Movie theaters don’t just magically conjure films onto their screens. They navigate a complex web of distribution deals, licensing agreements, and logistical acrobatics to bring the latest Hollywood blockbusters and indie darlings to your local cinema.
Understanding the Distribution Pipeline
The process of how movie theaters acquire films hinges on the intricate relationship between studios, distributors, and exhibitors (theater owners). Studios, responsible for financing and producing the movies, typically work with distribution arms – often divisions within the same company, or sometimes independent distributors – to handle the crucial task of getting the finished product into theaters.
This distribution involves securing exhibition agreements, essentially contracts between the distributor and the exhibitor. These agreements dictate the terms under which the theater can show the film, including the run time (the duration the film is screened), revenue split (the percentage of ticket sales the studio and theater each receive), and minimum guarantees (a fixed amount the theater must pay the distributor, regardless of ticket sales).
The entire process begins long before the premiere, with studios and distributors actively marketing their upcoming releases to theater owners. They present trailers, promotional materials, and projected box office data to entice exhibitors to book their films. Ultimately, the decision rests with the exhibitor, who must weigh factors like projected popularity, screen availability, and the existing programming schedule to determine which movies to show and on which screens.
Physical film reels are largely a thing of the past. Today, most movies are delivered to theaters as Digital Cinema Packages (DCPs), encrypted digital files containing the film, trailers, and other relevant content. These DCPs are stored on hard drives and loaded onto the theater’s digital projectors. Key Delivery Messages (KDMs), also encrypted, are then provided separately, allowing the projector to unlock and play the film for a specified period. This sophisticated system ensures security and prevents unauthorized screenings.
The Art of Negotiation and Booking
Securing the rights to screen a coveted film is not a passive process for theaters. It requires skillful negotiation and a deep understanding of the market. Larger theater chains, due to their significant screen count and box office potential, wield considerable leverage in negotiations with distributors. They can often demand more favorable terms, such as a higher percentage of ticket revenue or a longer exclusive run of the film.
Independent theaters, on the other hand, often rely on building strong relationships with independent distributors to secure access to arthouse films and smaller releases. They might also participate in film festivals and industry events to discover and acquire films that align with their programming vision.
The booking process is further complicated by the staggered release schedules of films. Some movies are released nationwide on a wide scale, appearing on thousands of screens simultaneously. Others may have a limited release, opening in select cities before expanding to a wider audience based on initial performance. Distributors strategically orchestrate these release patterns to maximize box office potential and cater to different demographics.
FAQs: Unveiling the Mysteries of Movie Distribution
Here are some frequently asked questions to further illuminate the process of how movie theaters get movies:
What is a “run” and how does it impact my local theater?
The run of a movie refers to the length of time it plays in a theater. Distributors typically grant theaters a certain run period, often starting with an exclusive run (where the film is only available in select theaters) and then expanding to wider release. The success of a film during its run significantly impacts whether a theater continues to show it, reduces its screen count, or eventually replaces it with a newer release.
What does “revenue split” mean, and how does it work?
The revenue split is the percentage of ticket sales that the theater and the distributor each receive. This split isn’t fixed and can vary depending on the film, the theater’s size and location, and the negotiation between the distributor and exhibitor. Generally, the distributor takes a larger share in the early weeks of a film’s release, gradually decreasing over time as the theater retains a larger percentage.
How do movie theaters decide which movies to show?
The decision hinges on a complex interplay of factors: potential popularity, the theater’s target audience, screen availability, the existing programming schedule, marketing efforts by the distributors, and the terms offered by the distributors. Theater managers and booking agents carefully analyze these elements to make informed decisions about which films to book.
What is a Digital Cinema Package (DCP)?
A Digital Cinema Package (DCP) is the standard digital format for distributing films to theaters. It contains the movie itself, trailers, subtitles, and other relevant data, all packaged as encrypted files on a hard drive.
What is a Key Delivery Message (KDM)?
A Key Delivery Message (KDM) is an encrypted key that unlocks the DCP for playback on a specific projector for a limited period. This security measure prevents unauthorized screenings and ensures that theaters only show films for which they have secured the rights.
Why are some movies only shown in certain theaters?
This often depends on the distribution strategy and the film’s target audience. Larger blockbusters typically receive a wide release, while independent films and arthouse movies may have a limited release, targeting specific demographics and markets. Also, exclusive contracts can dictate where a film is shown initially.
How do independent theaters get access to movies?
Independent theaters often forge strong relationships with independent film distributors, attend film festivals to scout for new releases, and participate in industry events to network with distributors and acquire films that align with their programming vision.
What is “four-walling”?
Four-walling refers to a situation where a filmmaker or distributor rents a theater for a specific period and keeps all the ticket revenue. This strategy is often used for independent films or documentaries that struggle to secure traditional distribution deals.
Do theaters get to choose the trailers that are shown before a movie?
While distributors often suggest or require certain trailers to be shown, theaters generally have some degree of control over the trailers that are played before the main feature. They aim to select trailers that are relevant to the audience and promote upcoming releases that the theater is also planning to screen.
What role does marketing play in a movie’s success in theaters?
Marketing is absolutely crucial. Extensive advertising campaigns, including trailers, TV spots, social media promotions, and print ads, are essential for generating buzz and attracting audiences to theaters. A well-executed marketing strategy can significantly impact a film’s box office performance.
How does the internet and streaming services affect how theaters get movies?
The rise of streaming services has undeniably impacted the theatrical experience. Distributors now often release films simultaneously in theaters and on streaming platforms or shortly thereafter. This has led to shorter theatrical runs for some films and a greater emphasis on blockbuster releases that offer a unique cinematic experience that cannot be replicated at home. Theatrical exclusivity windows are being hotly debated and re-negotiated.
What happens to unsold tickets?
Unsold tickets represent lost revenue for theaters. However, they are factored into the overall business model. The revenue split with the distributor, combined with concession sales, is designed to compensate for unsold seats. Theaters also employ strategies such as discounted matinee showings and loyalty programs to attract more moviegoers and minimize unsold tickets.
The Evolving Landscape of Film Distribution
The process of how movie theaters get movies is constantly evolving in response to technological advancements, changing consumer habits, and the increasing dominance of streaming services. While the core principles of distribution agreements and revenue sharing remain, the specific terms and strategies are being continuously adapted to navigate the challenges and opportunities of the modern entertainment landscape. The future of moviegoing depends on the ability of studios, distributors, and exhibitors to collaborate and innovate to deliver compelling cinematic experiences that entice audiences to leave their homes and embrace the magic of the silver screen.