David Averbach is Creative Director and Director of Digital Distribution Initiatives at The Film Collaborative.
When distributing your film, a lot of time is spent waiting for answers. Validation can come only intermittently, and the constant string of “no”s is an anxiety-ridden game of process of elimination. Which doors open for your film and which doors remain closed determines the trajectory of its distribution, whether it’s festival, theatrical, digital, education or home video (until that’s dead for good).
I work with filmmakers, way down-wind of this long and drawn-out process, who, after exhausting all other possibilities, have “chosen” DIY digital distribution as a last resort.
TFC’s DIY digital distribution program has helped almost 50 filmmakers go through the process of releasing their film digitally over the past 5 years and with most of them, I have often felt as though I were giving a pep-talk to the kid who got picked last for the dodgeball team. “Hang in there, just stick to it…you’ll show them all.”
Is DIY Digital Distribution anything more than a last resort? Perhaps not…
DIY vs. DOA
Since TFC was formed over six and a half years ago, we have optimistically used “DIY” as a term of empowerment, where access and transparency had finally reached a point where one could act as one’s own distributor. After all, we tell these (literally) poor, exhausted filmmakers, “no one knows your film better than you do”, so “no one can do a better job of marketing it.” With a little gumption, a few newsletters and handful of paid Facebook posts, you, too, might prove all the haters wrong and net even more earnings than Johnny next door who sold his film to what he thought was a reputable distributor but never saw a dime past the MG (minimum guarantee) in his distribution agreement. We even wrote two case study books about it.
It’s not that I’m being untruthful with these filmmakers. Nor is it the case that these films are necessarily of poor quality. What they have in common is a lack of visibility. Most had some sort of festival run, and only a handful were released theatrically, usually with one- or two-day engagements in a handful of cities. Occasionally, we’ll get a film that has four-walled in New York or Los Angeles for a week. Or sometimes ones that have played on local PBS affiliates or even on Showtime. But their films are not even close to being household brand names. So without the exposure or the marketing budget, they can do little more than to deliver their film to TVOD platforms like iTunes and hope for the best.
So what happens to these films? The news, as a whole, is not good. Based on what I’ve seen from these films in the aggregate, and all things being equal, if you DIY/dump your film onto only iTunes/Amazon/GooglePlay with moderate festival distribution but no real money left for marketing, you will be lucky to net more than $10K on TVOD platforms in your film’s digital life.
And the poorer the filmmaking quality of your film, or the less recognizable the cast, or the less “niche” your film is, the more likely it will be that you won’t even earn much more revenue than what is required to pay off the encoding and delivery fees to get your film onto these platforms in the first place (which is around $2-3K).
Which is why, as of late, I’ve been aggressively suggesting to filmmakers that holding off on high profile TVOD platforms and instead trying to drive traffic to their websites and offering sales and rentals of their film via Vimeo On Demand or VHX, two much cheaper options, might be a better use of their limited remaining funds.
But am I down on DIY? Not necessarily.
Granted, there are a lot of films out there for which The Film Collaborative can do very little for in the area of digital distribution other than hold filmmakers’ hands. But what about for films working at the “next level up” from last-resort-DIY? Films who have either gotten a no-MG or modest-MG distribution offer?
Many distributors and aggregators working at this level will informally promise some sort of marketing, but many times those marketing efforts are not specifically listed contractually in the agreement. So when filmmakers ask me whether going with a no-MG aggregator is better than doing DIY, this is my answer…
It’s important to remember that, once a film is on iTunes, no one will care how it got there. And by this I mean with no featured placement, just getting it on to the platform. So, if that’s all a distributor/aggregator is doing, this is not the kind of deal that a filmmaker can dump into someone else’s hands and move on to their next project. In fact, many aggregators will send you a welcome packet with tips and suggestions on how to market your film on social media, such as Facebook. In other words, they are literally expecting you to do your own marketing. Not just do but pay for. So, it is entirely possible that all that an aggregator or distributor is doing is fronting your encoding costs, which they will later recoup from your gross earnings, but only after they take their cut off the top. And if your distributor is offering you a modest MG, you must be prepared for the possibility that that MG may be all the earnings you are ever going to see. Certainly, we have seen many, many filmmakers in this position.
So the question remains: Is DIY still too risky for all but films that have run out of options?
It’s a hard question to answer, mostly because there is no ONE answer. Undoubtedly, some films will be helped with such an arrangement and some films will not.
A View from the Other Side…
Distributors, of course, will stick to the sunny side of the street. They will tell you that DIY is too risky for the vast majority of films, and remind you that distribution is more than getting a film on to one or two platforms.
When I asked Gravitas Ventures founder Nolan Gallagher, a veteran in distribution and whose co-execs have a combined 50+ years in distribution experience, about his feelings regarding DIY, he was quick to point out that the main difference between a proven distributor and DIY is that while much of the work in DIY happens in year 1, distributors can help in year 3 or year 5 or beyond. He believes that DIY individual filmmakers will be shut out from new revenue opportunities (i.e. the VOD platforms of the future) that will be launched by major media companies or venture capital backed entrepreneurs in the years to come because these platforms will turn to established companies with hundreds or thousands of titles on offer.
This is a fair point, in theory, but I honestly cannot recall a single instance of one of our filmmakers from 2010-2013 jumping for joy over that fact that his or her distributor had suddenly found a meaningful new VOD opportunity in years 3-5, nor have we heard of any specific efforts or successes down the line. But it’s good to know one can expect this if signing with a distributor.
He also mentioned that many of Gravitas’ documentarians receive multiple 5 figures in annual revenue over 5 years after a film first debuted.
That’s nice for those filmmakers…But what about the ones that don’t? It would be ludicrous to suggest that any decent film, with the proper marketing and industry connections, can become a respectable grosser on iTunes.
