Distribution preparation for independent filmmakers-Part 4 Deliverables

By Orly Ravid and Sheri Candler

In the past 3 posts, we have covered knowing the market BEFORE making your film, how to incorporate the festival circuit into your marketing and distribution efforts and understanding terms, the foreign market and release patterns.  In this post, we will discuss the items that will be required by sales agents, distributors (primarily digital distributors) and even digital platforms (if you are thinking of selling directly to your audience with less middlemen) before a deal can be signed and the film can be distributed.

photo credit Vancouver Film School

photo credit Vancouver Film School

Know your deliverables

Distribution is an expensive and complicated process and all distribution contracts contain a list of required delivery items (often attached at the end of the document as an exhibit) in order to complete the agreement. Without the proper items, sales agents and distributors will not be interested in making a deal. Your film must have all proper paperwork, music licenses, and technical specifications in order and these delivery items will incur additional costs to your production. Make sure to include a separate budget for deliverables within the cost of your production.

US sales agents and distributors will require insurance covering errors and omissions (E&O) at minimum levels of $1,000,000 per occurrence, $3,000,000 in the aggregate with a deductible of $10,000, in force for three years. E&O insurance protects the producer and distributor (usually for the distributor’s catalog of films)  against the impact of lawsuits arising from accusations of libel, slander, invasion of privacy, infringement of copyright etc and can cost the producer in the range of $3,000 to $5,000. E&O insurance is required BEFORE any deal is signed, not after, and can take 3-5 days to obtain if all rights and releases, a title report and music clearances can be supplied.

Digital aggregators in general do not require E&O insurance unless it is for cable VOD and Netflix (these do). However, they do require closed captioning (around $900), subtitling (if you intend to distribute in non English speaking territories, usually costs around $3 per minute) and a ratings certificate (if distributing in some foreign territories, prices vary according to run time and ratings board).

The production will need to supply a Quality Control (QC) report, preferably from a reputable encoding house. If you film fails QC for iTunes and other digital platforms, it can be costly to fix the problems with the file and it will lead to a delay of the film’s release. MANY problems can be found in the QC process so whatever you think you are saving by encoding yourself or via a less reputable company, you will more than make up for in having to redo it. The most common problems arise from duplicate frames or merged frames as a result of changing frame rates; audio dropouts or other audio problems; sync problems from closed caption or subtitling files.

Distributors will accept a master in Apple ProRes HQ 422 file on an external hard drive or HD Cam. By far, the digital drive is preferable to tape and unless your distributor specifically requests HD Cam, do not go to the expense of creating this. The master should NOT have pre roll advertising, website URLs, bars/tones/countdowns, ratings information, or release date information. For digital files, content must begin and end with at least one frame of black.

Other delivery items required by sales agents/distributors include: trailer (preferably 2 minutes) in the same aspect ratio as the film with no nudity or profanity; chapter points using the same time code as the master file; key art files as a layered PSD or EPS with minimum 2400 pixels wide at 300 dpi; at least 3-5 still images in high resolution (traditional distributors often require as many as 50 still images) and already approved by talent; DVD screeners; press kit which includes a synopsis, production notes, biographies for key players, director, producer, screenwriter, and credit list of both cast and crew; pdf of the original copyright document for the screenplay and the motion picture; IRS W-9 form or tax forms from governments of the licensor; music cue sheet and music licenses.

There are technical specifications that need to be met as far as the video and audio files. Most post production supervisors are aware of these. It is also not unheard of to be asked to supply 35 mm prints for foreign distribution if a theatrical release is desired or contractually obligated.

Sometimes if your film is considered a hot property, a distributor might be willing to create the delivery items at their expense in exchange for full recoupment and/or a greater cut of the revenues. But do not count on this. We have heard from many filmmakers who didn’t clear music rights for their films, assuming a distributor would take on this expense, and were sorely disappointed to find none would do that. If you can’t supply the delivery list, no agreement will be signed.

Distribution preparation for independent filmmakers-Part 3 Terms, foreign and windows

By Orly Ravid and Sheri Candler

In the past 2 posts, we have covered knowing the market BEFORE making your film and how to incorporate the festival circuit into your marketing and distribution efforts. This post will cover terms you need to know; whether a foreign distribution agreement is in your film’s future and what to do if it isn’t; the patterns, or windows, that need to be considered in your release. Just to be clear, we are targeting these posts mainly to filmmakers who seek to self finance and actively control their distribution. If that is not your plan, the usefulness of these posts may vary.

Distributors; platforms; aggregators; self hosting sites; applications

If you are new to the distribution game, here are some terms you now need to be familiar with.

Distributors (ie.  A24, Oscilloscope, Fox Searchlight, Sony Classics, The Weinstein Company, Roadside Attractions) take exclusive rights to your film for a negotiated period of time and coordinate its release.  These companies often acquire independent films out of the most prestigious film festivals and pay decent advances for ALL RIGHTS, sometimes even for ALL TERRITORIES. A signed and binding contract takes all responsibility for the film away from its creator and places it with the distributor to decide how to release it into the public. Distribution through these entities entails theatrical, digital, DVD, educational, leisure (airline/hotel/cruiseship).

Platforms (ie. iTunes, Amazon Prime, Google Play, Hulu, Netflix, cable VOD) are digital destinations where customers watch or buy films. Viewing happens on a variety of devices and some allow for worldwide distribution. Mainly platforms do not deal directly with creators, but insist on signing deals with representative companies such as distributors or aggregators.

Aggregators (ie. Premiere Digital, Inception Media Group, BitMAX, Kinonation) are conduits between filmmakers/distributors and platforms. Aggregators have direct relationships with digital platforms and often do not take an ownership stake. Aggregators usually focus more on converting files for platforms, supplying metadata, images, trailers to platforms and collecting revenue from platforms to disperse to the rights holder. Sometimes distributors (Cinedigm, FilmBuff) also have direct relationships with digital platforms, helping reduce the number of intermediaries being paid out of the film’s revenue.

Self hosting sites (ie. VHX, Distrify, Vimeo on Demand) are all services that allow filmmakers to upload their films and host them on whatever website they choose. Vimeo on Demand also hosts the video player on its own central website and has just integrated with Apple TV to allow for viewing on in-home TV screens.

Applications for many digital platforms can be found on mobile devices (smartphones and tablets),Over the Top (OTT) internet-enabled devices like Roku, Chromecast, Apple TV, Playstation and Xbox and on smart TVs. Viewers must add the applications to their devices and then either subscribe or pay per view to the platforms in order to see the film.

What about international?

In the latest edition of our Selling Your Film book series, Amsterdam based consultant Wendy Bernfeld goes into great depth about the digital distribution market in Europe. Many low-budget, independent American films are not good candidates for international sales because various international distributors tend to be attracted to celebrity actors or action, thriller and horror genre fare that translate easily into other languages.

Rather than give all of your film’s rights to a foreign sales agent for years (often 7-10 years duration) just to see what the agent can accomplish, think seriously about selling to global audiences from your own website and from sites such as Vimeo, VHX, Google Play and iTunes. The volume of potential viewers or sales it takes to attract a foreign distributor to your film is often very high. But just because they aren’t interested doesn’t mean there is NO audience interest. It simply means audience interest isn’t  high enough to warrant a distribution deal. However, if you take a look at your own analytics via social media sites and website traffic, you may find that audience interest in foreign territories is certainly high enough to warrant self distributing in those territories. Look at this stats page on the VHX site. There are plenty of foreign audiences willing to buy directly from a film’s website. Why not service that demand yourself and keep most of the money? Plus keep the contact data on the buyers, such as email address?

