The future of film distribution

Published on January 28, 2009

The future of film distribution

    At the dawn of the 21st century, film production reached global industrial proportions, films are released at tens of thousands per year (mainly due to the fact that the cost of their production is reduced). Consider the main distribution channels of films, as well as their disadvantages and advantages.

    The object of the study was selected several films of 2008, different by genre, budget and box office, in order to average the financial performance of film studios.

    Iron Man
    Budget - $ 186,000,000
    Charges in cinemas - $ 577,194,114
    a DVD sales - $ 156,541,577 (27.12%)

    the Juno
    Budget - $ 7,000,000
    Charges in cinemas - $ 230,312,938
    a DVD sales - $ 50,457,002 (21.9%)

    of The Mummy is: of Tomb of the Dragon PM Emperor
    budget - $ 175,000,000
    Charges in cinemas - $ 393,085,977
    DVD sales - $ 36,268,336 (9.22%)

    In the examples considered, which are quite typical for the modern film market, the share of DVD sales is significant, but rarely exceeds the bar of 30% of the total fees. Information on renting movies in iTunes and the like is not yet available, and talking about their effectiveness as financial instruments can only be speculated.

    Suppose that you can evaluate the distribution channels of films by the following parameters:
    - Viewing cost
    - Image quality
    - Viewing control
    - Degree of ownership

    Consider the main channels used to distribute movies:

    Cinema
    + Maximum viewing effect
    + Low viewing cost
    - There is no way to control viewing
    - Inaccessibility of films after

    DVD expiration
    + Ability to control viewing
    + Availability of films at any time
    - Low image quality
    - High viewing costs

    BlueRay
    + Ability to control viewing
    + Improved image quality
    + Availability of films at any time
    - High viewing costs

    Rent HDTV
    + Ability to manage viewing
    + Improved image quality
    + Low viewing cost
    - Inaccessibility of films after viewing

    As a result of the review, two favorites stand out, however, BlueRay loses to HDTV rental at the cost of viewing, which for many is decisive. Therefore, at the moment, in the near medium term, the rental of high quality films has no competitors among other distribution tools. The success of this area directly depends on the number of items in the libraries of such services and the availability of price advantage.