08 Distribution. A View of Love by Nicole Garcia. Jean-Marie Leroy / 2010 Les Productions du Trésor / EuropaCorp / France 3 Cinéma / Pauline Angel.

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1 A View of Love by Nicole Garcia. Jean-Marie Leroy / 200 Les Productions du Trésor / EuropaCorp / France 3 Cinéma / Pauline Angel. On Tour by Mathieu Amalric. Le Pacte. Black Venus by Abdellatif Kechiche. MK2 Distribution. 08 Distribution In 200, 575 films were distributed as first-run releases, 2.2% less than in This decrease was due to non-european and non-american films (-9 movies) and to American films (-9 movies). A Screaming Man by Mahamat-Saleh Haroun. Pyramide Distribution. Sarah s Key by Gilles Paquet-Brenner. Julien Bonet / UGC Distribution / 200 Hugo Productions / Studio 37 / TF Droits audiovisuels / France 2 Cinéma.

2 08 Distribution Methodology All feature-length motion pictures recently released in theaters in France were included. Specifically considered as new were any films commercially released nationwide and any commercial film screened during one-time events, such as festivals or retrospective tributes. The number of release prints and genres appearing in this chapter were drawn from information used in press. The number of prints for a film corresponds to the prints published for the first week of theater exhibition. It includes prints on traditional film as well as prints or files for digital projection. A TYPOLOGY OF NEW FILMS In 200, there were 575 first-run releases in France, 3 fewer films than in However, 200 still posted high results for the decade. This decrease was due to non-european and non-american films (-9 movies) and American films (-9 movies). The number of French films increased by 2, reaching the highest level of the decade. However, among national films, French majority co-productions declined markedly to 50 films in 200, compared to 64 films in The significant increase in 00% French films (+9 films compared to 2009 to 63 films) and the number of minority co-productions (+7 films to 57 movies) made up for this decline. French films represents 47.0% of all first-run releases in 200. This was the highest level of the past decade and has grown steadily since 200 (40.7%). In 200, the proportion of American films in the number of first-run releases equaled 25.0% (27.7% in 2009 and 28.% in 2008). 44 American films were released in France in 200, compared to 63 in This is the lowest level ever recorded in the last decade. The number of new European films rose markedly (+23 films) and reached the highest level of the decade with 20 films. This increase reflects a much higher number of Spanish (+8 films), Italian (+6 films) and German (+4 films) films shown in France. At 4, the number of films from other countries declined significantly (-9 films), notably due to the decrease in the number of Japanese (-6 films) and Chinese (-3 films) films. % French American European Other films films films films USA 00% Fench French majority French minority Great Britain Japan Spain Germany Italy Canada China other countries , , , , , , , , , , , , , A Number of first-run releases A Nationality of first-run releases Films funded fully by, or with majority or minority participation from, French associates. 88 results 200 / CNC Dossiers / nº 38 May 20

3 B Nearly 23% of new films were comedies In 200, 3 comedies (of which 57 were French films and 52 were American films) were distributed for the first time in France. 22.8% of new films released in 200 were comedies. 0 comedy-dramas were released, of which 6 were French and 5 were American. These two genres alone accounted for 4.9% first-run releases. Drama was in second place with 26 films released in 200. There were 76 first-run documentaries in 200, compared to 7 in 2009 and 58 in were French documentaries, 4 were European, 8 were American, one was Canadian (Encirclement) and one was Nigerian (Al leessi une actrice africaine). 24 animations were released in 200, fewer than in French animation remained high with 7 films distributed, including Arthur 3: The War of Two Worlds, Santa s Apprentice, and A Cat in Paris. 0 American animations were released, including Shrek Forever After, Toy Story 3 and How to Train Your Dragon. Four animations were European, two were Japanese (Summer Wars and Tamagotchi: The Movie) and one was Argentinean (Boogie, el Aceitoso). Gebeka Films, Buena Vista International and Paramount Pictures France were the leading animation distributors in 200 with three films each. Colifilms Diffusion and Eurozoom each distributed two animations. Classification of films Each year, over 80% of new releases are rated as suitable for all audiences. In 200, this was true for 56 films (89.7%), of which 250 films were French (92.6% of all French films) and 25 films were American (86.8% of all American films). 48 films were rated 2 years and older and were rated 6 and older, including 4 French films and 2 American films. No film was rated 8 and older in 200. C EXHIBITION OF NEW FILMS In 200, 575 first-run films were distributed in 77,675 prints* in all during the first week they were shown (-3.3% compared to 2009). American films accounted for 44.4% of prints in circulation, compared to 39.6% for French films, 4.8% for European films and.2% for non-european and non-american films. 29.7% of prints published in 200 were comedies (32.% in 2009), compared to 2.8% for dramas (.0% in 2009),.5% for animations (2.8% in 2009) and 2.5% for documentaries (2.4% in 2009). * Traditional silver prints and files for digital projection. animation adventure comedy comedy-drama documentary drama fantasy musical crime/mystery other French American European Other films films films films 24,20 32,249 5,603 2,59 64,572 23,652 36,499 4,872 2,492 67,55 25,768 38,280 4,532 3,362 7,942 30,483 36,735 6,35 2,383 75,96 29,85 34,09 8,897 2,060 74,233 32,530 37,3 7,08 2,569 79,320 32,94 35,47 8,3,583 77,36 33,04 34,550 7,5 2,292 77,457 34,462 35,844 7,030 2,965 80,30 30,789 34,467, ,675 B First-run releases by genre C Prints for first-run releases Traditional silver prints and files for digital projection being circulated during the first week of first run release exhibition. results 200 / CNC Dossiers / nº 38 May 20 89

