g 322 distribution

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AS Media Studies

Study NotesUnit G322 Section B

Audiences and Institutions

The Film Industry

Part 6

Distriution

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Film Distriution

Consider these two competing views of who holds the most power in terms of influencingwhat films get made and seen:

I! you rea" it do#n and loo" at it as a usiness then the audience has the $reatest %o#er& It's

the audience that tells you #hat they li"e& So i! the audience li"es a %articular su%erstar( then

)olly#ood is !orced to use the su%erstar and that star then ecomes e*tremely %o#er!ul&

+Tony An$ellotti,

In a #orld #here money s%ent on the ud$et o! a !ilm o!ten sees -. / $oin$ on %romotion as

o%%osed to #hat you actually see on screen( the idea that #e ha0e a #orld #here the consumer

can e*ercise authority is asurd& This industry is li"e any other& 1! course it has to sell thin$s(

ut it doesn't rely on #aitin$( listenin$( res%ondin$ to #hat audiences #ant and then deli0erin$

that to them& It relies on "no#in$ #hich %arts o! the #orld and the media need its %roducts and

#ill %ay !or them& +Toy Miller,

They can't both be right and you therefore need to come to an informed judgement on thisdynamic. In the case of film mareting! it is a comple" issue.

& Did millions o! %eo%le $o to seePirates o! the 4ariean 2 in the !irst

#ee" o! release ecause it is such a $reat

!ilm( or ecause it #as so #ell mar"eted5

1r oth5 It too" 3-&6 million in its

o%enin$ #ee"end in the US alone( 32/ o!

its !inal total $ross( F7I8

De!inition o! a distriutor

# distributor is the lin between the film$maers and the public! and allows a film toreach the public via the cinemas! %&% and on television. There are a number of distributioncompanies in the (! all with different styles! funding structures! aims and mareting plans! alltrying to sell their films in an incredibly competitive environment. )ac in *ection + welooed at ,ilm %istribution in the ( - here were taing a more global view.

/ach distribution company taes on a certain number of titles each year and creates anindividual release$plan for those films. Their responsibilities include:o deciding on a release date0o deciding how many prints to produce and in which cinemas to screen them0

o advertising campaigns0o designing art wor for adverts! posters! flyers and billboards0o organising premieres and taler screenings0o booing talent 1i.e. the stars or director2 for press interviews and personal

appearances.

%istributors are also responsible for negotiating deals regarding the film's release on video

and %&%! and showings on television! cable and satellite channels.

# film could come to the distributor in a range of ways 3films produced by the main

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#merican studios will be distributed through their own companies! so 5arner )ros. willdistribute their own films as will +6th Century ,o" and )uena &ista International will distribute%isney films as it is the %isney distribution 'arm'.

*ome films are seen at film festivals and are piced up through complicated negotiations with

sales agents and producers so deals can be struc in different territories 1i.e. orth #merica!/urope! #sia! #ustralasia2.

Some Bac"$round Facts and

Statistics

5orldwide spend on films is around 98 billion ayear! of which the distributors' share is about 8

billion. Total revenues are split almost e;uallybetween the orth #merican maret and the 6?. ,ew! ifany! major businesses can boast such continuedgrowth over this period. %&% has contributedsignificantly to the growth levels. %&% sales haveseen a tenfold rise in the last few years.

The average cost for an #merican studio film is nowmore than @6m with a further 6m spent onmareting 1up from 8m and m respectively in>4862.

Theatrical 1i.e. cinema2 revenues only account forabout +@? of the total profit! with %&% taingabout A6?0 television screening accounting for +8?and ancillary revenues the final 7?.

The main revenue streams for filmed entertainment are:>. Theatrical 1cinema2 e"hibition+. %&%B)lu$ray rental. %&%B)lu$ray retailA. ay per &iew Television

@. *ubscription or ay Television9. ,ree to air Television

The industry ma"imises revenues at each stage of the chain and avoids any clashes in themaretplace. + Donths

ay er &iew: >+ $ >@ Donthsay T&: >@ $ +6 Donths,ree T&: +6 E Donths

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The success of the home %&% maret has led to increased pressure on the %&% rentalwindow with some of the major distributors een to put their product into the retail maret

place as soon as possible. In the immediate future more films will be released simultaneouslyinto the rental and sell$through %&%B&F% windows. The rental window! which currentlylasts for about si" months before titles go into retail outlets! may be closed altogether before

too long. This may also lead to the ay per &iew window moving forwards with titlesreaching television screens within 4 to >+ months of their theatrical release.

