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Home , Distribution (marketing), Felicity Jones, Film, Filmography, Film distribution, Film finance

The Handbook

Sales, & Exhibition Contents 04 INTRODUCTION 06 THE BIG PICTURE 13 GENERAL FACTS & FIGURES

SALES

14 HOW THE WORKS 17 HOW SALES WORKS 20 DOING THE JOB 32 THE INSIDE 33 FACTS & FIGURES

DISTRIBUTION

34 HOW THE INDUSTRY WORKS 38 HOW DISTRIBUTION WORKS 39 DOING THE JOB 53 THE INSIDE TRACK 55 FACTS & FIGURES

EXHIBITION

56 HOW THE INDUSTRY WORKS 59 HOW EXHIBITION WORKS 60 DOING THE JOB 68 THE INSIDE TRACK 69 CAREER PATHS 70 FACTS & FIGURES 71 GLOSSARY OF TERMS 73 KEY CONTRIBUTORS & RESOURCES 74 ADDITIONAL LINKS & RESOURCES

creativeskillset.org 3 THE FILM BUSINESS

Introduction

The EE British Academy Film Awards, Felicity Jones. 4 creativeskillset.org : BAFTA/Jonathan Birch. This resource pack is aimed at If you are already working in these areas individuals interested in working of the industry, this section should help you in the film business and is benchmark your existing knowledge and skills and designed to demystify the areas identify gaps that you will need to address in order of sales, distribution and to develop your activities further. exhibition. It is based on the If you are an educator, you can use this advice of established industry resource pack to review and develop training professionals about the skills and and courses informed by best practice within knowledge you need be successful the . in this field and was developed in with Film Distributors’ Association, Film Export UK, Independent Cinema , UK Cinema Association.

If you are an interested in a career in the areas of film sales, distribution and exhibition this resource may help you “As a filmmaker, I understand what competencies and knowledge is know only too well that expected from someone working successfully in these individual areas. do not exist for their own sakes…they only exist when they are experienced by an .”

Sir Alan Parker CBE THE FILM BUSINESS

The big picture

The EE British Academy Film Awards, . 6 creativeskillset.org Credit: BAFTA/Stephen Butler. DEVELOPMENT PRE-PRODUCTION PRODUCTION

UK film is now a major industry. The Though film production is often in the limelight, prominence of British talent such as Steve there are other vital elements that seldom receive McQueen, , Gareth Edwards and the same recognition; these include sales, Sarah Gavron and titles like TheSALES Grand Budapest distributionPOST-PRODUCTION and exhibition. Before exploring these , The of Everything and Harry Potter parts of the industry, it is worth understanding at international awards is a good indicator. the bigger picture. The film industry chain UK film now attracts international productions: describes the key processes that come together to of the massive £1.4bn spent on film in the UK in bring films to the screen. 2014, 85% (£1.2bn) cameDISTRIBUTION from inward EXHIBITION THE AUDIENCE investment from overseas blockbusters such as Spectre and : The Force Awakens and Avengers: Age of Ultron.

Journey to audience

DEVELOPMENT PRE-SALES PRE-PRODUCTION PRODUCTION

SALES POST-PRODUCTION

DISTRIBUTION EXHIBITION THE AUDIENCE

creativeskillset.org 7 THE FILM BUSINESS

DEVELOPMENT PRODUCTION EXHIBITION The stage at which a project The ‘shoot’ can include Refers to the activities of cinema is conceived, typically led by a department, costume, make-up operators, who have the core producer, writer or director. The and hair, set , , purpose of showing films to is written and often sound recording and more. , along with a significant undergoes /rewriting during hospitality and business, with this phase, key cast members may income being generated from ticket be brought on board, is POST-PRODUCTION sales, food/drink , venue hire secured for further development Involves editing, audio and . and/or production (perhaps from post-production (effects, musical multiple sources) and a pre-sales scoring, mixing and ), VFX deal may be agreed with a sales (creating worlds, characters or THE AUDIENCE company. explosions, changing the physical In this context ‘the audience’ refers appearance of , removing primarily to cinema goers, but flaws or obtrusive objects such as also includes those who purchase PRE-SALES booms) and grading. , on demand (VoD), A sales company looks for films Also referred to as post. subscription with commercial potential to sell (SVoD) or watch films on . and, through pre-sales, can help filmmakers to develop them. SALES Provides a conduit between those The industry could be viewed that wish to sell simplistically in two ‘halves’: PRE-PRODUCTION rights (producers, financiers) and pre-through-to-post-production The planning stage in a film’s distribution companies who wish to in one half, sales-through-to- production after the project is buy the rights to distribute the film audience in the other, though greenlit and before principal to exhibition companies. this doesn’t take in to account commences. The the level of complexity and is locked and the begins interdependence that exists. on scheduling, set and DISTRIBUTION construction, casting, budgeting Distribution companies license and financial planning and rights from people/organisations scouting/selection of locations. that produce or finance the film to bring films to audiences via cinemas, TV and other platforms.

8 creativeskillset.org BFI Opening Night Gala 2015, Suffragette. Photographer: Stuart Wilson. THE FILM BUSINESS

Independent vs studio

ASSOCIATED FINANCE

STUDIO Films are traditionally produced and released ASSOCIATED by one of the studios or “majors” FINANCE (20th Century Fox, Universal, etc.) or through collaboration between independent production ASSOCIATED and distribution companies. The different models PRODUCTION are often described as ‘vertical’ or ‘horizontal’. COMPANY STUDIO

Vertical Distribution Model ASSOCIATED ASSOCIATED DISTRIBUTION COMPANY Horizontal Distribution Model

OTHER RELEASE PLATFORMS ASSOCIATED (VOD, DISCS) DISTRIBUTION COMPANY EXHIBITION COMPANY

OTHER RELEASE AUDIENCE PLATFORMS (VOD, DISCS) EXHIBITION COMPANY DISTRIBUTION SALES PRODUCTION FINANCIER AUDIENCE COMPANY COMPANY COMPANY

STUDIO SALES 10 creativeskillset.org DISTRIBUTION PRODUCTION FINANCIER COMPANY COMPANY COMPANY PRODUCTION COMPANY

INTERNATIONAL SALES STUDIO DISTRIBUTION COMPANY INTERNATIONAL DISTRIBUTION PRODUCTION COMPANY

INTERNATIONAL SALES EXHIBITION COMPANY

DISTRIBUTION COMPANY INTERNATIONAL DISTRIBUTION

PRODUCTION SALES DISTRIBUTION FINANCIER COMPANY COMPANY COMPANY EXHIBITION COMPANY

PRODUCTION SALES DISTRIBUTION FINANCIER COMPANY COMPANY COMPANY Major studio structure example

The majors have been household names of the movie business for decades. They normally produce movies within their own corporate divisions in and distribute them through their subsidiaries around the world.

creativeskillset.org 11 Owner

Major studio business structure

Twentieth Century

20th Century Fox Fox Searchlight Studios Pictures New Regency (PRODUCTION) (DISTRIBUTION) (PRODUCTION)

THE FILM BUSINESS

Media Owner

Major Studio Business Structure

International Domestic Market

A film is described as independent when its UNIVERSAn independent film is “a film financing, production or distribution occurs that is not a studio picture, and in whole or in part outside this vertically integrated structure. When a film is distributed whose development and/or independently, a sales company provides production finance is provided between the filmmakers and financiers and the by more than one source” worldwide , represented by nationally Davies and Wistreich based companies handling cinema, video, TV and The Handbook: online distribution in their own countries. How to Fund Your Film (2007)

Many independent films secure their production Regardless of whether a film is released via major finance from more than one source, including: or independent companies, the journey taken is pre-sales to distribution companies (in various much the same. Once a film reaches its audience, territories via specialist sales companies), the money received by the exhibition company/ , private individuals, beneficial tax schemes cinema for ticket sales flows back down the chain; or public funding sources like the BFI. this is known as recoupment.

12 creativeskillset.org The theatrical release journey and the recoupment corridor

FINANCE INVESTMENT

THE SCRIPT / PRODUCTION & DISTRIBUTION EXHIBITION AUDIENCE RIGHTS HOLDER

INCOME

GENERAL FACTS & FIGURES [source BFI]

• Global box office for all films released in each country around the world reached $38.3 billion in 2015, up 5% over 2014’s total. UK films made in the UK grossed $9.4 billion worldwide, a 26% share of the global market. • The UK accounts for approximately 7% of global and 20% of European cinema box office. • The theatrical market pumps over $7.6 billion a year into the UK . • In 2016 Star Wars: The Force Awakens become the highest grossing film in UK cinema history, overhauling (2012). • 48,500 people work in the UK film industry, one third working in Sales, Distribution & Exhibition. • UK films and British talent have continued to enthral the industry internationally winning 22 awards during the 2015/16 awards season, amounting to 15% of eligible awards.

creativeskillset.org 13 THE FILM BUSINESS

How the industry works SALES

14 creativeskillset.org UNIVE

SALES DISTRIBUTION EXHIBITION

Represent rights Licensed by rights holders Rents the film from holders or their agents distribution company Licences distribution Markets the film Shows the film company to its audience to audiences Market business to business Rents the film to e.g. festivals exhibition companies

Sales Agreement Huge investment required to help engage audience with film.