4 08 Distribution D Slight increase in the number of films distributed in more than 500 prints In 200, 35 films were distributed in more than 500 prints (32 films in 2009). 2 of them were American, 8 were French and 6 were European (five British films and one Belgian film, Samy s Adventures: The Secret Passage). They accounted for 28.9% of all prints in circulation. Among these films, two films were released in more than 800 prints: Harry Potter and the Deathly Hallows Part (a British film) and Shrek Forever After (an American film). There were three in 2009 and five in In 200, 25.2% of films were available in more than 200 prints (45 films) and 37.4% in more than 00 prints (25 films). In contrast, 5 films had limited releases (fewer than 0 prints), compared to 42 films in The proportion of films with releases limited to fewer than 0 prints declined to 20.0% in 200, compared to 24.% in 2009 and 2.8% in Less than or more D E First-run releases by number of prints Traditional silver prints and files for digital projection being circulated during the first week of first run release exhibition. 39 documentaries were distributed in less than 0 prints in 200, 5.3% of documentaries released during the year and 33.9% of films distributed in less than 0 prints. In contrast, 59.9% of animations shown for the first time on screens in 200 were published in more than 200 prints. They represented 9.7% of films released in more than 200 prints. Average of 35 prints per film The average number of prints per film decreased. New first-run films were made in an average of 35 prints in 200, compared to 37 in 2009 and 40 in Thus, 200 reached the level of On average, French films were distributed in 4 prints, 5 fewer than in This is the lowest level recorded since 2002 (also 4 prints). The average number of prints per American film went from 220 in 2009 to 239 in 200. Associated to a net increase in the number of films, the average number of prints per European film increased significantly in 200 to 96 prints, compared to 72 in A non-european and non-american film on average had 22 prints (49 in 2009). This decrease is related to the lack of films of more than 00 prints (7 in 2009 and 5 in 2008). F Animated films had on average the largest number of prints in 200 (373 prints). Fantasy films and adventure films also had a significant number of releases: respectively 333 prints (288 prints in 2009) and 294 prints (292 prints in 2009) on average. In contrast, documentaries, dramas and comedy-dramas were released in a limited number of prints for the most part. 2 digital films released In 200, 2 films were partially or wholly distributed in digital format (83 in 2009 and 57 in 2008), 2.0% of first-run releases (4.% in 2009 and 0.3% in 2008). 64 of these 2 films were American (49 films in 2009) and 4 were French (26 films in 2009). Most films distributed in digital format had a high number of prints released (digital + traditional prints). Thus, for 53 films (43 films in 2009), more than 400 prints were released, but 9 films released fewer than 00 prints (4 films in 2009). 20 th Century Fox, Warner Bros France and Metropolitan Film Export were the distributors to release the most digital-format films in 200 with more than 0 films each. 23 3D films In 200, 23 digital 3D films were released. 7 were American films. Ten films released more than 500 prints (8 in 2009) and two fewer than 00 prints (3 in 2009), Une nuit au cirque (French documentary) and Boogie, el Aceitoso (Argentinean animation). 90 results 200 / CNC Dossiers / nº 38 May 20