Theatrical Distriution Deals

The share of )o" Fffice paid over to distributors varies between territories. The typicale"hibitor's share in the * is A@? and in the 8.?20 +6th Century ,o" 1>@.4?20 aramount 1>A.8?20

5alt %isneyB)uena &ista International 1>A?20

nited International ictures 1I2 who release films from niversal and DHD

studios 1>6.+?2.

The films released by the majors tend to be mainstream Gollywood blocbusters as well as(B*# co$productions. Dost companies have an 'indiewood' arm such as ,o" *earchlightor ,ocus ,eatures 1niversal2 that will tae riss on films that are not such commercial

blocbusters.

The Inde%endentsThese are companies who release a much wider range of films! and include #rtificial /ye!Detrodome and Domentum. Titles will include foreign language films! documentaries!re$releases and non$mainstream GollywoodB( titles piced up at film festivals acrossthe world.Entertainment Distributionis an unusual case in that it is a ( independent that has a

long standing relationship with * studio ew ine Cinema 1a unit of the Time 5arnerCorporation2. /ntertainment release their titles in the (! therefore getting such films as ordFf the


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screening of the film in cinemas2! and possibly the release of the film on %&% as well as T&and satellite rights.

=eleasin$ a !ilm

Gollywood distributors will consider their release strategies from 1at least2 four perspectives:Gloal: where will the film worJ=e$ional: how will we mae it wor in 1say2 /uropeJNational: how should we release it in each countryJ>ocal: are there any particular local conditions that need to be taen into account withineach countryJ

Dany things have to be taen into consideration when distributors choose a release date for amovie. *chool holidays in /aster! half term! summer and Christmas tend to be the time when bigfamily movies are set for release. )ig national sporting events! particularly when /ngland aretaing part! such as the /uropean Championships and the 5orld Cup can affect audiences! so

care is taen about releasing male$orientated! action$type movies at that time.

It is also crucial to now the landscape with regard to film and media related eventshappening nationally and most importantly! what else is being released at the time. The lastthing you want is your film being released on the weeend The ord of the


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4ase Study @ United International Pictures +UIP,

5henever you visit the cinema! there's a strong chance that the film you are watching is onehandled by nited International ictures 1I2.

I is jointly owned by two of Gollywood biggeststudios! aramount and niversal. They channel thefilms they produce through I! which is responsiblefor distributing them to cinemas in the internationalmaretplace outside orth #merica. I also handlesfilms from their non$mainstream divisions! aramountClassics and niversal ,ocus. *tephen *pielberg'sstudio %reamwors also distributes its films around theworld through I. ,urthermore! I will ac;uire anddistribute films made by independent producers in local

and international marets.

*ince its launch in >48>! I recons it has distributed over >!666 films internationally $including *hre! ove #ctually! Kurassic ar! Collateral! Dission Impossible! and )ridgetKones: The /dge Ff


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Film 4lassi!ication

)efore a film can be shown to a paying audience! it is re;uired by law that it iscertificated by the )ritish )oard of ,ilm Classification. This ensures! for e"ample! thatfilms which are of an adult nature are not shown to children.

%istributors must submit their films to be watched by e"aminers who write reportsdescribing each film and justifying the decisions they have reached. The cost to thedistributor is roughly O4.@6 per minute! so classification of an average film costsaround O866 - O>>66.

The )ritish )oard of ,ilm Classification produces a set of guidelines which are easilyobtained for your reference from the organisation's website 1www.bbfc.co.u2. The )),C isnot a separate entity from the film industry or a government department. It is a self$regulatory body as it is made up of film industry representatives. )ut despite this! this is the

one area of film distribution over which the maers and promoters of a specific film havelimited control. It is possible for a film to be targeted and promoted for a particular audiencegroup such as >@ and over! only for the )),C to impose an >8 certificate! although this israre.

The film certificate influences the mareting campaign of the film since this will needto be pitched at the age range indicated by the certificate. # distributor may indicate tothe )oard which certificate they are hoping the film will be awarded! for e"ample! aH certificate to allow a wider audience to see the film. The )oard! in turn! mightsuggest cuts are made in order for it to get this certificate.

