Finance

The biggest production and distribution companies US:

The biggest production and distributers UK:



As McDougall (2008) summarised, five major distribution companies dominate the UK film industry:
- United International Pictures- Warner Brothers- Buena Vista- 20th Century Fox- SonyNone of these distribution companies are British, approximately 9/10 films seen in UK cinemas have been distributed by these Hollywood companies. In the majority of cases, these companies are either the same company who produced the film or are directly linked to the Hollywood production companies who made the film (vertical integration). Although the Paramount 1948 Supreme Court ruling now prevents these companies from owning the cinemas used for exhibition, films distributed by these Hollywood companies are still prioritized (for reasons of long term and short term profit) over films produced/distributed by independent companies e.g. Hollywood films generally gross more than a independent film and also because they make more films than independent companies cinemas can make more each year through supporting Hollywood films than they would if they started prioritizing independent films over Hollywood releases (doing this might prompt Hollywood to stop using this chain which would obviously impact profit for the cinema).  
The fact that multiplex cinemas are often owned by American companies also has an impact here because they obviously have deals with the Hollywood distributors in the USA and UK that makes it easier/more cost effective for them to secure Hollywood blockbusters than it is for independent cinemas (it is basic business that works in the same way to Tesco's v independent stores).
* A spokesperson for distributors Polygram summed up the problem as follows; "The British film industry is renowned for its creativity but we need to improve distribution and training, get closure to out audiences and take a global perspective. Only then will British film have a brighter future in the worldwide movie business."



  

Pre-Production 

(funded by production company)

• Producer/studio acquires rights to film story or treatment OR an independent production company chooses a production company/distributor (e.g. British production company makes the decision to work with major Hollywood company for production and distribution - using vertical integration - or seeks funding for production from UK sources then selects/attracts a Hollywood distributor). Hollywood has the advantage as it has more money to spend securing the rights to films. 
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• Screenplay is developed (script, storyboards etc.) - Hollywood has advantage as it employees more writers and can afford the best 'talent.'
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• Production finance and cast/crew are confirmed, locations are confirmed, scheduling takes place, call sheets are created, costume fittings happen, equipment is organised. Hollywood has the advantage as it can afford to spend more on big name stars, directors (even great British directors like Hitchcock get lured to Hollywood), experienced crew, locations, costumes and equipment. 

Production

(funded by production company)

• Principle photography takes place, in studios and/or on agreed locations (on average this takes 3 months). Hollywood has the advantage as vertical integration means access to studios, equipment etc. Also, they can afford to spend longer on shoots. 

Post-Production

(first two stages funded by production company, the other stages are funded by the distribution company)

• Post production (editing and scoring) takes place, test screenings taken place that the producer feels are necessary after getting feedback from the primary target audience (could even include re-shooting some scenes). Hollywood have the advantage because they can spend more of employees, editing equipment/technology and music rights.   
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• Master print of finished film delivered to distributor. USA distributors have the advantage because they can afford to produce more prints for blanket release. 
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• Distributor determines national and international release strategies and date (where/when/how in each country - also decide on premieres, film festivals etc.)
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• Distributor presents film to exhibitors and negotiates bilateral agreements to have film shown in cinemas
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• Distributor's marketing campaign creates 'hype' amongst target audience (a 'want to see' buzz) and launches film (marketing takes many forms, big Hollywood conglomerates have the advantage because they can use synergy across range of media platforms)
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• Prints are delivered to cinema a few days before opening - Hollywood films have the advantage because multiplex cinemas are loyal to Hollywood films for profit reasons. 
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•  Film's run extends any number of weeks subject to demand 
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• Marketing of home media begins after the film has left cinemas. Hollywood companies have the advantage as they have more to spend on marketing. 
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• Film is released on DVD, Blue-ray and becomes available to download. Home media sales is often where British films make the most profit - they can compete on a more level playing field at this stage as the production costs of DVDs etc is less than reels.