Carol Balassa: The Business of International Film Distribution: Pilot Proposal for a U.S.-Sponsored Capacity-Building Program



Introduction: “Slumdog Millionaire’s” International Distribution Success Story

“Slumdog Millionaire” is a twice-told fairytale – the story of a Mumbai orphan overcoming all odds to win the equivalent of the gold ring while rescuing a beautiful damsel in distress, and the equally astounding story of “a starless, partly subtitled film from halfway around the world,” that none of the big studio executives wanted, securing worldwide distribution and going on to win eight Oscars.  

The story of how “Slumdog’s” producers were able to secure international film distribution, without which the film would not have been considered for an Oscar, has drawn as much attention as the Slumdog story itself.  Fascination with the story of “Slumdog’s” distribution stems from the fact that, while many filmmakers around the world aspire to having their films released internationally, especially in U.S. movie theaters, relatively few are successful.

Issue: The Link between International Film Distribution and the U.S. Image Abroad

International attention given to “Slumdog’s” success illustrates vividly the universal appeal of motion pictures and the symbolic role they play as a reflection of a nation’s cultural identity.   Less publicized, however, is the resentment that can be generated when filmmakers are unable to secure successful international distribution for their films. Given the global dominance of U.S. motion picture exports, it is not surprising that much of this resentment is directed against the United States.

In a number of countries, members of the film and business community, government officials, and national opinion makers attribute their filmmakers’ distribution problems at home to the preponderance of U.S. films in their market, while difficulties in penetrating the U.S. market are attributed to hidden trade barriers or the unwillingness of Americans to listen to the stories of others.  Recently, resentment over U.S. motion picture exports served to unite almost all UNESCO members in adopting the Cultural Diversity Convention, whose unstated agenda is to permit countries to protect their “cultural diversity” from imports of U.S. motion pictures.

Problem: Inadequate Local Systems for International Film Distribution

The challenges facing filmmakers worldwide in securing international distribution of their films are complex and little understood.

On the artistic side of the motion picture industry – artists, screenwriters, and directors -there is no lack of creative talent worldwide.  On the business side of the industry, however, there is often a serious failure to appreciate and understand international film distribution as a distinct business that will help filmmakers find a global audience for their films.

Moreover, many business people who could constructively participate in the international film distribution business do not, in large part because they are unaware of the business opportunities such an undertaking could offer.  Government officials too, accustomed to dealing with motion pictures only as a cultural issue, are often ill-equipped to understand film distribution as a business activity that can contribute to their national economy. The result is that, in many countries, members of the film community lack the specific expertise necessary to secure distribution of locally-made films outside their borders.

Proposed Solution:  A U.S.-Sponsored Capacity-Building Program --The Business of International Film Distribution

To address widespread resentment over the imbalance between U.S. motion picture exports and those from other countries, and to remove an ongoing irritant that affects the image of the United States worldwide, the absence in most countries of an effective international film distribution system needs to be addressed and resolved. 

To help countries establish  international film distribution expertise, the Curb Center for Art, Enterprise and Public Policy at Vanderbilt  and the Independent Film and Television Alliance (IFTA)  propose a film distribution capacity-building program (program), whose purpose is to explain the business of international film distribution to business professionals  already, or potentially, active in their local film community, concerned government officials, academics from film and business schools, and representatives from selected international organizations.

The film distribution program will provide a real-world assessment of the system successfully utilized by the majority of non-studio titles from around the world. This system includes the use of film festivals and film markets where film distribution rights are licensed to local distributors from around the world.  Rights sellers (“sales agents”) attend these festivals and markets to acquire worldwide rights to new titles and in turn to broker the rights to theatrical, video and TV distributors in individual territories around the world. 

The program will discuss strategies for using festivals, markets and sales agents, and ways in which governments can help to support these efforts.  Establishing legal copyright is a prerequisite for the use of the system, and the program will emphasize international standards for both the confirmation and transfer of copyright.

The program is unique in focusing on the business of film distribution for an audience of established professionals. Most film training programs focus on the artistic and creative aspects of film production, and rarely discuss the successful territorial system of film distribution available to knowledgeable filmmakers. The program is also unique in joining the art and cultural policy expertise of the Curb Center with the business expertise of IFTA in global film distribution.

The core curriculum developed for a pilot program can, with minor modifications, become a template for training in a number of different countries.  Regions of immediate focus would be Latin America, Central and Eastern Europe, Central Asia and Southeast Asia, including Indonesia and the Philippines.

Conclusion: Making International Film Distribution Knowledge an Instrument of “Smart Power”

The proposed program will improve the U.S. image abroad by:

Removing unwarranted suspicion that trade barriers restrict entry of films into the U.S. market;

Delivering the positive message that the U.S. is offering solutions to distribution problems facing non-U.S. made films;

Creating worldwide distribution opportunities for non-U.S. made films, potentially generating support among film exporting countries to remove film trade barriers in WTO service negotiations;

Demonstrating U.S. commitment to a program making a greater selection of non-U.S. made films available to audiences worldwide.

i David Carr, New York Times, Feb. 24, 09, p. C1]
ii After “Slumdog” won its eight Oscars, despite its British director and international distributors, the Indians adopted it as their own.  The New York Times, for example, carried an article headlined “Indians Embrace the Triumph of ‘Slumdog’ as a Victory for Their Country,” and featured a photo of Indian students jubilantly dancing in the streets.