So, your film has finally finished production and post-production and is ready to be seen by the world. How does your film go from production to a movie theater? And how can you ensure that your film reaches its full potential? In this article, we will uncover what film distribution is, the process of how films are distributed to movie theaters and other platforms, and how film distributors make money. We will also include resources on where to find distributors for your film.
What is film distribution?
Film distribution is a process allowing films to be shown to audiences. It doesn’t matter if the film has the backing of a major studio or director or is a smaller, independent film: they all go through a process of trying to find distributors.
There are two main distribution models: leasing and profit sharing. In the leasing model, the film distributor agrees to pay a fixed amount for the rights to distribute the film. It’s a much simpler model than the second one: profit-sharing. In the profit-sharing model, the distributor gets a percentage (anywhere from 10-50%, usually) of the movie’s overall net profits (its “box office”). The model is chosen on what will benefit both the distribution company as well as the studio making the film.
Many major studios have their own distribution companies. Disney owns Buena Vista, Warner Brothers owns New Line Cinema, and the list goes on. Many studios choose to have their own distribution companies because it's easier to set up a distribution deal and keeps the profits within the same company. It’s not enough for these distributors to show these movies in theaters. In the interests of income, they’ll want to obtain rights to distribute the movie on DVD and network TV. Other rights include soundtracks, toys, and other merchandising.
How are movies distributed to theaters?
Although the distribution process for every film is unique and often complicated, they follow a similar path. Once the film is completed and a distribution company is found by the studio or filmmaker, a licensing agreement is formed by the studio and the distribution company. The distributors determine the ideal market to sell to, as well as how many physical prints to make.
Distributors have a key decision to make regarding how many prints of a movie to order. Factors like the audience, the studio behind the movie, and star power all factor into this decision. Distributors often work out terms with theaters to determine rates for distributing these films. Distributors also have to determine where to show films. Buyers often negotiate agreements between distributors and theater owners to display certain films.
While movie theaters are the most traditional place to show films, there are also many non-theatrical markets distributors can appeal to, like schools, museums, or even hospitals. After a negotiation process, films are finally distributed to theaters, non-theatrical avenues, or on streaming platforms.
How do film distributors make money?
Film distributors make money from theaters and other non-theatrical film buyers. The more potential a film has with different markets, the more money they make. Typically, they take 30% of every dollar earned.
Where can I find film distributors?
You can find a list of potential film distributors to market your film to on our distributor database page. If you are a documentary filmmaker, take a look at our article on the top documentary distributors.
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To learn more from a beginner standpoint, order the book Introduction to Media Distribution: Film, Television, and New Media here.
To learn how to get your film into festivals, order The Complete Filmmaker's Guide to Film Festivals: Your All Access Pass to Launching Your Film on the Festival Circuit here.