Marketing of Films

After films have been produced, they must be distributed to individual movie houses and theater chains. This is accomplished through distributors, who lease motion pictures from the producer or production company. They then pay for the making of prints; arrange screenings so theaters can bid on the rights to show the film; promote and advertise the film; distribute copies of the film to the theaters; arrange for release on cable and broadcast television; coordinate distribution of videotapes, laser discs, and digital video discs to stores; and keep records of the income and expenses for all aspects of film distribution. Distributors bill theaters at the end of engagements, upon receipt of attendance reports.

Sometimes films are not leased, but instead these distribution tasks are subcontracted by the producer to a distributor. The producer then pays for the services by giving the distributor a percentage of the revenue, ranging from 10 to 50 percent of the motion picture’s net income. Additionally, the distributor deducts from the producer’s share of the net profits the cost for supplying prints of the film and for advertising and promotion.

The Motion Picture Association of America (MPAA) rates films to provide guidance to viewers about what kind of material the movie is likely to contain. There are five ratings. “G” indicates that the film is suitable for all ages. “PG” means that some material may be inappropriate for children. “PG-13” means that some material may be unsuitable for children under age 13. “R” means that anyone under age 17 must be accompanied by a parent or adult guardian. “NC-17” means that no one under age 17 is admitted.

Many films, especially those geared toward children, involve additional marketing beyond the film itself. The film’s producers sell the rights—called ancillary rights—to use the film’s characters or images to various manufacturers, and various toys, games, and clothing then appear featuring these characters or images. And for many films, separate musical recordings of the songs in the film’s sound track are produced and sold in record shops.