Independent film producers (typically the rights • Oversee the local release of the film holder, along with the financiers) employ the services of a sales company (also known as a sales • Physically deliver the materials of the film to local agent) to sell their film to distribution companies.SALES distribution companies

A sales company may be an individual, a company • Manage credit control or a division of/attached to financiers. They deal only with independent films – often specialising in particular genres – looking for films to sell and EXHIBITION helping filmmakers develop new projects. Sales companies do the following:

• Provide estimates for filmmakers and financiers Sales Agreement* of the film’s prospects for commercialDISTRIBUTION success • Develop an international and “Sales ‘shepherd’ a materials for business to business, involving at film festivals and markets/ shows film from production to distribution. It’s a • Negotiate the licensing of rights to local (i.e. crucial role that’s not individual country) distribution companies – a process involving numerous legally binding well recognised” obligations Contracted by rights holders or their agents Mike Goodridge, Protagonist Pictures Markets the film to its audience Rents the film to exhibition companies Rents the film from distribution company Shows the film to audiences

Represent rights holders Contract distribution company THE FILM BUSINESS

Working with distribution companies Sales companies rely heavily on the relationships distribution companies of all sizes in all markets. they have and endorsements they secure. Films They are invaluable for getting the best deal in are usually licensed territory by territory where territories most filmmakers may not have even a “territory” is a country or block of countries thought of. A distribution company will be much that may be linked geographically, linguistically more likely to take a film seriously as a commercial or politically. International sales companies proposition if it has been presented to them by a acquire worldwide rights that they then sell on recognised sales company. The main centres for film to distribution companies across the world. They sales are London, , Los Angeles and . have excellent relationships with festivals and

A shifting sector The sales company takes a • Co-production, agreement to commission (eg 25%) and jointly finance and/or produce While traditional routes for film the rest of the money goes into the marketplace remain to producers and financiers, • Acquisition, sales agency important, digital although sometimes the sales agreements – to obtain rights and have also company is also involved as in films from producers or brought about many forms a producer or financier. Often financiers of content and other ways of the sales person ensures that screening socially or online • Sub-licences granting required approvals for the deal are creating audience growth exploitation rights to are obtained from producers opportunities beyond the natural distribution companies and/or financiers and prepares geographical boundaries. (sales), including what should a preliminary deal memo for be covered in negotiations the distribution company to regarding terms and conditions Sales agreements sign. They normally become the and the usage of copyrighted A “sale” is normally the ’s “account manager” – licensing of a limited grant of their first point of contact when • Sales companies may take rights to a distribution company they need anything to do with 20-30% on all advances and (the ‘customer’ or ‘buyer’) in film. Films are sold at various overages return for an advance payment stages of production. Pre-sale on account of an expected share deals are made before the of the distribution revenue film’s completion. Among the and if the film is successful agreements and transactions the sales company receives and they will cover are: sums in excess of the advance.

16 creativeskillset.org How sales works

Publicity & Business Acquisitions Sales Technical DEPARTMENTS Marketing Affairs Festivals & Press Marketing Maintaining ROLES Contracts Markets Coverage Materials Relationships

ACTIVITIES Acquiring Negotiating Festivals & Marketing Maintaining Films Sales Contracts Marketing PR Materials Relationships

Acquisitions share. Sales companies base the Visit Trader department value of a film on estimates of swarm on Hiive.co.uk for more projected sales/income, based resources about this area of film Acquisition executives will track on comparative data, etc. sales, including a list of key film projects and talented filmmakers festivals and markets. for the company to pursue. They Festivals and will read scripts, treatments and markets and other written submissions and Publicity & Business DEPARTMENTS Acquisitions Sales Marketing A airsmarketingTechnical provide coverage (notes) and Sales companies present the recommendations with specific film at various festivals/markets department regard to the commercial to companies Marketing executives are prospects of the package. and TV companies. Festivals responsible for the and are an important opportunity of films, ensuring Sales department to showcase a film for industry the film is presented in the sales and/or for pre-release best light to potential buyers Sales executives negotiate a Festivals & Press Marketing Maintaining Contractspromotion to the media and (distribution companies). Their licenceROLES for one or more films Markets Coverage Materials Relationships public. A film is represented to work involves commissioning, in one or more territories a festival by whoever has the preparing, editing and permitting commercial rights in that territory. Festivals/ occasionally writing material exploitation in one or more markets roll out a little like an for publication, knowing what media (cinema, DVD, VoD, academic year and follow the information to issue and how SVoD, TV) for a fixed period of same key rules as any other best to present it. Their work is time. These “rights” are licensed market (i.e. someone sells/ Acquiring Festivals & Pressdetermined Marketing by a marketing Maintaining or in return for a consideration, Contracts ACTIVITIES Filmssomeone buys, ,Marketing CoveragepromotionalMaterials planRelationships. which is normally a share of trends, risk, reputation, value for revenue and usually involves an money, etc.). upfront advance against that

creativeskillset.org 17 THE FILM BUSINESS To 'green light' a film project Create Buzz Audience Engagement DESIRED Build OUTCOMES Support Generate Attract talented cast and crew

Electronic Press Kit (EPK) METHODS OF PDFs Publicist Digital Agency

About the writer, director, producer Cast & Crew Awards FILM Production Still (portrait & landscape MATERIALS formats, key scenes Music cue sheet /dialogue list

Promotional plan

DESIRED MATERIALS FILM OUTCOMES FOR DELIVERY MATERIALS

To 'green light' a film project Film materials About the writer, director, producer Create buzz Website Cast and Crew Audience engagement PDFs Awards Production stills (portrait and landscape Build community Publicist formats, key scenes) Support crowdfunding Digital agency Music cue sheet Generate presales Shooting script/dialogue list Attract talented cast and crew Trailer /DVD sleeve Recommended link www.filmsourcing.com/epk-create-electronic-press-kit-film 18 creativeskillset.org The sales and Business affairs Technical/delivery marketing plan department Responsible for the physical • Is prepared by the sales Business affairs executives materials necessary to exploit company to launch the film will be involved in contract the film, which is normally into the marketplace, helping negotiations that may involve the package to create a buzz, to maximise a high degree of contention (to (DCP) – but occasionally on international sales and future agree the value of the deal). This analogue film – and comprising revenue streams extends to definitions of media video, audio, foreign rights to be granted (eg new tracks, marketing elements and • Includes a strategy, materials, ) and territories documentation. This function is copy, brief attendees/talent on granted (eg satellite footprints) mostly outsourced to specialist protocol, press even before hard commercial companies. and financial points are reached. • Establishes news angles for film and pages

• Involves publicists who have relations with the press, bloggers, filmmakers and distribution companies THE FILM BUSINESS

Doing the job

20 creativeskillset.org Want to work in the acquisitions department?

WHAT YOU NEED TO KNOW OR UNDERSTAND WHAT YOU MUST BE ABLE TO DO

1. Your company’s sales plans 1. Nurture the company’s existing and objectives. relationships with filmmakers to encourage new collaborations. .

2. Your company’s structure and lines of 2. Communicate clearly and considerately to decision–making. producers.

3. The trends of in the 3. Analyse statistical information, draw on international entertainment market, market knowledge/commercial experience identifying forms and genres of films and use professional judgement, in order that are likely to become popular. Prior to forecast audience numbers or determine knowledge of how films have performed in actual theatrical revenue for a given the past, how to access audience statistics. project. Contribute to the marketing plan as necessary.

4. The motivations and priorities of different 4. Apply your knowledge of film making in (film) rights holders, the film making order to communicate with the relevant process, the implications of acquiring films parties and make effective decisions. at various stages of production.

5. How to analyse a script, treatment or 5. Consult with relevant departments about other source material, with a view to its the kind of material the company is looking suitability and commerciality to transition to acquire. to film.

6. How to identify areas of strength and 6. Analyse the style and genre of various weakness in a script (eg dialogue, , productions already in the marketplace characterisation) and recommend how they and understand the type of material your can be addressed. employers pursue.

creativeskillset.org 21 THE FILM BUSINESS

Want to work in the acquisitions department?

WHAT YOU NEED TO KNOW OR UNDERSTAND WHAT YOU MUST BE ABLE TO DO

7. How to read and evaluate budgets and 7. Identify the availability of finished films finance plans. that have been produced without a sales company in place in order to screen and potentially acquire them

8. How to read and evaluate production 8. Assess the likelihood of the film getting schedules, progress reports and rushes. made. Evaluate marketability, budget, finance and creative package and the optimal time for the distribution company to get involved.

9. The business relationships currently 9. Establish and maintain relationships enjoyed by talented filmmakers (in order to with a broad range of individuals, manage identify opportunities) and how vital these expectations, operate in line with your relationships are in delivering a film to company’s objectives. Remain professionally market. objective about material while expressing your opinion.

