Guidelines
4 Overriding Principle
5 Supply of Prints
6 Flexibility of Trading Terms
7 Supply of Trailers & Advertising
8 Supply of Information
9 Terms of Trade
10 Exhibition Obligations
Glossary

5

Supply of Film Copies

5.1 Each distributor will formulate its decisions as to whether an exhibitor will be offered supply of a Film Copy, on a film-by-film basis, in first run, second run or at all, having regard to the distributor's own distribution strategy in relation to the film, the nature of the film and its anticipated performance in Australia, and having regard to the following objective criteria:

5.1.1  primarily, the expected return from the exhibitor with respect to such supply, based (where available) on past box office returns from the exhibitor and any other relevant financial data and considerations;

5.1.2  the overall business relationship, including the existing supply arrangements, between that exhibitor and that distributor;

5.1.3  the geographical location of the exhibitor, provided that exhibitors located in the same geographical area will continue to be supplied subject to the other provisions of Section 5.1 and the provisions of Section 5.2 being satisfied;

5.1.4  the general condition and facilities of the cinema, including the auditorium, front of house, projection and audio facilities; and

5.1.5  the extent of any marketing and promotional activities of the exhibitor which may be of benefit to the film.


5.2 Exhibitors acknowledge that the formulation by every distributor of a distribution strategy for each film is dependent upon the skill, experience, expert intuition and business judgment of the individuals responsible for such decisions within each distributor.   The matters to be considered in the formulation of a distribution strategy are not susceptible to being boiled down to an exhaustive list of objective criteria but include (but are not limited to) such matters as:

5.2.1  the distributor's own assessment of the nature and quality of the film;

5.2.2  the audience to which the film is likely to appeal;

5.2.3  the other films expected to be released at the same time;

5.2.4  the time of the year the film will be released;

5.2.5  the film's anticipated life at the box office;

5.2.6  the proposed advertising support for the film;

5.2.7  the film's overseas box office performance;

5.2.8  the presence of any well regarded actors or directors involved with the film;

5.2.9  the requirements of the film's producer or other profit participants;

5.2.10  the level of any pre-release publicity; and

5.2.11  the nature of any film reviews.


5.3 In considering whether to offer supply of a Film Copy to a newly constructed, renovated or up-graded cinema, (not including a cinema upgraded to complying digital projection systems), or to a cinema with which it has not previously dealt, each distributor will make a good faith estimation of the expected return with respect to such supply, based on its general experience in the market and any other relevant financial data, and having regard to the criteria detailed in Sections 5.1 and 5.2.  Upon the written request of an exhibitor, a distributor will convey the grounds for its decision to the exhibitor concerned.  If a distributor declines to supply a Film Copy to a newly constructed, renovated or up-graded cinema and the exhibitor notifies the distributor in writing of a dispute in relation to that decision then, within seven (7) working days from the date on which the exhibitor notifies the distributor in writing of the dispute:

5.3.1  the distributor will provide to the exhibitor; and

5.3.2  the exhibitor will provide to the distributor,

their respective good faith estimates of the expected return with respect to the supply of the Film Copy to that newly constructed, renovated or up-graded cinema.


5.4 Each distributor will formulate its decisions as to whether an exhibitor will be offered supply of a Film Copy for an advance screening or screenings, on a film-by-film basis, having regard to the criteria detailed in Sections 5.1 and 5.2, as well as the specific marketing and promotional objectives associated with advance screenings.


5.5 Distributors and exhibitors will continue to co-operate to facilitate the conversion of cinemas to complying digital projection systems and, in this regard (without limiting Sections 5.1, 5.2, 6, 9.1, 9.2, 9.3 and 9.4):

5.5.1  distributors shall not alter booking practices and patterns relating to an exhibitor in a manner which adversely impacts the exhibitor solely because of the distributor?s obligation to pay a VPF to the exhibitor; and

5.5.2  if the exhibitor is operating 35mm projection systems in its cinema then, during the period of transition for the installation of complying digital projection systems in cinemas, and subject to availability, distributors will continue to supply 35mm prints to the exhibitor on reasonable commercial terms (which terms may have regard to the cost to distributors of acquiring 35mm prints).


5.6 Without limiting Sections 5.1, 5.2, 6, 9.1, 9.2, 9.3 and 9.4, distributors will not unfairly discriminate against any category or class of cinemas with respect to the supply of Film Copies. However, if a complex is reasonably identified by the distributor (having regard to specific reliable information) as having been the subject of significant film piracy activities, then:

5.6.1  the distributor may reasonably defer or withhold the supply of Film Copies to the complex until the exhibitor appropriately addresses the piracy risk;

5.6.2  the distributor will give prompt notice to the exhibitor of a decision made by the distributor under Section 5.6.1, including reasonable details of the reasons for the decision; and

5.6.3  if the distributor makes a decision under Section 5.6.1 to defer the supply of a Film Copy after the film has been booked for the complex, then the distributor and the exhibitor will undertake good faith negotiations with a view to reaching agreement on the amended terms of supply for the film.



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Downloads:

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Download the Signatory Application/Update Form (MS Word format)

FEDCAC Film Exhibition and Distribution Code Administration Committee View the Code introduction guidelines administration Committee Information Committee members information bulletins Code Secretariat Dispute Resolution Dispute resolution procedures conciliator's reports Conciliation