Often, sales agents who cannot make foreign deals will use aggregators to access digital platforms and cut themselves into the revenue. You can save this commission fee by going through an aggregator yourself. In agreements we make with distributors for our Film Collaborative members, we negotiate for the filmmaker to have the ability to sell worldwide to audiences directly from their website. If you are negotiating agreements directly with distributors, the right to sell directly via your own website can be extremely beneficial to separate and carve out because sales via your website will generate revenue immediately. However, this tactic is now being scrutinized by distributors who are allowing direct to audience sales by filmmakers, but asking in their agreement for a percentage of the revenue generated. It is up to the filmmaker to decide if this is an acceptable term.

If you do happen to sell your film in certain international territories, make sure not to distribute on your site in a way that will conflict with any worldwide release dates and any other distribution holdbacks or windowing that may be required per your distribution contracts. An example: You have signed a broadcast agreement that calls for a digital release holdback of 90 days-6 months-1 year or whatever. You cannot go ahead and start selling via digital in that territory until that holdback is lifted. Instead, use a hosting service that will allow you to geoblock sales in that territory.

Photo credit David Goehring

Know your windows.

If you do decide to release on your own, it’s important to know how release phases or “windows” work within the industry and why windowing was even created.

The release window is an artificial scarcity construct wherein the maximum amount of money is squeezed from each phase of distribution. Each window is opened at different times to keep the revenue streams from competing with each other. The reason it is artificial is the film continues to be the same and could be released to the audience all at one time, but is purposely curbed from that in order to maximize revenue and viewership. The Hollywood legacy window sequence consists of movie theaters (theatrical window), then, after approximately  3-4 months, DVD release (video window). After an additional 3 months or so, a release to Pay TV (subscription cable and cable pay per view) and VOD services (download to own, paid streaming, subscription VOD) and approximately two years after its theatrical release date, it is made available for free-to-air TV.

Now, there is a lot of experimentation with release windows. Each release window is getting shorter and sometimes they are opened out of the traditional sequence. Magnolia Pictures has pioneered experimentation with Ultra VOD release, the practice of releasing a film digitally BEFORE its theatrical window and generally charging a premium price; and with Day and Date, the practice of releasing a film digitally and theatrically at the same time. Many other distributors have followed suit. Radius-TWC just shortened the theatrical only window for Snowpiercer by making it available on digital VOD within only 2 weeks of its US theatrical release. During its first weekend in US multiplatform release, Snowpiercer earned an estimated $1.1 million from VOD, nearly twice as much as the $635,000 it earned in theaters.

So, while there are certainly bends in the rules, you will need to pay attention to which release window you open for your film on what date. For example, it might be enticing to try to negotiate a flat licensing fee from Netflix (Subscription VOD or SVOD window) at the start of release. However, from a filmmaker’s (and also distributor’s) perspective, if the movie has not yet played on any other digital platforms, it would be preferable to wait until after the Transactional VOD (TVOD) window in order to generate more revenue as a percentage of every TVOD purchase, before going live on Netflix. If the transactional release and subscription release happen at the same time, it cannibalizes transactional revenue.

Also, sites like Netflix will likely use numbers from a film’s transactional window purchases to inform their decision on whether to make an offer on a film and how big that offer should be. Subscription sites such as Netflix also pay attention to general buzz, theatrical gross, and a film’s popularity on the film’s website. There is value in gathering web traffic analytics, email database analytics and website sales data in order to demonstrate you have a sizable audience behind your film. This is useful information when talking to any platform where you need their permission to access it. Caution: Netflix is not as interested in licensing independent film content as it once was. If your film is not a strong performer theatrically, or via other transactional VOD sites; does not have a big festival pedigree; or does not have notable actor names in it, it may not achieve a significant Netflix licensing fee or they may refuse to license it for the platform. Netflix is no longer building its brand for subscribers and it has significant data that guides what content it licenses and what it produces.

Also be aware that some TV licensing will call for holding back Subscription VOD (SVOD) releases for a period of time. If your film is strong enough to achieve a broadcast license deal, you will need to wait before making a subscription release deal. On the other hand, holding out too long for a broadcast distribution offer might cause the publicity and interest you’ve generated for your film to dissipate.

If your film is truly a candidate for theatrical release, most cinemas will not screen a film that is already available on TVOD or SVOD services. In fact, most of the chain cinemas will not screen a film that is available in any other form prior to or at the same time as theatrical release.

The way you choose to release your film is a judgment call in order to reach your particular goal. All decisions have consequences and you will have to live with the decisions you make in releasing your film. Like all decisions, you base them on what you know at the time with no guarantee as to how they will turn out.

 

 

Distribution preparation for independent filmmakers-Part 2-Festivals

By Orly Ravid and Sheri Candler

We continue this month’s series covering the practicalities behind successfully marketing and distributing an independent film with limited resources. Please see Part 1 on knowing the market for your film HERE.

Part 2-Temper festival expectations and don’t wait too long to release.

While you may be targeting top-tier festivals like Sundance, Toronto, Berlin, Telluride and SXSW (Austin’s South by Southwest) where acquisition executives attend and search for films to acquire, your film may not be chosen for these festivals. Be prepared for this disappointment and have a backup plan. If your film fails to be selected, your distribution options are likely to change as well. The best acquisition prices are paid by the most reputable companies for films out of these top tier fests. While you may receive offers for distribution even if your film doesn’t have this type of premiere, those offers will be lower in scope and usually from either up and coming companies (ie, start ups with little money) or companies whose reputations are not as prominent.

Should you continue submitting to other festivals and stay on the circuit? TFC colleague Jeffrey Winter has handled festival distribution for countless films, but mainly the films TFC picks up for festival distribution either come from A list festivals or have some kind of specific niche appeal. He advises “For any film that is performing well on the circuit (meaning getting accepted into a significant number of festivals on a more or less regular basis), there is a general rule you can follow. Most films will see their festival bookings continue robustly for 1 year from the date of the world premiere, and then significantly drop off (but still trickle in) in months 12 – 18. After 18 months, festival bookings will nearly cease worldwide. Given that general rule, I am going to go ahead and call that 18 months the ‘Festival Window.’”

“For filmmakers and many small distribution companies, the festival window is invaluable and irreplaceable in terms of the marketing/publicity value it can afford, and the modest revenue that can be generated for certain kinds of films (prestige festival films, films that fit within the programming of specific niche festivals), especially if they can secure European festival placement. When working with a modest budget, any and all revenue the film can bring in is significant. Additionally, the free marketing/publicity that a festival offers is just about the only kind of marketing the film may ever get.”

Assuming you achieve regional festival screenings, will you use it as a form of theatrical tour, gathering press coverage and fans in regional areas in order to fuel your digital sales? If so, how to transition that coverage and word of mouth into the digital rollout, when is that rollout going to happen and who is going to coordinate it? These questions need to be answered.

Leaving too much time between a regional festival premiere and eventual digital and DVD sales is a mistake many independent filmmakers make.  When publicity and good word of mouth recommendations are being generated from your festival screenings, set a firm deadline on when digital distribution will have to start should your distribution savior not appear. Don’t hold out indefinitely for distribution opportunities that may not come. Often, we are contacted by filmmakers who insist on spending a year or more on the festival circuit, without making any revenue and without significant distribution offers in sight. They are wasting revenue potential by continuing to hope a distribution savior will appear and refusing to move ahead with plans for the next phase of release (that will probably be handled on their own) because they didn’t budget for this situation or they have no idea of the options available. Note, it can take up to 4 months to go live on iTunes and other well known digital platforms. If you’re thinking of having a digital self release, plan accordingly.

