This section is intended to provide a summary of film production and distribution, but is not intended as a definitive guide.
How films are made
There are two principal activities involved in the making of films, namely production and distribution.
Production
There are four distinct stages in the film production cycle prior to initial release: development, pre-production, principal photography and lastly post-production. Development takes a film project from the initial idea through to commissioning the screenplay if it is considered to have sufficient potential to develop. At this point, discussions will normally be held with financiers, sales agents and other parties. The project then enters the pre-production stage. Pre-production involves engaging cast, directors and crew, establishing locations and arranging studio facilities and preparing for principal photography.

The next stage is then the commencement of principal photography. This is the actual filming stage and is the one mostly associated with the process. It can take several weeks or even months to complete depending on various factors such as location, weather and special effects.

The final stage is the post-production. Music and special effects are added with re-recording where necessary to produce the final master negative.
Distribution
The worldwide market for the sale and exploitation of feature motion pictures is divided into what are called "territories". These territories would normally comprise:
  1. United States and Canada
  2. Europe
  3. Australia
  4. Latin America
  5. Eastern Europe
  6. Others e.g. Israel, Middle East, South Africa and Turkey
An independent film is usually sold territory by territory to a local distributor in the relevant country. As well as the cinema, there are many other ways in which a film may generate revenues:
  • TV - revenue from licence fees paid by broadcasters; cable, satellite etc.
  • Video/DVD - royalties paid in respect of sales and rentals of the film in video and DVD format for home viewing.
  • Airlines - in-flight entertainment revenue in the form of licence fees paid by airlines.
  • Merchandising - in many cases, the characters and content of films will attract merchandising opportunities.
  • Soundtrack - records and publishing - the separate exploitation of theme and incidental film music by way of a royalty on sales.
  • Other Media - this might include exploitation of a film production over the internet.
A film's exploitation pattern consists of a series of media "windows", or periods of time when the film is exploited in different media. Typically, these windows may be as follows:

Approximately three months after a film is released in the cinema, it is made available to the "airline", "hotel" and other "non-theatrical" windows, and shortly thereafter to the "pay-per-view" window. Depending on the film's level of theatrical success, it begins its "home video" window between four and eight months after its theatrical release. The home video release can consist either of a low priced "sell-through" release across all home video formats or a simultaneous release in the higher priced rental video cassette market and the lower priced "sell-through" DVD market, followed later by a release at sell-through pricing to the video cassette market.

Approximately one year after a film is released theatrically, it is made available to pay-television networks, (the "pay-TV" window). Pay-TV windows generally last 12 to 18 months, after which a film may be exploited in varying ways and sequences in the "basic cable", "network" and "syndication" television markets for the balance of its economic life, which may continue for many years.