Licensing

1. Define the licensing process.
Licensing is the process by which a distributor acquires the legal right to exploit a film.


2. How many levels are there?
In distribution, licensing itself can take place on two levels.

3. How many ‘market territories are there around the world?
International distribution ensures that films find their way to the 90+ market 'territories' around the world. By contrast, independent producers have to sell their films to different distributors in each territory

4. Why are smaller independent film companies unable to handle the licensing for their own films?
Independent production companies are usually small concerns, sometimes set up for one film and often lacking the necessary knowledge or contacts of each of the territories around the world.


5. So what do they do?
They might choose to hire a specialist sales agent, whose function is to understand the value of a film in many different markets. The sales agent will then set up stall at the film markets that take place throughout the year.

6. What is ‘local’ distribution?
Involves the distributor acquiring the licence to release and exploit the film in a particular country. The distributor will usually pay the producer a minimum guarantee for the licence.

7. They purchase the theatrical rights, what does this consist of?.
The theatrical rights consist of showing the film in cinemas; video rights, for video and DVD exploitation; and TV rights, if the distributor is able to sell the film to a broadcaster.


8. Who do they have to share royalties with?
The licence will stipulate that the distributor will also pay royalties to the producer, taken from the profits that the film generates. 

9. What is the most effective way to create interest in a new film in the UK?
Theatrical opening is seen as the most effective way to create interest in a new film. The big screen is still the optimum setting for a film for both audiences and the filmmakers.

10. What options are available after the theatrical (cinema) release?
Some months following the theatrical release, a film will be packaged and released on DVD and VHS video, then on various forms of pay television and eventually, two years after opening in cinemas, on free-to-air television.

11. What must a successful distributor do?
successful distributor must have an in-depth knowledge of the marketplace - which cinemas, video outlets and broadcasters can best draw an audience for its films - and of the variable marketing costs involved in releasing a film in that territory. The trick is to weigh up the two factors, to invest as much as is needed in promoting the film to draw out the maximum returns.


12. Who was the distributor for your case study? 
The distributor for the Iron Lady was 20th Century Fox

13. What techniques did they employ?
They had various trailers on television channels. Some of the stars of the film went of TV chat shows to promote the film. They created a website specifically for the film and a Facebook page.