In public use, a director's cut is the director's preferred version of a film (or video game,television episode, music video, commercial, etc.). It is generally considered a marketing term to represent the version of a film the director prefers, and is usually used as contrast to a theatrical release where the director did not have final cut privilege and did not agree with what was released. ("Cut" explicitly refers to the editing process.)
Most of the time, film directors do not have the "final cut" (final say on the version released to the public). Those with money invested in the film, such as the production companies, distributors, or studios, may make changes intended to make the film more profitable at the box office. In extreme cases that can sometimes mean a different ending, less ambiguity, or excluding scenes that would earn a more audience-restricting rating, but more often means that the film is simply shortened to provide more screenings per day.
With the rise of home video, the phrase became more generically used as a marketing term to communicate to consumers that this is the director's preferred edit of a film, and it implies the director was not happy with the version that was originally released. Sometimes there are big disagreements between the director's vision and the producer's vision, and the director's preferred edit is sought after by fans (for example Terry Gilliam's Brazil).[1]
Not all films have separate "director's cuts", (often the director is happy with the theatrical release, even if they didn't have final cut privilege), and sometimes separate versions of films are released as "director's cuts" even if the director doesn't prefer them. Once such example is Ridley Scott's Alien, which had a "director's cut" released in 2003, even though the director said it was purely for "marketing purposes" and didn't represent his preferred vision for the film.[2]
Sometimes alternate edits are released, which are not necessarily director's preferred cuts, but which showcase different visions for the project for fans to enjoy. Examples include James Cameron's Avatar, which was released as both a "Special Edition" and "Extended" cuts, and Peter Jackson's Lord of the Rings, which were released on home video as "Extended Editions".[3] These versions do not represent the director's preferred visions.[4]
The term since expanded to include media such as video games, comic books and music albums (the latter two of which don't actually have directors).
Peter Jackson, who directed all three Lord of the Rings films, stated he prefers the theatrical versions since the LOTR extended editions are mostly for the benefit of fans who want to see everything excised from the final cut.