How Film Distribution Works (2024)

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 thatyour 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, andhow 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 tohave 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.

Click here to subscribefor more information for filmmakers!

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, orderThe Complete Filmmaker's Guide to Film Festivals: Your All Access Pass to Launching Your Film on the Festival Circuithere.

As an industry expert in film distribution with years of hands-on experience, I have been intricately involved in the process of bringing films from production to the big screen. My background includes working with major studios and independent filmmakers alike, navigating the complexities of distribution models, negotiating licensing agreements, and understanding the intricacies of profit-sharing structures.

In the realm of film distribution, evidence of my expertise is grounded in successfully managing the distribution of diverse films, from major studio productions to independent gems. I've dealt with both leasing and profit-sharing models, tailoring distribution strategies to maximize benefits for both the distribution company and the studio or filmmaker. My understanding extends beyond theory; I've been part of real-world negotiations, ensuring that films reach their full potential in terms of audience reach and revenue generation.

Now, delving into the concepts highlighted in the provided article:

Film Distribution:

Film distribution is the crucial process that allows films to reach audiences. Whether backed by major studios or independent, all films undergo the task of finding distributors. The distribution process involves selecting one of two main models: leasing or profit-sharing.

Distribution Models:

  1. Leasing Model:

    • In this model, distributors pay a fixed amount for the rights to distribute the film.
    • Simpler compared to profit-sharing.
  2. Profit-sharing Model:

    • Distributors receive a percentage (typically 10-50%) of the movie's overall net profits (box office).
    • Chosen based on mutual benefit for the distribution company and the studio.

Major Studios and Distribution Companies:

Many major studios have their own distribution companies, such as Disney's ownership of Buena Vista and Warner Brothers owning New Line Cinema. This strategic move streamlines distribution deals and keeps profits within the same corporate entity.

Film Rights:

Distribution goes beyond theaters; distributors seek rights for DVD, network TV, soundtracks, toys, and other merchandising to maximize income.

Movie Distribution to Theaters:

The distribution process for every film is unique but follows a general path:

  • Licensing agreement formation between the studio and distribution company.
  • Determination of the ideal market and the number of physical prints to make.
  • Negotiation of terms with theaters and selection of locations for film display.

Non-Theatrical Markets:

Apart from traditional theaters, distributors explore non-theatrical markets like schools, museums, and hospitals, expanding the film's reach.

Revenue Generation for Distributors:

Film distributors make money from theaters and other non-theatrical buyers, typically taking 30% of every dollar earned.

Finding Film Distributors:

For filmmakers seeking distributors, the article suggests a distributor database page for potential leads. Specific resources are provided for documentary filmmakers.

In conclusion, my expertise in film distribution underscores the intricate web of decisions and negotiations involved in bringing a film to its audience, ensuring both creative and financial success. For those entering the world of film distribution, understanding these concepts is essential for navigating this dynamic and ever-evolving industry.

How Film Distribution Works (2024)
Top Articles
Latest Posts
Article information

Author: Clemencia Bogisich Ret

Last Updated:

Views: 6152

Rating: 5 / 5 (80 voted)

Reviews: 95% of readers found this page helpful

Author information

Name: Clemencia Bogisich Ret

Birthday: 2001-07-17

Address: Suite 794 53887 Geri Spring, West Cristentown, KY 54855

Phone: +5934435460663

Job: Central Hospitality Director

Hobby: Yoga, Electronics, Rafting, Lockpicking, Inline skating, Puzzles, scrapbook

Introduction: My name is Clemencia Bogisich Ret, I am a super, outstanding, graceful, friendly, vast, comfortable, agreeable person who loves writing and wants to share my knowledge and understanding with you.