Movies & TV Production and Distribution
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Industry Overview
This profile has been replaced with Motion Picture Production and Distribution and TV Program Production and Distribution.
Competitive Landscape
Products, Operations & Technology
Because movies or TV shows can have very high value compared to the cost of production, they are usually made on a proprietary basis (the producer owns the product). Other types of products, such as commercials or educational features, are often made on a fee-for-service basis, with the customer owning the product. Although differing in detail, movie and TV show production are similar and are divided into development, pre-production, production, and post-production phases.
In the development phase, a producer (the owner of the eventual product) acquires or creates a screenplay, gets tentative commitments from a director and principal actors, and develops a budget and a shooting schedule. Once these elements are in place, a movie producer secures financing from a movie studio or independent source. A TV producer secures approval for a "pilot" from one of the TV networks or other TV outlets, which pay a license fee that will cover a large part of production costs. Much of the work of producers involves assembling a pre-production package that will be approved by financial backers.
After financing or approval is in hand, the movie or TV program goes into pre-production. The producer finalizes contractual agreements with the director and actors; finalizes the screenplay or script; hires a production crew, equipment, and a soundstage; or arranges for location shooting. Actual production ("principal photography") for a movie may run a few weeks to several months; production of a typical TV series of 13 episodes may take several months. Once actual shooting is complete, the movie or TV program goes into post-production, which involves editing, dubbing, subtitles, music scoring, audiovisual synchronization, narration, special effects, titles, etc., culminating for movies in the production of a master negative from which exhibition copies are eventually made. All expenses involved in producing the movie to this point are called "negative costs."
Distribution of the finished product to movie theatres is often handled by the large studios, which have relationships with large numbers of theatre owners to whom they "sell" a movie. Because of these established relationships, the distribution arms of the large studios are sought after by independent producers.
Once a movie or TV program has been created, it generates a financial return to the producer through sequential license fees. Usually, movies are first put into theatrical release, then released on video or DVD after about six months, then made available to cable and pay-per-view channels, and eventually to free TV. A movie producer typically sells licenses separately for distribution through these different outlets. But producers sometimes sell all movie rights to a studio or an independent distributor before a movie is finished, in an arrangement called a "negative pickup."
The technology involved in movie and TV production has changed rapidly due to the greater power of computers. Many movies and shows are now shot using digital cameras and are edited with special computer software. Special effects are mainly computer-generated digital images. Instead of being delivered to customers on film reels, movies and TV shows can be distributed electronically.