2. Objectives:
Identify how film exhibition works in the UK.
Know how the industry is structured.
Be able to know the different ways blockbusters
and independent films are shown.
3. Exhibition
∀ Exhibition is the retail branch of the film industry.
∀ Includes films shown in cinemas, (theatrical release),
VOD, DVD and Blu-Ray, Itunes, pay TV (Sky), free to
air TV, mobile.
∀ After the theatrical exhibition (ie the cinema) the
other windows are called ancillary exhibition
windows.
∀ The film needs to be a success at the cinema to also
do well in the ancillary markets. It’s unlikely to shift
lots of DVDs if not many people have seen it at the
cinema.
∀ It is when the public start paying –and people see if
the production and distribution has been a success.
4. Exhibition
∀ What the exhibitor sells is the experience of a film (and, food
and drink like soft drinks and popcorn).
∀ Exhibitors have considerable influence over the box-office
success and, more importantly, the reception of films.
∀ A distributor has to decide upon when to release the film – ie
what time of year to go for the cinema release then how long
to wait between each of the ancillary markets – too long and
you lose the impetus/momentum and interest has waned. If
the gap between cinema and DVD (for example) is too short
then you might lose cinema revenue etc. etc.
∀ Art-House cinemas show specialised films but are mostly
found in urban areas and are rare when compared with
Mulitplexes. There is an issue about how much choices
audiences actually have.
6. What types of cinema
are there?
• Before 1985, cinemas had one screen, or 4/5 screens maximum. They
were in city centres, close to shopping, leisure pursuits and restaurants.
• In Milton Keynes, in 1985 there was introduced a strange structure
topped with a red, neon-lined pyramid. The Point – with 10 screens, the
UK's first true multiplex – had arrived.
• DEFINITIONS:
Multiplex – 5 or more screens
Multi screen – up to 4 screens
Single / two screen cinemas
The UK has 3651 screens in 723 cinemas as of 2009.
The Point's success also signalled trouble for small, independent cinemas.
In Milton Keynes, two local cinemas closed and score of other small cinemas
would be forced to close as the multiplexes spread across the country.
7. The proportion of multiplex screens for England
as a whole is 74%.
• 6 large exhibitors dominate the market. They often show
the main Hollywood blockbusters. The majority of films
made in the UK are independent, but where do they get
shown with the erosion of the small independent cinemas??
• What do multiplexes give?
∀ Choice of films,
∀ state-of-the-art technology,
∀ free parking space
∀ a vast array of snacks on sale
10. SYNERGY
Media institutions use a variety of platforms to sell various
products related to one film.
This all happens AT THE SAME TIME in order to maximise
profit.
Examples include film, website, DVD, merchandise and
video game
Can you think of your own examples?
11. Synergy
• Deals are done between distributors and exhibitors. Eg often 60% of
the ticket sales go back to the distributor.
• Another example - Eg High School Musical the film will enable spin-offs
like Happy Meals, Easter Eggs, bed linen, toy characters etc and the
distributor will agree Licensing deals for companies to make and sell
this merchandising.
• A % of the profits will go back to the distributor.
• For example, the Spider-Man films had toys of ‘web shooters’ and
figures of the characters made, CD soundtracks, video games, DVD’s
and other merchandising.
12. •Vertical and horizontal integrated
film processes.
Vertical:
“Where one overseeing company has control of every stage in the
film-making process - from production to distribution to
exhibition.”
∀Sony are BIG!. Their group sales in the last financial year of
2010 have been reported to be $7.2 billion.
13. ∀How are they vertically integrated?
∀ MGM are the production company for
Skyfall.
∀ Sony own part of MGM.
∀ Sony owned the distribution company – Sony
Pictures.
∀ They own Playstations and TV’s, phones and
cameras.
∀ Warner is another vertically integrated
company.
14. Horizontal Integration
Where one company has many media outlets which run almost
the same content. This creates “synergy” between different
divisions of the same company.
Sony owns Epic, Jive, RCA etc so control a wide cross
section of the music business, with hundreds and hundreds
of artists.
http://www.sonymusic.com/labels
http://www.sonymusic.co.uk/artists/