Before the film goes into production, a distribution plan is drawn up discussing the benefits and drawbacks to take into consideration in regards to the film's success. The distribution company, firstly, have to estimate what the film may earn (low/medium/high estimates) in order to prepare a budget to release it, along with all the related costs. The goal eventually is to regain all the costs and make a profit. Bearing in mind the huge amount of money that goes into making a film, the distributors have the all important job of making sure this happens. In reality, most films do not make a profit from their theatrical runs alone. The distribution plan comes under 6 sub-headings which I will talk about below.
Focus on the audience
Distributors need a detailed understanding of their target audience. For example, age group and gender, but also factors such as lifestyles, social networks, media consumption patterns - always informs the subsequent decisions on how and where a particular film is promoted in order to reach them.
Despite the distributors challenge to attract as wide spread audience as possible, known as a "break out" or "cross over," it's important never to lose sight of a film's core target audience. If distributors alienate their target audience and reaching out to different niche audiences fails, the product is not going to make it's money back, let alone make a profit.
The most frequent cinema-goers tend to be teenagers, students and young adults as they are the biggest media consumers of any age group. Therefore they are naturally the core audience for products.
Although cinema is the most popular out-of-home leisure activity for young people, there is still a competitiveness against other activities. Adults aged 35 and above have the lowest cinema attendance and the industry is working to encourage more visits from this age group, as this would increase a film's earnings massively.
Rolling the distribution dice
Audience tastes are notoriously unpredictable and unfortunately experience in the industry doesn't give you the skills to predict what the audience are going to go and see. Nobody can be certain what makes a hit or when and where it might happen, even with the best made plans. Also, just because one romantic comedy or action adventure played successfully to an audience, there is no guarantee the next release will do the same, maybe they won't want to see another one. It depends on the individual film and the marketing conditions. As it's such an unpredictable, product-driven business, each distributors earning, market share and profitability fluctuate year by year, reflecting the success or otherwise of individual titles.
The competitive jungle
Competition is always a primary consideration when developing release plans. Distributors need to take into account what other films are likely to be released at the same time and during the following weeks, especially those that are targeted at a similar audience. Is there a space in the market for something different? Are the most appropriate screens for this film available and likely to be offered? Projected release dates often change as competing distributors jockey for position week by week. They also need to ask themselves about the kind of film it is. Is it an event film for a mass market blockbuster or a specialised film for a more discrete audience? How were the lead star's last couple of films and how were they received commercially and critically? Are any cast members available for UK/international publicity or to attend a premiere? Is it a film for a holiday period? All these sorts of questions need to be answered and it's the distributors job to do that.
Satisfying anticipated demand
When releasing the film, distributors need to distinguish if their product is going to be a saturation release,'at cinemas everywhere' films may open simultaneously in 1,000 screens per multiplex. This strategy is usually for large-scale sequels or star-led holiday releases. In contrast, a foreign language film for example maybe comprise 25 prints or fewer.
Digital regeneration
The introduction of digital release has had a positive impact on distribution companies. The disks are significantly less expensive to duplicate than 35mm copies (around 10% of the cost), It presents new releasing and programming opportunities, for example digital 3D, live action and animation films, and they appear on screen in pristine quality and do not deteriorate over time.
Budgeting the release
Once the distributor has viewed the finished film and confirmed the release plan, they will then draw up and work to a comprehensive budget. Bearing in mind that in the UK, the distributors pay all the release costs including marketing, advertising and the duplication of prints (35mm or digital). This covers the launch and sustaining of the film post-release. The investment and projected returns can be reassessed subject to commercial performance week by week.
Complementing the distribution plan, every film has a detailed marketing plan. Distributors need to think about method of advertising is going to suit their target audience age group best. For example, older audiences may respond beset having seen a film advertised on television or in the press, whereas with younger audiences it is more appropriate to promote the film online, on radio stations or bus shelter panels.
Different advertising strategies are used for marketing. For example, posters, trailers and online and mobile, they are all great and essential ways to promote films.
The most expensive items on the budget, however, is advertising placed on broadcast channels, outdoor sites and in the press. Terrestrial television is traditionally the most effective visual means of reaching a mass audience, but the cost of TV advertising, costing many hundreds of thousands if pounds or more for a package of spots in all regions, is prohibitive for most film releases given their potential returns. Event films/blockbusters with top stars need heavyweight advertising to support their wide releases.
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