Film distribution

Film distribution is the complex process of making movies available to an audience. This task is handled by professional film distributors. They create marketing and release strategies for each film. They also decide which media will be used for viewing. This process ensures that a story can reach viewers in many different ways. It is a vital part of the film industry's business model.

Distributors use several methods to exhibit films to the public. One common way is through movie theaters. Another way is through physical media like DVDs or Blu-ray discs. Digital options include transactional video on demand (VOD), where people rent or buy films. There is also subscription VOD, which uses services like Netflix or Disney+. Television programs through broadcast syndication provide another way to watch.

In the theatrical market, distributors license films to theaters. This gives the theater the right to show the film for a rental fee. On average, a theater pays 50% to 55% of its ticket sales to the movie studio. This percentage often decreases as the movie stays in theaters longer. This change encourages theaters to keep movies on their screens for more weeks. Most highly marketed movies stay in first-run theaters for less than eight weeks.

Film history shows how distribution has evolved over time. Early mass-marketed films were made specifically for movie theaters. Candidates for the first cinema-specific theater include Tally's Electric Theatre in 1902. Another candidate is Pittsburgh's Nickelodeon, established in 1905. In the United States, these theaters were called nickelodeons. This name came from the five-cent nickel admission fee. Before 1915, two main systems existed: states rights and roadshow. The states rights system sold films on a local, territorial basis. The roadshow system focused on large, famous theaters to create prestige.

Modern distribution relies on a concept called "release windows." This system was conceived in the 1970s to prevent different markets from competing. It allows a movie to move through stages like cinema, home video, and television. In 1979, the standard process moved from theaters to pay television. Eventually, movies reached free-to-air television. These windows have shrunk significantly over the decades. Between 1967 and 1974, the window between theaters and TV was over five years. By 1985, the theatrical window for home video was only four to six months.

Some companies now attempt a "simultaneous release." This happens when a movie is available on many media at once. This allows consumers to choose their preferred medium. It also allows studios to run only one marketing campaign. However, this method is sometimes seen as experimental. Some directors, like M. Night Shyamalan, worry it might destroy the magic of moviegoing. Disney noted that 95% of box office tickets are sold within the first six weeks. This makes the initial window very important for theater owners.

Digital technology has changed how revenue is collected. In 2000, a study showed how studios made money. About 26% of Hollywood income came from box office sales. Another 46% came from VHS and DVD sales. Television accounted for 28% of the income. Today, internet downloads and subscription services are major revenue sources. Companies like Amazon, Apple, and Netflix have changed the landscape. In 2010, Netflix secured a deal to distribute movies before pay television. This shows how digital platforms are reshaping the entire industry.