Film Distribution & Exhibition: Agreements, Techniques, and Regulations

Film Distribution & Exhibition

1. Distribution Agreements

Guaranteed Agreement

This agreement commits the distributor to pay a minimum amount to the producer within an agreed time, regardless of the film’s income. If the film generates sufficient income, the distributor recoups the payment. If income is insufficient, the distributor carries the difference, anticipating future revenue. This system presents less risk for the distributor but a greater commitment to the film, acting as a financial partner. The distributor typically receives a higher percentage of box office revenue and acquires global exploitation rights in exchange for the guaranteed amount (usually 3-6% of the budget).

Gross Distribution Agreement

: A type of contract under which the producer and distributor are divided mind percentage distribution of gross income, usually 70% to the producer and 30% for the distributor, and this deal is done before that the distributor to recover its costs. With the amount received by the distributor must meet its prints and advertising expenses and deduct their fees, although in some cases the producer is expected to somehow contribute to the costs of the distributor. This arrangement is advantageous for the producer because they get their money early and unfavorable to the dealer because there is no minimum income guaranteed. 2. FUNCTIONS OF THE DISTRIBUTOR. 1 – Decide what kind of movies are going to hire and operating technique to be used for launch: slow, medium or bulk (also called combination of rooms) .2 – Distributor foreign films and Community Titles to 1999 were required to obtain licenses to producers doblaje.3-Own Copy rights and public communication for a given time and a time-concreto.4 The distributor negotiates with the producer and the terms of the economic division of the benefits arising from the operation of the distributor película.5-anticipated advertising costs and materials copias.6-Edit-Hire publicitarios.7 exhibitor with the most advantageous conditions for the exploitation of “The película.8 distributor is responsible for ensuring coverage of the launching base-película.9 physically distributes copies to be responsible for all costs of transportation, storage, etc.. And once the contract, return the film to the producer or destruye.10 “The dealer is responsible for requesting the ICAA qualification certificate is a recommendation on the ages of the audience it is directed the film, can be special children for all audiences, not recommended for children under 7 years, not recommended for children under 13 years old and not recommended for children under 18. The certificate also listed the type of room which is directed the film and if you are projecting in the original or bent. The qualification certificate for foreign films has a term of 5 years. Spanish films do not expire. 3. TECHNIQUES launching of a film. The distributor must consider a series of criteria to select the most appropriate launching technique eg to take into account the commercial expectations of the movie that in some cases, may be disappointed though the majority are used to guide the distributor. Another criterion that has to take into account the dealer is that in the case of foreign films, if the film is supported by criticism or permits various festivals and therefore, is preceded by the success of other countries. Besides these criteria, the distributor must have commercial smell to know what type of product requires each throwing technique.

Running slow: it is used to publicize films in principle have no major commercial expectations. These films are usually placed in low-capacity theaters in a few rooms. It comes with few copies on the market and depending on the audience response is wide radius of action and the number of rooms in which they are projected. – Exploitation or moderate: this is the operating technique that is used for most movies. The dealer gives the film a different display, positioned at strategic points and giving a good coverage. Normally, it displays a phased manner will hits the market with no sufficient copies for the area you want to cover but without saturating the market. – Exploitation or in combination bulk of rooms: the technique used by multinationals to the titles of the season. It goes to market with many copies to try to occupy the main exhibition halls and cover the entire national territory. Normally projected large capacity rooms accompanied or preceded by a big hype. 4. DISTRIBUTION AGREEMENT. It is an agreement between the distributor and producer in what must appear a number of provisions regarding conditions under which the contract is made, ie identification of the signatory parties with a statement of domicile, GIF, tax identification , declaration of the producer has the exclusive rights of the film, film sharpness under contract with all necessary data for identification (year, direction, production, interpretation …), also appears the term of the contract (usually 2 or 3 years), term of protection for video and TV, the delimitation of the territory, the economic agreement of sharing, economic system of advertising the film, period of periodic settlements and courts to which the parties shall be submitted in case of discrepancies or litigation (there are no agreements and legal confrontation.) 6. DISPLAY. The exhibition is the last link in the chain of exploitation of a film. By law, the exhibitor is the employer or owner of a film several showrooms.
2 The exhibitor must comply with the ICAA important obligations: 1. Control must handle the box office: it is a legal measure that requires exhibitors to declare their income and complete a weekly exhibition game in that part, must include the data from film, week of release, the title, nationality of the film version of the film base, should also be on the distribution company and the economic agreement that was reached with her and 3 data that are most important for the control of the ticket, the ticket No I sold, No viewers and revenues. All this information has to send the exhibitor to amortization, also for the distribution of box-office revenues among different owners. 2 – Meet the screen quota: it assumes the obligation to program in their rooms at least in movies community regarding the number of films from third countries that do will be dubbed. At present, the ratio of community films about films from other countries is 1 to 3, which means that the company has to be planned at least one day of EU films. There is another relationship that is 1 to 4 for those cases in which third-country films exhibited a single day in the regular meetings, or when recovery is less than € 90,000. 7. TYPES OF showrooms.Under current legislation, the showroom is a room equipped with one or more projection screens open to the public upon payment of an entry price set only in return for the right to attend certain films. Most movie theaters are owned by different chains, a situation that benefits the retailer by giving greater commercial opportunities to the movies and lengthening its shelf life to rotate from one room to another within the same chain.