theatrical distribution

Howard A. Brande Presents

theatrical distribution

START

definitions that we will be using today

PRODUCTION - When the movie is being captured. For brevity, Pre-Production will also be included.

DISTRIBUTION - When the finished film is licensed, marketed and promoted and ready to be delivered for a viewing audience. Distributors mainly focus on domestic distribution.

EXHIBITION - When a film is shown publicly to a viewing audience.

FOUR WALLING - When a distributior or filmmaker rents a theater directly for a fixed fee and period of time and is able to keep all revenue (box office).

Let's Take a Quick Journey into the past

Studios owned approximately 65% of all movie theaters in the US at the time.

This affected the big 5 studios significantly and leveled the playing field with smaller studios such as the little 3 and emerging independent studios

Exhibition

Big 5 Studios of the 1940s and 1950s

• Metro-Goldwyn-Mayer (MGM)
• Paramount Pictures
• Warner Brothers
• 20th Century Fox
• RKO Radio Pictures

Little 3 Studios of the 1940s and 1950s

• Universal Pictures
• United Artists
• Columbia Pictures

Distribution

Production

state of theatrical distribuston 1950s - 1960s

the first paradigm shift

Audiences Shrank

• In addition to the Paramount Consent Decree, another threat to the film industry emerged in the 1950s. TELEVISION.
• The Big 5 turned to financing and distribution which allowed Independent studios and theaters to be more competitive with the major studios.
• Studios tried to lure customers back by introducing things not available on TV like; 3D, Widescreen, VistaVision, CinemaScope and Cinerama.
• The first MultiPlex Theatre opened in Kansas City, MO in 1963.
• The MPAA (now MPA) Rating system is introduced in 1968. G, M, R and X.

Approximately 5,000 Movie Theaters in the US in 1960

Studios decreased production

The Independent Producer emerges. Cassavetes, Corman, Kramer

a new theatrical distribution model emerges 1970s to 2010s

the second paradigm shift

• The birth of the BLOCKBUSTER: Love Story(1970), The Godfather(1972), Jaws(1975), Rocky(1976), Star Wars Episode IV - A New Hope(1977), Superman (1978)

• Conglomeration allows major studios to diversify; financing, distributing, soundstage rentals, buying independnt production companies, TV stations.
• Independent Distributors emerge most notably New Line Cinema.
• Multplexes begin popping up everywhere.
• By the end of the 1970s there was was an estimated 14,000 screen in the US.

Exhibition in Theaters and other mediums

Seek distribution at Film Markets, Festivals or Direct Outreach

Studio acts as Distributor

Studios provide support such as financial backing, soundstsagess and office space

Studio Productions

Independent Productions

where does the box office money go?

the RECOUPMENT WATERFALL (simplified)

Hypothetical film with $50 million production budget. Earns $150 million box office.

First split is 50/50 between the exhibitor and the distributor

Distributor gets $75 million known as Distributors Gross Receipts (DGR)

Exhibitor gets $75 million

30% = $22.5 million fee $30 million recouped for marketing

$22.5 million remains. Investors are repaid first, $20 million.Remaining $2.5 million goes to the Producer(s)

theatrical distribution in recent years

the third paradigm shift

• The combination of the COVID-19 pandemic and multiple strikes has had a devastating effect on movie theaters.
• Studios/distributors seeked out new revenue streams contributing to the rise of streaming.
• In 2000 there were approximately 41,000 screens in the US. In 2025. Today there are an estimated 35,000.
• The changes in consumer spending habits, and the enormous range of entertainment available on streaming platforms cannot be understated.
• Studios/Distributors now have their own streaming platforms but still struggle with managing Theatrical Distribution versus only Streaming versus Hybrid (Scar Jo v. Disney for example).

but, all hope for theaters may not be lost

currently

• In August of 2020 a Federal Court in the Soputhern District of New York terminated the Paramount Consent Decrees which took full effect in 2022.
• SONY Pictures acquired the Alamo Drafthouse chain of theaters in 2024.
• It is still too early to tell what the impact of this will be.
• New Paramount boss David Ellison has stated that he intends to "make big movies for big theaters". However, he is also looking to sell off the National Amusements theate chain.
• 2025 Box Office receipts are projected to beat 2024, though still not anywhere near pre-covid numbers.

thank you and go to the movies!