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How do blockbuster film productions distribute their works?

 

Most of the major studios have their own distribution companies. For example, Disney owns Buena Vista, a major distributor. The obvious advantages of this are that it is very simple to set up a distribution deal and the parent company does not have to share the profits with another company. However, there is still a big problem existing, when an expensive movie is a flop – there is no one else to share the costs. That is the main reason several studios have partnered on major movies in recent years. For example, "Star Wars: Episode One" was produced entirely by Lucasfilm but distributed by Fox (Tyson 2000). The next big step occurs once the distribution company has rights to the film. Most distributors do not only provide the movie to theaters, but also obtain ancillary rights to distribute the movie on VHS, DVD, cable and network TV. Other rights can include soundtrack CDs, posters, games, toys and other merchandising.

 

When a distributor has leased a movie, they will try to determine the best strategy for opening movie, which is important to relate the official debut of a movie. Basically they should consider five factors, which are studio, target audience, star power, buzz, and season (Tyson 2000).

 

For more information on how blockbuster film productions use worthy marketing strategies to release and promote the films please see: Marketing.