How does a film get financed?

Recap from last weekConnect

What is Warp Film’s Budget?

Connect

Before we look at the process of distribution, we must look

at company structures

Key words:• Conglomerate• Horizontal integration• Vertical integration• Parent company• Sister company• Subsidiary

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Conglomerate

• a large company or media institution that owns large numbers of companies in various mass media outlets

• E.g

• Walt Disney Company• News Corporation

HORIZONTAL AND VERTICAL INTEGRATION

PRODUCTION

Often a single parent company will own multiple companies in the film

industry.

This is divided into two types of ownership:

PRODUCTION PRODUCTION

HORIZONTAL

The parent company owns multiple companies at the same stage of the film industry. A smaller company, owned by the parent is a subsidiary.

VERTICAL

The parent company owns multiple companies across different stages of the film industry.

What are the advantages for a parent company of each type of ownership?

EXHIBITION

DISTRIBUTIONFor example Walt Disney also owns:

•Miramax Films

•Hollywood Pictures

•Pixar Animation

For example Warner Bros owns:

•Warner Bros Studios (Production)

•Warner Bros (Distribution)

•Used to own Warner Bros Cinemas in the UK (Exhibition

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Distribution

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Distribution involves everything that happens in between production and exhibition. It involves all of the deals done to get films shown and promoted.

Marketing falls under distribution and we will explore this as a separate topic

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Distribution

The distribution company is in charge of getting the film out to audiences, this involves organising for the film to receive an age certificate by regulation bodies, such as the BBFC and MPAA; arranging exhibition outlets globally and DVD/Television rights; arranging for prints of the film; and marketing, publicity and promotion of the film.

DistributionDiscover

Distribution

Of course it has to sell things, but it doesn't rely on waiting, listening, responding to what audiences want and then delivering that to them. It relies on knowing which parts of the world and the media need its products and will pay for them.

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There are five major distributors:

• United International Pictures, • Warner Brothers, • Buena Vista, • 20th Century Fox, and • Sony.

9 out of 10 films seen in the UK are from these distributors, and in most cases the distributors are directly linked to the Hollywood Production Companies who make the films.

DistributionDiscover

Pit Stop!

What is vertical integration?

What is horizontal integration?

Develop

In pairs/threes, you have 10 minutes

• Find five films distributed by:

• United International Pictures, • Warner Brothers, • Buena Vista, • 20th Century Fox, and • Sony.

Sulieman & Ryan

Indya, Lisa & Mujo

Kenya & Brandon

Tanisha, Abi & Chloe

Enid,Troy & Fatima

Develop

BONUS: How much did they make?Who made them (Production company)

• This is good news for films like Harry Potter: distribution is a done deal since WB are responsible for its production

• Spare a thought for the independent producer: he/she might have enough money to make their film, but how are they going to get it into cinemas when companies like this control much of the industry?

DistributionDevelop

• Film distribution is not a helpful stage in the life of a film whereby distributors treat all films equally and ensure fair play in getting films to the public’s attention.

• The key players, the big companies who control much of the industry, control distribution of their own products, and of others.

DistributionDiscover

• Effectively, films are loaned out to cinemas for a limited period of time and released deals are done that secure access to a certain number of screens at a time.

• In the UK film market, an increase in the quantity of screens showing films has not led to an increase in the number of films shown.

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Distribution

Homework – due Tuesday the 5th Feb

Find cinema listings for five different cinemas in London (include Independent cinemas for two out of the five)

Create a table identifying:• What films are being presented this week (look at all 7 days

listings)• Who is the production company for each film• Who is the UK distribution company for each film

Is it dominated by Independent or conglomerate companies?

Is Warp Films or Warner Bros responsible for any of the films?

Develop

You are going to create…

• A mind map connecting 5 companies

• Find out:• How are they connected? (use media terms

learnt today. Are they a subsidiary for example?)• What are they responsible for? (what do they

do?)

Develop