Just prior to SXSW, I was contacted by a new digital distribution outfit called Devolver Digital Film who were launching during the festival. I rolled my eyes as I opened the email because frankly, digital distributors are becoming a dime a dozen and few offer anything that differentiates their services. Yes, they are all non exclusive, but most do not have much to offer in the way of audience recognition of the platform.

Film distribution in some fashion isn’t difficult to obtain anymore…but getting an audience to know a film is available, actively seek it out AND getting them to watch it is another story. So, I was intrigued to find out that Devolver is planning to help solve that problem. Devolver Digital Films is a company expansion out of video game publishing and distribution. Devolver is primarily known for the Serious Sam series of games and their success within the video game industry coupled with founder Mike Wilson’s filmmaking interests lead to a desire to use the same successful game marketing techniques for independent films.

The company’s first title, Cancerpants, is described as “a story about life, love, and a young woman’s journey with breast cancer.” Cancerpants is currently available on VOD networks Verizon and Frontier, and will reach Comcast, Cox, Cablevision, and Dish Online on June 4th. Local theatrical screenings are planned for May 30th in several cities including Grass Valley, CA (hosted by the filmmaker), Los Angeles, Austin, Houston, Oakland, and New York City.

Cancerpants film

I spoke with Andie Grace, VP of Acquisitions, and Mike Wilson, Partner and filmmaker, to hear what lead to Devolver’s foray into independent film distribution and what they plan to offer that other digital distributors don’t.

AG: “The experience that motivated the creation of Devolver Digital Films comes from the games space.  Mike is also a filmmaker and he knows what it is like to run up against the wall of getting distribution. After spending years of making the film, getting your own network together, hitting the festival circuit and landing a distributor and then they put it out, but do little to support it. Devolver Digital would never put out a game that way and now there are so many films on the digital shelves too, a small film that is great could do a lot better with a little help.

When a filmmaker’s own network is exhausted, they themselves are exhausted and ready to move on to another project, they just need a partner to be interested enough to work the title and we saw it as a niche to be filled.”

SC: “Speaking of a niche, does Devolver have a niche audience that they are serving with films? My main problem with film distributors is they don’t really have an audience for their company. They are used to speaking to other businesses (exhibitors, video stores, broadcasters), but not speaking directly to any audience for their titles. Their titles are so diverse that they don’t even really know who is watching. Will this be a unique aspect for Devolver? Is there a Devolver audience?”

AG: “Genre fans definitely stick with a label because of what the label brings them. This is definitely true in the games space. We now have many gamers saying ‘What is my favorite game label going to do with movies?’ So our aim is to keep that fanbase alive and choose films we think they will like.

A lot of counter culture films are coming our way and I definitely look at those films and say ‘I know where to find people who will like this, I know how to organize events around this.”

MW: “Our brand will be built on films that we believe we can make bigger than they would have been without our help. Decisions on films will be based purely on what we think we can do with the network we already have in place. It won’t be according to genr. Inevitably everyone wants us to do films that are considered ‘gamer’ fare.  But people who are outside of the gamer world don’t realize that gamers aren’t only into zombie movies or sci fi movies. The independent gamer tends to like lots of independent entertainment. Independent music, independent films, they tend to look a little further past the mainstream. More interesting, less predictable.  So that is what we will specialize in.”

SC: “Is there something that the filmmaker has to bring with the project? Do they have to have a certain mentality? Do you want the filmmaker to be an active participant in marketing his/her work, or are you fine with them leaving it with you to make it successful?”

MW: “There are 2 kinds of filmmakers. Those that are exhausted from making the film and just want someone to take care of the rest for them.  Some of those are very good films, but there is no promotional hook, and no niche we can tap easily. If they just want it out there, use our service to get it into the world, we’ll put it out for you and you can move on with your life.”

AG: “But we regard this as a partnership. We amplify what they have already started doing on their own. Anyone who wants to just turn tail and walk is probably not going to work well with us. Now, we do understand that by the time the film is ready for distribution, the filmmaker has already exhausted their network and they have done all they know how to do with their Facebook page or Twitter account and they need someone to help them, do it with them. It’s better for them to stay present, be there for the interviews, help craft the story, and use the opportunity to build their own brand as a filmmaker by working with us in a promotional partnership.”

SC: “What will be the range of services Devolver offers? I was thinking it was just digital distribution platforms, but you are working with Tugg to do events too?”

AG: “We will offer cable VOD and internet VOD right now. Being from the games world, we also have our eyes on gaming consoles. We will talk about the total distribution strategy based on the film. It may include using tools like Tugg to do some live event screenings rather than spending time exclusively on the festival circuit. Events can help power the VOD sales.  We also will talk about the marketing and publicity, some of the more traditional tactics. We will motivate our own networks to help with promoting screenings. By having the film on VOD when it is in theaters, we can get it highlighted in the ‘in theaters now’ sections of Amazon Instant and such.”

