sure that those rights track completely

  • with the contracts that you have.

  • - If there are co producers or investors involved, the filmmaker will likely have

  • to clear their distribution plan with them before a licensing deal is signed.

  • There are two main types of distribution agreements, leasing and profit-sharing.

  • When a distributor enters a leasing agreement, they will pay a fixed

  • price for the rights to a film.

  • - A leasing agreement is for circumstances in which the distributor is distributing

  • the film, usually on a reduced fee basis.

  • And then the production company will pay for distribution expenses like

  • prints of the film and advertising.

  • And what's key in that type of distribution agreement is you

  • want to make sure that you limit what can be counted as expenses.

  • And if you don't limit that, there could be very little left for the filmmaker.

  • - Profit sharing agreements, meanwhile, are where a distributor gets a

  • percentage of profits accrued by a film.

  • This is typically anywhere between 10 to 50 percent.

  • And while it might take more money from the filmmaker, it may also

  • incentivize a distributor to maximize a film's distribution and profits.

  • - With the profit sharing contracts, you know, that's, that also is going

  • to be a percentage of something and it all matters how it's defined.

  • So it really doesn't matter what you call it.

  • Defined terms and contracts will be in capitalized letters.

  • And 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.

  • - Licensing agreements may also differ based on the type of distribution being offered.

  • Primary rights refer to theatrical releases, whereas secondary

  • rights refer to everything else.

  • A licensing deal may give primary rights to a distributor, but not

  • secondary rights or vice versa.

  • Distributors typically want all of the rights

  • but sometimes it can be strategic to withhold certain distribution rights

  • so you can renegotiate down the line.

  • Distributors usually also want their license to be exclusive.

  • Meaning they will have the sole right to distribute a film in a specific

  • territory for a given period of time.

  • A distributor will pay more for this, but it may also limit your film's exposure.

  • Nonexclusive rights means multiple different distributors

  • can release in the same territory.

  • For example, a film may be licensed to multiple TV networks.

  • This kind of deal, however, can be trickier to negotiate.

  • A licensing agreement will also dictate a term length.

  • In other words, how long the distributor will have the rights to the film?

  • These terms are often lengthy, up to 15 years.

  • Before signing a licensing deal, it is important to do your own research.

  • Make sure the distributor is willing and able to market your film.

  • But at the same time, won't overspend and hurt the film's profit margins.

  • This means looking at a distributor's track record with prior films.

  • International distributors will try to get a film into markets around the world.

  • National distributors, meanwhile, will take the rights for a

  • film in their specific country.

  • Second-run licenses will then be negotiated to reach a global audience.

  • With the licensing deal complete, it's time to deliver your film to exhibitors.

  • An exhibitor needs the necessary data to show a film.

  • Typically, this comes in the form of a Digital Cinema Package, or DCP.

  • DCPs are high-resolution files that allow an exhibitor to show

  • a film at its highest quality.

  • They include audio, video, and metadata files that are tailored for exhibition.

  • These files are formatted in accordance with Society of Motion Picture

  • and Television Engineer standards

  • for consistent playback from theater to theater.

  • Usually, creating a DCP is outsourced to a company which specializes in the process.

  • If a movie is going to be shown on actual celluloid, its reels will need

  • to be hand-delivered to the exhibitors.

  • Exhibitors are the retail aspect of the film industry.

  • In other words, they handle showing a film to the public

  • and this can take many forms.

  • Jake Isgar explains.

  • - Exhibition can mean plenty of different things.

  • I mean, when you see, like, think of, like, those FBI labels in front

  • of, like, old VHS tapes about, like, a public exhibition is not

  • allowed unless you have that.

  • It could just be, you know, somebody getting a projector out

  • at a bar and putting on a movie.

  • That is, that is literally exhibition.

  • You're, you're putting something out there for other people to watch.

  • As far as theatrical exhibition, it's just how do you get movies and

  • play them on screen for audiences.

  • - Distributors typically will work closely with theatrical bookers, negotiating

  • when and where their film will be shown.

  • Jacobson explains the role.

  • - I have to determine when it's going to happen, set the open date, and

  • figure out the theatrical strategy.

  • How wide is it going to go?

  • Where is it going to play?

  • Coordinate Q& A, negotiate the terms, send all the marketing materials to

  • the theaters, make sure they got them, that the film is properly listed on

  • their website, make sure that the distributor is doing what they said

  • they're going to do, that they're working to promote the film on their end

  • and then do the collections at the end.

  • - They will also decide on the split, which refers to how much each

  • party will make from the profits.

  • Some exhibitor-distributor relationships have standing

  • contracts with fixed percentages.