Conversely! there might be times when a higher rather than a lower certificate willactually help to sell a film. ,or a thriller or a horror film to be rated >8 will do morefor it than if it were to be awarded a >@ certificate.

In +668! 94 films were classified of which 7 had tomae cuts $ A at the >@ rating! + at >+# and > at H.

The )),C's guidelines state that there are three mainconsiderations for any film:

> egal 1material may brea the law3$there are

several laws to do with obscenity! e;uality!incitement and the protection of children2+ rotective 1material is scrutinised for its potential to cause 'harm'

though this is a huge area for debate3who decides who needs protectingfrom whatJ2

*ocietal 1material is reviewed with broader public opinion in mind withparticular regard to language2.

The second and third considerations are moresignificant in stipulating an age classification for afilm. It is important to recognise that the )),C mae

recommendations! but it is possible for local authorities not to comply andeither allow films to be e"hibited to a wider age range thanthe )),C recommends! or to deny younger viewers access in

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http://www.bbfc.co.uk/http://www.bbfc.co.uk/


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the locality! or even to ban a film from release in the area. This hardly ever happens! but afamous e"ample was the decision of 5estminster Council to ban the screening of %avidCronenberg's Crash 1>4492, which was given an >8 certificate elsewhere.

The )),C's relationship with Hovernment is nown! rather misogynistically! as a

'Hentleman's nderstanding' which means that arliament observes from a distance and the)),C regulates itself in accordance with the political climate established by the Hovernment1stricter or more liberal depending on who is in power2. %uring the ew abour )lairB)rownera! the )),C has been more rela"ed about material for the >8 certificate! but Ptougherwhen considering material for younger children.

It is important to be aware of classification as anelement in '$ate "ee%in$'the distribution process.The classifications! as published in the )),Cguidelines! are as follows:U: niversal 1suitable for all2.

PG: arental Huidance 1general viewing! some scenesmay be unsuitable for young children2.2and 2A: *uitable for >+ years and older. o oneyounger than >+ may see a >+# film in a cinemaunless accompanied by an adult. o one younger than>+ may rent or buy a >+ rated %&%. +s to view lies with theaccompanying or supervising adult.-: *uitable only for >@ years and over. o oneyounger than >@ may see a >@ film in a cinema. oone younger than >@ may rent or buy a >@ rated %&%.? *uitable only for adults. o one younger than >8may see an >8 film in a cinema. o one younger than>8 may rent or buy an >8 rated %&%.=? To be shown only in specially licensed cinemas!or supplied only in licensed se" shops! and to adultsof not less than >8 years. 1*ource: )),C guidelines2

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4lassi!ication 4ase Studies 9 S%iderman +2..2, C The Dar"

:ni$ht +2..,

The )),C announced in *eptember +666that it would loo at the possibility ofmaing the '>+' cinema category advisory!lie '' and 'H'. This was in response tocomplaints from parents $ particularlywhenever a new Kames )ond film cameout $ who felt that they were better placedto decide which films their under >+s

could cope with.

In +66> they carried out a pilot in orwich.The outcome was that the public was only

in favour of maing the '>+' cinema ratingadvisory if under >+s were accompaniedby an adult throughout the film! and if consumer advice about the content of the film! forinstance! 'Contains a single use of strong language and moderate violence' $ was available on

publicity material and was included in local cinema listings. The )oard then carried out anational survey in Day +66+ and got almost identical results with over 76? of peoplesupporting the introduction of '>+#'. Fnce the )oard was satisfied that the film industry wasincluding the Consumer #dvice on publicity and that the cinema e"hibitors were including itin cinema listings! the new category was introduced on 6 #ugust +66+.

*pider$Dan had been passed '>+' in #pril +66+! in spite of a re;uest from the distributor for a

'H'. The reason for the '>+' was that the film contained a level of personal violence and arevenge theme that went beyond what was acceptable under the 'H' Huidelines. Thedecision proved to be unpopular with the under >+s who had collected the merchandise! toys!lunch$bo"es etc! which were specifically mareted at young children. The )),C receivedmany letters from disappointed children ;uestioning the decision.