By no means am I singling out Gravitas in order to pick on them in any way. For many films, clearly they do a terrific job.
But does that mean that there aren’t a handful of filmmakers that have gone through aggregators like Gravitas or other smaller distributors that many TFC films have worked with, such as The Orchard, A24, Oscilloscope, Virgil, Wolfe, Freestyle Digital Media, Breaking Glass Pictures, Amplify, Wolfe, Zeitgeist Films, Dark Sky Films, Tribeca Films, Sundance Selects, who are not entirely convinced that they were well served by their distributor? Of course not.
The Million Dollar Question…
The question I really wanted to know was more of a hypothetical one than one that assigns blame: if these so-called “borderline films” that went through aggregators/distributors had done DIY instead, how close could they have come netting the same amount of earnings in the end? Is it possible that they could have gotten more?
This is a hard question—or, should I say, a nearly impossible question—to answer, because no one has a crystal ball. But also because of the continued lack of transparency surrounding digital earnings, despite initiatives like Sundance Institute’s The Transparency Project, and because the landscape is continually evolving.
A recent article in Filmmaker Magazine, entitled “The Digital Lowdown,” discusses how independent filmmakers struggle to survive in an overcrowded digital marketplace and “admits” that niche-less festival films will only gross in the range of $100K-$200K, and that, in fact, talks about a “six-figure goal.” But in almost the same breath, there is a caveat. Sundance Artist Services warns that “…if a filmmaker spends about $100,000 in P&A to finance a theatrical run, they’re probably going to be making that much from digital sources.”
I have heard many stories of distributors and filmmakers alike, who put “X” dollars combined into P&A for both theatrical and digital only to make a similar amount back in the end. So what’s the point? If you look at distribution from the perspective of paying back investors, are a good portion of filmmakers netting close to nothing, no matter whether they do DIY or whether they gear up for a theatrical and digital distribution via a distributor? If a film does not succeed monetarily, is the consolation prize merely visibility and exposure? (Which is not nothing, but it’s not $$ either).
A few months ago, my colleague Bryan Glick posted a terrific piece on our blog that questioned the ROI of an Oscar®-qualifying run, given the unlikelihood of being shortlisted. Bryan implies that because filmmakers like hearing “yes,” and like having their egos stroked, when publicists, publications, screening series, cinemas, and private venues all lure filmmakers with a possibility of an Oscar®, something takes over and they lose perspective at the very moment they need it most.
Could the same be true for a distribution strategy? Are filmmakers so happy to be offered a distribution deal at all that they are unable to walk away from that distribution deal, even if they suspect that it undervalues their film? And could a viable DIY option change that?
Evaluating Success with DIY
Last fall, I began to think about what a “successful” DIY digital release could look like. On the low end, we’ve heard about a magical $10K figure that I discussed above…in the context of MGs paid to Toronto official selections via Vimeo on Demand, and Netflix offers to Sundance films via Sundance Artists Services. So it would have to be at least greater than $10K. And on the high end, it would have to be at least $100K that the filmmaker gets to net over a 10-year period.
Working backwards, how can this be achieved and is it possible to recreate that strategy via DIY?
One thing that gave me hope was when my colleague Orly Ravid, acting as sales agent, negotiated a licensing low-six-figure deal with Netflix for the film Game Face, about LGBTQ athletes coming out. The film won numerous audience awards at film festivals, but had no theatrical release. Timing, as well as the sports and LGBT niche, made this film perfect for a DIY release. The only catch was the Netflix insisted on a simultaneous SVOD & TVOD window, so Netflix and iTunes releases started within one day of each other. TFC serviced the deal through our flat-fee program via Premiere Digital Services.
Lessons Learned from the DIY Release of Tab Hunter Confidential
This past Spring, TFC spearheaded the digital release of Tab Hunter Confidential, a film for which we also handled festival and theatrical distribution, as well as sales. Truth be told, this film almost went through a distributor. In the end, however, after a protracted period of negotiation, an offer was made, but knowing how much Netflix was willing to offer, Orly advised the filmmaker to walk away from the deal and try our hand at a DIY release. The filmmaker agreed, and we serviced the Netflix deal via Premiere. However, as Netflix wanted the film for June, which is Gay Pride Month, we had a limited amount of time in which to do iTunes, and I was determined to make the most of it.
So what were the goals? And how could we get there?
I had been trolling both the “Independent” and “Documentary” sections on iTunes for months in preparation for what has now become this article on DIY. I had been noticing that while it is easy to get a film into the “New & Noteworthy” section in “Documentaries,” which contains at hundreds of films, the similar section in “Independent” is limited to about 32. So how could one get there? And how could one’s film be featured in the top carousel in “Independent” or in any of the genre categories? Would it help to offer iTunes exclusivity? Would it help to do iTunes Extras? Could we contact Apple and try and schedule something? What else could be done? These are the questions that I set out figure out on my own, or to ask our aggregator, Premiere Digital Services.
How can I get my film to be one of the 30+ films in the “Independent” Section of iTunes? This section is populated at Apple’s discretion. Their iTunes division is based in L.A., not Silicon Valley, and they attend film festivals and are very up-to-date on the indie film landscape. It’s clear, however, that while they do speak with distributors and aggregators about what’s coming down the pipeline, most of the decisions about what is to receive placement in this section occur within a week or two of the release date in question, and are decided ultimately by iTunes. I informed Premiere Digital that we were very interested in being placed in Independent, and they told me that they have weekly calls with iTunes and that—closer to the date of release—they would mention the film to them. In the end—spoiler alert—we did manage to get Tab into this section. But there were no back room deals to get that to happen…so I can hereby confirm that it is possible to be featured on the iTunes store based solely on your film and the specifics of its release.