MW: “We are going to be direct to the platforms when that is possible, but until we build up our catalog, it isn’t realistic to think we will be big enough to negotiate direct deals with the bigger players.  With our zero overhead, we will be competitive with the percentages we take even when a third party is involved.  Plus, we’re going to help promote it which should make the revenue bigger than it would if you went through an aggregator who isn’t doing that.”

devolver logo

SC: “Do you take rights over the film or do those stay with the artist?”

MW: “We wouldn’t take all rights like broadcast network rights, or international rights at the moment. But to the extent that we do put time in to exploit on certain platforms, we want exclusivity on those. It is just bad business for everyone if you have several companies pitching the same film. As a filmmaker, I know there are distributors who want to take all rights just in case in future they want to do something with them. That is not the case with us. Our reason for existence is to avoid that scenario, we have all experienced it as filmmakers ourselves.”

“We do ask for a minimum of one year with options to extend. Most cable operators do want a 5 year minimum. We have found on the games side that there are opportunities for digital bundles and we will want to include our films in bundles without having to keep going back to ask permission. We aren’t going to be releasing 30 movies a month or anything. The films we do have are precious to us and we will be working harder to make the small amount work for us and for the filmmaker.”

SC:”Advertising and promotion aren’t free, they often make up the majority of any kind of film release. Is this a service deal agreement where the filmmaker fronts the money for Devolver to spend or is this more like a traditional distribution situation where Devolver will front the money and recoup from revenue before the filmmaker sees any profit?”

MW: “This won’t be a six figure M&A budget. It is more like soft dollars from us in our organization and network of already existing connections. This is what helps support our games as well.  Filmmakers will also be expected to help each other when they are on our label. So anything we provide from this network is just the cost of us doing business and we provide that.”

“Then, if there is an opportunity to buy into a promotional program or whatever, we’ll agree it with the filmmaker and write the check up front and share that cost. If the filmmaker gets a 60% split with us, we share the cost of the promotion.That’s the way we work in games too, it is purely situational. To the extent that they want to be involved, the filmmaker will sign off on any promotion we want to participate in and they will know the whole cost.”

“Another thing we feel is important is being completely transparent. If we do have to go through another distributor to get to a certain outlet,  I will forward every royalty statement we get from that distributor so that the filmmaker knows what the revenues were. There has just been too much damage done by ‘Hollywood accounting,’ I use that term to mean all entertainment. The games industry is as bad as any.  The little things we can do to remove any doubt about whether we are on the filmmakers team, we will do. The world may not need another VOD distributor, but one thing we will provide that others do not is transparency.  There is always room for that.”

SC: “When is the best time for a filmmaker to approach you? In preproduction? Production? Post?”

MW: “I would say in post. We’re not a production company and we aren’t trying to influence the outcome of a movie. We can’t really have a conversation about a film until we know the level of quality it will be.  Most of the people we are talking to are in fine cut or have a festival version that they still want to trim.”

AG: “We are having conversations now with people who are in post and it is pretty obvious who their audience is.  We are also talking to people who are not going on the festival circuit, they are launching straight into distribution.”

MW: “We have many dream producers coming to us who get this online promotion stuff. We want to network them all together and help to promote each other.”

SC: “How will you bring them together?”

MW: “Google Hangouts I envision. I want just these producers who all have great ideas and are on the same label to get together and brainstorm with each other. Their films are all coming out near the same timeframe so I think some great creativity and excitement will come from it. I don’t think they imagine for a minute that helping someone else will hurt their own projects. It just makes their own network bigger, by aggregating everyone’s together.These are all young, smart, tech savvy producers who want to learn from each other.”

SC: “Well, that is definitely a differentiator for Devolver! Most distributors don’t bother themselves with bring together the filmmakers  to help work with all the projects in the catalog. It means you really want to work with filmmakers who are giving, tech savvy and want to help make everyone’s work successful.”

MW: “The filmmaking process just sucks everything out of you, you are totally exhausted when finished and often you are the last man standing. The crew disappears after the wrap party. It will be great to have a company that knows this, pulls together a group of filmmakers in the same situation about to release their films and supports everyone.”

“It is really fun to be coming in at a time when we aren’t having to undo our skills. You go to industry panels where these veteran people are completely unsure of what is happening and frustrated at having to relearn everything because they are used to doing things in a certain way for many years. For us, it is exciting because it is wide open.”

I will be keeping an eye on this young and enthusiastic company. If you have a project you would like to approach Devolver Digital Films about, contact Andie Grace:

films [at] devolverdigital dot com

 

May 9th, 2013

Posted In: Amazon VOD & CreateSpace, Digital Distribution, Distribution, iTunes, Netflix

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