If chosen for a festival, take full advantage of the screening as a marketing opportunity. It is imperative not only to enjoy face to face compliments at your screenings, but encourage people to use their social media accounts to tell others how great your film is. Many times filmmakers tell us about their sold out screenings at regional fests (or even pre release screenings) and how many people came up to them with kind words to say about the film. But in looking for those kind words online, sometimes we find very little or nothing being said. This is a troubling sign. No bump in Facebook Likes, Twitter followers, trailer views or website traffic? No one using a hashtag or @mention on Twitter or Instagram? No comments or shares of the film’s trailer from Youtube? Kind words in person are great for your personal morale, but in order to have beneficial word of mouth, people have to want to share news of your film and the normal outlet for doing that today is online. It is trackable too! Word of mouth won’t help with digital sales if no one is talking so make sure everyone you meet is aware of the film’s home online, its social media accounts, and where a trailer exists to be shared. You can’t MAKE people speak, you can only encourage it.

photo credit Matt DeTurk

photo credit Matt DeTurk, Dalboz17 via photopincc

If you’re brash during a post screening Q&A, take a selfie à la Ellen DeGeneres at the Oscars and tell everyone you will post it to the film’s Twitter or Instagram account and what that account handle is. They are more likely to retweet or share it if you make it super easy and they are more likely to follow your account, visit the film’s website (so make sure the About section includes that URL link), maybe even sign up for your email alerts. Also, think a little differently about your film’s festival catalog description. If you want people to follow you as an artist and your film’s actors (a social media following is important for their career!), add Twitter handles/Instagram handles/FB page name etc to the paragraph you are asked to submit about your film. Technically, ALL festivals should want this kind of information included just as they now post website URLs. If audience members like the film performances, they also might like to follow the humans who gave them and the humans who made the film possible.

Instead of using a clipboard method to collect email addresses from your festival audience, look into using a text-to-subscribe service associated with your email provider. Mailchimp’s MobileChimp (UK, USA, Australia, Spain, France & Netherlands) and Constant Contact (US only) both have this capability. Put the keyword you choose to associate with your account on any printed material and be sure to say it out loud during your Q&A. An email database is worth its weight in gold throughout your release and further into your future work so don’t neglect to grow one while you are touring your film.

Add festival laurels from the most important/recognizable film festivals to your marketing materials. While we know the temptation is to put every laurel from every festival on your website banner, key art, postcards etc. it starts looking cluttered and inconsequential. The festivals with the most impact on your audience are the ones to include because they will have the most impact on purchases. Don’t forget the pull quotes to favorable critical reviews as well.

In going back to the discussion about digital release, is this release going to be worldwide or only in your home country? If your film has played festivals worldwide, it doesn’t make much sense to only release it within your own country, especially if you have all territories still open for sales. If you have signed agreements in some formats or in some territories, then those warrant compliance. But hoping for a foreign deal when you don’t have one even in your home country is unrealistic. Seriously consider releasing digitally worldwide when your launch comes.

In the next part of the series, we’ll take a look at the different players in film distribution and how to work with them.

Distribution preparation for independent filmmakers-a series

By Orly Ravid and Sheri Candler

This month’s series will cover the practicalities behind successfully marketing and distributing a film with limited resources. In this series, we will cover knowing the current distribution situation before developing a new project, the rewards and perils of the festival circuit, become familiar with the different players in film distribution and how to work with them effectively and wrap up with deliverables that will expected once you sign a deal.

Part 1-Understand the market

Independent film means risk.

A report published this year by Cultural Weekly cited fewer than 2% of the fully-finished, feature-length films submitted to the Sundance Film Festival (arguably the biggest festival for the best of independent film) will get any kind of distribution whatsoever. Of the more than $3 billion invested annually, less than 2% will ever be recouped. This is a reality of independent filmmaking and anyone who engages in it must understand the financial risk of doing so. It is best to evaluate your goals in making a film before starting out. It’s okay to have goals other than recouping a production budget. This is especially true of first or second films from those involved. In our opinion, films can be and should be about art, cultural connection, gaining experience and giving voice to the unheard. All are valid goals right up there with money. Patrons throughout the ages have supported the arts for many emotional reasons beyond making profit.

balance risk

But if the ultimate goal is to fully recoup and be profitable, a realistic plan from the start describing how that is going to happen, and what it will realistically take to make that happen, needs to be in place before anyone sets foot on a set. The distribution marketplace is so fluid and challenging, even the best planning can result in a loss. Be prepared for the risk, with no complaining or blaming.

It’s natural for filmmakers and film investors to have high expectations for the release of their films, including a theatrical release, TV sales, international sales, a Netflix fee, a cable VOD/digital release and maybe DVD for shops that still carry them. At the same time, it’s important to understand how a release like this might be achieved and how many intermediaries are inserted into the money chain before the production will see any revenue to pay back financing. There are legitimate benefits in partnering with strong companies who have the relationships and expertise to achieve a release that the production envisions, but agreements with them may not be forthcoming if the film isn’t perceived to have breakout or mass audience potential. Or you may fall prey to the distributor who annually needs new product to fill the catalog and isn’t willing to give much market support to your film. Distribution companies profit on volume, but your film does not share in their volume profits.

Before starting a new project that has aspirations for a big market release, it is the responsibility of the producer/filmmaker to survey the market. Talk to sales agents who have recently returned from the major film markets (Berlin, Cannes, AFM etc) and find out what they are seeing as far as emerging demand or trends that have finished. Check sites like The Film Catalogue to see what is already in the market or will be soon. You can check by budget level, by genre, by release year or production stage and even dig deeper by seeing who is handling these films and what cast is attached. While this won’t be a comprehensive list because not every film being made has a sales agent attached, it will give a better idea of the competitive landscape for the kind of film you are seeking to make.

Keep up your knowledge of the industry by reading both the trade press and various organizational blogs. There is a lot of free and valuable information online from those working in the industry and from other filmmakers on sites including IndieWire, Filmmaker Magazine and MovieMaker Magazine, as well as blogs from Sundance, IFP, Film Independent and our own blog. You just have to subscribe to them, read religiously and analyze how that information benefits what you are trying to do. Alternatively, you can save yourself time by working with a distribution consultant knowledgeable about current distribution options and revenues. Caution: Always learn about ownership stakes and fees of intermediaries such as sales agents, aggregators and distributors because their fees and associated marketing costs reduce the amount of revenue that flows back to your production.

It is a good idea to confer with other filmmakers. It is our experience that the filmmaking community can be very giving when asked about how they accomplished something, and not just about production, but all aspects of getting their films to market. This is a useful way to learn from others’ experiences (and mistakes). Sharing stories helps you understand the reputations of companies you may be dealing with and especially key contact names within those companies. Many experienced filmmakers are mentors and are willing to make introductions if they can see a fit between your talent and a decision maker who can help.

Not only should you connect with the community online, but make it a point to attend offline events in person where you will pick up timely information, and form ongoing relationships that could help you later in your career. Labs, conferences, festivals and workshops are all regularly offered not just in Los Angeles, New York City, Toronto or London, but in many communities across the world. If you are serious about filmmaking as an occupation, you need to invest financially in your education and network building.

In the next post, we will talk about what can be gained from the festival circuit, how long to stay on the circuit with your film and why staying on it too long can be detrimental.

 

Is VOD Collapsing The Festival Window?

Filmmakers often ask me how long they should keep their films on the festival circuit. For years now, I’ve been saying that for any film that is performing well on the circuit (meaning getting accepted into a significant number of festivals on a more or less regular basis), there is a general rule you can follow.

