Exhibition and synergyThe 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 screensMulti screen – up to 4 screensSingle / 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/