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Part
Five
By Harlington L. Hanna
Jr.
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Understanding Distribution in Entertainment
Distribution is one of the most important elements in
money making in any industry and particularly in
entertainment. The modern marketplace is controlled by
less than a dozen huge companies in each of the major
entertainment industries. Their very size allows them to
control the market. They have grown larger with time and
through conglomeration with each other. Today it is
difficult to figure out who is who, with buyouts and
mergers happening everywhere and all the time. The
independent publisher or producer who must deal with a
distributor to reach some type of retail exposure of a
production, historically sits in a very precarious
position. Independent distributors and distribution deals
have a long history of being blamed for the failure of
many independent productions. A good distribution deal is
hard to come by. The distributor should be carefully
researched.
Self-distribution should be investigated after all if
a publisher or producer intends to be in business for
some time it may be a wise decision to place some of
their resources into some type of distribution system. In
the long run the ability to self distribute may be the
element that keeps you in the publishing and production
business.
The advent of the Internet has offered a glimmer of
hope to the small producer and distributor and indeed it
has rocked the boat a bit and will change the marketplace
some. However big is big and big gets bigger and more in
control wherever big sets his foot. Today big has set his
foot in the Internet marketplace and guess what, Big is
now controlling even the Internet. Why, because big is
bigger, bigger means more power and more control wherever
big sits. Therefore even though the smaller entertainment
entrepreneur has been able to see a ray of hope through
the advent of Internet distribution, this ray of hope
will soon be effectively distinguished as happened in the
traditional entertainment distribution market.
A classic example of how big controls where ever it
sits can be gleaned from the fight over bulk E-mail that
has permeated the Internet marketplace. While this battle
seems to be fought by a group of fanatical antispam
interests who want to keep the Internet commercial free
and supposedly protect the privacy of your Internet
mailbox. The real battle is being pursued by those large
Internet and non-Internet interests who perceive the ease
and facility of bulk email a threat to their prior
control of the advertising media. It is obvious that the
power of bulk E-mail will greatly cut into the profits,
operations and control of many major companies. Obviously
no one likes competition or the loss of control and
profits. Bulk E-mail has be stifled in its infancy, not
because of the antispam fanatics but because of it evens
the playing field for small entrepreneurs. Unfortunately
small entrepreneurs as usual eventually succumb to big
entrepreneurs in most capitalism based economies. The
Internet then is becoming and will probably become a
medium controlled more and more by the mea business
interests.
Wise distributors however who are good businessmen and
women will always have opportunities for success. As
stated before those opportunities accrue and are taken
advantage of by the best business talents. Business
talent rises to the top wherever it sits and despite the
obstacles. Artistic talent although beautiful, adored,
cherished and sought after, unfortunately always bows its
head to business talent in the long run. Distribution is
where the money is at in the modern economy. Without
widespread distribution significant monies will not
flow.
The first step in making money in distribution however
is as always acquiring the intellectual property or right
to distribute. If possible this right should be
exclusive. The exclusive rights to distribution can be
extremely profitable. If exclusive distribution can not
be acquired then primary nonexclusive distribution rights
should be the next desired. Other more subsidiary and
secondary distribution rights can also be acquired. These
rights can be bargained, battered, leased sold and
borrowed, and their acquisition should be pursued when
ever possible. If the property is potentially valuable
there will be someone who will want to distribute the
product, if the holder of the right is either unwilling
or unable to actually effectively do the
distribution.
The right to distribute comprises many subsidiary
rights. This is evidenced easily in the Music and book
industry where several layers and strata of distributors
and sub-distributors cut up the pie before it gets to the
retailer and ultimate consumer. Entertainment
entrepreneurs must always consider the distribution
possibilities for their productions, and must be
innovative in their design and collaborations to provide
effective and widespread distribution. There is money to
be made all along the way for the wise entertainment
entrepreneur.
Part Four
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Six 