Most films will see their festival bookings continue robustly for 1 year from the date of the world premiere, and then significantly drop off (but still trickle in) in months 12 – 18. After 18 months, festival bookings will nearly cease worldwide, except for those films that have a perennial hook (i.e. a film about black history during the annual Black History Month, a film about the AIDS crisis on World AIDS day, etc).

Given that general rule, I am going to go ahead and call that 18 months the Festival “window.” Now, of course, most Hollywood companies don’t consider the festival circuit as a window akin to the “traditional” windows of theatrical, broadcast, DVD, VOD etc. For studios and mini-majors, a long festival run isn’t always necessary…they have the money and staff to market the film in other ways, and any potential revenue the film can make on the festival circuit is relatively meaningless given the scale of the budgets they work with. In many cases, larger distributors see festivals as really just giving away free tickets to their movie, and therefore limit any festival participation to only the largest, most prestigious and best publicized festivals in the world, and simply ignore all the rest.

But for individual filmmakers without the benefit of studio/mini-major release, and also for many small distribution companies, the festival window is invaluable and irreplaceable in terms of the marketing/publicity value it can afford, and the modest revenue that can be generated. For many films of course, the festival window IS the theatrical release of the film – meaning it’s the way the largest number of people can actually see the film in a theater. Even those indie films that do get a traditional theatrical release are usually limited to a few big cities, meaning festivals are the only way the films are ever going to be screened beyond New York, L.A., and few other cities. Since most individual filmmakers and small distributors work on a modest budget, any and all revenue the film can bring in is significant. Additionally, the free marketing/publicity that a festival offers is just about the only kind of marketing the film may ever get.

So – and this is back to the original question – when filmmakers ask me how long they should keep their film on the festival circuit if it is doing well, my initial answer is always “at least one year.” Given that you only have 12 – 18 months for your film to be seen this way, why not take advantage of it?

Filmmakers have a lot of fears around this; often they feel in a rush to get their movie available for theatrical or home purchase as soon as possible. Often they fear that people are going to “forget” about their film if they don’t release it as soon as possible after the premiere. Often they regard the festival circuit as a lot of work, and they just want their film released so they can move onto their next thing. Even more often, they are in great financial need following all the money invested into the film, so they feel the need to get it out quickly so they can start making money from it. I can say with great confidence that all of these fears are bad reasons to release a film – and many of the worst release failures I have ever seen comes from exactly these fears (both on the studio/mini-major level AND individual filmmaker level).

Festival VOD

First of all, unless you’ve been extremely successful in attracting people to your social media, very few people actually know about your film when it first premieres…so rather than fear those people will forget about your film, your job is to get the film out as wide as possible so you can grow your audience awareness – both through repeated festival marketing and social media. Secondly – yes, it is true that the Festival circuit is a lot of work, but independent filmmakers need to understand that distribution is a business, and you need to commit yourself to it the way you would to any other business endeavor you would undertake and expect to be successful.  A business takes time to grow.

The most vexing reason for rushing a film into release – needing to make your money back as quickly as possible – is a perfectly understandable human need and a situation many filmmakers find themselves in. I can just all but guarantee you that if you haven’t taken the time to grow your audience in all the ways possible, your release won’t succeed, and you won’t be making back your money anyway.

Despite all this – despite everything I have laid out in this post thus far – in 2014 I find more and more films going into release and off the festival circuit faster and faster than ever before. The reason for this trend is simple, technological, and perhaps inexorable – and of course it is the continuing rise of Video On Demand (VOD).

Think about how it worked in the (not so) old days. Until very recently, if your film was lucky enough to get a theatrical release offer, it would take the distributor many months to get their marketing/publicity ducks in a row, book theaters, and release the film into theaters. All this time, the film could play festivals. Then, upon theatrical release, a few cities would be lost to festivals…just the usual NY, LA, San Francisco, Boston, Seattle etc. of a traditional indie release. But for the many months between the theatrical release and the DVD release, the film could continue to play all festivals outside of the major cities…because DVD release is a physically demanding process of authoring, dubbing, shipping, shelf space, store stocking, etc. As such, it was completely normal for DVD release to be at least a year after the premiere…just because it all took time. Once the DVD was released, the overwhelming majority of festival programmers would no longer consider the film, so the festival window was all but shut at that point.

But in 2014, day-and-date VOD release with the theatrical release is commonplace, and becoming even more so. So, its not that distributors are any faster in getting the film into theaters (they’re not), but once New York and L.A. open (or shortly after), chances are that the film is also available on various VOD platforms, meaning it becomes available all at once in most North American homes (via cable VOD, application like Apple TV, or various internet platforms). And once that happens, the majority of festival programmers no longer will consider the film, believing (perhaps incorrectly) that the VOD release will cannibalize their audiences and they will no longer be able to fill their theaters with patrons willing to go to see a film at a festival when they can just watch it at home.

In addition, there is a rise in the number of cable TV channels seeking exclusive content for their VOD platforms (i.e. CNN, DirectTV, Starz, etc.) who are acquiring films with or without theatrical releases, and are in a haste to get those films out to their audiences. Exclusive content is the currency of premium platforms these days (there is no better evidence of this than the incredible success of HBO exclusive content of course), and so more and more of these companies are making offers to indie films, largely driven by the VOD.

I am not sure there is a lot independent filmmakers can do to change this trend. Filmmakers are going to continue to want distribution deals and this just may be what distribution deals look like moving forward. Of course, filmmakers can ASK that distributors put off the release as long as possible (as discussed, approx. a year after world premiere), but many distributors may not have reason to agree to that. Keep in mind that the distributor may not have complete control over that release date, in many cases the biggest VOD companies (esp. the big cable providers like Comcast, Time Warner etc.) will also tell the distributors when THEY think the film should be released, and resist the pushback…especially as they tend to want the VOD release to be closely timed with the theatrical.

That doesn’t mean I think filmmakers should cave easily….by all means try to make the distributor understand why you want to control your own festival “window.” Personally, I am consistently impressed with how much the various arms of Public Television (ITVS, Independent Lens, etc.) seem to get this, and basically allow filmmakers to set their own broadcast window relatively far into the future.

So despite my musings to this point, some of you may still be asking, “Why does all this matter? Isn’t being released into the majority of North American homes a good thing?” The biggest problem is that we simply don’t know….because VOD numbers are very rarely publicly reported, in fact almost never.

My strong suspicion is films that are rushed into VOD release perform far less on VOD than they would if they were given the time to find their audience via organic word-of-mouth methods (including festivals). I have certainly seen that with other windows, especially theatrical. As we all know now, a digital release is not enough…a film that is released into the digital marketplace without adequate marketing is just a tree falling in the forest. But ultimately I cannot support that argument with figures because so few companies (nearly none), will tell us what kind of numbers they do on VOD with their films.

Until we get real numbers that allow us to see what VOD numbers really look like for festival-driven independent films….and we can truly assess the marketing impact on those VOD numbers…we will all remain in the dark on this topic to the detriment of independent filmmakers trying to make distribution decisions. I can say for sure that films performing well on the festival circuit are forfeiting their festival revenue by going onto VOD….but until I can compare it with the VOD numbers I cannot determine whether losing that festival revenue is worth it or not.

So, is VOD collapsing the Festival window? Yes, that part is for sure, and we at The Film Collaborative have handled festival distribution on films in the last two years that bear this fact out. Is that a net negative for independent filmmakers? That part I cannot answer yet….although I suspect I already know the answer.

Let this be one more call to our Industry to release the VOD numbers. I would absolutely love to be proven wrong on this.

 

 

 

 

 

Narrative film roundup from the Spring festivals

Ed note: TFC colleague Bryan Glick is taking a look at how officially selected films have performed in release since their premieres at the major Spring film festivals SXSW, Tribeca and Cannes 2013. In this second post, he covers the narrative films. His look at documentaries can be found HERE.