10. Contracts and the key terms of 10. Negotiate an agreement in line with agreement – duration of licence, applicable your company’s objectives, resolve any territories, income apportionment, rights contentious issues, liaise with the relevant beyond theatrical release. teams and individuals as necessary.

11. The various film festivals and events 11. To determine which events are most taking place throughout the year. The appropriate to acquire suitable projects, particular focus of each event (competition, research and prepare for events, adhering to premiere platform or marketplace), event market etiquette when attending. protocols and etiquette.

22 creativeskillset.org Want to work in the sales department?

WHAT YOU NEED TO KNOW OR UNDERSTAND WHAT YOU MUST BE ABLE TO DO

1. Your company’s sales plans and 1. Nurture the company’s existing objectives. relationships with filmmakers to encourage new collaborations.

2. Your company’s structure and lines of 2. Communicate clearly and considerately to decision-making. producers.

3. Market intelligence such as latest film 3. Feed the “market view” into the process business news. A strong grasp of to complement the opinions of acquisitions developments in the film industry at large. colleagues. Competitor sales activities, etc.

4. The trends of consumers in the 3. Analyse statistical information, draw on international entertainment market, market knowledge/commercial experience including local variations, favoured genres and use professional judgement, in order (especially in those territories you’re to forecast audience numbers or determine responsible for), etc. Identifying forms and actual theatrical revenue for a given genres of films which are likely to become project, contribute to the marketing plan as popular. Prior knowledge of how films necessary. have performed in the past, how to access audience statistics.

5. Negotiating skills – the importance of 5. Make appropriate preparations for effective planning; the components to markets; such as emailing line-ups and consider when identifying strategies for scripts, announcing any festival or market different ; questioning screenings, getting on the phone to techniques; typical queries and objections distribution companies to go over that can arise during negotiations; and line-ups before the market and to key variables and trade-offs that might secure marketing appointments. be considered.

creativeskillset.org 23 THE FILM BUSINESS

Want to work in the sales department?

WHAT YOU NEED TO KNOW OR UNDERSTAND WHAT YOU MUST BE ABLE TO DO

6. Latest film news. A general awareness 6. Build relationships with distribution of films ‘coming soon’ and events companies. that might be expected from a film .

7. Your level of responsibility within the 7. Calculate the implications of different negotiations and the limits of your authority. media profit splits (‘the back end’).

8. The story and genre of films you are 8. Tell the story of a film in a very succinct, selling plus the of all the significant but engaging way. Present information talents involved, including awards and clearly, concisely and accurately. Perform commercial successes. swiftly and efficiently under pressure (eg at sales markets).

9. Any and all restrictions (media, territory, 9. Listen effectively and confirm “holdbacks”, windows, etc.) which may limit understanding. Respond constructively rights that can be granted, including other during negotiations. sales.

10. Factors to consider when assessing the 10. Effectively manage the typical queries negotiating power and of clients and objections that can arise during (eg in those territories for which you are negotiations. responsible for gathering intelligence about customers: their companies, their genre expertise, credit-worthiness, future plans).

11. Legal, regulatory and cultural 11. Contribute to sales estimates to evaluate requirements impacting upon negotiating. the commercial prospects of potential projects.

24 creativeskillset.org Want to work in the sales department?

WHAT YOU NEED TO KNOW OR UNDERSTAND WHAT YOU MUST BE ABLE TO DO

12. Rights, territories and clearances 12. Draw up and execute a deal memo ( available for distribution, including form agreement) covering a sale. definitions of: media rights, territory rights and physical film materials.

13. The various film festivals and events 13. To determine which events are most taking place throughout the year. The appropriate to sell or to promote a particular particular focus of each event (competition, project, research and prepare for events, premiere platform or marketplace), event adhering to market etiquette when protocols and etiquette. attending.

14. How to communicate in an articulate, 14. Calculate, agree and manage media literate and numerate way particularly exploitation ‘windows’ within which one or with people for whom English is not a first more clients may exploit a film in a territory. language. Foreign language knowledge is an advantage.

15. How to make yourself available and stay 15. Handle and make connected. yourself contactable and able to seek approvals from, for instance producers and financiers while in market or on the move.

creativeskillset.org 25 THE FILM BUSINESS

Want to work in the publicity & marketing department?

WHAT YOU NEED TO KNOW OR UNDERSTAND WHAT YOU MUST BE ABLE TO DO

1. How to work with and move graphics 1. Identify and agree the need for – and files. How illustrators use programmes such requirements of – the company project as Photoshop.

2. The various demographic groups and 2. Discuss and agree with acquisitions and their genre preferences and film sales the style, intended audience, content consumption tastes. Local variations to and quality of the material required. these in foreign territories.

3. How to work with talent (and their 3. Liaise with producers and agents to representation) to ensure the best deliver talent to screenings and junkets. co-operation and coverage for personal Work with creative suppliers to develop appearances, interviews, etc. static marketing materials such as key art (poster) , brochures, ads, screening cards, etc.

4. The purpose, scope, style and formats for 4. Work with creative suppliers to develop material. audiovisual marketing materials such as promos and trailers, contributing to the briefing of designers and trailer makers.

5. The implications for selecting material. 5. Deliver on time and within a budget to the highest quality level.

6. The various worldwide outlets for 6. Identify with decision makers the film advertising and publicity including resources and timescales needed to produce , press, TV and the . the material.

26 creativeskillset.org Want to work in the publicity & marketing department?

WHAT YOU NEED TO KNOW OR UNDERSTAND WHAT YOU MUST BE ABLE TO DO

7. The timescales and resources needed to 7. Liaise with business affairs to ensure produce the material. that contractual obligations are observed regarding approvals and the presentation of talent names and likenesses.

8. The process of on the web. 8. Prepare drafts of all materials and discuss/ review with decision makers.

9. How to identify and remedy errors and 9. Arrange press junkets and market/festival omissions in the proof. functions, as well as being pro-active in submitting films and planning screenings for sales purposes.

10. The legal, ethical and cultural 10. Scrutinise all publicity materials with considerations surrounding the release consideration of any legal, ethical and of information, especially where sensitive cultural issues. or contentious issues are involved.

creativeskillset.org 27 THE FILM BUSINESS

Want to work in the business affairs department?

WHAT YOU NEED TO KNOW OR UNDERSTAND WHAT YOU MUST BE ABLE TO DO

1. Your company’s sales plans and 1. Supporting sales staff when negotiating objectives. deal memos at markets.

2. Your company’s structure and lines 2. Refer upwards if anything is unclear, or if of decision-making and when to refer elements are still missing. upwards.

3. The laws of contracts, plus and 3. Ensure that accurate records of licencing . are kept.

4. How to identify copyrighted material as 4. Register with the collection well as source and of materials. agencies that disburse fees levied on retransmissions, etc.

5. Rights, territories and clearances 5. Efficiently manage the expiry of licensed available for distribution. rights, notifying customers, obtaining certificates of destruction for unwanted materials.

6. The ‘’ of the film. 6. Identify how copyright affects the use of materials.

7. How to communicate efficiently while 7. Protect the confidentiality of the employing business, legal and commercial company’s documents, dealings and vocabulary with colleagues, customers, intellectual property. producers, media lawyers and industry bodies.

28 creativeskillset.org Want to work in the business affairs department?

WHAT YOU NEED TO KNOW OR UNDERSTAND WHAT YOU MUST BE ABLE TO DO

8. What the different types of copyright are, 8. Process the negotiation and exchange and what sort of materials they will apply to. of a variety of agreements including those For example, the latest definitions of (and concerning: acquisition; co-financing; issues surrounding): letters of assignment; sales and distribution • Media rights licences; collection agents and employment. • Territory rights • Physical film materials

9. How to organise workflows in a 9. Ensure colleagues in the company methodical but prioritised manner. know the obligations and implications of agreements (eg billing obligations for marketing, available rights for sales, deliverable materials for technical).

10. Advanced use of the relevant business 10. Translate the wishes and priorities of software. colleagues and managers into a successful negotiating position in the contracting of deals.

creativeskillset.org 29 THE FILM BUSINESS

Want to work in technical/delivery?

WHAT YOU NEED TO KNOW OR UNDERSTAND WHAT YOU MUST BE ABLE TO DO

1. Understand the legal significance of 1. Liaise with producers to ensure that acceptance of delivery of the film between all film materials are supplied to the sales producers, sales and distribution company are of top quality, in a timely companies. . Take delivery of such items, quality control as necessary. Log elements as they are received.

2. The name(s) and function(s) of all physical 2. Lodge delivered elements in laboratories elements prepared in connection with a film and control access to them, – whether film or video, analogue or digital such duplicate copies as are required for – including the documentation required to exploitation. exploit them.

3. In-depth technical knowledge of different 3. Interact with laboratories and distributors (and proliferating) formats. to ensure the timely and -effective provision of all necessary materials. Manage supplier relationships in order ensure that the company’s time-sensitive communications are reliable.

4. Keep accurate records. 4. Prepare all the necessary paperwork.

5. The time and material priorities of 5. Assemble and keep all film materials safe customers preparing foreign language from loss, damage or unauthorised copying dubbed or sub-titled tracks. (piracy). Where possible, insure against such risks.

