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Exhibition and synergy
          The Film Industry
     Institutions and Audiences
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.
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.
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.
When did multiplexes arrive?




The Point – Multiplex
at Milton Keynes
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.
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
Synergy



•.
Synergy
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?
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.
•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.
∀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.
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/

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Exhbition and synergy ppt 2011

  • 1. Exhibition and synergy The Film Industry Institutions and Audiences
  • 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.
  • 5. When did multiplexes arrive? The Point – Multiplex at Milton Keynes
  • 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/