Film Distrubution Channels in Indonesia

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Choosing A Good Channel for Film Industries in Indonesia

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INTRODUCTION This paper is trying to seek the possibilities of developing commercial distribution links for alternative film in Indonesia for present and future. Although in big scale alternative film is within the area of non-commercial terms and obviously need external support (because its characteristic as an important avant-garde in culture development and film expression), but if we try to see on commercial distribution side from these films, they can be one supporting factor to the alternative film development world in Indonesia, it also open the possibility of alternative film makers development them selves. .

MAIN ISSUE LITERATUR REVIEW Channel Distribution Channel distribution is sets of interdependent organization involved in the process of marketing product or service available for use or consumption (Kotler, 2006). Channel’s advantages Instead of did everything in a house by producer themselves, Producer gain several advantages if they would like to use intermediaries. Below are the advantages (Kotler, 2006): Many producers lack the financial resources to carry out direct marketing. Producers who do establish their own channels can often earn a greater return by increasing investment in their main business. In some cases, direct marketing simply is not feasible. *Distribution Channel-Strategy* (www.tutor2u.net) The factors that influence the choice of distribution channel by a business: The willingness of channel intermediaries to market product is also a factor. Retailers in particular invest heavily in properties, shop fitting etc. They may decide not to support a particular product if it requires too much investment (e.g. training, display equipment, warehousing). Another important factor is intermediary cost. Intermediaries typically charge a “mark-up” or “commission” for participating in the channel. This might be deemed unacceptably high for the ultimate producer business. A key question is whether the producer have the resources to perform the functions of the channel? For example a producer may not have the resources to recruit, train and equip a sales team. If so, the only option may be to use agents and/or other distributors. Producers may also feel that they do not possess the customer-based skills to distribute their products. Many channel intermediaries focus heavily on the customer interface as a way of creating competitive advantage and cementing the relationship with their supplying producers.

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