Exhibition

Theater owners are the last link in the distribution chain. For a theatrical film, the principal method of distribution is the exhibition of the film in cinema halls across the country.

In India, exhibition centers are available in various forms and sizes, ranging from open-air facilities to thatched-roof rooms to air-conditioned and modern multiplexes. Most theatres in the country possess only the basic facilities. Only a few theaters in major cities like Mumbai and Delhi possess sophisticated equipment and sound systems. Amenities like canteens, parking lots and decent restrooms are found only at a few select, well-run theaters.

The distributors enter into contracts with the theater owners/exhibitors for screening the film. The different contracts entered into between them are as follows:

a) Theater Hire

The distributor pays the theater owner a fixed charge for screening the film on a weekly basis and earns his revenue through ticket sales. In this type of arrangement, the distributor bears all the risk.

b) Fixed Hire

Under this method, the theater owner pays the distributor a fixed sum of money per week. Unlike theater hire, here the risk is borne entirely by the theater owner. Irrespective of the film's performance, the theater owner pays a fixed amount to the distributor.

c) MG + Royalty

Here, the theater owner guarantees a certain amount to the distributor for screening the film. In the event the film makes a profit (after the theater owner deducts his cost and payment of MG), the same is shared between the distributor and theater owner in a pre-decided ratio.

d) Profit Share

The theater owner and the distributor share an equal risk, as the amount earned by the theater by way of ticket sales is shared with the distributor in a fixed ratio.

Studios are the major distributors and have their distribution channels worldwide. They can commit substantial sums of money towards prints and the advertising of a film compared to a smaller, independent distributor who may be operating on a limited financial basis.

While many of the major film production companies have their own distribution arms to distribute their product, both domestically and internationally, there are a number of independent film distribution companies that engage in film distribution in various media and/or territories. Since most independents do not have their own distribution arms, some distribute through companies, which have distribution facilities in certain states or territories. Others book directly with exhibitors without using sub-distributors. The advantage of having the security of committed distribution arrangements prior to commencement of production must be weighed against the potentially larger sums of money, which may be obtained later if the completed picture appears to have the potential of becoming a hit.

The following are the various ways in which a film in Hollywood can be released.⁵²

Saturation Release

This is solely done by the major studios, which have the massive printing and advertising ("P&A") money to book a screen in at least 1 out of 2 multiplexes in each city. This results in release of anywhere from 1,500-2,500 prints..⁵³ In 2002, 32 films opened in ultrawide release (more than 3,000 theaters) and 139 films opened in wide release (more than 1,000 theaters).⁵⁴ Spider-Man was released on 7,200 screens in 3,615 theaters and Harry Potter was released on 8,200 screens..⁵⁵ Considering the total 35,506 screens in 2002 in the US, these films played in one out of every four-five screens. Such saturation releases can shut-out many smaller films that rely on word-of-mouth.

Platform Release

This is also a major studio release pattern with big-budget films being released in 3 stages. The first stage, for one to two weeks, is 10 to 20 prints each being released in a single large theater in one of the top 10 to 20 (New York, Los Angeles, Boston, Chicago, etc.) markets in America. Stage 2 has the film opening a week later with an additional 15-30 prints (150-600) in each of those 10-20 major markets. Stage 3 has the film opening wide in all the smaller cities (markets 21 -200 with the same 150-600 prints) around America during the next four to six weeks..⁵⁶

Limited Release

This is when a film opens in just a select few theaters in the major markets like New York, Los Angeles and Chicago Then, if it is well received at the box office, it makes its way into a smaller scale of a platform release.⁵⁷

Market-by-Market Release

Usually the ideal candidate is a good-to-excellent small film that a mid-size distributor has picked up the rights to but does not have the capital for a Saturation Release of 1,500-2,500 prints. This distributor will make 20-40 prints and play it in one region after another over 12 months until the territory of North America (USA/ Canada) is eventually saturated.⁵⁸

Art House Release

Foreign films and small film noirs (like a film made by Merchant-Ivory) are in the classification distributed via art houses. In every large city there are 1 -2 art houses (small old cinemas) seating 100-200 people.⁵⁹

Four Walling

This occurs when a producer circumvents a distributor and literally goes from town-to-town renting, the 4 walls of the theater directly from the theater owner, bringing his own print, placing his own ads, and sitting in the box office collecting every penny (if any) for himself, thereby cutting out the middlemen.

Non-Theatrical

This category comprises films that go directly to video, foreign sale, cable, hotel/motel, pay-per-view, broadcasting (TV), foreign television, multi media, web, and net markets for revenues.