The distributor of *pider$Dan! *ony ictures! decided to re$release the film immediatelyafter the introduction of '>+#' so that young fans had the chance to see the film at the cinema.The decision to introduce '>+#' had nothing to do with *pider$Dan or the pressure from

parents and children who wanted to see the film. The )oard had announced its decision toconsider changing the category in *eptember +666 because it recognised that children were

growing up faster and that parents were better placed to decide what their children shouldwatch. ,or the record! the first '>+#' film was The )ourne Identity.

Duch e"citement and anticipation surrounded Christopher olans The %ar (night basedboth on the success of the previous film and the recent death of #ustralian actor Geathedger. )ut though there has been much critical interest in edgers final high profile

performance some ;uarters of the )ritish press focussed on something ;uite different - thefilms P>+# certificate.

The %ar (night was submitted with a '>+#' re;uest which came as no surprise given theliely appeal of the film to younger audiences. It had also recently been awarded a PH$>!1a near '>+#' e;uivalent2! by the #merican ratings organisation! the D##.

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*everal factors were noted which supported a P>+# certificate. These included the filmscomic boo style! the appeal of thewor to >+ ->@ year olds! the clearfantasy conte"t and the lac ofstrong detail! blood or gore.

The )),C was also careful toensure that additional advice wasavailable to parents and othermoviegoers through the bbfc.co.uwebsite including e"tendedinformation about the filmdetailing how and why it wasclassified P>+# and urging parentsto thin carefully before taingyoungsters to see it.

,ilms classified '>+#' are! broadly speaing! the most complained about decisions. #s isoften the case such complaints about The %ar (night focussed largely on the possibility ofvery young children seeing the film - although many correspondents also cited what they

believed to be brutal! sadistic and strong violence. *everal noted in particular the focus onnife threat and violence perpetuated by the Koer character. *ome complaints also lined thecontent of the film to concerns about nife crime. /veryone who contacts the )),C gets a

personal reply. )ut it is important to set the complaints in the conte"t of the number ofpeople who saw the film. In the case of The %ar (night the +66 plus complaints are a tinyproportion of the five million people plus who saw it in the first two wees after it opened.

The introduction of the >+# classification demonstrates that the )),C have become morecareful with children's viewing! but the introduction of the 8 legalises forms of

pornography that were previously banned completely.

3& Pre%are a - slide %o#er%oint e*%lainin$ #hat you thin" o! the 2A ratin$& hatare your o%inions on the deate surroundin$ !ilm classi!ication in this country5 Use

S%iderman and The Dar" :ni$ht as a startin$ %oint& >oo" at the e*am%le o! uno also

!rom 2.. 1http:BBwww.bbfc.co.uBcase$studiesBjuno$6, and the de!inition o! 2 and 2Aratin$s +http:BBwww.bbfc.co.uBwhat$classificationB>+a$and$>+, hy is the ratin$ soim%ortant5

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Mar"etin$ a Film

Ma"in$ an audience a#are 9 The Uni4492 was a case in point. It did notfeature any stars and yet the film managed to capture the public's imagination. The maretingcampaign! combined with the simultaneous release of the soundtrac and boo! meant thatthe film became a major bo"$office success attracting a wide audience in both the ( andthe *.

/ven though a film may have big stars with vast amounts of money spent on mareting it!there is no guarantee that the film will recoup the money invested. #s 5illiam Holdman!author of '#dventures in the *creen Trade' said Min the film industry nobody nowsanything.M In the end! it is up to the audience to decide whether a film is a success or not.&ery few films mae a profit at the bo" office0 this does not mean that they mae a loss! butthat they mae their money in pre$sales deals with television and %&% companies.

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# mareting campaign is divided into three areas:>. #dvertising+. ublicity. romotions

The mareting campaign is also divided into above$the$line and below$the$line costs.

Ao0e9the9line costs

Gere! the above$the$line costs are for advertising. This is where the distributor pays a certainamount of money to buy advertising space. They pay for a slot on television or radio! or buyadvertising space in newspapers or maga=ines! and now what they are getting for theirmoney. They now the si=e of the advert! when and where it will be placed and roughly howmany people are e"pected to see it.

Belo#9the9line costs

ublicity and promotions are below$the$line costs. ublicity is where money is spent onbringing stars in from the nited *tates for e"ample. )y doing so the distributor hopes to getgood coverage in the media! but it's not guaranteed. It's all about taing a ris and hoping thegamble pays off. romotions are set up with another company 1e.g. a tie in with Dc%onald's2to promote the film to a wider audience.