30 creativeskillset.org Want to work in technical/delivery?

WHAT YOU NEED TO KNOW OR UNDERSTAND WHAT YOU MUST BE ABLE TO DO

6. The timing of markets and festivals. 6. Ensure, through liaison with business affairs, that the company receives all materials necessary to exploit the film.

7. Local customs duties, import 7. Deliver such elements as are required and freight issues in international territories. by customers to exploit rights which have been granted to them. Control all payments in connection with this including payment terms of the distribution agreement.

8. The best freight methods to use for 8. For markets and festivals: obtain from different territories and shipments with producers film or promo material to regard to cost, timeliness and . screen; prepare and deliver to the festival screening authority; ship marketing, screening, and other materials to the sales office at the festival.

9. Your company’s structure and lines 9. Refer upwards if anything is unclear, or if of decision-making and when to refer elements are still missing. upwards.

creativeskillset.org 31 THE FILM BUSINESS

The inside track

We spoke to people who have worked in the • Negotiation skills. This is a job about high industry for many years; here are some examples value negotiations with a small number of people of the experience and abilities that might make (eg getting 25 influential people interested) and you attractive to a sales company. is not about creating a public buzz: quality not quantity • How to identify areas of strength and weakness in a script • and foreign , such as Chinese, Spanish, Portuguese • How to conduct business relationships/general business skills • and social media

• Appreciate the wider context of your work • Business skills. There are only a small number (financial, political, artistic) of well-known heads of business affairs, who represent the integrity of the company; much of • General awareness of films ‘coming soon’ and sales is about perception and presentation. social skills/industry gossip

32 creativeskillset.org Facts and figures

• Total UK companies: currently 25-30 • In 2010, the leading export destinations were (excluding TV sales) who are selling rights across the USA (43%) and the EU (36%). Exports to international territories. Other companies are not European countries not in the EU accounted for always active or exclusive. 8% of all exports. Asia took 6% and the ‘rest of the world’ 7% of the total. • There are two dozen Film Export UK members – a hub of sales companies that have a critical mass.

creativeskillset.org 33 THE FILM BUSINESS

How the industry works DISTRIBUTION

BFI London Film Festival Opening Night Gala 2015, Suffragette. 34 creativeskillset.org Photographer: Stuart Wilson. SALES DISTRIBUTION EXHIBITION

Represent rights Contracted by rights holders Rents the film from holders or their agents distribution company Contract distribution Distributes and markets the Shows the film company film to its audience to audiences Rents the film to exhibition companies

Sales Agreement Distribution/ Exhibition Company

Distribution companies license rights from people/ Theatrical release organisations that produce or finance the film to bring films to audiences via cinemas, TV and A film can only be launched once – often other platforms. This tends to beSALES on a territory generating 30% or more of its entire box office and platform basis and will be for a term of up to during the first three days of release, if successful. 20 years. Films are in turn licensed (or rented) to Distribution plans usually assume that the exhibitors to screen in their cinemas on the basis revenues and number of screens will decline, of a share in the box office receipts generated. often rapidly, as competing titles are launchedDistribution/ in successive weeks.EXHIBITION But these plans areExhibition Company Film distributors: necessarily flexible: better-than-expected • Launch each film as a prototype grosses may lead to a quick investment in some • Identify and engage the largest possible advertising and the film may be scheduled Sales audience Agreement for their films into more screens than on its opening weekend. • Market and sustain filmsDISTRIBUTION in the market place A highly impressive opening frame can become • Decide when and how to release a film a news story in its own right. • Create visibility and raise awareness and interest in a film • Persuade potential audiences to buy cinema tickets at the earliest opportunity, eschewing all other entertainment options at the time

Contracted by rights holders or their agents Markets the film to its audience Rents the film to exhibition companies Rents the film from distribution company Shows the film to audiences

Represent rights holders Contract distribution company THE FILM BUSINESS

Home entertainment release Home viewing formats Only exceptionally will a film make a profit from DVD and Blu-ray remain the favourite formats its cinema release alone; distributors will have to for home viewing (sales of which are currently review the ‘downward chain’ before committing dominated by ), but there is more to a new film. Box office success will impact deals inter-operability between formats. Indeed, further further down the line, with video on demand big shifts in audience consumption patterns are services such as or , or DVD retailers anticipated as the increased uptake of ‘smart’ such as HMV and supermarkets. (internet-enabled) and on-demand services has opened up the direct online delivery At present, most distribution companies cannot of films to TVs and other tablet or mobile devices. release a film on DVD/Blu-ray within less than /horror genres perform better in the home 16 weeks of theatrical release. This is known entertainment arena than in cinemas. as the theatrical window, an interval of time demanded by cinema operators to distinguish theatrical (cinema) viewing from home entertainment and help sustain cinema-going audiences. Some specialist art house titles are released concurrently in cinema and on video on demand.

Subscription International (SVoD) festival/market premiere (eg Cannes)

Purchase/ rental video on Ad-funded demand (VoD) Online (AVoD)

Home entertainment

Cinema Free digital TV channels DVD (broadcast) Offline

National National Festival Pay TV Theatrical platform (e.g. (monthly Release London/Edinburgh) subscription)

36 creativeskillset.org

CINEMA [Theatrical]

• International festival/market première (e.g. Cannes) within Online Release Offline 6 months of completion Windows • National festival platform (2015) (e.g. Londin/Edinburgh): within 6 months of completion • National theatrical release: 6-12 months after completion Purchase / Rental Video on Demand (VoD) 16 weeks DVD

Subscription Pay TV (SVoD) 1 year (monthly subscription)

2 years Ad-funded Free Digital TV (AVoD) Channels (Broadcast) XXXX

Distribution models The main distribution models are local/ British studio, international independent and independent. Films have to compete with other titles and live events such as , and sports, with gaming on the horizon; documentaries are the lowest grossing (in theatrical), though are stronger further down the chain (video on demand, etc.). is cheaper and has enabled new independents to enter the market. The UK has the lowest rental return (the percentage of ticket sales paid by the exhibition company to the distribution company – compared to other territories. Conversely, the UK has some of A shifting sector the most expensive media buying . However, viewing habits are changing.

Audiences mainly choose films by genre. Most Distribution companies and others in the industry films that succeed theatrically go on to do well are having to adapt. now has the largest throughout their release cycle – the relationship is and fastest-growing cinema box office outside the symbiotic; the audiences complementary. US, with much more development potential ahead. Piracy/safeguarding IP remains an ongoing issue.

creativeskillset.org 37 THE FILM BUSINESS

How distribution works

Distribution Aquisition & Legal Sales Home Entertainment Finance (Business Affairs) & TV & HR

Marketing Creative Publicity Technical Administration DEPARTMENTS Director/Executive/ Support/Assistant Post Website Financial Events Sales Manager of Dept. to Dept. Production Design ROLES Script Theatrical UK or International Transport Online & Publicist and/or Reader Marketing Marketing Manager Digital Marketing Communications ACTIVITIES Advertising Business Affairs Film Operations & Promotions & Tracking & Publicity Sales & Contracts Release &

XXXX Sales Home Entertainment Finance Distribution & TV & HR DEPARTMENTS Marketing Creative Publicity Technical Administration

38 creativeskillset.org XXXX XXXX Post Website Financial Events Sales Production Design

ROLES Script Theatrical UK or International Transport Online & XXXX Reader Marketing Marketing Manager Digital Marketing

Marketing XXXX Advertising Business Affairs Film Operations ACTIVITIES & Promotions & Publicity Sales & Contracts Release & Logistics Doing the job

creativeskillset.org 39 THE FILM BUSINESS

Want to work in the acquisitions & business affairs department?

WHAT YOU NEED TO KNOW OR UNDERSTAND WHAT YOU MUST BE ABLE TO DO

1. Your company’s sales plans and 1. Nurture the company’s existing objectives. relationships with filmmakers to encourage new collaborations.

2. Your company’s structure and lines of 2. Communicate clearly and considerately to decision-making. producers.

3. The trends of consumers in the 3. Analyse statistical information, draw on international entertainment market, market knowledge/commercial experience identifying forms and genres of films and use professional judgement, in order which are likely to become popular. Prior to forecast audience numbers or determine knowledge of how films have performed in actual theatrical revenue for a given the past, how to access audience statistics. project. Contribute to the marketing plan as necessary.

4. The motivations and priorities of different 4. Apply your knowledge of film making in (film) rights holders, the film making order to communicate with the relevant process, the implications of acquiring films parties and make effective decisions. at various stages of production.

5. How to analyse a script, treatment or 5. Consult with relevant departments about other source material, with a view to its the kind of material the company is looking suitability and commerciality to transition to acquire. to film.

6. How to identify areas of strength and 6. Analyse the style and genre of various weakness in a script (eg dialogue, plot, productions already in the marketplace characterisation) and recommend how they and understand the type of material your can be addressed. employers pursue.

40 creativeskillset.org Want to work in the acquisitions & business affairs department?