  • The split is negotiated on the outset, often, or in some cases, you know,

  • for major distributors, our chain has ongoing deals with them.

  • - And some splits change after a film has earned a specific amount.

  • - Scale is when a film makes X amount in its first week or second

  • week, then that percentage is set.

  • And then as the film continues to play on screen, the percentage can decrease.

  • When it decreases, it means there's more favorables in the theater.

  • So 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.

  • That also could be why you see, you know, certain films play at certain theaters.

  • Hey, I know this can gross in this city, but specifically

  • on this screen in this city

  • so distributors might want to key in.

  • - A film's window will also be decided.

  • This is the amount of time a film is available on a specific media technology.

  • For example, Disney's "Frozen" was released

  • theatrically in November 2013, on DVD in March 2014,

  • and debuted on ABC in December 2016.

  • - 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, where I'm paying a passive amount of an X amount of dollars, to

  • subscribe to the streaming service.

  • The streaming service has this thing that I would like.

  • And I'm going to press play on it and maybe watch it while I'm doing laundry.

  • I don't know.

  • And kind of go from there.

  • - More rarely, films may also utilize a day and date release, where it

  • premieres on streaming the same day it premieres theatrically.

  • Occasionally, a film will come back for a second run to celebrate

  • anniversaries or big award wins.

  • "Oppenheimer", for example, did a limited re-release after its

  • numerous Academy Award wins.

  • Theatrical windows have been shrinking, especially for mid and low-budget films.

  • This is largely thanks to the proliferation of streaming services.

  • Jacobson explains.

  • - Especially now, since the pandemic, people don't go to the movies as much.

  • So for a film now, toward a theatrical release, it really has to be up to snuff.

  • - There are a few different kinds of theatrical releases.

  • Bigger movies will typically have a wide release

  • meaning, playing at over 600 theaters.

  • If a film plays under that number, it is considered a limited release.

  • Films may begin with a smaller release before it expands.

  • This is referred to as a platform release.

  • Platform releases will typically play only in New York and Los Angeles.

  • This builds word of mouth

  • and can create anticipation for a wider release.

  • But if a film doesn't perform well during a platform release, it may just

  • continue as a limited theatrical run.

  • Exhibitors must be strategic about their screenings.

  • If a film opens too wide, meaning in too many theaters, then the

  • audience may be spread too thin.

  • Exhibitors will often pressure distributors as they

  • decide on a release date.

  • For example, theaters will typically not want multiple highly anticipated films

  • to be released on the same weekend.

  • If a theater does not want to screen a film on its own dime, a distributor or

  • filmmaker may four-wall, meaning they will underwrite a certain number of

  • screens to ensure a film gets released.

  • This removes any financial risk for the theater.

  • - If you want to just buy out the screen and the financial onus is on them.

  • If you're intrepid enough, if you're a huckster, if you know what you're

  • doing, then like four-wall, why not?

  • Like hustle, get people in.

  • And there's plenty of films that have succeeded that way or started that way.

  • - Before a film can be exhibited in many U. S. forums,

  • it must be rated by the MPA.

  • A film's rating can affect how wide of a reach it will have.

  • Most blockbusters will try to avoid an R rating because it

  • will limit family audiences.

  • Instead, they will aim for a PG 13 rating, indicating that

  • almost all audiences are welcome.

  • G and PG ratings typically indicate a movie is made for families and children.

  • An NC 17 rating, meanwhile, can severely cut down the number

  • of theaters a film is shown in.

  • As happened with "Showgirls", a big-budget blockbuster

  • film that ended up with a relatively limited theatrical release.

  • - Where do you dance at, darling?

  • - Um, at the Cheetah.

  • - I don't know how good you are, darling.

  • And I don't know what it is you're good at.

  • But if it's at the Cheetah, it's not dancing, I know that much.

  • - Today, exhibition is evolving rapidly due to shifts

  • in the industry as well as audience viewing patterns.

  • - What is Netflix?

  • - Distribution may be the last step in the filmmaking process, but

  • it is certainly not the least.

  • Keeping distribution in mind from the beginning will help ensure your film

  • gets seen by as many people as possible.

  • Distribution requires a lot of planning,

  • and you can start that planning with StudioBinder's production software.

  • Subscribe and click the bell to see all our filmmaking videos, and head

  • over to the StudioBinder Academy

  • channel for in-depth filmmaker interviews and step-by-step tutorials.

  • That's all for our series on the stages of filmmaking.

  • Now you have all the tools to take your masterpiece from script to screen.

Making a film can feel like a miracle.

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