5 9 results 200 / CNC Dossiers / nº 38 May 20 nationality French films American films European films other films genre animation adventure comedy comedy-drama documentary drama fantasy musical crime/mystery other prints less than or more Average number of prints per film Traditional silver prints and files for digital projection being circulated during the first week of first run release exhibition. E French films American films European films other films First-run digital releases Source: CNC, Manice. F _ First-run digital 3D releases in 200 F film origin distributor sortie Alice in Wonderland USA Buena Vista International 03/24/0 Alpha and Omega USA Metropolitan Film Export 0/20/0 Boogie Argentine Colifilms Diffusion /7/0 Space Chimps 2: Zartog Strikes Back USA SND 2/22/0 Clash of the Titans Great Britain Warner Bros France 04/07/0 Cats and Dogs: Revenge of Kitty Galore USA Warner Bros France 08/04/0 The last Airbender USA Paramount Pictures France 07/28/0 Dragons USA Paramount Pictures France 03/3/0 Jackass USA Paramount Pictures France /03/0 Megamind USA Paramount Pictures France 2/5/0 Despicable Me USA Universal Pictures International 0/06/0 The Chronicles of Narnia the Voyage of the Dawn Treader USA 20 th Century Fox France Inc 2/08/0 Piranha USA Wild Bunch 09/0/0 Tangled USA Buena Vista International 2/0/0 Resident Evil : Afterlife Germany / France Metropolitan Film Export 09/22/0 Legend of the Gardians: The owls of Ga Hoole USA Warner Bros France 0/27/0 Saw 3D USA Metropolitan Film Export /0/0 Sexy Dance 3 : the Battle USA Universal Pictures International 08/8/0 Shrek Forever After USA Paramount Pictures France 06/30/0 Streetdance Great Britain Metropolitan Film Export 05/9/0 Toy Story 3 USA Buena Vista International 07/4/0 Une nuit au cirque France Numevent 05/26/0 Samy s Adventures: The Secret Passage Belgium StudioCanal 08//0

6 08 Distribution G DISTRIBUTOR RANKING In 200, 6 distributors released 575 new films. The ten most active distributors distributed 32.7% of new films (32.3% in 2009). Metropolitan Film Export and 20 th Century Fox distributed more than 20 films each, ing 9% of all films shown for the first time in theaters in 200. Two distributors released at least 20 films in 2009, equaling 8.8% of all new films. In 200, Warner Bros France was the top distributor in terms of revenue. The distribution of Harry Potter and the Deathly Hallows Part and Inception, among other successes, gave them a market share of 3.% (9.4% in 2009). In second place, Buena Vista International brought in 0.3% of distributors revenue in 200, notably due to Alice in Wonderland, Toy Story 3, The Princess and the Frog and Tangled. 20 th Century Fox came in third. It distributed films that were very successful in theaters, such as The Chronicles of Narnia The Voyage of the Dawn Treader and Percy Jackson and the Lightning Thief. EuropaCorp, the leading French distributor, had a market share of 7.4%. The distribution of Little White Lies and Arthur 3: The War of Two Worlds allowed the company to go from 4th place in 2009 to 5th place in 200. In 200, the top ten distributors brought in 76.% of all revenue (7.5% in 2009). The top five brought in 49.9% (44.8% in 2009). FILM PROMOTION Methodology The Kantar Media Institute measures advertising in five media formats: posters, movie theaters, printed press, radio, and television. Since 2002, Web advertising has also been measured. In 2004, the Institute added new media forms: strategically-placed media. These include unconventional forms such as cars or café tables. The amounts below correspond to the financial value of advertising using the seven formats studied. As a result, gross fixed-price investments do not take into account the discounts, rebates, or refunds particular to each format or form. Thus, this data must be used with caution. market films number of share (%) distributed new films G. Warner Bros France Buena Vista International th.... Century Fox Paramount Pictures France EuropaCorp Universal Pictures International Pathé Distribution Metropolitan Film Export StudioCanal Sony Pictures Releasing The top ten distributors in 200 In terms of distributor revenue. 92 results 200 / CNC Dossiers / nº 38 May 20