The trailer

The trailer often plays in the cinema around si" wees before the release of a film and

continues to play until the picture opens in the cinema. The trailer aims to raise audienceawareness of a film by logging the film title in their minds. It gives an overall impression ofthe film to its potential audience! maing sure that the audience is aware of the stars 3

particularly where their names will help to sell the picture. It should create the desire to seethe film when it finally opens. Trailers tend to use a combination of footage from the film!graphics and voice$over to generate curiosity.'Teaser' trailers might also be used to whet the appetite of the audience in the same way as a'teaser' poster. asting appro"imately 6 seconds! these are shorter than the main trailer and

play in the cinema for anything up to si" months before a film opens. Gowever! it isimportant to understand that cinema advertising will only reach a cinema$going audience. Itis always important to mae as many people as possible aware that a film is coming and so

other audiences must also be reached.

Media ad0ertisin$

The distributor will want to buy advertising space in as many different media as isappropriate both for the film and its Q # budget. The media normally available arenewspapers! maga=ines! television and radio. Internet websites are also set up to announcethe arrival of a film. The form of the advertising in each medium must tie in with the overallcampaign. Thus! newspaper advertising will be based on the campaign poster! whilsttelevision advertising will have elements of the cinema trailer in it. 5hat is vital is that theright media outlet is chosen for the film.


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/"tensive use is made of radio advertising on regional commercial radio stations.


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the press are given access to them $ but bear in mind that! in Cannes! there may be @666accredited media either chasing orneeding persuading to conduct aninterview. *omehow their needs haveto be satisfied within >6! +6 or! if you

are lucy! 6 woring hours from eachof a small number of stars! each ofwhom may be spending fewer than days at the ,estival. < #genciesspend a lot of time nurturing theirrelationships with the ey mediarepresentatives! so that they canincrease the chances of winning theirattention when it is being stretchedacross so many competing priorities.

P= Bud$ets

&ery often! < is over$looed when producers are putting budgets together and! even if thereis an allowance made for this e"pense! it is usually too small. # typical budget for unit

publicity might be around O>6 $ O>@!666 on a O$@ million film. There also need to beallowances for photography! /lectronic press its 1/(s2 and media visits.

The Press :it

ress its are sent to journalists all over the country to give them information about

forthcoming films. They are one of the basic tools of any publicity department. (its include aset of authorised stills to be printed in newspapers and maga=ines! cast and crew credits!production notes! biographies and filmographies of the stars! director and producer. /(s arealso available to journalists woring in television and contain many of the same items as thewritten its but with the addition of selected video clips and interviews for television. #udioclips are also made available for radio.

Star Tours C Press un"ets

Touring a star of a film is a costly business! but one that usually pays dividends. *tars arebrought into the country at the distributor's e"pense! which means paying for flights! travel

1usually a chauffeur driven car2! hotels! meals! a daily spending allowance and entertainment.The distributor plans the tours down to the last hour! maing good use of their stars' time andcarefully scheduling interviews to mae sure that a spread of media are covered! and that

publications or television programmes with similar audiences do not clash. ewspapers witha similar readership! and television programmes will want e"clusivity of a star.

,or radio broadcasts! tapes of interviews are usually syndicated: for ma"imum publicity oneradio interview is recorded with a star or director and then sent to local radio stations on atape ready for immediate broadcast. #s with the press and with television! interviews of thisind provide good material for a radio show as well as 'free' publicity for the film.

5here stars are unable to travel! perhaps because of other filming commitments! a pressjunet will be arranged. *elected journalists are taen! at the distributor's e"pense! to alocation convenient to the star for a round$the$table interview with them.

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The Press Screenin$

)efore a film is released! the press who are reviewing the film will be invited to a specialscreening which will encourage the spread of word of mouth recommendations among the

media.

Gala %remieres

,or high profile films! the release might be preceded by a


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There are basically three types of release in the (:

Saturation

Clic on the lin to discover what films being released this wee are being given what

coverageR1http:BBwww.launchingfilms.comBrelease$schedule2# film that literally saturates the country in terms of number of prints and national publicity! i.e.The ord Ff The or +days of 'preview screenings' before the,riday opening.

ide release +:ey 4ities,

This is still a large release! but not on the same scale as the blocbusters. There will usuallybe around 66 prints. These titles are also nown as 'crossover' films! as they may also screenat subsidised independent cinemas as well as multiple"es. The film may open in ondon!gradually spreading across the country over the ne"t few wees.

