Filmmakers of many stripes all dream of the same thing: theatrical distribution. The thing they never consider is whether it is right for their situation. Rather than seeking the ephemeral validation that you movie's name in lights offers, consider the downsides to theatrical distribution.
Until the day comes when we can give theaters a digital file which they can project digitally, we will likely need to strike a 35mm print of your movie to screen it. The average is about $20,000 for a feature film to be put on film, though duplicates run in the $1000 range. Prints are heavy and expensive to ship, they also break and deteriorate over time and the more they are played.
An interesting film that is unique and personal might be able to find an audience of people hungry for it. The problem is they may not all live near each other which is vital to theatrical film distribution. You might be able to build up a large audience in any particular geographic area over time, but not in time for your release date. Geographic-based marketing of a theatrical release date is expensive and old school. You need reliable awareness fast and deep in a certain area and low-budget internet tactics that are slow, diffuse, unpredictable will not help much.
You might be able to convince a theater to give you a single screening after which they may give you more if the film performs. Not only do you need to find a large enough audience in a general geographic area, you need to get them to come. Rain, cold weather, traffic accidents, personal issues, and many other factors beyond your control will undoubtedly conspire to one degree or another to spoil your plans. You only get one chance to make a first impression with a theater. Time is not on your side.
For the lucky few who pique the interest of a film distribution company it might seem smooth sailing lies ahead. The above still applies but this time the risk is born by a company and not you, but ultimately it will all trickle down to you in the form of no money and headaches. Another element many overlook is that most deals for theatrical distribution are bundled with other distribution agreements for DVD, digital, overseas, pay-per-view, and more. So you sign away your rights to do anything with your film just to get it into theaters. And often time for many many many years.
There will always be a time for a theatrical release of one of your films, just do not push for it when the time is not right. Your first film may not be the best bet, you might want to build an audience before you take the plunge. You might want to release your film for free online and organize theatrical screenings afterward with tickets paid for upfront. You might want to coordinate a series of home theater screenings. There are lots of ways to get your film to people, so do not follow the Hollywood model blindly when it is not necessarily in your best interest.
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