CANNES

There is no better worldwide platform launch than Cannes. For foreign language films, it is arguably the best place to solicit North American interest. 20 World Premieres (or 25% of selected films) from Cannes 2013 grossed over $100k and 10 of those grossed over $1 Million theatrically in North America. These films also frequently perform much better internationally. Four foreign language films managed over $1 Mil and 11 over $100k. No fest has such a strong record for non-English Language content. Additionally Nebraska, Inside Llewyn Davis, The Missing Picture, The Great Beauty, All is Lost, and Omar all found their way to Oscar Nominations. And another 9 films from the fest were official Oscar submissions from their country. Cannes has the perception of the ultimate endorsement. It is one of not even a handful of laurels that automatically adds value to a film.

However, less than 2/3 of world premieres got any sort of North American distribution. This is below the % from Sundance, SXSW, Tribeca and only slightly above the behemoth of TIFF. Naturally, the films performing at the top of the box office are primarily from those selected for main competition and are most likely to facilitate distribution deals.

Turning to this year’s festival, a little over 30 films currently have North American distribution. 1/3 of those are from Sony Picture Classics! They have a whopping 10 films. They went into the fest with competition award winners Mr. Turner (Best Actor) and Foxcatcher (Best Director) pre-attached. Prior to the fest they also snagged Coming Home and Red Army. On top of that, they added Wild Tales, Saint Laurent, Jimmy’s Hall, and Best Screenplay winner Leviathan from the main competition. In addition, they took the doc The Salt of the Earth.

Not far behind was IFC with 6 films. They arrived with competition titles Clouds of Sils Maria, and Two Days, One Night. They added to their impressive tally Bird People and The Blue Room from Un Certain Regard and wrapped it up with The Salvation from the midnight lineup.

Those two companies combined for ½ of all Cannes 2014 films with distribution in the US! They also indirectly highlight what was clearly missing from this year’s Cannes crop. No studio presence in any competitive sections. Warner Bros technically has Ryan Gosling’s directorial debut, but multiple reports suggest the distributor is trying to pawn it off to a smaller company and cut their losses.

A number of distributors though still had reason to be happy.  Radius-TWC, TWC, Cohen Media Group, Magnolia. And A24 each have a pair of titles.

A24 took the critically panned, but star heavy The Captive and just opened The Rover last Friday to a US opening weekend gross of over $69K in 5 theaters. The film is performing much better in France, Australia and Belgium though.

TWC had opening night Grace of Monaco and The Disappearance of Eleanor Rigby which screened as two different films at TIFF and will be released as three different films in the Fall. The genre heavy and younger skewing Radius-TWC took two films from Critic’s Week, the American horror film It Follows and When Animals Dream.

Magnolia took the top two prize winners from Un Certain Regard Force Majeure and White God. Cohen Media Group continues their trend into foreign cinema with Timbuktu and In the Name of My Daughter (screened out of competition).

Other companies to acquire include Strand Releasing (Girlhood), Saban Films (The Homesman), Music Box Films (Gett: The Trial of Viviane Amsallem), WellGo USA (These Final Hours), and EOne (Map to the Stars)

Many of these films have very good prospects in North America and around the world.

TRIBECA

Admittedly, Tribeca is frequently a dump off site for Sundance narrative rejects. Multiple people have opined that the fest would do better to just focus on docs. The performance of last year’s narrative lineup shows that there is some life left for their non doc films, but not much.

The English Teacher which was pre-bought by Cinedigm was the only scripted fare at last year’s fest to pass $100k (which it barely accomplished). French specialty arm Distrib Films pushed Just a Sigh to just over $71k with only a few small venues left to play.

Lagging behind are Focus World/Screen Media’s day and date release of A Birder’s Guide to Everything ($48k), Strand Releasing’s Bicycling with Moliere ($49k) and Israeli genre fare Big Bad Wolves which managed $33k as a day and date with Magnolia.

What the fest proved to do last year though was highlight a number of films in their North American premiere. Berlin titles Broken Circle Breakdown, The Rocket and Reaching for the Moon all were met with some success. ‘Broken’ secured an Oscar Nomination and grossed $154k through Tribeca Films. Kino Lorber got the Australian made, but Laos set Rocket  to manage $54k and Wolfe Releasing saw $45k for Reaching on top of massive festival exposure. The Film Collaborative handled grassroots marketing and fests on the latter.

Nothing else grossed over $25k in theatrical relase, though many films performed well digitally in the hands of IFC, Anchor Bay, Oscilloscope, Vertical Entertainment, Tribeca Films, XLRator Media, Samuel Goldwyn, and Dark Sky Films.  Notably, The Machine is currently in the top 10 on ITunes. In all, over 70% of the narrative films that premiered at Tribeca have some form of domestic distribution confirmed.  Only Sundance had a higher rate of distribution. But, American films from Tribeca rarely played well internationally.

Turning to Tribeca 2014 the big deals were once again for docs, but there some notable narrative acquisitions. About 20% of films available when the fest was announced have since been acquired

IFC took Extraterrestrial, 5 to 7, and Match. Likely all three will be VOD focused. Magnolia took Life Partners, Film Movement opted for Human Capital, and Zeitgeist has Zero Motivation.

Additionally About Alex went to Screen Media, Summer of Blood sold to MPI, and The Canal  will be working with The Orchard.

SXSW

Where SXSW has an advantage over Tribeca is that there is a clear sense of programming and demographics. Tribeca is often the back up to Sundance, while SXSW is the place for younger, edgier, hipper fare. Naturally, many of the narrative deals from SXSW this year were for genre films.

Magnet took Honeymoon which is the rare film to premiere at SXSW and screen at Tribeca. Lionsgate bought Exists, Cinedigm peeked into Open Windows, and Radius-TWC invested in Creep. IFC Midnight went for Home and the time traveling teen sexy comedy Premature and mainstay label IFC bought Kelly and Cal. XLRator bought Housebound and The Mule and Oscilloscope took Buzzard.

Radius-TWC has already released this year’s  13 Sins and Magnet released Stage Fright.Both were ultra VOD releases with so-so digital performance and middling box office.

Additionally, the fest was the world premiere choice for Chef which has become the 3rd highest grossing indie this year so far and Veronica Mars is the highest grossing day and date release so far this year.

Narrative film roundup

Last year’s fest saw the massive breakout Short Term 12 gross over $1 Mil in the hands of Cinedigm and dominate critic’s lists. Magnolia did over $343k with Joe Swanberg’s Drinking Buddies. The latter was day and date. Both films outgrossed all of the Tribeca Premieres from 2013.

Also performing somewhat well was Drafthouse Films Cheap Thrills which did $59K at the box office and Variance’s service release of The Retrieval which will pass $50k this week. Variance also did $62k with John Sayle’s Go For Sister which had its North American premiere at the fest.

A large number of films from the fests last year went digital only, had small theatricals, and/or set up self financed releases. Tribeca has started to take notice and this year a number of films premiering there opted for this route.

Cannes continues to be the one major festival holdout where films premiere and wait it out for distribution offers.

 

 

Documentary roundup from the Spring film festivals

Ed note: TFC colleague Bryan Glick will spend these 2 weeks taking a look at how officially selected films have performed in release since their premieres at the major Spring film festivals SXSW, Tribeca and Cannes 2013. In this first post, he cover the documentaries.

Spring Film Festival collage

TRIBECA IS RULED BY DOCUMENTARIES

The three highest grossing films and 7 of the top 10 grossing films from last year’s Tribeca were documentaries. As you follow the list of films, it should become clear how important Tribeca is to the doc world and how little of a presence Cannes has in documentaries.