7 H 473 million spent on promotional fees in 200 In 200, gross advertising spending for film promotion ed million, a decrease of 0.9% compared to Posters remained the main promotional format, and spending declined significantly to 56.5 million (-2.9%). Posters weight as a part of spending remained relatively stable at 33.% (33.8% in 2009). However, it is still a net decrease compared to 200 (62.9%). Gross advertising spending on the Internet, the second main promotional technique used went from 53.6 million in 2009 to 44.5 million in 200 (-5.9%). The Internet accounted for 30.5% of advertising expenses (28.9% in 2009 and 3.3% in 2008). Advertising spending intended to promote films in movie theaters fell between 2009 and 200 (-44.% to 33.3 million) for a number of films also on the decline, but at a slower rate (-7.6%). The press was the only medium for which advertising spending to promote films increased in 200 (+.7%) amounting to 90 million ( 88.5 million in 2009). There was no spending on strategically-placed media for films in I Advertising for French films accounted for 28.% of gross advertising spending in 200 (excluding bundled advertising), versus 56.5% for American films. On average, gross advertising spending for French films was 424,800 ( 494,200 in 2009) and,90,000 for an American film (,265,300 in 2009). There was a large difference between advertising budgets: the dispersion index varied between and 5,000 for French films and and 8,600 for American films. How to Train Your Dragon was number one in terms of gross advertising spending in 200, followed by Iron Man 2 and Harry Potter and the Deathly Hallows Part. One French film was among the top 20: The Extraordinary Adventures of Adèle Blanc-Sec (th) (one in 2009 and in 2008). Five animated films were among the top 20: How to Train Your Dragon (st), Megamind (5th), Shrek Forever After (6th), Despicable Me (5th) and Toy Story 3 (9th). As for first-run releases in 200, advertising campaigns for 48 films, or 83.7% of all films released, involved at least one form of media (84.5% in 2009). Total gross advertising spending for these films reached million, or 97% of all spending (excluding bundled advertising). Of this million, 09.8 million was spent on advertising for 28 French films and 26.4 million on promoting 3 American films. posters printed press radio movie theaters Internet television strategically-placed media H _ , _ Gross advertising spending, by medium (in millions of ) Source: Kantar Media CNC. French films American films European films other films sub- Bundled advertising I Gross advertising spending, by nationality (in millions of ) Distributors sometimes advertise a group of films. Source: Kantar Media CNC. results 200 / CNC Dossiers / nº 38 May 20 93

8 08 Distribution PUBLISHING COSTS FOR FRENCH INITIATIVE FILMS IN 2009 Methodology The data below details distribution costs for CNC-approved French initiative films released in theaters. Detailed data on publishing costs was collected from three sources: automatic financial support for distribution, Canal+ s contribution to distribution (actual, accountant-certified investments), and data reported by distributors of films not covered by automatic or support or that of Canal+. This analysis does not include any non-cnc-approved French films, any approved minority French co-produced films, or few films in the survey for which the distributor provided no answers. Publishing costs have been broken down into four categories: _ laboratory costs: technical fees for printing, storing, dubbing, subtitling, and film trailer design and production; _ advertising space costs: posters, radio, Web, printed press, movie theaters, television; _ design and production costs for advertising materials: poster design and production, creation and production of radio ads, video clips, Web sites, etc.; _ press costs: production of invitations, renting screening rooms, organizing advanced screenings, expenses for festivals and screenings, press officer fees, travel, etc. J Publishing costs average 648,000 for French films in 2009 After increasing by 2.2% between 2004 and 2006, the average cost of distribution per film decreased 0.6% between 2006 and Then it stabilized at 664. thousand in 2008 and decreased slightly to 648 thousand in 2009 (-2.4% compared to the previous year). Between 2004 and 2009, almost all items had average spending per film increase: +0.8% for various promotion costs, +.% for purchasing advertising space, +5.6% for advertising materials. The only item that declined was laboratory costs: 203 thousand were allocated on average per film 2009, compared to thousand in 2004 (-2.6%). The opposite occurred between 2008 and With the exception of advertising space purchases (+%), all expenditure items decreased: -6.4% for laboratory costs, -4.2% for various promotion costs, -.6% for advertising material spending. publishing costs laboratory costs ad space purchases ad material publication miscellaneous printed press number of films average publishing costs per film (in thousands of ) A French initiative fiction film was released with an average publishing cost of thousand ( thousand in 2008). Average publishing costs invested in the genre have been relatively stable since Each year, animations have not been well represented among releases of French initiative films. However, the genre did have significant publishing costs (.322 million on average per film in 2009, thousand in 2008). In 2009, there were six French initiative animation films, including Arthur and the Revenge of Maltazard and Round Da Way. Publishing costs invested per animated film have increased 3.4 times during the last six years. Documentaries had more controlled costs with average publishing costs of thousand ( thousand in 2008). The budget allocated for the release of a French initiative documentary decreased significantly compared to previous years. In 2009, only two films had high distribution costs, Home and le Syndrome du Titanic number of copies publishing costs per copy ( ) J. 28, , , , , , , , , , , , Publishing costs for French initiative films (in millions of ) 94 results 200 / CNC Dossiers / nº 38 May 20

