SIC 7829 Services Allied to Motion Picture Distribution

Encyclopedia of American Industries | 2005 | Copyright

SIC 7829
SERVICES ALLIED TO MOTION PICTURE DISTRIBUTION

This classification includes establishments primarily engaged in performing auxiliary services to motion picture distribution, such as film delivery service, film purchasing and booking agencies, and film libraries.

NAICS Code(s)

512199 (Other Motion Picture and Video Industries)

512120 (Motion Picture and Video Distribution)

Industry Snapshot

Services allied to motion picture distribution faced challenges on a number of fronts in the late 1990s. Shifting patterns in the theater market threatened to undercut film booking and purchasing agencies; film technology was forcing film carriers to rethink their operating strategies to accommodate emerging trends; and major motion picture distribution companies were quickly encroaching on the traditional film-library market.

Businesses in this industry are allied to the process of film distribution, instead of directly providing services to film distribution companies. In other words, these firms contract with companies in the film exhibition industry, including theater houses, rather than with the distributors. Industry players tend to specialize in their particular market segments, which include film booking and purchasing agencies, film libraries, and film delivery services. Companies in this industry tend to be small; many serve only regional areas.

Organization and Structure

Film Booking and Purchasing. Film booking and purchasing agencies were contracted by movie theaters to act on their behalf in the process of acquiring and negotiating the terms to rented feature films from motion picture distribution companies. (The terms "purchasing" and "buying" do not mean the actual sale of films, but a form of rental.) Traditionally, the term "booking" referred to agreeing which films to play, while "buying" referred to negotiating the payment for the film and its length of run. Both activities, however, were performed by the same agencies. Accordingly, booking and purchasing agencies were synonymous designations. Agencies also helped theaters select films by screening them first when possible. Booking agencies occasionally offered additional business services to theaters, such as market research, consulting, accounting, and bookkeeping. Booking agencies were hired by a majority of independently-owned theaters, whereas larger chains of theaters tended to perform their own booking.

Booking...

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