Legal Definitions - block-booking

Block-booking refers to a historical practice, primarily in the film industry, where a distributor would require a buyer (such as a movie theater or television channel) to license an entire package or "block" of films in order to obtain access to a single, highly desirable film. This package often included less popular, older, or inferior films that the buyer would not have chosen to license otherwise.

Essentially, block-booking forces a buyer to accept unwanted products as a condition for getting the products they truly desire. This practice was deemed illegal in the United States because it limited competition and restricted the choices of film exhibitors.

Here are some examples to illustrate block-booking:

• Streaming Service Deal: Imagine a major film studio has produced a highly anticipated blockbuster movie that every streaming service wants to feature. The studio informs a popular streaming platform that to secure the exclusive rights to stream this blockbuster, the platform must also agree to license a package of fifteen older, less popular films from the studio's back catalog. The streaming service, desperate for the blockbuster, reluctantly agrees to take on the entire bundle, even though most of the additional films are unlikely to attract many viewers.

  This illustrates block-booking because the studio is conditioning access to a desirable film (the blockbuster) on the acceptance of an entire package that includes less desirable content (the older, less popular films).

• Cable Channel Licensing: A premium cable television channel is eager to broadcast a critically acclaimed, award-winning drama series recently produced by a prominent production company. The production company tells the cable channel that if they want to license this popular series, they must also agree to license a bundle of three older, made-for-TV movies that had low ratings and poor reviews. The cable channel, wanting the prestige and viewership of the drama series, feels compelled to license the entire package, including the less appealing movies.

  This example demonstrates block-booking as the production company leverages the demand for its successful series to force the cable channel to take on a "block" of less desirable content.

• Independent Cinema Chain: An independent cinema chain with multiple locations wants to show a highly anticipated new release from a major film distributor. The distributor informs the cinema chain that to obtain the rights for this popular new film, they must also commit to showing three other, less commercially appealing films from the distributor's catalog over the next few months. These additional films are not expected to draw large audiences, but the cinema chain agrees to the condition to secure the rights to the blockbuster film.

  Here, the distributor is engaging in block-booking by making the license for the desirable new release contingent upon the cinema chain accepting a "block" of less attractive films.