Expert: Phil Nemy - 7/24/2006

Question
Thanks for answering my question so quickly, and now I have a followup question after reading your answer, my next question is, "wouldnt it be wiser for the production company that made the film to also distribute the film and thus guarantee at least some sort of return?"
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Followup To

Question -
A friend of mine starred in a film called "extreme dating" but this film (which I have checked on the internet movie database and know it to be real) has yet to be released, my question is, why would a production company spend thousands of dollars to make a film and then just let it sit away in a cupboard somewhere?

Answer -
Lee,

Thanks for writing. I don't believe that the production company has simply shelved the film. Remember - this is a business. Businesses must make money. The production company has probably screened the film for a variety of film distribution companies and probably, none of the distributors who saw the film felt they could make money by distributing it. It's a business for them as well. It will cost them a lot of money to make prints of the film and advertise the film to get it into theatres. If, when they see the film, they don't think it's any good, then they won't pick it up for distribution.

I suspect that this might be the case.

Phil

Answer
Lee,

Theoretically, yes. But the distribution business is an expensive business. Most production companies don't even have enough money to fund the production of their own films, they have to raise the financing independently. What makes you think they would suddenly have the money needed to market and distribute the film as well?

Historically, the marketing and distribution costs of a film are about 1.5 to 2 times the cost of actually making the film.

Phil