Film distribution

Three parties are leading in film distribution: film producers, film distributors and cinema operators. The producer is responsible for the supply; the distributor is responsible for distribution and the related marketing; the cinema operator puts the film on the screen.

Distributors

There are various ways to bring a finished film to the audience. The producer may collaborate with several parties for this. In the case of broadcasting on television, for example, there is collaboration with a broadcaster. In order to release the film in the cinema, the producers usually looks for a suitable distributor. This distributor buys the release rights to the film in a certain region and in that way often contributes to the financing and creation of the film.

Distributors always work in a national market. In the Netherlands, you will find both majors and independents. The majors, who control the majority of the Dutch market, are often subsidiaries of, or have close ties with, the largest film studios in Hollywood. They often release the large Hollywood productions in the Netherlands. In practice, you see that the majors are almost always large film studios, which control two parts of the three-part chain (production, distribution, operation). In general, the independents focus on films that are made by independent producers. In principle, however, any distributor can try to obtain the rights if they are available.

The first step in a collaboration between a producer and a distributor is a LOI (Letter of Intent). This is a formal collaboration guarantee, which the producer uses to inspire confidence among financial backers. A partnership such as this can be signed at any stage, even if the film is still under development. The collaboration can be continued by means of a Deal Memo, a form of contract in which the producer and distributor make agreements about the number of copies, the marketing budget and the length of the licenses. With a Deal Memo, the producer can submit an application to the Netherlands Film Fund, for example, and the distributor can ask for a distribution contribution.

Release plan
The distributor draws up a release plan in consultation with the producer. It lays out a marketing strategy for the release of the film and the most favourable release date is determined together with the producer. The release of the film may be in the cinema, but can also be on television, via PayTV, Video On Demand, or on DVD and/or Blu-Ray. The distributor is also responsible for the promotion regarding the film and tries to bring it to the attention of the intended audience and the press.

Sales agents

Getting a film shown abroad is a complex and time-consuming process. The producer may seek a sales agent for this. A sales agent is the link between the producer who wants to sell a film abroad on the one hand, and the distributors, broadcasters, streaming services, airline carriers and other buyers abroad. In addition, the sales agent ensures that the film is brought to the attention of the programmers of international film festivals.

The power of a sales agent lies in their network. A sales agent has partners worldwide, to whom they continually offering new content. These partners look at the film offered and decide whether it suits their platform or service. Should this be the case, a licensing agreement is drawn up. This includes agreements about which region the film may be shown in, for which period of time and how the revenues will be distributed among the various parties. The latter is referred to as the ‘waterfall’. Due to all the parties and interests involved, this may be fairly complex in nature.

The operator

The operator is the final link of the film distribution. Operators are cinemas, online platforms and media channels. A film programmer decides whether a film will be included in the programming. Hard choices have to be made in this regard, which are largely dependent on which type of film provider a film operator wants to be. For example, you have cinemas that mainly show art house films, cinemas that go for blockbusters and film providers that lie somewhere in between. It is therefore important that a distributor knows the film programmers well, so that only those films are put forward that suit the profile of the cinema.

Recouping investments

Ultimately, the intention is that all parties will see some return on their investments through ticket sales. For example, the sales agent has made investments in order to bring the film to the attention of international partners and film festivals, and the distributor has incurred promotional costs in order to bring the film to the attention of the national audience. Sales agents and distributors often invest in the film too: you refer to that as a Minimum Guarantee.