Distribution Research: "Big vs. Small films"

       For a traditional distribution model for a film it all starts with an idea. After one comes up with an idea for a movie, they create an outline and use it to promote interest for a studio or producer. If they show some interest, the studio or producer can decide to purchase the rights to the film.

       Once the purchase occurs, the movie will need essential people to make it (Screen writer, director, cast and crew). The film is then made and sent to the studio so they can make a licensing agreement with a distribution company. A distribution company is responsible for marketing the movie. They will look at the marketability of the movie and decide how many prints of the film will be made and how they want to introduce it to the public. 

       For smaller films, a studio might introduce it slowly to audiences, maybe enter it in film festivals and into speciality theaters. The studios will track the attendance rates and decide whether or not they need to expand. If it were a larger franchise or big movie, a studio will want to release it into between 3-4 thousand theaters opening weekend so they can make the most profit the average three weekend profit margin. The studios will share the profits with the theaters. 

       The profits, generally with big budget films, are split 80% to 20% box office growth on opening weekends. The studio gaining the 80% and the theaters gaining 20%, then as the opening weekends pass, the profit margin will fluctuate and the theater will gain more of the profits, about 60% and the studio receiving 40%.