Rotten Tomatoes Score: Out of approximately 100 films that appeared from late November 2015 to early February 2016 (which I kept track of manually, so the following is not completely scientific), about 50 of those had a “fresh” rotten tomatoes score. About 40 of those 50 had RT scores over 80%, and many of those were Certified as Fresh. Of the remaining 50 films, about 20 had “rotten” RT scores, and about 30 had no score at all. Luckily, Tab Hunter Confidential has an RT score of 87%, so I knew I was safe from that perspective. But while I was investigating, I was particularly interested in those films without a score. I noticed that many of them had star power attached, and a few of them were holiday-themed. A few of them were Lionsgate titles. And a few sports-related and horror titles, which always seem to rise to the top. I glanced at the Independent section for this week (third week in August), and these numbers pretty much bear out, save the holiday ones. The takeaway here was that if your film did not have a theatrical (and therefore perhaps does not have a RT score), if it doesn’t have famous people in it, it’s not about sports or is not in the horror genre, your chances of appearing in this section as a DIY film going through an aggregator seem pretty slim.
Check in, check out dates. As many of you know, films always end up in one of Apple’s genre sections. They stay there a few weeks or even a few months until they are bumped out of that category by newer items. But those sections are very glutted. The “Independent” section is a second placement, one that is curated by Apple, of only three rows of films. One thing that I became acutely aware of was the high turnaround in this section. Films seemed to be refreshed twice a week: once on Tuesdays (release day), and then again on Fridays. This was more or less consistent, although I got the feeling that on a few occasions things were a bit early or a bit late.
At any rate, it was very clear that if films were not pulling their weight, they would be booted from the “Independent” section for something else. At least 1/3 of the films were gone after only a few days. After all, Apple is in the business of making money off these films too. What occurred to me is that if filmmakers are doing distribution deals to get placement, and their films only last 3 days in the “Independent” section, and that measly placement is what amounts to the big perk/payoff of going through a distributor, it’s a pretty sad day for either the filmmaker, the distributor, or both.
How can I get my film featured in the top carousel? It turned out to be the same answer as for the Independent section in general, but I can admit it now…I was a pest: I asked multiple people at Premiere this question. I was told over and over that Apple will make a request for layered artwork if they are interested in featuring the film. Two weeks before the release date I had not heard anything. But less than a week before, Premiere received the request for artwork from Apple. We ended up being featured in both the “Independent” and “Documentary” sections.
Why did they pick us? I am not completely sure, but here are my guesses: We had a great film festival run. The film was based on a bestselling book. We had a high RT score; we did a 40+ city theatrical; we had a lot of press, and we had a publicist; the film was apparently not doing terribly in the iTunes Pre-Order section, Tab Hunter did many interviews when the theatrical came out; Tab Hunter is freaking Tab Hunter; the film spans both LGBT genres and the genre of women of a certain age who came of age in the 1950s and still remember Tab’s poster on their bedroom walls; the artwork was classy; it was almost June; we gave them an exclusive (although I don’t think they ever advertised it as such); we did an international release on iTunes (we were told that Apple likes films to have more than one territory to be featured, which is kind of strange, because it wasn’t featured in any other iTunes store, like Canada or UK); and lastly, we did some iTunes custom artwork and iTunes Extras.
Walking the walk. Speaking of customization, one thing that I noticed about every film in the “Independent” section was that most detail pages contained customized promotion background artwork. Apple likes this. It gives the film branding, credibility. Apple has two different kinds of background art one for the iTunes store and one for AppleTV. We opted to do just the iTunes store art, which is an extra $75 conformance fee at Premiere. We also did iTunes Extras basic package, for about $700 extra, which offers a chance to include bonus features, such as outtakes and other exclusive video. Since we were planning on including bonus interviews on our DVD, we included that file, as well as 10 minutes of interviews for which iTunes is the only place that they are available. I’m not sure if Extras helped the featured placement, since we were literally down to the wire on having them appear on the store in time for the release. (At the last minute, we needed a looping background audio for iTunes, which we didn’t realize was mandatory, so if you go the Extras route, don’t forget that that audio file is needed).
Results. All in all, we did everything we could, and it paid off. We were featured in both the carousels of the “Independent” and “Documentary” genre sections, and stayed in the “Independent” carousel for a full week and in “Documentary” carousel for two weeks. We stayed in the “New & Noteworthy” part of “Independent” for several weeks. At its peak, we reached #2 in Documentaries, being surpassed only by Michael Moore’s Where to Invade Next, which months later is still in the “New & Noteworthy” part of “Independent.” We made sure Tab Hunter Confidential shows up in both the iTunes Extras section and the “LGBT Movies” Collection section. The more places to find the film, after all, the more chance of it being rented or purchased.
After over 3 months, around the third week of August, Tab Hunter Confidential was the 12th All-Time Bestselling LGBT Doc in the iTunes store. As of the date of this blog, it has dipped down the 14th. It is still in the “New & Noteworthy” part of “Documentaries,” although to be fair that section contains hundreds of films.
Regrets? Could we have stayed longer in the iTunes carousels? Two things worked against us. First, although there was a social media push when the film was released, it was pretty limited, as we had only a small P&A budget. With more of a spend, we could have gotten more attention during the second week, and perhaps sales would have warranted the film sticking around for longer. Other films, such as Gravitas’ Requiem for the American Dream, for which TFC handled the Theatrical, featuring Noam Chomsky, have done a much better job surfing this wave. Fortuitous timing with Bernie Sanders, but that is a story for another day.
Although we offered TVOD exclusivity to Apple until June, it was unclear whether they really cared about that, as they never promoted it as such, and we probably should have released on Amazon, GooglePlay and Vudu on the same day as iTunes.