WHAT YOU NEED TO KNOW OR UNDERSTAND WHAT YOU MUST BE ABLE TO DO

7. How to read and evaluate production 7. Assess the likelihood of the film getting schedules, progress reports and rushes. made. Evaluate marketability, budget, finance and creative package and the optimal time for the distribution company to get involved.

8. How to read and evaluate budgets and 8. Identify availabilities, screen and finance plans. ultimately acquire finished films.

9. The business relationships currently 9. Establish and maintain relationships enjoyed by talented filmmakers (in order with a broad range of individuals, manage to identify opportunities), and how vital expectations, operate in line with your these relationships are in delivering a film to company’s objectives. Remain professionally market. objective about material while expressing your opinion.

10. Contracts and the key terms of 10. Negotiate an agreement in line with agreement duration of licence, applicable your company’s objectives, resolve any territories, income apportionment, rights contentious issues, liaise with the relevant beyond theatrical release. teams and individuals as necessary.

11. The various film festivals and events 11. To determine which events are most taking place throughout the year. The appropriate to sell or to promote a particular particular focus of each event (competition, project, research and prepare for events, premiere platform or marketplace), event adhering to market etiquette when protocols and etiquette. attending.

creativeskillset.org 41 THE FILM BUSINESS

Want to work in the sales department?

WHAT YOU NEED TO KNOW OR UNDERSTAND WHAT YOU MUST BE ABLE TO DO

1. Key considerations when determining a 1. Consider: the type of film (event, film’s release date (what). blockbuster or specialised), if it is a sequel or part of a franchise, what star power the film may have (actors, director, producer), existing ‘buzz’ around the film, awards/ nominations/success in other territories, if it is an original story or adapted from / TV, the British Board of Film Classification rating it has been given (i.e. PG, 12A, etc.).

2. Key considerations when determining a 2. Consider: external factors that may film’s release date (when). impact on release date, such as other film releases jockeying for position, big games releases (particularly for films targeted at 16-24 males), TV events (eg X-Factor final), sporting events, season/holidays.

3. Key considerations when determining a 3. Consider: if it is a saturation release film’s release date (where). (nationwide) appealing to mass audiences eager to see the film, or a specialised release (documentary, foreign, revived classic) playing at a few select locations. Costs associated with digital prints.

4. Your company’s sales plans and 4. Nurture the company’s existing objectives. relationships with exhibition companies to encourage new business.

5. Your company’s structure and lines of 5. Communicate clearly and considerately to decision-making. exhibition companies.

42 creativeskillset.org Want to work in the sales department?

WHAT YOU NEED TO KNOW OR UNDERSTAND WHAT YOU MUST BE ABLE TO DO

6. The trends of consumers in the UK 6. Analyse statistical information, draw on entertainment market, identifying forms and market knowledge/commercial experience genres of films which are likely to become and use professional judgement, in order popular. Prior knowledge of how films have to forecast audience numbers or determine performed in the past, comparison points actual theatrical revenue for a given project. and how to access audience statistics.

7. Contracts and the key terms of sales 7. Negotiate a sales agreement in line with agreement – duration of license, income your company’s objectives, resolve any apportionment. contentious issues, liaise with the relevant teams and individuals as necessary.

8. How box office income targets are 8. Liaise with the relevant departments in determined by production and distribution regard to projected/likely box office income. (print and advertising) costs.

9. How the weekly returns provided by 9. Liaise with exhibition companies, to exhibition companies are generated by obtain and interpret weekly returns. computerised box-office/ticketing systems.

10. The terms of the contractual 10. Report to the producer/rights owner as agreements with rights holders and required; ensure the correct payments are exhibition companies, including the made in a timely manner. percentage each party takes, any minimum guarantee or distribution fee.

11. The timing of tracking activity – i.e. 11. Liaise with research companies, research is conducted eight weeks prior to interpret and compare survey results with release, distribution companies are provided established norms, assess likely box office with weekly reports. success.

12. The importance of a film’s opening 12. Analyse box office figures in order to weekend and the impact that low attendance negotiate ‘hold over’ of films for the week(s) numbers can have on future distribution. to come.

creativeskillset.org 43 THE FILM BUSINESS

Want to work in the marketing department?

WHAT YOU NEED TO KNOW OR UNDERSTAND WHAT YOU MUST BE ABLE TO DO

1. The core disciplines encompassed 1. Liaise with the various disciplines in within film marketing and the part they play order to effectively execute the marketing in bringing a film to its audience: creative/ plan and achieve the AIDA steps of production, online and offline publicity or marketing: attention, interest, desire, action. (publicity), digital/social media, advertising and promotions.

2. How to prepare a marketing plan in line 2. Create a plan that navigates a route to with the overall distribution plan. market ensuring interest will peak when the film opens.

3. How to prepare a marketing budget, 3. Create a marketing budget appropriate to considering income forecasts, acquisition the scale and nature of a given film project. costs, contract terms (eg minimum marketing spend) and PR strategy.

4. Audience behaviour and 4. Analyse statistical information, draw on decision-making. The trends of consumers market knowledge/commercial experience in the international entertainment market and use professional judgement, in order and identifying forms and genres of films to forecast audience numbers or determine that are likely to become popular. Prior actual theatrical revenue for a given knowledge of how films have performed in project. Contribute to the marketing plan as the past, how to access audience statistics. necessary.

5. About film talent (actors, directors, 5. Establish and maintain relationships with writers), the profile/ of various a broad range of talent, make individuals individuals, the implications that having feel valued, manage expectations and certain talent attached can have on a film’s operate in line with your company’s success, the important part that talent plays objectives. in generating publicity for the film.

44 creativeskillset.org Want to work in the marketing department?

WHAT YOU NEED TO KNOW OR UNDERSTAND WHAT YOU MUST BE ABLE TO DO

6. The strategic value have in 6. Negotiate partnerships that provide awareness and interest in a film additional exposure of the film to relevant and the importance of having contacts in audiences, ensuring that the timing of various companies and . partner activities is fully synchronised with that of the distribution company.

7. The importance of key influences such 7. Plan a marketing campaign that takes key as family and friends recommendations, influences into consideration. television advertising, film trailers and publicity.

8. The role materials such as play 8. Commission artwork that distils the in raising awareness of a film, the various appeal and positioning of a film – stars, forms of materials and how they are genre, credits, tagline. produced.

9. The role trailers play in raising awareness 9. Commission trailers that connect with of a film, the various forms of trailer, potential audiences and distil the appeal how they are produced and certification and positioning of a film – stars, genre, constraints. plotline, credits, tagline.

10. The difference between paid-for media 10. Determine the best choice of advertising (TV spots, posters, ad space), media advertising, considering cost, earned (editorial coverage, social media) coverage, how targeted it is and the and owned (distribution company’s own likely audience reaction. channels).

creativeskillset.org 45 THE FILM BUSINESS

Want to work in digital marketing?

WHAT YOU NEED TO KNOW OR UNDERSTAND WHAT YOU MUST BE ABLE TO DO

1. The importance of having a digital 1. Identify the target audience for the presence when marketing a film and what a marketing campaign and implement a successful digital marketing campaign looks digital strategy – partnerships like – what it means to ‘go viral’. (eg with or brands), producing collateral (eg trailers, interviews, apps), using social networks.

2. How digital marketing activities are 2. Deliver digital activities within a delivered cross-department, through coordinated marketing campaign. dedicated teams or external agencies. Understand how content is managed through an end-to-end digital and social media workflow.

3. The part that dedicated websites play in 3. Produce web content, administer raising awareness and building interest in a websites, and improve online presence. film.

4. The vital role of social media in raising 4.Establish or ‘feed’ networks in a awareness and building interest in a consistent and timely manner to improve film. The value of well-placed/influential the online presence and profile of the film. social ambassadors (eg YouTube stars) for Identify suitable ambassadors and particular audiences. broker strategic partnerships that will improve online presence and raise the profile of the film.

5. How apps or games can be used to 5. Create value-added activity for the film’s engage audiences, gather data or generate marketing campaign. income.

46 creativeskillset.org Want to work in promotions?

WHAT YOU NEED TO KNOW OR UNDERSTAND WHAT YOU MUST BE ABLE TO DO

1. How manufacturers are licensed to 1. Licence products such as action figures, produce merchandise that uses approved ringtones, , stationery, food, logo devices/ symbols/images or calendars, , games and , likenesses, normally in exchange for an or such as t-shirts, advance fee/set against subsequent royalty watches, bags, pens and even themed payments. Licencing fees may be waived holidays to the film’s location. if the undertakes significant levels of advertising in support of the film’s release or sustaining campaign.

2. Third-party/brand partnerships that are 2. Achieve additional exposure on high approved but not necessarily licenced – streets and online, so that audiences one-off promotions with food, drink or are reminded of the film in places they confectionery brands, an or don’t expect, ensuring that the timing clothing retailer, or a or of the brand’s advertising and in-store coffee shop chain. activity precisely matches the distribution company’s plans for the launch of the film.

