What does Exhibition mean?
Exhibition refers to the theatrical presentation of films to audiences — the business of operating movie theaters and showing films to paying customers. The exhibition sector is one of the three main components of the film industry alongside production and distribution. Theater chains negotiate agreements with distributors for the right to show films, typically sharing box office revenue through film rental arrangements.
Example:The producer’s distribution agreement specified the theatrical exhibition terms — the percentage of box office revenue that would flow to the distributor versus the exhibitors, and the minimum number of screens required for the opening weekend.
Example: The entertainment attorney explained that exhibition rights were separate from streaming rights — a film could be simultaneously in theatrical exhibition and available on a streaming platform if the rights had been structured to allow day and date release.
Did you know?
The film exhibition business has faced unprecedented challenges in the streaming era. The COVID-19 pandemic accelerated this trend by forcing theaters to close and conditioning audiences to watching new films at home. Despite these challenges, theatrical exhibition has demonstrated resilience — large-scale spectacle productions and major franchise installments continue to drive significant theatrical attendance that streaming cannot replicate.
