At first, someone will have an idea for a film, and then they create an outline and use it to promote interest in that idea. If the film appeals to a studio or independent investor they will decide whether or not to purchase the rights to the film. If they purchase it, then people are brought together in order to make the film (producer, director, cast, crew, screenwriter). After this the film is completed and sent to the studio, where the studio makes a licensing agreement with a distribution company. The distribution company will then determine how many copies (prints) of the film they will make. After this, the distribution company shows the movie (screening) to prospective buyers representing the theatres. In addition to this, the buyers negotiate with the distribution company on which movies they wish to lease and the terms of the lease agreement. The prints are sent to the theatres a few days before the opening day, and the theatre shows the movie for a specified number of weeks (engagement). The result of this is you buying a ticket to watch the movie. Finally, at the end of the engagement, the theatre sends the print back to the distribution company and makes payment on the lease agreement.
After a distributor has leased a movie, they will try to determine to best strategy for opening the movie. Opening refers to the official debut of a movie. There are several factors to consider: studio, target audience, star power, buzz and season.
The two ways for a theatre to lease a movie are bidding, percentage.
A diagram of movie distribution flow:
Movie distribution table:
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