3. How media promotions may provide an 3. Negotiate with media partners regarding excellent return on investment, be it online, payments, additional advertising or TV, radio or print (eg a radio phone-in competition prizes (holidays, electronics competition can create more impact than equipment, ‘money-can’t-buy’ tickets to a a 30-second commercial). Use of exhibition premiere). company websites as a promotional platform.

4. How preview screenings can generate 4. Recruit audiences by age, demographic personal recommendations, which are or interest group, for preview screenings highly valued alongside trailers and TV and encourage them to about their spots for stimulating positive interest and enjoyment of the film. cinema visits for a film.

creativeskillset.org 47 THE FILM BUSINESS

Want to work in the publicity department?

WHAT YOU NEED TO KNOW OR UNDERSTAND WHAT YOU MUST BE ABLE TO DO

1. The role of film publicist – either in-house, 1. Assess the ‘publicity potential’ of a film external agency or freelance individual and commence activity from as early in the – and how to achieve maximum impact production as possible, eg a unit publicist with the resources available through press will invite journalists on to the set while articles, broadcasts and online content. The the film is being . Advise appropriate earlier pre-disposed consumers are aware publicity strategy that fully utilises available that ‘something is coming’, however far off, resources to reach the target audience. the better.

2. The importance of timing any advertising 2. Identify the target audience for the or publicity activity considering key factors publicity campaign, be very organised and such as release dates, availability of cast meet deadlines, liaise with the relevant (for PR activity) or the optimal timing for individuals/teams/departments, such as reviews. post-production or publicists.

3. How to organise press junkets (cast 3. Provide accurate and thorough briefs and interviews, press conferences, premieres) sufficient materials and resources to elicit and which specialist agencies or work of the required nature from journalists. chaperones are required to accompany the artists.

4. How online pressrooms are used to 4. Compile press kits containing cast and disseminate press kits for journalists, crew lists, biographies, notable facts about including ‘hooks’ or ‘angles’ for feature the production and a synopsis, awards, articles and media promotions. brand partnerships, opening date/cinemas, high-quality publicity shots.

5. The legal and ethical constraints 5. Identify and remedy promptly any error or associated with publications, and how to omissions in the proof, and confirm that all confirm that copyright checks have been content has been checked for copyright. put in place for all released content.

48 creativeskillset.org Want to work in the publicity department?

WHAT YOU NEED TO KNOW OR UNDERSTAND WHAT YOU MUST BE ABLE TO DO

6. How to organise screenings for national 6. Provide accurate and thorough briefs and critics (print/online publications), sufficient materials and resources to elicit considering journalists’ lead times and the work of the required nature from journalists, importance of embargoes to prevent early bloggers and critics. publishing of reviews or to discourage blogging and social media activity.

7. The Awards calendar (eg BAFTA, 7. Enter films to the appropriate awards/ ), how it may determine categories, and organise trade campaigns a film’s release date and the value that to help secure voters’ attention to particular accolades can bring to a film release. titles, performances and craft contributions. Use nominations/wins to promote the film.

8. The potential impact of a premiere and 8. Organise the premiere and associated how to assess public impact versus cost. activities (eg press junket), ensuring there This includes the various festival platforms is a strong platform for photo opportunities (eg Edinburgh and London film festivals) and red interviews, if necessary and the requirements they have. employing a specialist agency to devise and lead an appropriate screening strategy..

creativeskillset.org 49 THE FILM BUSINESS

Want to work in data analytics?

WHAT YOU NEED TO KNOW OR UNDERSTAND WHAT YOU MUST BE ABLE TO DO

1. How research screenings can help to 1. Use research findings to inform the identify or clarify what elements of a film are production of trailers, TV spots, film artwork, the most entertaining (characters/actors, website or apps. settings) and which types of audience are most engaged.

2. How exit polls can provide insights into 2. Use research findings to prioritise how people rate a film (excellent, good, fair, advertising spend and determine other poor), whether they would recommend it promotional activity. to their friends (definitely, maybe), what media or promotions they have seen and which of them had informed their decision to come to the cinema or whether they would subsequently buy the DVD/digital download.

3. The various forms of ‘tracking’ 3. Define key survey terms such as unaided provided by research companies, typically awareness, aided awareness and definite telephone surveys conducted amongst interest. cinema goers, or the EDI (Entertainment Data International) analysis of cinema box .

4. The timing of tracking activity – ie some 4. Liaise with research companies, interpret research is conducted eight weeks prior and compare survey results with established to release. Distribution companies are norms, assess likely box office success. provided with weekly reports.

50 creativeskillset.org Want to work in technical?

WHAT YOU NEED TO KNOW OR UNDERSTAND WHAT YOU MUST BE ABLE TO DO

1. The types of master materials received 1. Coordinate logistics of delivering films from filmmakers, the film formats that to exhibition companies, adhering to the exhibition companies use (digital cinema necessary security protocols and encryption packages, IMAX®), the procedures involved systems (eg key delivery message (KDM) in format conversion, data transfer and and different versions.) encryption.

2. The requirements of the BBFC (British 2. Liaison with the BBFC for the Board of Film Classification) regarding classification of both features and trailers, classification, and when producing and with the relevant department/ accessible packages for film and trailers technicians for production of accessible (digital , ). packages for film and trailers.

3. The function and requirements of quality 3. Keep up to date with evolving delivery control, including logistical operations for techniques and . materials in the right place at the right time, for both crew and screen.

creativeskillset.org 51 The EE British Academy Film Awards, Leonardo DiCaprio. 52 Credit: BAFTA/Jonathan Birch. The inside track

We spoke to people who have worked in the • Sales staff, who deal with the of films industry for many years; here are some examples to exhibition companies, use various strategies of the experience and abilities that might make depending on the film and the agreed scale of its you attractive to a distribution company: release. Commercial instincts, negotiation skills, discretion and the ability to get on with a range of • For acquisitions, read widely among different customers are vital attributes. writers and genres to get into practice! • Key administrative roles include invoicing • Go to the cinema! exhibition companies or paying suppliers; ordering • Good experience for a film industry marketing and checking film prints, trailers and posters and position may be gained at a digital, advertising arranging for materials to be delivered to the right or media-planning agency, especially by working place at the right time. You must be well organised with a film or entertainment client or by project- with lots of drive and stamina. managing in another area of intellectual property. • Understanding of technical or operational • For publicity, prior experience as a journalist aspects of a release: you’ll need current knowledge or press officer is useful or you could have worked of digital formats, 3D and IMAX® presentation, at an online or offline publicity agency. No two servers and their storage capacities and laboratory days are the same, but you should be able to processes. write succinctly and imaginatively and remain • Being passionate about films is a great start. levelheaded under pressure. But it’s only a start and not enough on its own. • Knowledge of today’s evolving media landscape is crucial, as are good professional relationships with journalists and TV producers.

creativeskillset.org 53 THE FILM BUSINESS

The EE British Academy Film Awards, & . 54 creativeskillset.org Credit: BAFTA/Stephen Butler. Facts and figures

• The UK film distribution sector launches over 700 • Consumers in the UK spent an estimated £753 feature films every year. million on film-related merchandise in 2013.

• London hosted 99 premieres in 2015. • Film distribution companies operating in the UK employed 3,300 persons in 2013. • UK box office gross receipts totalled £1.3 billion in 2015 – a new all time record. • In 2013, film distribution companies in the UK earned nearly £1.2 billion in turnover from the licensing • There was over 171 million UK cinema visits in 2015, and of films in the UK and other European the highest number for three years. countries.

• There were 3.4 billion viewings of films on television • Film distribution companies spent an estimated in the UK in 2013, including films watched on public £330 million on the marketing and promotion of films in service broadcasters, multichannel services and pay 2013. TV. This level of viewing was over 20 times higher than the viewings (165.5 million) in the cinema exhibition • £239 million was spent by film distribution window in 2013. companies in other services, such as legal and accounting services, real estate, telecommunications • The UK’s biggest selling DVD and Blu-ray in 2015 and . was Paddington, which sold well over 1 million units. • The most watched video on YouTube in the UK in • Frozen, which was released in cinemas in 2013, sold 2015 was Star Wars: The Force Awakens official teaser more than 1 million DVD/Bluray copies in the UK in trailer #2. December 2014 alone. Meanwhile, the five top-selling DVD/Blu-rays in the UK during the 2014 • The most frequently mentioned title in Facebook period sold 8.8 million copies. posts in 2015 worldwide was Star Wars: The Force Awakens. • In 2013, UK consumers spent £940 million on the purchase of 119 million DVD/Blu-ray copies of films16. • The term ‘Star Wars’ triggered more than 155 million They spent a further £166 million on the rental of DVD/ Google searches worldwide in December 2015 alone. Blu-ray copies of films. Sources: The Economic Impact of the UK Theatrical • According to IHS, UK consumers spent £323 million Distribution Sector 2016 and The FDA Yearbook 2016 on film oDV in 2013 – a 37% increase compared to 2012.

creativeskillset.org 55 THE FILM BUSINESS

How the industry works EXHIBITION

56 creativeskillset.org SALES DISTRIBUTION EXHIBITION

Represent rights Contracted by rights holders Rents the film from holders or their agents distribution company Contract distribution Distributes and markets the Shows the film company film to its audience to audiences Rents the film to exhibition companies