(Speaking of Amazon and GooglePlay, I once asked someone who used to work at Premiere how one gets featured on those other platforms’ stores. What they told me was shocking: Amazon and GooglePlay basically copy content ideas from the iTunes store. This was about a year ago, so who knows if this is still happening, or if it was even true at all. But I was kind of blown away by this.)
Conclusion. There are undoubtedly things one could immediately try and recreate from the steps that were taken with Tab Hunter Confidential. However, who is to know if they could work a second time, with a different film and different timeframe?
I am not suggesting in this article that distribution deals are unnecessary. Many companies have a ton of industry connections and experience that one might not be able to recreate with DIY.
But in this case, the filmmaker is thrilled, and my TFC team believes that dollar for dollar, the filmmaker walked away with a guaranteed net that is more than they would have received had they taken the distribution deal that was offered to them by a distributor.
So should DIY be considered a dirty word? Only you can decide if it is right for you film. As a whole, the jury might still be out, but, at the very least, I suspect that we’re going to get more filmmakers interested in iTunes background art.
Be sure to look out for Tab Hunter Confidential, on digital platforms, and now on DVD and Blu-Ray, which have recently been released by our friends at FilmRise.
David Averbach September 6th, 2016
Guest blog post by Wendy Bernfeld
The Cannes Film Festival starts today, and any Cannes season would not be complete without an update from our dear friend and colleague Wendy Bernfeld, Founder and Managing Director of Rights Stuff and co-author of our second case study book in 2014 Selling Your Film Outside the U.S. (free on Amazon Kindle and Apple iBooks. Wendy specializes in Library and Original Content acquisition/distribution, international strategy / deal advice, for traditional media (film, TV, pay TV), digital media (Internet/IPTV, VOD, mobile, OTT/devices), and web/cross-platform/transmedia programming, and also active on various film festival / advisory boards, such as IDFA, Binger Film Institute, Seize the Night, Outdoor FilmFest, and others, including TFC! Follow her on Twitter: @wbernfeld.
What’s happened out there in the two years since TFC first published Selling Your Film Outside the U.S. (“The Book”)?
My introductory chapter to the book, entitle, “Digital Distribution in Europe” provided a snapshot of the evolving sector at that point in time. However, by now, the sector, particularly in the area of SVOD and AdVOD, has leaped even more forward, and includes more mature services as well as new niche and thematic services out there— as well as some services with an increased appetite for foreign language, art house and documentary films/series (finally).
A. Blurred Lines — Traditional vs. Digital — Hybrid Platforms
More recent trends 2015-16 include increasingly blurred dividing lines between so-called traditional vs digital players .
- Traditionals: Many traditional players, internationally, (like telecoms, cable and free tv) have now become more digital, by either 1) bysetting up their own competing, or complementary, multi-window VOD offerings such as SVOD services (e.g. Channel 9’s STAN in Australia or Liberty Global’s MyPrime in both Switzerland and Netherlands); or 2) electing to instead “sleep with the enemy” by just hosting digital channels like Netflix, Spotify, etc. on their set-top box (e.g. Orange, ComHem Sweden, Virgin UK). Some traditionals opt to distinguish the brand identity of the VOD service from the main service, (different names); while others unite both services under one brand, such as CanalPlay (C+) or Viasat’s VIAPLAY. Recent developments include BBC announcing it will start SVOD internationally, after also migrating its Channel 3 to digital-only online offering; and ITV starting CURIO, a nonfiction SVOD in the UK.
- Digitals: Correspondingly, the so-called formerly digital-only players like Netflix, Amazon (previously more complementary or second window) are now acting a great deal like the traditional players. Think: old-fashioned commissioning broadcasters who increasingly require first-window status and exclusivity, and who are funding “originals”, getting involved competitively commissioning films from development stage etc. and fashioning game-changing windows.
Despite the complexity, this is overall great news for creators/rights-holders since it allows even more opportunity to maximize revenues and audiences per successive window, platform and region, if one takes the time to do it right.
B. VODs Per Window:
Lets look at various platforms in each window today, from TVOD, DTO, through to SVOD, AdVOD, etc. Note that many deliberately offer MULTI-model consumer services – such as Orange, Canal Plus and BSKYB (TVOD/DTO, SVOD), Amazon (Instant and Prime, for TVOD/DTO and SVOD, respectively) and Wuaki – while others (Netflix and Curio) operate under just one consumer business model.
- For the Big5 (Google, Amazon, iTunes, Xbox, PS), one still generally goes through a digital aggregator, like Juice, Cinedigm, Kinonation, and Syndicado in N.America. Outside N.America, EMEA counterparts in include one of Rights Stuff clients MOMEDIA (attractive multi-platform new biz model, lower cost for more platforms and combined with social media/marketing) – and others like DoCo/ODMedia (NL), MoviePartnership, and Under the MilkyWay.
Shop around…these aggregators they have different models and price alone shouldn’t be the only indicator. Also look at their marketing/positioning: some take your IP, others (like Rights Stuff, TFC) do not.
- Going direct to the others in TVOD/DTO:
Don’t stop at one or even all of the Big5. The play is to have multiple deals , non exclusive, staggered, in all the windows, in each region. Virtually every country has an active telecom and cable or DTH competitor in the region, as well as mobile and online /consumer electronics players who offer VOD, so licensing non-exclusive TVOD to them on top of others is a good first step in the chain.Beyond the utility companies, some other examples in TVOD/DTO include premium pay tv services or platforms like CanalPlus (France and other regions) and BSkyB, (UK, Germany, Italy, New Zealand). Also theatrical chains in some countries, such as Cineplex in Canada or Pathé in Holland, have VOD arms and thus can offer complementary marketing of films in theatrical window with the subsequent TVOD/DTO window. Also check out online VOD indie film specialist FilmDoo (well-curated indie/art house focused, now in UK/EIRE and soon expanding), and as earlier written, Curzon offers day-and-date theatrical combined with VOD in UK. Wuaki announced moves into 15 countries internationally by end of 2016, most are now TVOD/DTO but the Spain HQ is an SVOD OTT platform. The NFB in Canada started TVOD/DTO in N.America and recently in 2016 an SVOD service, and they now buy docs/films from other sources and regions, too.
