PCE has partnered with a small distribution company and purchases finished feature film projects and distributes them in the international foreign territories. Through this method, PCE will acquire immediate revenue returns from the foreign distributions prior to any domestic release of the film. This will return investments in the acquisition and licensing of the films much faster than in your ordinary course of returns on production and development of feature films.
PCE intends to leverage its marketing strategy to secure the most advantageous distribution commitments from major distributors obtainable. In addition, PCE may negotiate direct distribution commitments from certain major theaters, which may eliminate major distributors, there costs and expenses. That means PCE will utilize its own revenues, to the extent required, for prints and advertising for each films distribution.
Films are generally released concurrently in the U.S. and Canada and can play in theaters for months after their initial release. They are generally made available for distribution in foreign territories and ancillary markets subsequent to the domestic theatrical release and like real estate, represent long term income potential of up to thirty years. PCE intends to take advantage of all distribution medium, including theatrical release, home video sales and rentals, internet rights, various television venues, soundtracks, books, merchandise sales, video games and all other revenue sources. Based upon the explosion in the cable television network markets, cable television has become one of the most important outlets for feature films. Dozens of channels rely heavily on a rotation of new feature films to broadcast. Pay-per-view, Movies on Demand and others allow subscribers to viewer certain feature films or to view premium channels that exhibit films for a fee. Generally, television licensing arrangements involve the broadcaster paying an upfront fee to the film’s distributor.
Finally, the worldwide film industry international markets has expanded the revenue returns for American films. Major American films, and talent with an international following, typically do two or three times as much business overseas as in the domestic markets. Small films which may not find much of an audience in North America can still turn a profit on the European and Asian markets alone. Additionally, the films which may not be theatrically released will go straight to DVD or Pay TV. The amount of revenue for Pay TV has grown 5.7 percent to $45.42 million dollars from 2008 to 2009.