25 August 2020
Media Studies
Audiences and Institutions - Revision Activity Answers
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Activity #1:
1. The two financial models that distribution agreements are based on are leasing and profit sharing.
2. The leasing model is where the distributor agrees to pay a fixed amount for the rights to distribute a film. On the other hand, the profit-sharing relationship/model is where the distributor receives a percentage of the total net profits obtained by the movie. The percentage received tends to be between 10-50% of the net profits. With both models, both the studio and the distributor aim to predict which model/method will work best for them.
3. Ancillary rights are subordinate rights which rely on the main right or claim. Such rights may include the right to distribute the movie on DVD, VHS, and cable and network television.
4. The film's 'opening' is the official debut of the movie. Basically, the first time it's released and viewed by the audience. The following factors are taken into account when deciding on the film's opening: studio, target audience, star power, buzz and season.
5. A film is said to have 'legs' if it is able to remain popular and well-enjoyed and supported for a long period of time. If the film lacks any one of the factors listed above in question 4, it stands the chance of not having 'legs'. Buzz, perfect season, A-list actors, reaching the desired audience and having major studio backing are all factors which massively increase the film's chance of having 'legs'. If the plot simply isn't a timeless one, it won't have 'legs'. An example of a franchise whose films have legs is Star Wars.
6. At the time of this article there were 37 000 screens across the USA, with the majority of them being located in urban areas and cities - well populated areas.
7. A 'buyer' is hired by the theater to represent the film theater in negotiations with the distribution company. Large theater chains employ buyers while smaller independent theaters contract with a buyer. The buyers discuss and negotiate terms such as whether they will accept to buy the film or not, where the film will be shown, and the lease terms, such as whether the lease will be done by bidding - where the buyer pays a fixed amount to the distributor for the right to show the film, or by percentage - where both parties receive a percentage of the box office (ticket sales). If percentage is decided upon, the buyer then discusses with the distributor the nut/house allowance amount, the exact percentage splits for both the gross and net profits, the length of engagement etc.
8. A theater can either lease a movie by bidding or by percentage. Bidding involves the buyer paying a fixed amount to the distributor for the right to show the film, whereas percentage means that both parties receive a percentage of the box office (ticket sales). In this case, the two parties discuss the nut/house allowance amount, the exact percentage splits for both the gross and net profits, the length of engagement etc.
9. A loss leader is what the film itself is considered as being to the theater. It's purpose is to attract the audience to the theater, where they then spend money on popcorn and soda - which is what actually keeps the theaters going financially. According to the article, theaters cannot run without the sales of the popcorn and soda - that's where they earn their main income.
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Research done in Activity #2 has been added to the 'Case Studies' blog post a few posts back.
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Activity #1:
1. The two financial models that distribution agreements are based on are leasing and profit sharing.
2. The leasing model is where the distributor agrees to pay a fixed amount for the rights to distribute a film. On the other hand, the profit-sharing relationship/model is where the distributor receives a percentage of the total net profits obtained by the movie. The percentage received tends to be between 10-50% of the net profits. With both models, both the studio and the distributor aim to predict which model/method will work best for them.
3. Ancillary rights are subordinate rights which rely on the main right or claim. Such rights may include the right to distribute the movie on DVD, VHS, and cable and network television.
4. The film's 'opening' is the official debut of the movie. Basically, the first time it's released and viewed by the audience. The following factors are taken into account when deciding on the film's opening: studio, target audience, star power, buzz and season.
5. A film is said to have 'legs' if it is able to remain popular and well-enjoyed and supported for a long period of time. If the film lacks any one of the factors listed above in question 4, it stands the chance of not having 'legs'. Buzz, perfect season, A-list actors, reaching the desired audience and having major studio backing are all factors which massively increase the film's chance of having 'legs'. If the plot simply isn't a timeless one, it won't have 'legs'. An example of a franchise whose films have legs is Star Wars.
6. At the time of this article there were 37 000 screens across the USA, with the majority of them being located in urban areas and cities - well populated areas.
7. A 'buyer' is hired by the theater to represent the film theater in negotiations with the distribution company. Large theater chains employ buyers while smaller independent theaters contract with a buyer. The buyers discuss and negotiate terms such as whether they will accept to buy the film or not, where the film will be shown, and the lease terms, such as whether the lease will be done by bidding - where the buyer pays a fixed amount to the distributor for the right to show the film, or by percentage - where both parties receive a percentage of the box office (ticket sales). If percentage is decided upon, the buyer then discusses with the distributor the nut/house allowance amount, the exact percentage splits for both the gross and net profits, the length of engagement etc.
8. A theater can either lease a movie by bidding or by percentage. Bidding involves the buyer paying a fixed amount to the distributor for the right to show the film, whereas percentage means that both parties receive a percentage of the box office (ticket sales). In this case, the two parties discuss the nut/house allowance amount, the exact percentage splits for both the gross and net profits, the length of engagement etc.
9. A loss leader is what the film itself is considered as being to the theater. It's purpose is to attract the audience to the theater, where they then spend money on popcorn and soda - which is what actually keeps the theaters going financially. According to the article, theaters cannot run without the sales of the popcorn and soda - that's where they earn their main income.
---
Research done in Activity #2 has been added to the 'Case Studies' blog post a few posts back.
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