IFC/Sundance Selects released the bio-doc Elaine Stritch: Shoot Me which has grossed over $305k in North America. That tops all SXSW docs from last year. IFC Also shined on a light on the cute kids of Dancing in Jaffa, which, despite being a day and date film, has grossed $136k domestically and $297k worldwide at the box office.  Additionally, IFC is releasing TFC film Gore Vidal: The United States of Amnesia in theaters right now. In only 10 days in NYC, it has grossed $33k and is likely to be one of the top five films from last year’s batch when it’s all said and done.  TFC handled fests for the film placing it in 50+, a healthy reminder that festivals only help your release (and an added reason to use a company like TFC to maximize fest exposure and revenue).

Closing night film Mistaken for Strangers is the only other doc from Tribeca to pass the $100k mark. It had a mix of week long and special engagements via Abramorama in addition to instantly going to the top of ITunes. Never underestimate the power of a music documentary to find a strong audience.

Zeitgeist saw $64k with the all archival footage doc Let the Fire Burn and right behind it Kino Lorber’s release of The Trials of Muhammad Ali  topped out at $59k in a maximum of only 10 theaters, but a long run of 19 weeks. Big Men has grossed $42k in its service theatrical release with Abramorama which, given their advertising buys, has got to be below expectations. Oscilloscope has done well digitally with Teenage and slowly built up to $40k with another couple of venues left in the release.

Aatsinki:The Story of Arctic Cowboys, Flex is Kings, and Lenny Cooke all had small DIY releases. The Motivation opted for a release through GoDigital and multi award winner Oxyana did an exclusive with Vimeo.

Bridegroom is the rare doc to get into Redbox, but the film’s largest audience was on OWN. Showtime took Richard Pryor: Omit the Logic. HBO trumped all networks with Gasland Part II, Inside Out:The People’s Art Project and the acquisitions of Herblock: The Black and the White and I Got Something’ To Tell You.

Circling back to this year, ½ of the acquisitions from April’s Tribeca Film Festival were documentaries including Keep on Keepin’ On which Radius-TWC bought for over $1,000,0000! Radius-TWC also snagged the lego doc Beyond the Brick while Magnolia was entranced by Ballet 422. Another highbrow doc, Dior and I, sold to EOne and opening night hip hop Nas doc Time Is Illmatic went to Tribeca Films. Morgan Spurlock Presents (A new partnership with Spurlock, Virgil Films and Abramorama) will release A Brony Tale this summer and just after the fest, Kevin Spacey released the doc Now in the Wings On a World Stage off of his personal site powered by VHX and in a few theaters. It’s now passed $50k at the box office.

CANNES CANT TALK DOC!

While Cannes may be unrivaled as a launchpad for narrative films, it continues to largely ignore documentaries. Of the four (that’s right…only 4) documentaries that world premiered at Cannes, none could be considered breakout hits.

Jodorowsky’s Dune, an admittedly somewhat fringe film to begin with, got the maximum play humanly possible in the hands of Sony Picture Classics. It’s still in theaters and has racked up just under $600,000 domestically. That is more than any documentary out of last year’s SXSW, LAFF or Tribeca.

While scoring a best foreign language film Oscar nomination, French/Cambodian doc The Missing Picture only limped over $50k at the hands of Strand Releasing in its domestic release. It’s international box office revenue doesn’t bring the film’s total to even $100k. Its performance is well below the performance of the other four foreign nominees (or the 5 Best Doc nominees for that matter) despite an average Rotten Tomatoes score of 99%.

With an overwhelming 220 minute run time, The Last of the Unjust maxed out at just over $40k theatrically which is on the low end for the holocaust subject matter, but given the massive length should be considered somewhat impressive. Internationally though it did even worse than The Missing Picture. The one other doc, James Tobak’s Seduced and Abandoned premiered on HBO.

SXSW 2014

Which lands us back at this year’s SXSW 2014. The festival saw a little movement in the doc acquisitions department with Gaiam TV buying TFC repped doc The Immortalists and Netflix nabbing exclusive rights to Print the Legend. Oscilloscope took advantage of BFI marketing matching funds and acquired Pulp: A Film About Life, Death and Supermarkets which will also screen at the upcoming Sheffield DocFest.

TFC was quite active at the festival this year. We arrived with two docs for festival rights (The Dog and The Immortalists) and have since added Song From the Forest and Born To Fly for festival distribution. Born to Fly has already been placed on the programs at Full Frame, SIFF, Sheffield, and Frameline and we will release it theatrically in a hybrid-DIY release. It launches September 10th in NYC at Film Forum and then comes to Los Angeles September 26 before expanding throughout the fall. Programmers may contact us directly about theatrical bookings of this film or message Jeffrey Winter about festival engagements for any of our 4 SXSW Docs.

 

 

Casting Recognizable Actors in Your Low Budget Indie Film

Today’s guest post is from Thomas Beatty, writer and co-director of The Big Ask. Beatty offers his advice about one of the things we are hearing over and over again from sales agents, the power of the “star” cast to encourage significant distribution offers. This is especially true for indie dramas that are incredibly difficult to sell without notable cast to market.

When it comes to distribution, one of the best things you can do to help your movie is to get recognizable actors with whom your audience already has a positive relationship. While I would never recommend choosing fame over talent, why not aim high and try to get that dream person who is an amazing actor and also brings an audience with them? While you may not get a legitimate movie star, that doesn’t mean you can’t get someone who is incredibly talented and make it a hundred times easier on yourself to get distribution and visibility for your movie.  Below are some things that we found incredibly helpful in putting together our dream cast.

1. Write for actors.

Whether you yourself are a writer or you’re looking around for material to produce or direct, look for parts and stories that will specifically appeal to actors. Like in all endeavors, you have your best chance of being successful if everyone involved is getting something they want. On your low-budget indie, you can’t make a fair money trade, but you can give actors the opportunity to do special work and to expose their audience and other filmmakers to parts of their range they haven’t gotten to show before.  I was an actor for years and am the son of an actor.  I feel that one of my strengths as a writer is being able to write parts that help actors do their best work. All the performances in our movie are incredible and I hope that the script and our style of directing helped in that.

If you’re not an actor, consider reading some seminal books on acting and its different techniques.  You could also ask a talented actor you know how they break down a script and consider that when choosing your story.  Ask yourself if your script does everything it can to help an actor do their best work or whether it’s fighting the actors and asking them to make up for the script’s deficiencies.  Is it clear what the characters want scene by scene and over the entire arc?  Do they get the opportunity to really change?  Actors are often great judges of material. Don’t go to them with something unless you truly believe it’s great.

The script for The Big Ask was the fifteenth or so that I had written and the first I tried to make because it was the first I thought was good enough.  Beyond being good enough, I thought it would stand out as unique in the pile of scripts that most recognizable actors have in front of them.

The Big Ask movie

2.  Find a good casting director.

Everyone wants to feel safe and supported when embarking on a creative enterprise that will leave them incredibly vulnerable.  Knowing that a casting director they respect believes in the project is a huge advantage.  Everyone knows they’re going to have to work incredibly hard to get the eyes of known talent on their script, but why not start with known casting talent?  We got incredibly lucky when Rich Delia, then of Barden Schnee Casting, took on our script.  They cast bigger, award-winning movies like Winter’s Bone and The Help and every actor knows them and respects them.

