Legal Definitions - exhibition value

In the motion-picture industry, exhibition value refers to the minimum amount of money that a film distributor expects to receive from a movie theater or cinema chain for the right to show a particular film. It represents the baseline financial return a distributor anticipates from a film's theatrical run, regardless of how well the film ultimately performs at the box office.

• Example 1: Independent Film Release

  An independent film distributor has acquired the rights to a critically acclaimed but niche documentary. They are negotiating with a small, single-screen art-house cinema to show the film for a limited two-week engagement. The distributor calculates an exhibition value of $3,000 for this specific cinema. This means they expect to receive at least $3,000 from the cinema's ticket sales during that period, ensuring they cover their licensing costs and make a modest profit, even if the film doesn't draw massive crowds.

• Example 2: Major Blockbuster Premiere

  A major Hollywood studio is preparing to release a highly anticipated superhero movie across thousands of screens nationwide. For a large multiplex cinema chain in a major city, the studio's distribution arm sets a very high exhibition value, perhaps $100,000 or more for the opening weekend alone. This figure reflects the massive marketing investment, the film's star power, and the expected huge audience turnout. The cinema chain must agree to meet or exceed this minimum financial commitment to secure the rights to show the blockbuster, knowing its potential to attract significant ticket sales.

• Example 3: Specialty Theatrical Run

  A distributor specializing in foreign films licenses a new French drama to a handful of specialty cinemas in different cities. For a particular cinema known for its dedicated international film audience, the distributor sets an exhibition value of $7,500 for a three-week run. This minimum expectation helps the distributor ensure that the costs associated with subtitling, marketing, and delivering the film print (or digital file) are covered, and that the theatrical engagement is financially viable for both parties.