Licensing of Film

1. Define the licensing process.

Licensing is the process by which a distributor acquires the legal right to exploit a film.

2. How many levels are there?

In distribution, licensing itself can take place on two levels.

3. How many ‘market territories are there around the world?

There are 90+ market 'territories' around the world.

4. Why are smaller independent film companies unable to handle the licensing for their own films?

Independent producers have to sell their films to different distributors in each territory. Independent production companies are usually small concerns, sometimes set up for one film and often lacking the necessary knowledge or contacts of each of the territories around the world.

5. So what do they do?

Instead of doing this themselves, they might choose to hire a specialist sales agent, whose function is to understand the value of a film in many different markets. The sales agent will then set up stall at the film markets that take place throughout the year.

6. What is ‘local’ distribution?

Local' distribution, involves the distributor acquiring the license to release and exploit the film in a particular country.

7. They purchase the theatrical rights, what does this consist of?

Showing the film in cinemas; video rights, for video and DVD exploitation; and TV rights

8. Who do they have to share royalties with?

The producer. Royalties are taken from the profits that the film generates. A local distributor will conventionally share profits equally with the producer for the theatrical leg, pay back higher royalties for broadcast rights, and lower for video/DVD.

9. What is the most effective way to create interest in a new film in the UK?

A theatrical opening is seen as the most effective way to create interest in a new film. The big screen is still the optimum setting for a film for both audiences and the filmmakers.

10. What options are available after the theatrical (cinema) release?

DVD and VHS video, then on various forms of pay television and eventually, two years after opening in cinemas, on free-to-air television.

11. What must a successful distributor do?

Must have an in-depth knowledge of the marketplace - which cinemas, video outlets and broadcasters can best draw an audience for its films

12. Who was the distributor for your case study?

The Weinstein Company (US)

20th Century Fox (UK)

Pathé (International)

13. What techniques did they employ?

Due to it being a British film, marketing was a strong part of its distribution. They appealed to a wide audience, using traditional methods such as print advertising (posters) and also social networking: twitter, face book etc.