- Deals: TVOD/DTO continues to be typically a rev share model and sometimes only a loss leader, but can help drive critical awareness, especially when accompanied by social media marketing and audience engagement strategies. Sometimes, film dependent (for eg if a very niche film) it saves money to skip the big5 (who require costly specs) and license direct to the other international tvod/dto platforms, as then at least one participates from day one in revenues, vs having to recoup expensive deliverables.
- For the Big5 (Google, Amazon, iTunes, Xbox, PS), one still generally goes through a digital aggregator, like Juice, Cinedigm, Kinonation, and Syndicado in N.America. Outside N.America, EMEA counterparts in include one of Rights Stuff clients MOMEDIA (attractive multi-platform new biz model, lower cost for more platforms and combined with social media/marketing) – and others like DoCo/ODMedia (NL), MoviePartnership, and Under the MilkyWay.
- SVOD/PAY – whether first and second windows:
As predicted, this window has so far overall been most remunerative since it’s usually structured by a flat fee license fee (although smaller or niche thematic platforms in the larger USA market (such as Fandor or Indieflix) are still offering just a revenue share formula, which can make the returns lackluster). We generally favor licensing to platforms that pay even a modest flat fee, upfront. Or in some cases in the ‘’back end’’ i.e. rev share to start, then if the revenues at the end of a year (or the window) don’t reach, say, $1000, the platform pays the difference. That sort of model can be attractive for startup platforms who truly believe in the power of their SVOD service but are cash-strapped at the start. So one can license to a less remunerative platform, which does a great job of curation, editorial, placement, and
also license other SVOD platforms who may be more remunerative for you.
There’s been a surge of local SVOD players popping up to compete or complement as Netflix or Amazon/competitors rolls into each new region. Some present outright competition, engaging in bidding wars for similar mainstream content offerings and price points. For instance, MNET South Africa, a premium pay tv operator, launched ShowMax locally and soon after announced further expansion. Other examples include: Videoland Plus (owned by free tv RTL/& SBS channels in the Netherlands) and Maxdome (owned by Prosieben in Germany).Others are complementary SVOD services, offering older library services in general interest. And still others exist at lower price points in narrow verticals/themes, like kids, anime, arthouse, etc. Hopster (UK/USA) is a buyer of purely kids programming, recently launched also in Iceland on Vodafone platform; similar to MinBIO (Nordic kids), which buys from international producers as well as from studios or locals, and Kidoodle (Canada svod ott). Cirkus in Nordic focuses on best of British programming (SVOD OTT).Recently in 2016 there’s a raft of SVOD platforms in developing regions like the MidEast and South East Asia: such as multi-region IFLIX and ICFLIX. As before Australia has pay and svod services such as Foxtel’s Presto (Australia); Lightbox (New Zealand), and Stan (channel 9).SVOD Deals: Producers should usually seek flat fee, but some platforms perform well on rev share. Particularly if you license multiple platforms in the same window and cross-promote so consumers find you from whichever entry point. In the lucky case where you can play off one against the other (e.g. traditional pay tv vs SVOD first-run) a stronger case can be argued for the license fees, as the buyer is “not the only game in town” anymore. In other cases, non-exclusive, multiple-platforms deals in smaller amounts still add up the revenues and audience. Prices can range from €250-2000 for an indie doc of film if old library and yet also up to 5- and 6-figure sums if a higher-end indie/doc or original/first-run. Pricing is also obviously affected by volume of the films in a deal, the number of regions, the awareness (platform, audience), popularity, critical acclaim, and language and cultural portability.
- In the USA, you’ve finally seen growth since 2015 in the SVOD sector for documentaries, including the Curiosity Stream SVOD OTT platform (by former Discovery founder, John Hendricks), whose programs tend towards educational and traditional. They are usually on a rev-share only model, whereas competitor xive.tv (SVOD OTT) also buys docs features/series, but over a wider range of topics including more populist/reality content- and xive.com works on a flat fee and/or combo deal model. And a deal with well-curated xive.tv delivers an extra ‘lift’’ in reach by providing carriage on other platforms (Hulu, Roku, Amazon, etc.).
- In EMEA/beyond, some other SVOD OTT platforms for docs and arthouse have arisen such as CURIO in UK (via ITV), Filmin (Spain, Portugal, Mexico). Mobil has now transformed its model to a curated daily film+library, a lower price and is complete with hefty investment by Chinese backers/reach into China. They also started paying some flat fees, or MGs, for select higher-end indies, as opposed to the pure rev share SVOD model of earlier days.
Although TubiTV/AdRise in USA and Hulu (multi-model in AdVOD and SVOD) are strong platforms offering solid returns to producers in the AdVOD sector, there aren’t many doing the same in EMEA. Here, again, it’s worthwhile to have your films spread on other free AdVOD platforms (vs pirate sites) so the returns are cumulative and there’s cross-promotion. Sometimes a film sampled on AdVOD can help to yield revenues from DTO (e.g. if a consumer discovers a lesser known film on an AdVOD platform and decides then to buy it on iTunes, while they’d not have bought it unknown before).Some updates on the AdVOD sector in EU: Viewster.com (27 countries in EMEA) has shifted focus (since our last reference in the book) from buying arthouse/festival films, to millennial content, including edgier, fast-paced docs, some originals and anime. In 2015 they had added an SVOD anime service, but in March 2016 shut it down, as others have become more aggressive in that space. DailyMotion, EU competitor to Youtube, were sometimes paying flat fees and sometimes commissioning series, but a recent sale by Orange to Vivendi may bring changes. Channel4 (UK) recently launched WalterPresents, an AdVOD site focused specifically on dramatic series and some films strictly from outside the UK.