When they agreed to cast the movie within our budget constraints, it was the first, and perhaps biggest, break in our preproduction process.  While it’s incredibly helpful to have a great casting director, don’t spend a quarter of your budget on a casting director that begrudgingly agrees to take you on.  Make sure they believe in your movie, or they won’t give it the attention you want them to give it.  No matter what, you’ll be fighting for time against other movies that are paying their salaries and their rent.  Make sure they want to be working on your movie.

3.   Plan your shoot around TV shooting schedules.

When deciding when to shoot your movie, take into consideration when TV shows are shooting.  We shot during the second half of pilot season.  Our thought was we would get people after they’d shot their pilots but before they started their season.  That time is often when network shows are on leave as well.  As cable channels and even networks no longer have a set season, it becomes more difficult to schedule around television work, but it’s still worth considering, especially if you have one or two principal actors.  Some people also schedule their short indies during the vacation periods like Christmas, but then you run the risk of people wanting to be with their families.  We had to schedule around 6 principals in our ensemble.  Hopefully you will be primarily worried about one or two actors.

4.  Pick specific actors with something to gain.

Part of the reason we put so much stress on TV schedules was the belief that our best chance of getting interest from more established actors would be to focus on really talented actors doing very specific things on television who might be looking to stretch their range.  Gillian Jacobs does amazing work on “Community,” but is she using all the tools she learned at Julliard?  At the time we were casting, David Krumholtz was just finishing the pilot for “Partners.”  We’d loved watching David for years and knew that he could easily transition from a multicam to an indie.  When we cast him he laughed and said “I can’t believe you gave this part to a Jew!”  He then went on to thank us for believing he could carry a movie in such a dramatic role.  He said that he relished the opportunity to do parts like this.  Don’t be afraid to try to think from the perspective of actors and trust your intuition about which actors out there have more to offer than they’re getting to show.

In our case, working with an ensemble of other great actors was part of the appeal.  But often, part of what an actor wants to show is that they can carry a movie.  David certainly was the center of our movie and I know that playing the lead appealed to him.  Often approaching an actor with the opportunity to be at the center of a movie and be responsible for carrying it can make your movie stand out if mostly they spend their time playing supporting roles.

There are so many things that you have to think about when putting together a small movie.  It’s nearly impossible to make something even half-way good, and equally as difficult to get people to pay attention to it.  Reaching high with your casting is just one thing you can do to help yourself along.  While every rule in indie filmmaking is there to be broken, trying hard to cast recognizable, talented actors can only help you.

The Big Ask

THE BIG ASK’s co-directors Rebecca Fishman and Thomas Beatty

THE BIG ASK is Thomas Beatty’s first feature film as director. He has previously shot a number of short films, and along with his writing partner, Matthew Gasteier, he is repped by UTA and has projects in development with Broken Road and Scott Stuber Productions, among others. During his five years at Lakeshore Entertainment, Beatty helped guide thirteen films from script to screen including UNDERWORLD 3 and CRANK.

THE BIG ASK is now available on various digital platforms including iTunes.

Cannes Film Festival & Market Guide — The Most Important & Overwhelming Film Event of the Year

Today’s guest post is from Matthew Helderman, founder and CEO of Buffalo 8 Productions and BondIt, a new service that cash-flows union bond deposits for independent feature films. Having just returned from this year’s Cannes Film Festival, here are his impressions and advice for filmmakers thinking of attending the festival one day.

Cannes 2014 – Introduction

Each year tens of thousands descend upon Cannes in the south of France for the biggest and most exceptional film event of the year. From screenings of competition films, market shopping for completed films looking for additional sales opportunities and more events than one can count — the Cannes Festival is all at once incredibly exhilarating, essential for business and filmmaking endeavors and downright exhausting!

Cannes is the essential market for both new & old content — whether developing new material, finishing up post-production on others or selling international rights for ancillary one off revenues or library generating cash-flow.

Over the past few years as our feature film library has grown in size from a handful of titles to nearly 35+ titles by Cannes 2014 — our approach and experience at the festival has changed. At Buffalo 8 Productions — we represent a library of feature films ranging from micro-budgeted $100k features up to films at the $3M mark — spanning genre’s, cast strength and value.

Buffalo 8 Cannes image harbor night

Cannes 2014 – The Set-Up

Cannes is unique in that it offers four elements:

The most prestigious film festival in the world with in competition films typically ending up in Oscar and international award season contention. Additionally, there are a slew of films that screen out of competition that the festival honors for their efforts and merits — think “All is Lost” in 2013 or “Lost River” in 2014 — strong titles that have commercial value and artistic integrity — the essence of the Cannes appeal.

The biggest film market in the world with over 1,500 new film titles for sale and on display for the international buying community. The “Marche” is often times a difficult pill to swallow — with hundreds upon hundreds of films from across the world — the first visit to the market is hard to comprehend. Selling and buying are both relationship based communities in the film business – requiring pre-established relationships with sales agents (those who represent content internationally) and buyers (distributors in individual territories around the world).

The strongest worldwide representation at the international pavilions with each major country in the world representing their national film programs — from tax incentives, to promotions to rebates and panels — each country seeking to draw in productions offers an all inclusive look and conversation into the dealings of their specific region. Often used as meeting places (since Cannes has very limited seating areas in the Marche and festival), the pavilions serve as a landing base for much of the conversations during the 10+ days of Cannes — which offer the countries with the strongest presence an ability to market their offerings while playing host to the film community.

The most important and constant social & networking events that anyone has ever seen. From panel discussions with big name producers, directors and the like to parties at villas, clubs, beach front and yachts to the invite only exclusive dinners and hotel gatherings — Cannes offers the best opportunity year round for the filmmaking and distribution community to mingle for fun and business.

But there is a catch…

Cannes Opportunity Cost

The most difficult part about attending Cannes is deciding how best to spend your valuable time. The cost of attending is steep both financially, time wise (the travel from Los Angeles is 15+ hours door-to-door) and opportunity wise. If you spend all of your time seeing the great films you’ll miss the networking and sales opportunities. However, if you spend all your time networking and selling, you’ll miss the festival — which is a difficult pill to swallow given the strength of the titles screening at Cannes each year.

Assessing your main objectives months before you attend is crucial — are you looking for financing? If so, pre-sales discussions with sales agents in the Marche is crucial.

Are you seeking tax incentives and interested in discussing with international territories about your options? Then spending your time at the pavilions is the best option.

Regardless — you’re going to need to plan your goals well in advance, schedule your meetings 50+ days out (everyone’s schedules get ridiculously crowded) and be prepared to miss out on events you want to attend (it’s simply not possible to attend everything).

The Buffalo 8 Productions & BondIt Approach to Cannes 2014 

With a library of content for sale, multiple projects gearing up for production and a continued need to expand our social and business networks — we spent our time divided up among our company divisions.

Our film team at Buffalo 8 spent their days selling in the Marche and meeting new buyers to form relationships with companies we’ll be in business with for the rest of the year. An interesting piece of advice here being that if you live in Los Angeles – take meetings with people & companies that live elsewhere (similarly for NYC, Chicago, etc…) — this is your rare chance each year to be face-to-face with buyers from every corner of the world. And even in the current times of easily transferred digital files for streaming and viewing purposes – meeting with financiers, buyers and the like go a long way.

Our production team spent time meeting with financiers who cash-flow tax incentives, pre-sales and those looking for equity investment opportunities. These meetings are more difficult to come by and require advance planning to keep the momentum sustained during the craziness of Cannes.

Our BondIt team (BondIt cash-flows union deposits for independent feature films freeing up cashflow liquidity) split their time between finding companies who actively produce content between $100k – $10M budgets (the sweet spot for the BondIt application) and those looking for equity investments into media technology companies. Note here that all of these meetings — at least a large portion — were pre-planned and scheduled. Again, most of the big hitters in Cannes whether individuals or companies have packed schedules so getting in front of them is only possible if you’ve pre-scheduled.

