Posted: Fri Oct 10, 2008 8:30 am
I'm actually rather flattered that Nothing has blatantly ignored most of the spanners I've been inserting in the works of his globalised fantasy, because that in itself speaks volumes.
But since he's continuing to peddle the scenario whereby distributors all band together in a massive group hug and vow to bring down the evil licensors, I'm just going to have to reiterate the point I made that many companies are both distributors AND licensors and therefore have interests in both sides of the argument.
To emphasise this, here's a genuine example of an international distribution deal. Obviously, commercial confidence means that I can't identify the title (though it doesn't really matter what it is), and I've obviously simplified the negotiations considerably, but this is the basic scenario: the producer of a certain film wakes up one morning to discover that all the existing distribution deals have expired and that the rights have reverted back to him. He approaches a large film company (Company A) with interests in both distribution and sales to propose a brand new restoration and DVD/Blu-ray release.
Company A does a bit of number-crunching and works out that the cost of said restoration is likely to be significantly more than can realistically be recouped in their domestic market (this is a title with genuine but limited arthouse/cult appeal). So they tell the producer "OK, we'll take this on provided we can also become the world sales agent and cream off our costs upfront from licensing deals outside our territory".
Company A also works out that they'd need at least two distribution deals in place before they can afford to greenlight the restoration. So they contact two friendly distributors in the US (Company B) and mainland Europe (Company C) and ask if they're interested. They are, but the snag is that they need to make a firm commitment to take on the film before the restoration can be carried out - in other words, they're effectively buying sight unseen. So they negotiate a lower rate because of the risk they're taking.
Company A says that's fine, but replies that because they're taking the biggest financial risk on the project, they want to have a six-month head start on a DVD release. Company B is cool with that, but insists that said release be region-coded and that Company A makes no attempt at marketing outside its own territory. Company A in turn says that Company B's release must also be also region-coded, because although they're coming out second, they'll have time to examine Company A's release and possibly improve upon it by adding more enticing extras.
Company C is in the same region as Company A, so the deal there is that all menus and booklets are in a language other than English, and that the film itself plays with forced subtitles - again, the aim being to restrict the film to Company C's own market as much as is possible. And of course Company C in turn asks Company A not to cater for its particular language group. Everyone's now negotiated the advantage they're after, minimised their upfront risk as much as is feasible, and the various deals can go ahead.
And that's how it works in the real world - or at least the world outside huge multinational corporations like Warner Bros who can afford not to region-code because it doesn't affect their bottom line.
But since he's continuing to peddle the scenario whereby distributors all band together in a massive group hug and vow to bring down the evil licensors, I'm just going to have to reiterate the point I made that many companies are both distributors AND licensors and therefore have interests in both sides of the argument.
To emphasise this, here's a genuine example of an international distribution deal. Obviously, commercial confidence means that I can't identify the title (though it doesn't really matter what it is), and I've obviously simplified the negotiations considerably, but this is the basic scenario: the producer of a certain film wakes up one morning to discover that all the existing distribution deals have expired and that the rights have reverted back to him. He approaches a large film company (Company A) with interests in both distribution and sales to propose a brand new restoration and DVD/Blu-ray release.
Company A does a bit of number-crunching and works out that the cost of said restoration is likely to be significantly more than can realistically be recouped in their domestic market (this is a title with genuine but limited arthouse/cult appeal). So they tell the producer "OK, we'll take this on provided we can also become the world sales agent and cream off our costs upfront from licensing deals outside our territory".
Company A also works out that they'd need at least two distribution deals in place before they can afford to greenlight the restoration. So they contact two friendly distributors in the US (Company B) and mainland Europe (Company C) and ask if they're interested. They are, but the snag is that they need to make a firm commitment to take on the film before the restoration can be carried out - in other words, they're effectively buying sight unseen. So they negotiate a lower rate because of the risk they're taking.
Company A says that's fine, but replies that because they're taking the biggest financial risk on the project, they want to have a six-month head start on a DVD release. Company B is cool with that, but insists that said release be region-coded and that Company A makes no attempt at marketing outside its own territory. Company A in turn says that Company B's release must also be also region-coded, because although they're coming out second, they'll have time to examine Company A's release and possibly improve upon it by adding more enticing extras.
Company C is in the same region as Company A, so the deal there is that all menus and booklets are in a language other than English, and that the film itself plays with forced subtitles - again, the aim being to restrict the film to Company C's own market as much as is possible. And of course Company C in turn asks Company A not to cater for its particular language group. Everyone's now negotiated the advantage they're after, minimised their upfront risk as much as is feasible, and the various deals can go ahead.
And that's how it works in the real world - or at least the world outside huge multinational corporations like Warner Bros who can afford not to region-code because it doesn't affect their bottom line.