- HOW TO REACH THE PLATFORMS:
As before, one goes via aggregators for Big5, but your agent/representative, or distributor/sales agent, OR YOU YOURSELF can hit up the others direct.REPS: I highly recommend interviewing your potential sales agent/distributor, with new questions such as asking 1) if they’ve been active in digital lately vs just their traditional buyers; and 2) if so, then with which types of platforms—Big5-7 or also beyond to International? If not, it doesn’t have to be a barrier, if they’re willing to allow nonexclusivity in digital, and/or to allow you or digital agents to assist and collaborate alongside.
- FUNDING (including by SVODs):
Although beyond the scope of this article, note In 2015-16 there’s been increased activity in 5-6 figure prebuying/funding of originals or premieres (film, series)—not just from English regions and not only via Netflix and Amazon, but also other international and EMEA services like OneNet Poland, IcFlix, Telenet, KPNPlay, Vimeo, Vivendi/Canal+, etc.On the Amazon front, aside from bigbudget originals via Ted Hope’s division such as ChiRaq at Berlinale and Woody Allen this Cannes, they also fund weboriginals, digital series, via prototyping schemes and audience involvement/feedback. Netflix has been intensely active in funding originals, including docs and nonfiction (while a few years ago that was a rarity); more deals in arthouse, docs and foreign will be announced at or after Cannes.In Canada there is a funding for coproduction in digital programs; And in France/EU, Vivendi (owner of Canal+ and DailyMotion) just in April 2016 launched its “Studio+” initiative &,dash; funding short-form original series for mobile and telecom operators.
As before in the 2014 Book, the following have intensified:
- Act quickly and work collaboratively (filmmakers + agents/distributors) to seize timing opportunities, particularly around certain countries where (s)VOD activities and platforms or hotly competing.
- Balance traditional and digital platforms, buyers and funders carefully in order to capture the cumulative and incremental revs in the nonexclusive deal sector, while also developing a longer term platform pipeline for future.
- Don’t stop at just one deal, unless exclusivity or funding elements are in play and worth it.
- Don’t be blocked per se by rights issues. Pragmatic business deals where others are “cut in” can help make those melt away
- Hybrid distribution: We as consultants/agents, aside from working direct for producers and platforms, now increasingly are retained by sales agents, distributors and even aggregators – as although they have the IP, they don’t always know all the others to sell to after going beyond the Big 5-7; this type of collaboration with producers and other reps on distribution yields good results (although time consuming at first) with each stakeholder getting a smaller piece but of a bigger pie. At the end of the day, 100% of zero is still zero.
- If not using a middleman at all, consider teaming up (especially if only selling a single film) with other producers to co-curate a mini-package of films around specific themes (e.g. eco, female, etc). This is particularly useful where the platforms don’t know you or your films, and it also helps program the service for their platform.
- Don’t abdicate distribution entirely to third parties, as in traditional past; now it is increasingly key to be aware of (if not participating more in) distribution and marketing (e.g. via social media). Help audiences know where to find your film!
Looking forward to seeing your films over here in EMEA!
Orly Ravid May 11th, 2016
Last May, TFC released the second book in our series called Selling Your Film Outside the US. As with everything in the digital space, we are trying to keep track of a moving target. Netflix has now launched in France, Germany, Austria, Switzerland, Belgium and Luxembourg. iTunes continues its transactional VOD domination by partnering with Middle East film distributor Front Row Filmed Entertainment to give Arabic and Bollywood films a chance to have simultaneous releases in eight countries: UAE, Egypt, Bahrain, Qatar, Oman, Lebanon, Jordan and Kuwait. Amazon has just launched several new original series in the US and UK, including critical darling Transparent, to a line up that includes returning series Alpha House and Betas.
But what does DIY Distribution mean in the context of European territories? The following is an excerpt included in the book:
Here are a few tips for any filmmaker who is thinking about doing digital distribution in general, but especially in multiple territories:
-If your film is showing at an international film festival, ask if they are producing subtitles, and, if so, negotiate that the produced file be part of your festival fee. It may need to be proofed again or adjusted at a subtitling and transcription lab later on, but as a first pass it could prove very valuable down the road. See more about the kind of file you need in this post;
-When you are producing your master, create a textless version of your feature. Apple and probably other platforms will not allow external subtitles on any films that already have burn-ins. If your film, for example, has a few non-English lines of dialogue, instead of burning-in English subtitles into your film, a better method would be to create an external English-language subtitle file (separate from closed captioning) in a proper format and submit it with your master. Different aggregators may require different formats, and if you are going to a Captioning/Transcription/Translation Lab to do your closed captioning and subtitling work, be smart about which questions you ask and negotiate a price for everything, including transcoding from one format to another because you may not know exactly what you will need for all your deals right away.
Subtitles need to be timed to masters, so make sure your time code is consistent. When choosing a lab, ascertain whether they are capable of fulfilling all your current and future closed captioning and subtitling needs by verifying that they can output in the major formats, including (but not limited to) SubRip (.srt), SubViewer 1 & 2 (.sub), SubStation Alpha (.ssa/.ass), Spruce (.stl), Scenarist (.scc) and iTunes Timed Text (.itt);
-You may want to band together with films that are similar in theme or audience and shop your products around as bundled packages. Many digital services, including cable VOD, have thematic channels and your bundle of films may be more attractive as a package rather than just one film;
-Put the time in toward building your brand and your fanbase. Marketing still is the missing piece of the puzzle here. As it gets easier and easier to get onto platforms, so too does it get more difficult for audiences to find the films that are perfectly suited to their interests. This is especially true when talking about marketing one’s film outside one’s home territory. If you are accessing platforms for your film on your own, YOU are the distributor and the responsibility of marketing the film falls entirely to you.