Sales Agreement Distribution/ Exhibition Company

The core objective of the exhibition (cinema) There are more than 250 independent cinemas industry has remained unchanged for almost a in the UK, ranging from single screen sites to century – to provide audiences with a consistently multi-screen venues that include and excellent ‘big screen’ experience. labs. SALES The cinema experience The landscape Although the basic is broadly similar, individual cinema companies can The UK cinema sector is made up of a wide range operate very differently depending on their target of circuit and smaller operator cinema sites. Aside Distribution/ audience, location and size. AlongsideExhibition Company their core from these mainstream cinemas, there are some EXHIBITION role of showing films to audiences, each cinema is 650 community cinema providers, including local also a significant hospitality and retail business, film societies and other voluntary groups, often with income generated from ticket sales, food/ serving isolated and rural . drink retails, venue hire and screen advertising. Mainstream cinemasDISTRIBUTION are operated either by key Cinemas can represent important community ‘circuit’ companies, who own a large number of hubs, providing a cultural outlet where none other sites across the country, or by smaller operators is available. who may have a handful of sites (or sometimes just one). The three largest cinema circuit All of the above falls within the overall aim of companies account for around 70% of total UK making a trip to the cinema as enjoyable an screens, with the largest six circuits collectively experience as possible, one that will encourage accounting for 85%. audience members to return again and again.

creativeskillset.org 57 THE FILM BUSINESS

A shifting sector The cinema business needs to constantly audiences the chance to experience cutting- reinvent itself to ensure that it continues to offer edge digital 3D. The conversion of the UK cinema the best possible experience to customers at an sector to digital projection technology is now affordable price and remains the ‘gold standard’. 100% complete – a total of 3,947 cinema screens This includes investment not just in the physical in the UK. infrastructure, such as seating, but also in new technologies. Event cinema Developing and growing the cinema audience Digital cinema technology remains at the heart of the evolving cinema The most recent change in the industry – the landscape. Digital technology has enabled transition from film to digital technology – was cinemas to be more flexible and offer audiences one of the most fundamental shifts in the history a broader range of content. One particular area of of the sector. This new technology has enhanced growth within cinemas has been the rise of ‘event the cinema-going experience in terms of allowing cinema’ – live (or ‘as live’) opera, ballet, theatre, more diverse programming and in offering music, gaming and sporting events.

58 creativeskillset.org How exhibition works

Film Operations Marketing & General DEPARTMENTS Programming Promotions Management

Film Marketing Operations/Regional General Products & Estates & ROLES Booker Manager Manager (Onsite) Concessions Development IT HR Finance

Audience Development Film Booking Technical Programming ACTIVITIES / Marketing / Negotiation & Projection Front of House & Curation

Events Facilities Box Office/ Retail Data Management Ticket

Film Operations Marketing & General DEPARTMENTS Programming Management Promotions Manageme nt

Showroom Workstation, Sheffield creativeskillset.org 59 Film Operations/R General Products & Estates & IT HR Finance ROLES Booker Marketi egional Manager Concessio Develop ng Manager (onsite) ns ment

Audience Film Booking Technical Front of House Programmi Development / Negotiation & Projection (Confectionary ng ACTIVITIES Events Facilities Box O ce/ Data Management Ticket Sales Management THE FILM BUSINESS

Doing the job

60 creativeskillset.org Want to work in film programming?

WHAT YOU NEED TO KNOW OR UNDERSTAND WHAT YOU MUST BE ABLE TO DO

1. The potential cinema going audience 1. Understand different audience and how they may be targeted for different demographics, use focus groups and genres of film. surveys to gauge audience viewpoints, form partnerships with local/regional organisations and ensure box office staff are well informed about the cinema’s programme.

2. The types of data generated by the 2. Analyse data and statistics from the cinema’s computerised box office/ticketing previous week to determine which films to systems. ‘hold over’ and decide film-screening times.

3. Intellectual property (IP), licensing and 3. Conduct complex negotiations with the terms of any contractual agreements distribution companies to agree which films with distribution companies, including to show and on what ‘terms’ (split of box the percentage each party takes and any office, etc.) minimum guarantee or distribution fee.

4. The importance of having good relations 4. Establish and maintain relationships with distribution companies. with a broad range of individuals, manage expectations, operate in line with your company’s objectives. Remain professionally objective about material while expressing an opinion.

5. Industry ‘know-how’ – other departments 5. Apply your knowledge of the film industry within exhibition, other parts of the film to help communicate with the relevant (finance, pre-to-post production) parties and make effective decisions. and general knowledge of film (history, , trivia, gossip).

creativeskillset.org 61 THE FILM BUSINESS

Want to work in film programming?

WHAT YOU NEED TO KNOW OR UNDERSTAND WHAT YOU MUST BE ABLE TO DO

6. The various film formats (digital cinema 6. Liaise with the technical department to prints, 35mm, IMAX®), associated ensure the correct number and format of technology, procedures and accessible prints is available. formats.

7. Engaging audiences through thematic 7. Use themes to start a conversation with programming and draw audiences to less an audience, articulate complex ideas well-known films. beyond the scope of a single film and draw attention/admissions to less well-known films.

8. The importance of correctly timing 8. cinema activities and ensure cinema activities – film release dates, show delivery is precisely timed. times and operating hours.

62 creativeskillset.org Want to work in operations?

WHAT YOU NEED TO KNOW OR UNDERSTAND WHAT YOU MUST BE ABLE TO DO

1. How to manage staff and improve 1. Manage staff and improve performance. performance.

2. The importance of correctly timing 2. Schedule cinema activities and ensure cinema activities – film release dates, show delivery is precisely timed. times and operating hours.

3. The requirements of the Health & Safety 3. Ensure that all operations adhere to safe at Work 1974, and the implications for working practices. cinema operations.

4. What excellent looks 4. Monitor levels of customer satisfaction like. and motivate staff to deliver an excellent service.

5. How to manage all aspects of the 5. Monitor service delivery, ensure quality facilities: heating and lighting, cleaning and efficiency, manage staff and contractors and , accessibility and security. and maintain anti-piracy measures.

6. All aspects of retail operations. 6. Monitor sales, stock and customer service, manage , review product lines and respond to issues.

creativeskillset.org 63 THE FILM BUSINESS

Want to work in operations?

WHAT YOU NEED TO KNOW OR UNDERSTAND WHAT YOU MUST BE ABLE TO DO

7. Regional management processes (chains 7. Keep up to date with licensed activity and multiplexes). (procedures, promotions, etc.). Liaise with the relevant tiers of management (site, regional, national), get information and guidance, feedback, share best practice, and contribute to the development of new cinema sites.

8. The procedures when obtaining 8. Complete licence applications and ensure entertainment licences for alcohol, that all licenced activity abides by the refreshments, music, and the terms and specified terms and conditions. conditions that apply (opening hours, etc.).

9. About the technical operations of 9. Liaise with the relevant teams and the cinema: dealing with file formats, suppliers in order to provide well-resourced/ encryption, projection and sound. maintained facilities, operated by well- trained staff.

64 creativeskillset.org Want to work in marketing & promotions?

WHAT YOU NEED TO KNOW OR UNDERSTAND WHAT YOU MUST BE ABLE TO DO

1. Industry ‘know-how’ – other departments 1. Apply your knowledge of the film industry within exhibition, other parts of the film to help communicate with the relevant value chain (finance, pre-to-post production) parties and make effective decisions. and general knowledge of film (history, culture, trivia, gossip).

2. What consumers want from the 2. Understand different audience cinema-going experience. demographics, use focus groups and surveys to determine/understand what audience’s want.

3. The different requirements of film, brand 3. Ensure the cinema’s overall offer engages and . the widest possible range of customers, by utilising all communication channels (print, mobile, social, radio) and using local and regional marketing activities.

creativeskillset.org 65 THE FILM BUSINESS

Want to work in marketing & promotions?

WHAT YOU NEED TO KNOW OR UNDERSTAND WHAT YOU MUST BE ABLE TO DO

4. The benefits of various promotional 4. Use various promotional tools (2 for 1 campaigns. deals, VIP tickets, membership schemes) to boost sales.

5. The importance of communicating clear 5. Give people good reason to spend their messages to all parties. time and money at the cinema.

6. The various external communications 6. Use external agencies and trade press to that may be necessary. raise awareness of relevant activities.

7. The possibilities offered by digital and 7. Exploit opportunities brought about by emerging technology. digital and new technology, such as event cinema etc.

8. The value of the big screen experience 8. Wherever possible remind people why the and the shared responsibility of those in the big screen is the best place to watch a film. industry to promote it.

66 creativeskillset.org Want to work in cinema management?

WHAT YOU NEED TO KNOW OR UNDERSTAND WHAT YOU MUST BE ABLE TO DO

1. What a smooth-running cinema operation 1. Oversee the cinema operation and looks like, in line with relevant legislation ensure it is as successful as possible. and policy. Deliver excellent cinema presentation and showmanship.

