Films can be digitally advertised on social media platforms such as Youtube, Instagram, and various corners of the Internet. This has revolutionized the way in which films can be marketed and therefore greatly affected the potential profit margin they can generate. As technology takes the lead in this day in age, almost every distribution process is carried out digitally from film screenings to digital streaming. This impacts the profit cinemas can make from film screening, but does make film screening much more easier and convenient to view content than ever before. From this, film and streaming companies can garner more sales. Digital distribution largely affects the marketing and consumption of media products in the film industry to the extent where most films undergo distribution to a streaming service on top, resulting in more profit for production companies.
One case of a film practicing digital distribution, was the 2017 film was Beauty and the Beast, made by Walt Disney Pictures. Released both globally and domestically on March 17 of said year with no prior ‘Thursday Preview’ the film grossed approximately 1.3 billion world wide. Such a profit could not have been reached without digital distribution. The processes of digital distribution has allowed for global participation in the direct consumption of this film. As well as native territory, many people may experience circumstances where they cannot physically buy a ticket at the box office. Beauty and the Beast was Released on Blu-ray, DVD, and Digital HD on June 6, 2017. Largely in favor of those with up to date media viewing platforms, the movie was also distributed to Netflix and On demand. Netflix with a growing subscriber count each year now with 182.8 million, making it one of the world's largest entertainment services, has added to the film's profits along with other popular streaming services where it was circulated. The distribution of this film has directly affected media marketing. One form was through social media including platforms such as Twitter. Under the social media handle “@beourguest” the film has created its own verified account to take part in promotion of the film, featuring teasers and clips prior to the release of the film. With over 142.8 thousand followers, many of which are actors of the film and large media corporations, this leaves room for cross promotion across other accounts associated with the film. It has even converged with twitter to make available specialized stickers promoting the film to its approximate 330 million monthly users.
Digital distributions as though seen on opposite spectrums with box office, actually make box office screening possible. Most of the films which are screened in theaters are delivered digitally. Entire films can be delivered to desired screens in seconds with the power of a simple internet connection. Digital distribution meant that films such as Spider-man Homecoming could be sent to theaters in forms of 2D,3D and IMAX format far and wide. It grossed $334,201,140 at domestic box office and $545,965,210 internationally. Its success can notably be awarded to the approach in which Marvel derived their marketing strategies based on their distribution tactics, reinforcing the idea that digital distribution largely does impact marketing and consumption of media products in the film industry. Marvel decided on releasing merchandise before the release of the movie, a very common marketing tactic, in order to create hype. Spider-man Homecoming’s market team used toys and other products as a way to get younger children to want to watch the movie. Sometimes this needs to be done because children may be too young to have developed a love for marvel or movies in general. By associating their toys with a movie they garner interest in seeing it. For older fans, the team also created a Spiderman game for the ps4 to add onto the film's anticipation. Mixing the use of marketing and partnering with companies, for example Cinnamon toast crunch which featured a prize promoting the movie inside, the hype had been created and the movie had a huge premier. It was released worldwide to the most possible cities for the largest profit possible. Once its time in box office was done, Spider-man homecoming was released onto xfinity stream and various other streaming sites. This equals more profit for the streaming services and production companies. However, for some movies that do not encounter much of a hype, many people choose to wait for the digital release which has negatively affected many theaters across the country and certainly other parts of the world.
In 2019, film studios produced several blockbusters including Disney's Avengers: Endgame. Its April release, grossed $2.8 billion worldwide.That placed it just ahead of the $2.79 billion created by Avatar in 2009 to make it the highest-grossing film ever. But, even with Endgame and other Disney films at the global box office producing more than $1 billion, the industry's cumulative domestic gross of $11.45 billion from 2019 is projected to fall short of the previous year’s record of $11.88 billion. Many in the film industry expect a pattern to continue as movie producers increasingly are allowing streaming services to release their films, which otherwise would have increased profit made at box office. One said streaming service is Disney+, a subscription video on-demand streaming service launched November 12, 2019. That same day, a Lady and the Tramp remake was present on the service, becoming the first Disney remake to forgo a theatrical release in favor of on-demand streaming. The streaming service has continued to do this another number of times, denying box office potential and adding to the already 3.8% box office shortfall.
Digital distribution has largely affected the marketing and consumption of films to the extent where most highest grossing films undergo a digital distribution. It has altered the way individuals interact with marketing and obtain their digital media. For the general public, this has created an incredibly convenient form of viewing film. On demand streaming likely has grown popular amongst them because it is easily adaptable to one's life. A movie could be streamed at any point in time an individual chooses to do so for a much longer time that any theater would allow for, as long as the streaming service does not remove it. Still, it offers a much larger window for viewing than box office ever has. This will continue to plunge sales at box office, however production companies are indulging in a new age economic opportunity. Individuals are more willing to pay to stream their movies at home than view them elsewhere which has proved to create even profit for them.