To download a FREE copy of the entire book, complete with case studies of films distributed in Europe, visit sellingyourfilm.com.
Sheri Candler October 15th, 2014
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.
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.
Sheri Candler July 9th, 2014
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.
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 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.
Sheri Candler May 28th, 2014
Sheri Candler April 3rd, 2014
Tags: BFI Lesbian and Gay Film Festival, Bloor Cinema, Bryan Glick, Cinema Village, client, documentary, Downtown Independent, Film Festivals, I am Divine, Jeffrey Schwarz, Jeffrey Winter, membership, Roxy Theater, screening fees, Sheri Candler, SXSW, testimonial, TFC, The Film Collaborative, Wolfe Releasing
HELLO SXSW! It’s hard to believe that it’s been a whole year since SXSW 2013. The film festival (and all the other things that happen) has consistently been on the cutting edge of distribution options. It is truly a one of a kind festival for a number of reasons and while they won’t pay for filmmaker travel, they do provide huge opportunity for the savvy filmmaker.
With 125+ films and the literally hundreds of panels, it can be daunting trying to get the attention of eyeballs. That said, over 2/3 of the films that world premiered here last year have secured some form of domestic distribution (on par with Tribeca and second only to Sundance).
The Film Collaborative world premiered I Am Divine at the festival last year and our release strategy is a prime example of how the fest can be a launching pad. The film went on to play over 200 festivals in less than a year (more than any other film in the world) racking up screening fee revenue. TFC also managed its theatrical release starting last October. The entire operating budget for the theatrical release was less than $10k and the film has grossed over $80,000 theatrically to date. As impressive as that is, the festival revenue surpassed the theatrical total. Meanwhile, despite never paying for a single print ad, we just passed our 50th theatrical engagement. The film has almost 40,000 Facebook Fans and will be released on DVD/Digital in April through Wolfe Releasing, and a TV premiere is scheduled for October.
SXSW produced two clear narrative breakouts last year, neither from a first time filmmaker. Joe Swanberg’s Drinking Buddies was a day and date release and managed to gross $300k+, his highest grossing film to date. It has chartered quite well on iTunes and other digital platforms and is likely quite profitable for Magnolia (hence why they acquired Swanberg’s follow up out of Sundance this year).
The other narrative breakout was the critically acclaimed Short Term 12. Sundance’s loss was SXSW’s gain and the film grossed over $1 million at the US Box Office, won multiple audience and jury awards and is the highest grossing film ever for Cinedigm. The film has been in theaters non stop for over ½ a year!
12 O’Clock Boys was released day and date and is Oscilloscope’s highest grossing release in over a year. It also topped iTunes and, to date, the film has managed over $80k in revenue. In fact, the day and date strategy has not appeared to hurt other top performing SXSW Docs.
Magnolia grossed $138k with Good ‘Ol Freda Also passing the $100k mark was Spark: A Burning Man Story. The film managed over $120k with a self financed theatrical handled by Paladin. What stood out wasn’t the total, but the fact that 70%+ came from Tugg Screenings! FilmBuff handled the digital rights where the doc performed equally as well. Meanwhile IFC’s The Punk Singer was a more standard release, but still a solid success passing the $120k gross mark.
Fall and Winter, Euphonia and Some Girls all opted for digital releases via the newly established Vimeo on Demand service. This year, Vimeo is investing $10,000,000 into its service and offering $10,000 minimum guarantees in exchange for an exclusive digital distribution window to any film that has premiered at one of the 20 leading global film festivals throughout 2014. Filmmakers also may apply for marketing support. The huge thing though is that the filmmaker gets to keep 90% of the revenue, which is far better than any other notable digital platform.
Also popular amongst the filmmakers was FilmBuff. No fewer than eight world premieres were distributed digitally by them. A few of those films also had small DIY theatrical releases.
It should be noted that DIY releases cost money which might be a problem for those who did not budget ahead of time for such a release. However, cash strapped filmmakers have raised DIY funds via Kickstarter to aid in such releases. TFC helped Big Joy: The Adventures of James Broughton raise over $50k. Loves Her Gun, This is Where We Live, and Love and Air Sex (AKA The Bounceback ) all raised distribution funds via crowdfunding.
Netflix took The Short Game as their first documentary acquisition and the film had a modest theatrical run via The Samuel Goldwyn Company. Pantelion passed $50k with Hours which has been a top digital performer following the death of its star, Paul Walker. First Run Features is approaching $40k with Maidentrip and companies like IFC, Magnolia, Oscilloscope, Breaking Glass, FilmBuff, and Variance all took multiple films.
On the TV side, SXSW films have premiered on Al Jazeera, CNN, Showtime, PBS, and VH1. Many of those films had some form of theatrical too. Documentaries continue to be the bulk of the festival highlights though the top two grossing films were narratives. The festival is second only to Sundance for world premiering a doc.
As we look to what the 2014 crop will offer, there are already some game changing situations. BFI is repeating their marketing match offer of up to $41k for any distributor who acquires one of their five UK based SXSW premiere films for distribution. As pointed out earlier, Vimeo’s offer extends beyond SXSW to 19 other upcoming festivals. I encourage you to keep an open mind and craft your film strategies now! The $10K MG that Vimeo offers for such a short exclusive digital window (plus you get to keep 90% of any revenue after the MG is recouped!) is better than many advance offers made by lower profile distributors. You can always pull your title off after the MG is recouped and seek more traditional distribution routes as Cinemanovels did out of Toronto last year.