>imited release +>ondon only,

This is a small scale release! around >6$+6 prints. Titles are usually nown as 'art house' or

'specialised' films and will play in the


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release may have as little as A or @ prints! and if it's a film touring as part of a festival 1i.e. Theondon ,ilm ,estival on Tour2! only one print may be available.

4osts

Cinemas will pay distributors a percentage of net bo" office! which is usually between @$96? but may be higher for some multiple" chains for franchises such as Kames )ond! Garryotter! The ord of the ord o! the

=in$s? Fello#shi% o! the =in$( #hich has sold almost !i0e

million units& The t#o se


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*ubscription T&: The T& operator pays a fi"ed fee to the distributor 1of O@6 to O>.+m2which usually depends on the film's performance at the )o" Fffice. The distributor taes

between +@ and @? commission with the balance to the producer B financier B agent.

,ree T&: the fee paid by the broadcaster usually depends on the film's )o" Ffficeperformance. The distributor taes percentage fees of between +@ and @6? in the * and +6$ A6? in the @.4 billion 1@?2 of this total was accounted for by the international maret1including the (2! with the * accounting for the other 6 million. It is e"pected to grow

to 9+ billion by +669.

The ey international marets for %&% the (! Kapan! ,rance and Hermany which betweenthem account for more than 96? of international revenues and reflects the higher penetrationof sales of %&% players in these territories: in the ( in +66 AA? of households have %&%

players 1or other hardware that can play %&%s2 and this is set to rise to >>A? by +669 $ ie.an average of more than one player per household.

The Gome /ntertainment business is now worth twice as much to the studios as their cinemabusiness although commercial success at the )o" Fffice is still crucial to maing money in%&% sales.

The rental proportion of this maret in +66+ was around 6? and this is e"pected to fall to+6? by +669. The studios are een to continue to support the rental business because it

brings them higher margins than retail! but it does appear now to be in decline. In the ( themaret is fragmented! with one major player 1)locbuster2 generally dominating the largenumber of smaller outlets but )locbuster is in decline. The rental window is alreadyclosing! with %&% releases happening nearer and nearer to the rental release date! and in anincreasing number of instances! the studios are going day and date with retail and rental.

The Gome /ntertainment maret is e"pected to continue to achieve dramatic growth

over the ne"t few years fuelled by the rise of &F%. ressure on retail prices!

however! will mean that the total value of the business may eventually start to falleven though sales volumes will still be growing.

5indows of e"ploitation will close over time in an effort to ward off the impact of

piracy and to improve cash flows to the studios.

)y +668! every household in the ( will have at least > %&% player.

Hood e"tra features are becoming increasingly important as a means of selling %&%s

and maintaining margins.

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Issues !or DKDs in the early 2st 4entury

indo#s o! L*%loitation 9 In +66>! the average timetable for roll out of a film fromtheatrical release to free television was around 6 months. In +668! this has shrun to as littleas +6 months. #ll other revenue opportunities have shrun:

&ideo : 9 months +668: A months

&ideo : >+ months +668: A$8 months

ay per &iew $ +66>: >8 months +668: 7$>+ months

ay T& $ +66>: +A months +668: >6$>8 months

This change in pattern is partly to combat the effects of piracy which is proving to be a hugeproblem in certain territories! but also to boost the studios' cash flow by reducing the amountof time it taes for them to see revenues from further along the value chain.

Fast BurnJ Sales 9 @6? of new %&% sales are generated in the first month of release.Hetting the in$store point of sale materials and displays right is crucial to the studios if theywant to ma"imise sales of their top titles.

=elease Days 9 Traditionally new videos and %&%s have been released on a Donday.%istributors are now looing to move ey releases to a Thursday or ,riday to mae best useof their major mareting campaigns immediately before the heaviest buying days 1@6? of%&% sales tae place on ,riday and *aturday2.

Pricin$ 9 %&% retail prices are falling much faster than was the case with C%s. In the (!C% prices fell >? in the first 9 years after their introduction0 %&% prices have fallen by>4? in just three years. This is the result of some aggressive maret by the majors who have

priced very aggressively to boost sales and consumer behaviour: research suggests that aA6? drop in retail price can lead to a !A or @ times lift in unit sales. To maintain their

profits! the studios will have to reduce their costs of sales by reducing the additional cost ofmareting %&%s by reducing the gap between cinema and %&% release $ or develop more

premium priced products by improving the e"tras supplied on the disc.

