Ever wondered how you make money on your movie?
Films make their money in a very meticulously scheduled release across different platforms (distribution) with each platform getting an exclusive amount of time to sell the film (window).
This article will explain The 7 Distribution Windows as they traditionally work.
Author’s Note: There are no set principles in film distribution, only averages and norms. Methods and actions in Hollywood are constantly changing and evolving and this is a guide, not gospel.
The window system you’ll read about here only refers to how things are done in North America. Worldwide, it’s a different ballgame! Now that we have THAT covered, here are the windows!
Window 1: Box-Office/Theatre Release (Release Date – Month 2)
The film is shown in theatres, usually exclusively (no other viewing is available) for an average of 3 months. This gives time for the film to gain attention, grab as many viewers who will buy a ticket and then also allow for the prints to travel to smaller markets. These days, the success of a film can usually be predicted by the end of opening weekend and can be pulled out of theatres or put in more based on the ticket sales.
Note: There is usually a break in between windows, a time in which you may not be able to see the film. This is a systematic effort to stagger the availability of the film so that it is maximized at each offering and each industry is able to get the maximum ‘cut’.
Window 2: Video On Demand (Month 3 – Month 6)
VOD refers to the ordering of the film when you are in hotels/motels, etc...
Generally, the windows will go down in revenue from the theatre release, as will the cost of obtaining the film. The only time that this may differ is during the next window, Sales & Rentals. But, the VOD window stands at the second window as people will pay a premium to see a new release when they aren’t able to rent or buy it yet.
Window 3: Home Video (Sales & Rentals) (Month 6 – Year 2)
Though the popularity of video sales and rentals has been shown to match and in some cases exceed the success of box office, Hollywood still mostly staggers the release to home video sales. The movie chains are struggling to hang on to their window as the time between theatre premiers and video sales/rentals becomes shorter. Hollywood execs are in a delicate balance of trying to maximize the marketing of the theatre release with the DVD release, while not alienating the movie chains (historically the make or break for films).
Window 4: Pay Per View Services (Month 8 – Month 10)
Pay Per View is defined as viewers purchasing an event that will be telecast privately into their homes at a set time. The event (film in this case) is shown to everyone who pays for it at the same time. This is different from Video On Demand which the viewer pays for, but can watch whenever they want to.
Window 5: Pay Cable (Year 1)
This window describes the Pay Cable airings of your film, so it would be on HBO, Showtime, Encore, etc… Think of the premium offerings in your cable package and that would be it.
Window 6: Basic Cable (Year 2)
After Pay Cable, your film goes to Basic Cable (television delivered via cable with a paid subscription). Think A&E, IFC, Sundance.
Window 7: Broadcast (Year 3+)
This window is the most basic, the broadcast of your film over television for anyone who can receive the image to watch. Films can be seen on broadcast anywhere from 2 years past their release date and continue on forever! (Think of “Christmas Story” and it’s life on broadcast!)
Why does it happen this way? Why the staggered release? Because movie watchers are savvy and we’ll only pay what we think the movie is worth in regards to where we can see it at any given time. For instance, if we can see a film on NBC for free, we probably won’t pony up to go see it in the theatre. These windows were created based off of consumer demand, trends in watching and also the very systematic Hollywood revenue model of getting the most bang for your buck out of each distribution window.
Congratulations! Now you know the traditional 7 Distribution Windows for a film. In our next installment on distribution we’ll talk about how the traditional windows are changing with the introduction of new technologies like internet distribution and we’ll also take a look at some out of the box release strategies.