SXSW is a great place to showcase your film, but without a formal market and with all the craziness that surrounds the festival from the interactive and music sides, it is unlikely that seven figure deals will pop up like they do at Sundance. Despite this, deals are still made, some choose to go into the DIY space and a few (like our release of I Am Divine) succeed in both arenas. The possibilities are endless.
Bryan Glick March 10th, 2014
The month of October seems a good time to look at films in the horror genre and we will be releasing a series of posts all month long that addresses the business of releasing these films.
Long the domain of ultra low budget filmmakers everywhere, horror audiences are now spoiled for choice when it comes to finding a film that terrifies. Yes, everyone with access to a digital camera and buckets of fake blood seems to be honing their craft and turning out product by the thousands. Unfortunately, most of it is high on splatter and low on story and production value. That may have made up the majority of the horror film sales 7 years ago, but distribution advances paid for such films are now exceedingly low (maybe $5K per territory, IF there is a pick up at all) and now the genre is perfect for the torrent sites.Unless you plan to make films as an expensive hobby, the pressure to produce a stellar horror film that people will talk about (see The Conjuring, Insidious, Paranormal Activity) is very high.
The trouble for filmmakers creating in this genre is there is so much being made of questionable quality, it is like asking audiences to find a needle…in a stack of needles (hat tip to Drew Daywalt). The same challenges for fundraising, marketing, and distribution that plague every production, plague horror films as well. To get good word of mouth, the film HAS to be great and have a significant marketing push.
At a recent event hosted at the LA Film School by Screen Craft entitled Horror Filmmaking: The Guts of the Craft, several involved in the horror genre talked about budgeting and distributing indie horror films. All agreed the production value bar has to be raised so much higher than everything else in the market in order to get people to part with their money for a ticket when competing with studio films. Talent manager Andrew Wilson of Zero Gravity Management pointed out that comments like the film did a lot with so little doesn’t hold water with audiences outside of the festival circuit. “You still need it to be good enough to get someone to come into a theater and pay $12…the guy who is going to pay $12 doesn’t care that you did a lot for a little bit of money. They want to see a film that is as good as the big Warner Bros release because they are paying the same amount of money to see it.” While you may be thinking, “I don’t need my film to play in a theater,” and that may be, the films seeing the most revenue in this genre are the ones that do.
The panel also addressed selling horror films into foreign territories. While horror does travel much better than American drama or comedy, there are horror films being made all over the world and some are much more innovative than their American counterparts. France, Japan and Korea were cited as countries producing fantastically creative horror films. American filmmakers with aspirations of distributing their films overseas need to be aware of the competition not just with fellow countrymen, but with foreign talent as well.
Other film distributors are candidly talking about the complete decimation of the market for horror, largely brought on by the internet and piracy, but also a change in consumer habits. Why buy a copy to own of that low grade splatterfest when you can easily stream it (for pay or not) and move on to the next one? More where that came from. There was once big money in fooling audiences to buy a $20 DVD with a good slasher poster and trailer, but now they are wise to the junk vying for their attention and don’t see the need to pay much money for it.
In a talk given last year at the Spooky Empire’s Ultimate Horror Weekend in Orlando, sales agent/distributor Stephen Biro of Unearthed Films actually warned the audience of filmmakers not to get into horror if money was what they were seeking.”The whole system is rigged for the distributors and retailers. You will have to make the movie of a lifetime, something that will stand the test of time.” He confirmed DVD for horror is dead. Titles that might have shipped 10, 000 copies to retailers are now only shipping maybe 2,000. Some stores will only take 40 copies, see how they sell and order more if needed in order to cut down on dealing with returns. Of the big box stores left standing, few are interested in low budget horror titles. Netflix too is stepping away from low budget indie horror on the DVD side. They may offer distributors a 2 year streaming deal for six titles at $24,000 total, but there will be a cost to get them QC’d properly (which comes out of your cut, after the middlemen take their share of course!).
As for iTunes, there are standards barring graphic sex for films in the US and in some countries, they are now requiring a rating from the local ratings authority in order to sell from the iTunes Movie store. The cost of this can run into the thousands (based on run time) per country. Also, subtitling will be required for English language films, another cost.
The major companies in cable VOD (Comcast, Time Warner, Verizon etc) are now requiring a significant theatrical release (about 15 cities) before showing interest in working with a title. They are predominantly interested in titles with significant marketing effort behind them. The cable operators often do not offer advances and you must go through an aggregator like Gravitas Ventures to access. If the aggregator refuses your film, that’s it.
Selling from your own site via DVD or digital through Vimeo or Distrify is still an option, and the cut of revenue is certainly larger. But unless there is a budget and plan in place to market the site, traffic won’t just materialize. Still, for ultra, ultra low budget films (like made for less than $5,000) with a clear marketing strategy and small advertising budget, selling direct is the way to go. Certainly better than giving all rights away for free, for 7 years and seeing nothing. At least your film can access a global audience.
Here is Biro’s talk from Orlando. It runs almost an hour
If after reading this, you are still set to wade into the market with your horror film, stay tuned to future posts looking at the numbers behind some recent horror films and what options you’ll have on the festival circuit.
photo credit: <a href=”http://www.flickr.com/photos/markybon/102406173/”>MarkyBon</a> via <a href=”http://photopin.com”>photopin</a> <a href=”http://creativecommons.org/licenses/by-nc-sa/2.0/”>cc</a>
Sheri Candler October 3rd, 2013
Tags: Andrew Wilson, cable VOD, Distrify, Guts of the Craft, horror films, independent film distribution, iTunes, LA Film School, Netflix, Screen Craft, Spooky Empire's Ultimate Horror Weekend, Stephen Biro, Unearthed Films, Vimeo, Warner Bros, Zero Gravity Management