DKD L*tras 9 /"tra features on %&%s are becoming increasingly important to differentiateproducts in the maret and to generate premium pricing.


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Mar"etin$ 9Mobile Phone Campaigns $ There are +46 million mobile phone users in/urope $ >66 million of whom are under +@. This maes te"t$based campaigns ideal formovies that are aimed at the younger maret. Online Campaigns$ eople spendappro"imately twice as much time online each day as they do reading a newspaper. O7 billionof transactions are carried out on the internet each year 1e"cluding pornography2 and %&%s

are the most popular item purchased online. Dany %&% buyers do their research online evenif they buy through traditional outlets.

And in the !uture8

Di$ital Deli0ery @ K1D

There is little doubt that at somepoint in the future! all films willbe distributed and screened

digitally. The big ;uestion iswhen this revolution will tae

place. The digital roll$out willinvolve a huge capital investmentand! although the benefits will beenjoyed by both e"hibitors anddistributors! it is not yet clearwho will pay for the necessaryinvestment. There are also stillissues to be resolved oversecurity $ with piracy an increasing problem! the transmission mechanism for the digital

output will need to be >66? secure. The different methods of transmission available $satellite! cable and data file $ will have to be assessed against this criterion but also for theirease of delivery and relative costs.

Day and Date Distriution

5ith the various e"ploitation windows closing! there is an increasing trend towards filmsbeing released internationally on the same day as 1or close to2 their orth #merican release.This has the advantages of reducing the opportunities for piracy0 enabling maretingcampaigns from the * to roll over into other territories0 and allowing earlier e"ploitation ofother windows. Fn the other hand! day and date releasing re;uires more prints and meansthat mareting spend must be committed internationally before the studio nows how thefilm has played in the *. It also reduces the time that the distributors have for sorting outdubbing! classification and other issues in each territory and maes it less liely that thetalent will be available to promote it in as many marets. In practice! decisions on release

pattern will continue to be taen on a film by film basis! with release dates generally movingcloser to the initial * release.

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Tar$et audience

The trailer's placement gives an indication of the target audience! one which is a difficultmaret for advertisers at the moment: teens and! more specifically! young adults. Thesegroups are becoming hard to reach for advertisers who rely on conventional methods.

Soung adults tend not to watch T& on a predictable! regular basis and often have access tomulti$channel cable television which fragments the audience across a range of channels.%evices lie *yE mean they can record television programmes! watch them when theychoose and fast$forward through any advertising. #lternative methods of viewing television

programmes also mae this audience hard to find. 'Fn demand'. downloads and SouTubesplit the audience further and this is the generation that is liely to wait to buy television

programmes and films on %&% rather than watch them in traditional settings surrounded byadvertising.

#lternative advertising methods were needed if Cloverfield was going to be able to attract

the attention of the group of people who could be used to help mae the film a success in thecinema. # specialised online and computer savvy audience was specifically targeted as theirinteraction with the mareting was vital in the film generating interest from another valuableaudience group! the mainstream movie$goer. The story of Cloverfield's mareting shows howthe online audience was used to create a bu== about the film to support a more traditionalmareting campaign.

Buildin$ the cam%ai$n

The teaser trailer provided one piece of important information! the name of the producer KK#brams. This would have created a number of genre e"pectations. #brams is the creator of

AliasandLostand so the audience could e"pect an element of *ci$,iBGorror within this filmand might anticipate a narrative that was comple"! fragmented and laden with 'clues' ratherthan e"planations. 5eb searches after the teaser trailer led the audience to a website named

only as the date of the film's release 1www.>$68$68.com2. This site slowly released photoswhich were time and date stamped to allow the audience to build up chronological glimpsesinto the narrative of the film.