2. How to lead teams of people towards a 2. Determine the strategic vision of the strategic vision. business, clearly communicate it to others and motivate teams to achieve.

3. Day-to-day business administration 3. Carry out the relevant business activities. administration activities, such as interpersonal communication, producing business documents and data analysis.

4. How to measure staff against the 4. Establish service delivery targets and standards and targets set. Understand standards, monitor operations, review sales cinema marketing and sales. figures and oversee staff appraisal systems.

5. How to resolve issues and solutions 5. Listen to the concerns of staff/others and effectively. find solutions to management issues.

6. What excellent customer service looks 6. Monitor levels of customer satisfaction, like. ensure staff are trained and motivated to deliver an excellent service.

creativeskillset.org 67 THE FILM BUSINESS

The inside track

We spoke to people who have worked in the • Have regular conversations with distribution industry for many years; here are some examples companies to develop and maintain a good of the experience and abilities that might make relationship. you attractive to an exhibition company: • Understand that programming is negotiation • Watch and learn. Be creative, imaginative and with distribution companies vs. meeting the ambitious. Have passion and enthusiasm. needs of the audience.

• Understand the industry – the conventions (ways of doing things); when you can book; competition; how much to pay for film (cost/ income, profit/loss); licences (content, premises); operating a programme; balancing critical rigour and showmanship.

• Think of the audience. Get a feel for the different types of audiences for different films, use first-hand evidence and audience research, develop specialisms.

68 creativeskillset.org Career paths

Sophie Doherty started her career in Hear their real life stories on the Creative Skillset management and cinema management then website: landed a job as a Film Buyer for Vue cinemas. Sophie is now Theatrical Sales Manager at Walt www.creativeskillset.org/SophieDoherty Disney Studios UK. www.creativeskillset.org/IanWild

Ian Wild is the Chief Executive of the Showroom & Workstation, where he helps run one of the largest independent cinemas in .

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Facts and figures

• 77% of the UK population goes to the cinema at • In 2015, 3D accounted for 10.4% of the total UK and least once a year. box office.

• 74% of people see the cinema as the best place to • In 2015, event cinema accounted for 2.8% of UK watch a film. and Ireland box office.

• In 2015 there were almost 172 million visits to UK • UK cinema operators directly employ over 17,500 cinemas, generating box office of over £1.24 billion. people and support many thousands more jobs in the wider film industry. • In 2015, there were 786 mainstream cinemas (4,123 screens) across the UK. Almost 80% of screens are in multiplexes, but these represent only 43% of all sites. Source: UK Cinema Annual Report 2015. Smaller mainstream sites represented the majority of the rest of the screens, along with mixed venues.

• There are some 650 community cinema providers, with around 60,000 members.

• The average cinema ticket price in 2015 was £7.21.

• There were 761 films released at UK cinemas in 2015.

• The highest-grossing film of all time in the UK is Star Wars: The Force Awakens which, to date, has taken over £122 million at UK cinemas.

70 creativeskillset.org Glossary of terms

1. THEATRICAL 9. MARKETABILITY 17. FILM FESTIVAL EXCLUSIVITY presented in cinemas how it can be promoted to its particular audience 18. CLAUSE 2. TERRITORIES eg a film shown at Clermont-Ferrand countries 10. PLAYABILITY (January) is ineligible for Cannes (May) how it actually performs in the market place 3. MAJORS 19. SATURATION RELEASE Hollywood studios opens on all screens 11. ATTACHMENTS (RE. SALES) named individuals (normally director 4. INDEPENDENT and/or key cast) on whose involvement 20. HOLDOVER unaffiliated with majors pre-sale or other contracts for a remain on the cinema screen for prospective production may depend another week

5. SLATE 12. RENTALS 21. MOVE OVER portfolio of films acquired the distribution company’s net share when a copy of a film on release transfers to another first run cinema 6. MARKETS 13. LICENSING film festivals or other events where 22. 35mm; Super 16; 70mm sales companies sell films at various selling of rights stages of production physical film print formats 14. EVENT CINEMA presentation of live events (theatre, 7. ACQUISITION 23. DCP etc.) via satellite feeds acquiring/obtaining the right (licence) digital cinema package to bring films to market, either for sales or distribution 15. MUSIC CUE SHEET 24. KDM list of music used in the film key delivery message 8. INTELLECTUAL PROPERTY legal term that refers to the ownership 16. SHOOTING SCRIPT/DIALOGUE of ideas (‘creations of the mind’); rights LIST 25. CLASSIFICATION holder an accurate record of scenes and the rating of films by the BBFC dialogue for use in preparing subtitles

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26. C.O.T. (‘COSTS OFF THE TOP’) 37. MINIMUM GUARANTEE/MG deduction of expenditure before the lowest amount an exhibition percentage is owed to a sales company company will pay a distribution or producer company against an agreed percentage normally paid in advance – the minimum sum a buyer agrees to pay to 27. COUNTER PROGRAMMING licence rights even if the agreed profit scheduling a film of alternative share works out lower. If it works out audience interest the same day as a higher, then overages are paid blockbuster 38. NON-THEATRICAL 28. CROSS-COLLATERALISED/ screening film outside of purpose-built CROSSED venues losses from the exploitation of one set of rights (eg theatrical releasing) offset against profits from another (eg video or 39. ADDED VALUE television sales) enhancing the experience of audiences; providing audiences with opportunities to develop knowledge and better 29. CROSS OVER (1) understanding of film when a film appeals to different types of audience (eg both art house and mainstream) 40. THEATRICAL WINDOW the period of theatrical exclusivity between a film’s release in the cinema 30. CROSS OVER (2) and on other entertainment platforms. distribution company sends film print The average UK window has decreased from one cinema to the next because significantly in the last two decades, bookings are close together from around 27 weeks in 1999 to just over 15 weeks in 2015.

31. DISTRIBUTION COMPANY 41. HOLDBACK company handling distribution and releasing of a film in a particular a commitment to hold the release in a territory, on any given format defined territory or media back to give priority to another

32. EPK 42. B2B electronic press kit business to business. A transaction that takes place between , 33. EXHIBITION COMPANY as opposed to between a business and individual customers a cinema, film society, film club, etc. that shows films 43. OVERAGES 34. FOUR-WALL (good) when a successful release generates a profit share in excess of to hire or underwrite a cinema screen the advance minimum guarantee paid for theatrical releasing such that additional payments start flowing “upstream” towards financiers and filmmakers. Alternatively (bad) cost 35. FREE TELEVISION overruns on a production budget the main UK free-to-air digital channels

44. B2C 36. HOUSE TERMS business to . A transaction a cinema screen’s standard payment that takes place between a business scale of percentages. and its individual customers (consumers).

72 creativeskillset.org Key contributors & resources

The content in this resource pack has been developed with the following partner organisations that have generously contributed content and information. Please visit their websites if you would like more detailed information and advice about these crucial areas of the film industry. Cinema Office (ICO) is the national support organisation for independent exhibitors of all kinds including cinemas, film festivals and film societies. www.independentcinemaoffice.org.uk

Access advice and information relating to cinemas, film festivals and film societies on the ICO website, including a map of UK cinemas, a technical case studies knowledge base The Film Distributors’ Association (FDA) is the trade of cinemas across the UK, plus lists of useful organisations body for theatrical film distributors in the UK and publications. Find current training programmes relevant www.launchingfilms.com to the film exhibition sector. Watch about the exhibition sector on the ICO’s YouTube channel. ICO also Trace a film’s vital journey to reach cinema audiences by runs a free jobs service that is the most comprehensive way to reading The FDA Guide to UK Film Distribution. Watch hear about new roles at every level of the exhibition industry experts discuss how the industry works in detail in the Film and for all roles. Futures and Inside Distribution video series. Read the latest facts and figures about the UK film distribution industry in the FDA Yearbook 2016.

Film Export UK is the trade body for companies with UK offices selling, marketing and distributing independent feature films around the world. www.filmexportuk.com

The UK Cinema Association (UKCA) represents the Read Film Export UK’s Training Standards for New interests of over 90 per cent of UK cinema operators. Entrants into the Film Sales Sector document for more www.cinemauk.org.uk information about the knowledge and understanding required for the film sales sector. Find current training Read about the roles within the cinema sector and how the programmes relevant to the film sales sector, a calendar of cinema sector operates. Research the latest facts and festivals and markets, plus a list of UK films for sale at figures, and learn about key issues for the UK cinema recent markets. industry on the UKCA website and in the UK Cinema Annual Report 2015.

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Additional links & resources

Some of the content within this resource pack filmsite has been extracted or informed by the following www.filmsite.org industry websites and publications, where you Learn about major milestones and turning points in the can find more useful information and resources:. that helped shaped the world body of cinema

Hiive www.Hiive.co.uk BFI Film Audience Network www.bfi.org.uk/what-s/around-uk/film- Creative Skillset audience-network www.creativeskillset.org

BFI film industry statistics and report Delivering Dreams: A Century of British Film www.bfi.org.uk/education-research/film- Distribution, by Geoffrey Macnab with foreword by industry-statistics-research David Puttnam. Publisher: I.B.Tauris (2015)

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