Logistics and the seventh art – Trilogy / Part 2
In the previous post, I addressed some of the issues related to the logistical operation of film distribution to cinemas.. Logistics in general has become more complex with the expansion of markets and new competitors, with new technologies. More and more people seek to serve larger audiences, more geographically spread and also much more demanding.
The film industry is no different. Recent films must be distributed to many more theaters than productions of yesteryear. The film Jurassic Park , for example, opened in 2.404 theaters in the US in 1993. A much smaller number than the recent Jurassic World, released in June of last year, and which had its initial airing on 4.274 US screens. Showing in more places logically increases the costs and difficulties of distributing films.
Figure 1 – Jurassic World (2015) – More dinosaurs. more rooms
Source: Universal
But it is not only in consolidated markets that expansions have occurred. The biggest one happened in China. In 2007, the country had a total of 3.527 screens throughout the territory, but in 2014 the number jumped to 23.592 (Figure 2). This increase and the country's accelerated economic growth in recent years made the Chinese market the second largest in the world in 2012, surpassing Japan. And this considering that only 34 foreign films can be shown annually in the country. The increase in the number of screens also happened in other countries, such as Brazil and Mexico, albeit with smaller numbers.
Figure 2 – Number of movie theaters in China
Source: Statista
Another change that entails logistical challenges is the smaller window of international premieres. Major releases today are released worldwide in the vast majority of markets on the same day or week. A comparison we can make is between the first films of each trilogy in the saga Star Wars and their respective release dates in the US and Brazil. The first film, from 1977, was released in May in American cinemas, and only reached Brazilian screens in November, a semester later. already the Episode I: The Phantom Menace, from 1999, arrived in Brazil on June 24, just over a month after its debut in the US on May 19. At the end of last year, however, we were able to watch The force awakens one day before of Americans (17/12 vs. 18/12). The simultaneous release model requires coordinated efforts by the various distributors of a feature film around the world.
Figure 3 – Darth Vader was only presented to Brazilians six months after appearing in the USA. The charismatic BB-8 arrived a day earlier in theaters in Brazil
Source: Lucasfilm
Speaking about the market, it is good to note that there are different ways to distribute a film, and the distribution logistics operation needs to be aligned with the marketing of launch. A watershed in this regard was the classic Shark, 1975. Unlike most films at the time, which were progressively released in a greater number of theaters, Steven Spielberg's thriller risked a marketing aggressive and a national distribution, opening on more than 500 screens, a high number at the time. It worked out. Shark became the highest-grossing title until then and consolidated the launch and large-scale distribution of large productions (allied to high publicity), the so-called blockbusters.
Figure 4 – Tubarão (1975) innovated by being the first large-scale distributed film and broke box office records
Source: Universal
Not every movie follows this release pattern. Some films of considerable artistic quality but with less appeal to large audiences tend to have a smaller release hoping to receive good critical reviews, word of mouth and award nominations before going on to national and international distribution. A recent example is The Return, with Leonardo de Caprio, who competes for 12 Oscar statuettes. Released in a few American theaters on December 25, 2015, it started showing in the rest of the country from January 8.
These are some examples of how market changes and the positioning of marketing affect the distribution of film productions. In the last part of our trilogy on logistics hollywoodian, we'll talk about how movies are made available for you to watch at home.
References
<http://www.boxofficemojo.com/movies/?id=jurassicpark4.htm>
<http://www.boxofficemojo.com/movies/?id=jurassicpark.htm>
<http://www.theguardian.com/film/2013/mar/22/china-largest-film-market-outside-us>
<http://natoonline.org/data/us-movie-screens/>
<http://www.statista.com/statistics/255377/number-of-cinema-screens-in-mexico/>
<http://www.statista.com/statistics/255377/number-of-cinema-screens-in-brazil/>
<http://www.statista.com/statistics/255377/number-of-cinema-screens-in-china/>
Fernando Chalréo
He has been working on consulting projects in Logistics and Supply Chain for 5 years, with experience in companies in the consumer goods, retail and food and beverage sectors. Types of projects already carried out: Sales & Operations Planning, Inventory Management, Network Planning, Business Process Review, Logistics Indicators and Transport Management
