Disney And The Changing Face Of Distribution

There have been umpteen column inches in the press these past two weeks about a boycott of ALICE IN WONDERLAND by the major cinema circuits. At first Odeon, Vue and Cineworld all stood firm against the mighty Disney, with the big three all balking at the reduction in the theatrical window – shortening the industry-agreed 17 weeks between a film’s cinema release and its availability on DVD/download to just 12 weeks. But one by one the circuits have ‘come to an agreement,’ with Odeon finally announcing yesterday they too would be screening ALICE.

Of course the cinemas have more to lose than Disney. ALICE IN WONDERLAND is expected to make around £40m at the UK box office which is a fairly hefty chunk of change for cinema circuits, particularly for the likes of Odeon who would snaffle up a large proportion of this with their multitude of 3D screens.

Why the fuss in the first place? Well, the cinema circuits have long believed that the 17-week window is crucial to maximise a film’s revenue potential. Any shorter and consumers are likely to opt to wait for the DVD. Of course Disney disagree, claiming most of a film’s revenue (97% according to them) comes in the first 8 weeks of release. There is also the matter of a smaller window meaning a shorter period for those pesky pirates to make their money from counterfeit DVDs. Oh, and let’s not forget the massive savings in marketing budgets that a distributor stands to make by releasing a DVD or download before the glue has dried on the back of their theatrical posters.

So have Disney set a precedent here? Is this the future of film releasing? Disney say no, not necessarily, and point to THE PRINCESS AND THE FROG and its standard 17-week window. They just want the flexibility to look at this on a case-by-case basis.
What do Picturehouse Cinemas think about all this? Well, of course this isn’t particularly new. Smaller films released on fewer prints have often had agreements in place for a shorter theatrical window. Look at last year’s doc THE SEPTEMBER ISSUE, available on DVD the Monday after the Friday cinematic release. Window, what window? That was a theatrical DVD launch. It didn’t stop people coming to see it in the cinema. In fact, we were quite surprised at the demand from our customers to see it in Picturehouses weeks after it was available on DVD.

And surely that is what it all comes down to, the needs of the consumer. Disney would argue, and it’s difficult to disagree, that consumers are used to getting what they want when they want it. The Internet, and with it the myriad ways in which films can be experienced, have moved the goalposts whether we like it or not. People expect to consume their entertainment whenever and wherever they want and cinema exhibition needs to get with the program. Perhaps this requires a redefinition of the whole business model.

Ok then, we can be open to this. Afterall, we were happy to book ALICE IN WONDERLAND because we tend to believe our customers will still choose cinema for their film experience. There is an increased level of risk on our part though, so while we’re rewriting rule books, the ‘flexibility’ afforded to Disney and other distributors should be extended to the exhibitor. More favourable financial terms for films with shortened windows would be nice, less regidity on the 4-shows-a-day-7-days-a-week model – how many of the THE PRINCESS AND THE FROG’s target market are going to turn up at 9.15pm, for example?

Allowing the exhibitor a bit more programming flexibility will help us maximise the profitability of our auditoria while delivering a service that best meets our customers’ needs. Isn’t that the whole idea? Somehow, I don’t think this is top of the list of concerns for the major exhibitors. Theirs is a numbers game: get them in, then get them out to get more of them in, as quick as you can for as long as there is life in whatever film is on one of their multitude of screens. That, and the whole Internet thing of course. A large proportion of their audience happen to be those most in tune with the rapidly-changing digital landscape. Basically, given the choice of a download, they may well jump ship. Somehow, I doubt we’ve heard the end of this little debate.