Cannes Conclusions

Once you’ve attended your first major market (Berlin, Toronto, Cannes), it’s difficult not to go back for another year. The value of attending is so high from a networking, business and relationship stand point. Before attending the major markets, Buffalo 8 was a smaller boutique production entity with limited international presence — but now having attended markets for several years, our database of useful contacts and our business have grown simultaneously.

Weigh out the pro’s & con’s of attending — be self aware in what you’re seeking and who will be attending that could facilitate what you need and may be willing to grant a meeting with you. Recognize that the investments available at Cannes are insanely competitive (Martin Scorsese attended the 2013 Cannes market seeking financing for multiple productions) as the world of financing and distribution continues to get stranger and stranger (a nice way of saying it’s getting overly complicated and competitive).

Pre-plan your meetings and have a goal in mind for each contact you sit down with and leave room for those coincidental meetings that will often happen (but don’t bank on them) that could open new doors.

Cannes is the most important event of year — make the most of it and you’ll never remember why you weren’t there years before.

BondIt was founded by independent film producers Matthew Helderman & Luke Taylor of Beverly Hills based Buffalo 8 Productions. Having produced 30+ feature films, the team recognized a dilemma in the production process union deposits and launched BondIt to resolve the situation to assist producers & union representatives alike. 

Buffalo 8 Productions

 

www.Buffalo8.com

www.BondIt.us 

Sneak Peek #4: Carpe Diem for Indie Filmmakers in the Digital/VOD Sector

Selling Your Film Outside the U.S.

 

In this final excerpt from our upcoming edition of Selling Your Film Outside the U.S., Wendy Bernfeld of Amsterdam-based consultancy Rights Stuff talks about the current situation in Europe for independent film in the digital on demand landscape.

There have been many European platforms operating in the digital VOD space for the last 8 years or so, but recent changes to their consumer pricing structures and offerings that now include smaller foreign films, genre films and special interest fare as well as episodic content have contributed to robust growth. European consumers are now embracing transactional and subscription services , and in some cases adsupported services, in addition to free TV, DVD and theatrical films. Many new services are being added to traditional broadcasters’ offerings and completely new companies  have sprung up to take advantage of burgeoning consumer appetite for entertainment viewable anywhere, anytime and through any device they choose.

From Wendy Bernfeld’s chapter in the forthcoming Selling Your Film Outside the U.S.:

Snapshot

For the first decade or so of the dozen years that I’ve been working an agent, buyer, and seller in the international digital pay and VOD sector, few of the players, whether rights holders or platforms, actually made any serious money from VOD, and over the years, many platforms came and went.

However, the tables have turned significantly, and particularly for certain types of films such as mainstream theatrical features, TV shows and kids programming, VOD has been strengthening, first in English-language mainstream markets such as the United States, then in the United Kingdom, and now more recently across Europe and other foreign language international territories. While traditional revenues (eg DVD,) have dropped generally as much as 20% – 30%, VOD revenues—from cable, telecom, IPTV, etc.—have been growing, and, depending on the film and the circumstances, have sometimes not only filled that revenue gap, but exceeded it. 

For smaller art house, festival, niche, or indie films, particularly overseas, though, VOD has not yet become as remunerative. This is gradually improving now in 2014 in Europe, but for these special gems, more effort for relatively less money is still required, particularly when the films do not have a recognizable/strong cast, major festival acclaim, or other wide exposure or marketing. 

What type of film works and why?

Generally speaking, the telecoms and larger mainstream platforms prioritize mainstream films in English or in their local language. In Nordic and Benelux countries, and sometimes in France, platforms will accept subtitled versions, while others (like Germany, Spain, Italy, and Brazil) require local language dubs. However, some platforms, like Viewster, will accept films in English without dubbed or subtitled localized versions, and that becomes part of the deal-making process as well. This is the case, particularly for art house and festival films, where audiences are not surprised to see films in English without the availability of a localized version. 

Of course, when approaching platforms in specific regions that buy indie, art house, and festival films, it is important to remember that they do tend to prioritize films in their own local language and by local filmmakers first. However, where there is no theatrical, TV exposure, or stars, but significant international festival acclaim, such as SXSW, IDFA, Berlinale, Sundance, or Tribeca, there is more appetite. We’ve also found that selling a thematic package or branded bundle under the brand of a festival, like IDFA, with whom we have worked (such as “Best of IDFA”) makes it more recognizable to consumers than the individual one-off films. 

What does well: Younger (i.e., hip), drama, satire, action, futuristic, family and sci-fi themes tend to travel well, along with strong, universal, human-interest-themed docs that are faster-paced in style (like Occupy Wall Street, economic crisis, and environmental themes), rather than traditionally educational docs or those with a very local slant. 

What does less well: World cinema or art house that is a bit too slow-moving or obscure, which usually finds more of a home in festival cinema environments or public TV than on commercial paid VOD services, as well as language/culture-specific humor, will not travel as well to VOD platforms. 

Keep in mind that docs are widely represented in European free television, so it’s trickier to monetize one-offs in that sector, particularly on a pay-per-view basis. While SVOD or AVOD offerings (such as the European equivalents of Snagfilm.com in the US) do have some appetite, monetization is trickier, especially in the smaller, non-English regions. Very niche films such as horror, LGBTQ, etc. have their fan-based niche sites, and will be prominently positioned instead of buried there, but monetization is also more challenging for these niche films than for films whose topics are more generic, such as conspiracy, rom-com, thrillers, kids and sci-fi, which travel more easily, even in the art house sector. 

However, platforms evolve, as do genres and trends in buying. Things go in waves. For example, some online platforms that were heavily active in buying indie and art house film have, at least for now, stocked up on feature films and docs. They are turning their sights to TV series in order to attract return audiences (hooked on sequential storytelling), justify continued monthly SVOD fees, and /or increase AVOD returns. 

Attitude Shifts

One plus these days is that conventional film platform buyers can no longer sit back with the same historic attitudes to buying or pricing as before, as they’re no longer the “only game in town” and have to be more open in their programming and buying practices. But not only the platforms have to shift their attitude. 

To really see the growth in audiences and revenues in the coming year or two, filmmakers (if dealing direct) and/or their representatives (sales agents, distributors, agents) must act quickly, and start to work together where possible, to seize timing opportunities, particularly around certain countries where VOD activities are heating up. Moreover, since non-exclusive VOD revenues are cumulative and incremental, they should also take the time to balance their strategies with traditional media buys, to build relationships, construct a longer-term pipeline, and maintain realistic revenue expectations. 

This may require new approaches and initiatives, drawing on DIY and shared hybrid distribution, for example, when the traditional sales agent or distributor is not as well-versed in all the digital sector, but very strong in the other media—and vice versa. Joining forces, sharing rights, or at least activities and commissions is a great route to maximize potential for all concerned. One of our mantras here at Rights Stuff is “100% of nothing is nothing.” Rights holders sitting on the rights and not exploiting them fully do not put money in your pockets or theirs, or new audiences in front of your films. 

Thus, new filmmaker roles are increasingly important. Instead of sitting back or abdicating to third parties, we find the more successful filmmakers and sales reps in VOD have to be quite active in social media marketing, audience engagement, and helping fans find their films once deals are done.

To learn more about the all the new service offerings available in Europe to the savvy producer or sales agent, read Wendy’s entire chapter in the new edition of Selling Your Film Outside the US when it is released later this month.  If you haven’t read our previous edition of Selling Your Film, you can find it HERE and if you leave your email address, we will notify you the day the new edition is available.


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