Needless to say (but I'll say it anyway), the movie industry has undergone many changes since the early 1900's. As audiences became more refined and expected more realistic drama, filmmaking techniques changed over time. Technology has changed, acting techniques have changed, and – most disturbingly – moral values have changed for the worse in most cases.
Interestingly, with all the filmmaking changes that have taken place over the last one hundred years, movie distribution saw very few changes until the last fifteen years or so. In the early days, movies played in studio-owned theaters, which meant that filmmakers could only find distribution by going through one of the major studios. Yes, filmmakers could turn to smaller distributors, but those distributors still had to go through the studio system.

As one could imagine, movie studios wielded enormous power and influence in those days. If you wanted to succeed in the movie business, you had to go through Hollywood and play by their rules.
This changed somewhat in 1948, when the US Supreme Court ruled that studio-owned theater chains were prohibited by the Sherman Antitrust Act of 1890. I won't go into all the ramifications of that decision, but I will say that this ruling loosened the grip that major studios had in controlling the distribution process. It loosened the grip, yes, but it didn't entirely remove studio control. Major Hollywood studios still to this day wield enormous influence over theatrical movie distribution. It is still very hard to succeed with a theatrical release unless you have Hollywood's blessing. This is changing, and there are some exciting developments on the horizon, but I won't get into that now.
Yes, there are many changes coming in theatrical distribution, but even today, if your film is distributed by a Hollywood studio, you have to give up all the distribution rights to the studio – just like the old days.
Distributors demand
exclusive rights. This means that the distributor will handle the theatrical release, TV broadcasting,
and the home video release.
DVD DistributionI realize that most of my readers are not ready to produce theatrical feature films. Most of us have to be content with a direct-to-DVD release for the time being. So why spend so much time talking about theatrical distribution? For this reason – until recently, DVD distribution worked essentially the same way as theatrical distribution. If you wanted widespread distribution for your DVD, you had to work with mega-corporations who wielded enormous control over your movie release.
Even if you didn't work with Hollywood, your DVD release would still have been controlled by mega-corporations who demanded exclusive rights. Suppose you produced a movie that you wanted to release in Christian retail stores. If you wanted to reach a mass audience, your only viable option was to sign an exclusive deal with a major distributor. Usually, this distributor would have been a major Christian publisher like Tyndale or Thomas Nelson.
"What's so bad about exclusive deals?" you might ask. There are advantages to be sure, but many filmmakers will find that the disadvantages outweigh the advantages.
The Advantages of exclusive DVD distribution deals:The distributor pays for DVD replication and marketing.
Your film will potentially reach an audience of millions of Christians.
The Disadvantages of exclusive DVD distribution deals:The distributor has control over how and where your DVD is distributed.
The distributor takes a large percentage of
all revenue.
If you want to sell your own DVD, you have to buy DVDs from your distributor.
I think most filmmakers would agree that the "exclusive deal" doesn't look very inviting. Take special note that the distributor would take a percentage of
all DVD sales. So even if you had the ability to sell hundreds of DVDs on your own, your distributor would still get a portion of that sales revenue!
Now, I understand that some filmmakers are so engrossed in making movies that they would be glad to hand over all marketing and distribution to a distributor. They love making movies, not marketing them. If that describes you, then an exclusive distribution deal might be right for your film.
However, if you know you can generate significant sales on your own (without a distributor), then to sign an exclusive deal would mean you are giving up a large percentage of your hard-earned sales to a distributor who doesn’t have to lift a finger.
Are there any other options?
Fifteen or twenty years ago, I might have said no. You may notice that the title of this post is "The Way Things Were." Very perceptive of you. You're quite right.
An “exclusive deal” used to be your only viable option, but DVD distribution has changed drastically in the last fifteen years or so.
There are many more options today to reach a mass audience without the help of a distributor.
Interested? Stay tuned for part 3!
Labels: Movie Distribution