9 K Publishing costs: 0.7% of the final cost of French films in 2009 The final average cost (production + distribution) of French initiative films was 5.98 million in 2009 ( 6.96 million in 2008). The budget for distributing a film is largely related to its production cost. In 2009, a film with a production cost lower than million had a average of 89 thousand in publishing costs ( 2.5 thousand in 2008). When a film with production costs exceeds 5 million, it has average publishing costs of 20 times as much ( 2.47 million in 2009, 2.5 million in 2008). Publishing costs portion of the cost of a film varies in a non-linear fashion according to the production cost. Distribution costs do indeed have a greater impact on smaller releases (production budget lower than million), representing 4% of the final cost of the film in 2009 (7.% in 2008). For production costs above 7 million, the portion of publishing costs in the final cost decreased as the production budget of a film increased:.4% for films with production budget between 7 million and 5 million (.6% in 2008) and 9.4% for those with production budget above 5 million (7.2% in 2008). L Distribution of publishing costs: highly dependent on the number of prints The distribution costs of a film increase as the number of prints increase. In 2009, films released with fewer than 0 prints represented an average distribution cost of 69.6 thousand ( 63.9 thousand in 2008) and with films released in 00 to 200 prints, distribution costs were more than seven times higher at thousand ( thousand in 2008). Average distribution costs exceeded million on average for films released in 200 to 400 prints and this budget doubled if the film had at least 400 prints. The structure of distribution costs for a French initiative film varies according to the number of releases. Laboratory costs were higher than the average for films released in fewer than 50 prints (more than 33.5% on average, compared to 3.3% for all films in 2009), while they only represented 29.% for films released in more than 400 prints. The scale of the film and the amount of exposure in theaters are factors that have a great impact on technical expenses. Remember that economies of scale performed on a large number of releases allows the distributor to benefit from a reduction, sometimes significant, in laboratory costs. However, in 2009, the portion of laboratory costs did not decrease in a linear fashion as the number of releases increased. The financial resources that went towards the promotion of films and more particularly to the purchase of advertising space increased as the number of prints increased. Thus, French films for which more than 00 prints were made used substantial publicity campaigns in order to optimize the film s visibility in various media (45.7% of publishing costs went to purchasing advertising space for films for which more than 00 prints were made in 2009, compared to 44.6% in 2008). However, films with very small-scale releases (fewer than 0 prints) relied more on press relations and on working closely with movie theaters (organization of advanced screenings, meet-the-director events, etc.). These various promotion costs accounted for an average of one-third of publishing costs for this category of film (30.8% in 2009). Buying advertising space was a significant expense for these small-scale releases with average distribution budget of about 69,578 in 2009 ( 63,869 in 2008). final cost (production + distribution) = < M -2.5 M M 4-7 M 7-5 M > 5 M production cost + publishing costs laboratory costs ad space purchases ad material publication miscellaneous printed press publishing costs laboratory costs ad space purchases ad material publication miscellaneous printed press > number of films average publishing costs per film (in thousands of ) , ,465.9 number of films average publishing costs per film (in thousands of ) , ,03.9 K Publishing costs for French initiative films in 2009, by production cost (in millions of ) L Publishing costs for French initiative films in 2009, by number of prints (in millions of ) results 200 / CNC Dossiers / nº 38 May 20 95

10 Le Palace, Martigues (3). DR / FNCF. Le Navire, Valence (26). DR / FNCF. Cap Cinéma, Beaune (2). DR Ava du Parc / FNCF. Cinéquai, Saint Dizier (52). Philippe Maillot / FNCF. Cinéville, Vannes (56). DR / FNCF.