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Buildin$ uEEJ and chatterJ on the Net

The enigma and the slow release of information were both constructed to encouragediscussion online in blogs! social networs and chat rooms! which was how the realmareting too place via 'word of mouth. 5eb$chatter was heightened on the release of a

poster showing a decapitated *tatue of iberty! a devastated ew Sor and the release of asecond! more detailed trailer. *till maintaining the mystery! the trailer's e"position containeda chilling geographical marer identifying the location of events to be in the 'area formallynown as Central ar'. ,or the first time the film's title was identified and the trailer wasreleased online along with an official movie website 1www.cloverfieldmovie.com2 whicheventually provided lins to Dy*pace and ,aceboo pages 'created' by some of thecharacters from the film. These regularly updated pages created a real$time story whichshowed the characters moving towards the eventful night and provided a bac$story to thefilm itself. The Dy*pace blog was where the film's protagonist announced he was moving toKapan to tae a new job at *lusho! a Kapanese soft drins company! which e"plains why thefilm begins with a going away party.

In addition a widget was available for download from the website. This piece of softwarecould be attached to Dy*pace pages! blogs etc. and contained the first five minutes of the

film with an introduction by KK #brams. To download and use the widget people needed toregister their contact details.

This registration immediately entered people into a competition based on who managed todistribute the widget to the most people0 a direct encouragement of more 'word of mouth'mareting.

They did the traditional stu!! too8

#dverts were also sent to mobile phones! traditional posters and T& slots were also used and

the culmination of all these events was an increasing public and mainstream press awarenessof the film. The campaign was creating a deep curiosity as so much information had beenheld bac and the only way for the audience to gain answers to the ;uestions the maretingraised was to go to the cinema to see the film. #s the character Gud said in the second trailer!

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with this much interest it was almost inevitable that people are gonna want to now how itall went down.

But that's not all&&&

arallel to this campaign! a related story wasbeing told through an #6+
http://www.slusho.jp/http://www.1-01-08.com/http://www.1-01-08.com/http://www.slusho.jp/http://www.1-01-08.com/


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# Danhattan couple Kamie and Teddy set upa website to post video$blogs to stay in touchafter Teddy had gone toKapan to wor for Tagruato.Kamie assumed she had been dumped

as she hadn't heard from Teddy forover a month when shereceived a pacagecontaining a Tagurato

baseball cap! somethingwrapped in tin$foil 1which shewas instructed not to eat2 and arecorded message indicatingTeddy was in some sort oftrouble. Interpreting this as asic practical joe! she assumed he had a new sany girlfriend and decided to eat the gooey

product she received. #lmost immediately she appears to become e"tremely into"icated.Kamie maes a brief appearance in Cloverfield where the audience can glimpse her passedout on the sofa at


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5hat is important is that people are taling about a potential second film and so the viralcampaign has already begun.

Q& hy do you thin" 4lo0er!ield #as such a success!ul mo0ie5 In your o%inion #hat

#as %articularly attracti0e aout its mar"etin$ cam%ai$n& Go to the #esites listed in

the case study to see i! theyJre still live& Film li"es eddin$ Kideo( Paranormal Acti0ity

and Lnd o! atch ha0e used the !ound9!oota$eJ !ormat more recently5 )o# ha0e they

een mar"eted5 Do you thin" this !ormat is e$innin$ to ecome tiredJ5

Film and the Audience o! Tomorro#

Danah Boyd Cannes Film Festial Opening !pee"h # May $%th &00'

Introduction

,ilm has gone digital. The digiti=ation of film taes place at multiple levels! but mostnoticeably: production! distribution and consumption.

>. Production: 5hat cameras you use! how you do lighting! special effects! storage ofcontent! editing of content! etc.

+. Distriution: #dvertising your film! %&% culture! download culture.. 4onsum%tion: remi"! sharing! clipping culture.

#t each of these three levels! there are stages to how technology affects practice.

The first stage is T


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4onclusions @ the !uture o! Di$ital =i$hts Mana$ement +D=M,

,ilm is not disappearing! but the Internet is here to stay. It's easy to play ostrich and pretendnothing is changing! but the fact is that the Internet is changing many things including the

film audience. 5hen we tal about how how audiences have changed these are four eyareas that help define them:

>. They are ersistent.+. They e"pect searchability. They e"pect replicabilityA. They are invisible

,ilm can always be turned into video! regardless of what %


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It is time for the film industry to innovate rather than trying to control. Dany new

opportunities lie ahead.

-& To #hat e*tent do you a$ree #ith the statement that the audience o! tomorro# isonline5 hat e*am%les !rom your o#n consum%tion o! !ilms and media lead you

to#ards the internet5 rite a %ara$ra%h ans#erin$ each o! these

g 322 distribution

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