by Orly Ravid, Founder, The Film Collaborative

Orly Ravid is an entertainment attorney at Mitchell Silberberg & Knupp (MSK) and the founder of The Film Collaborative with 15-years of film industry experience in acquisitions, festival programming, sales, distribution/business affairs, and blogging and advising. She also contributed to the Sundance Artist Services initiative.

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Filmmakers usually think selling their film to distributors means that they will handle the whole release including theatrical, home video, and of course now digital/VOD. One category of distribution that is often overlooked, or not fully understood, however, is educational distribution. It can be a critical class of distribution for certain films, both in terms of reaching wider audiences and making additional revenue. For a certain type of film, educational distribution can be the biggest source of distribution revenue.

What is it?

When a film screens in a classroom, for campus instruction, or for any educational purpose in schools (K-university), for organizations (civic, religious, etc.), at museums or science centers or other institutions which are usually non-profits but they can be corporations too.

This is different from streaming a film via Netflix or Amazon or renting or buying a commercial DVD. Any film used for classes / campus instruction / educational purposes is a part of educational distribution and must be licensed legally. Simply exhibiting an entire film off of a consumer DVD or streaming it all from a Netflix or Amazon account to a class or group is not lawful without the licensor’s permission unless it meets certain criteria under the Copyright Act.

Initially, this was done via 16mm films, then various forms of video, and now streaming. These days, it can be selling the DVD (physical copy) to the institution/organization to keep in its library/collection, selling the streaming in perpetuity, renting out the film via DVD or streaming for a one-time screening, or exposing the content to view and at some point (certain number of views) it is deemed purchased (a/k/a the “Patron Acquisition Model”).

What type of films do well on the educational market?

In general, best selling films for educational distribution cover topics most relevant to contemporary campus life or evergreen issues such as: multiculturalism, black history, Hispanic studies, race issues, LGBTQ, World War II, women’s studies, sexual assault, and gun violence; in general films that cover social and political issues (international and national); health and disability (e.g. autism); and cinema and the arts. A great title with strong community appeal and solid perception of need in the academic community will do best (and the academic needs are different from typical consumer/commercial tastes).

At The Film Collaborative, we often notice that the films that do the best in this space sometimes do less well via commercial DVD and VOD. This is true of films with a more historic and academic and less commercial bent. Of course, sometimes films break out and do great across the board. Overall, the more exposure via film festivals, theatrical, and/or social media, the better potential for educational bookings though a film speaking directly to particular issues may also do very well in fulfilling academic needs.

Sourcing content

Across the board the companies doing educational distribution get their content from film festivals but also simply direct from the producers. Passion River and Kanopy, for example, note that film festival exhibition, awards, and theatrical help raise awareness of the film so films doing well on that front will generally perform better and faster but that does not mean that films that do not have a good festival run won’t perform well over time. Services such as Kanopy, Alexander Press, and Films Media Group collect libraries and get their films from all rights distributors and those with more of an educational distribution focus as well as direct from producers. These services have created their own platforms allowing librarians etc. to access content directly.

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Windowing & Revenue

There are about 4,000 colleges in the US and about 132,000 schools, just to give you a sense of the breadth of outlets but one is also competing with huge libraries of films. Educational distributors such as ro*co films has a database of 30,000 buyers that have acquired at least one film and ro*co reached beyond its 30,000 base for organizations, institutions, and professors that might be aligned with a film. All rights distributors often take these rights and handle them either directly, through certain educational distribution services such as Alexander Press (publisher and distributor of multimedia content to the libraries worldwide), Films Media Group / Info Base (academic streaming service), or Kanopy (a global on-demand streaming video service for educational institutions), or a combination of both. There are also companies that focus on and are particularly known for educational distribution (even if they in some cases also handle other distribution) such as: Bullfrog Films (with focus on environmental), California Newsreel (African American / Social Justice), Frameline Distribution (LGBTQ), New Day Films (a filmmaker collective), Passion River (range of independent film/documentaries and it also handles consumer VOD and some DVD), roc*co films (educational distributor of several Sundance / high profile documentaries), Third World Newsreel (people of color / social justice), Women Make Movies (cinema by and about women and also covers consumer distribution), and Swank (doing educational/non-theatrical distribution for studios and other larger film distributors). Cinema Guild, First Run Features, Kino Lober, Strand, and Zeitgeist are a few all rights distributors who also focus on educational distribution.

Not every film has the same revenue potential from the same classes of distribution (i.e. some films are bound to do better on Cable VOD (documentaries usually do not do great that way). Some films are likely to do more consumer business via sales than rentals. Some do well theatrically and some not. So it is no surprise that distributors’ windowing decisions are based on where the film’s strongest revenue potential per distribution categories. Sometimes an educational distribution window becomes long and sales in that division will determine the film’s course of marketing. But if a film has a theatrical release, distributors have certain time restrictions relative to digital opportunities, so that often determines the windowing strategy, including how soon the film goes to home video.

The film being commercially available will limit the potential for educational distribution, and at the same time, the SVOD services may pay less for those rights if too much time goes by since the premiere. Hence it is critical to properly evaluate a film’s potential for each rights category.

Revenue ranges widely. On the one hand, some films may make just $1,000 a year or just $10,000 total from the services such as Kanopy and Alexander Street. On the other hand, Kanopy notes that a good film with a lot of awareness and relevance would be offered to stream to over 1,500 institutions in the US alone (totaling over 2,500 globally), retailing at $150/year per institution, over a 3-year period, and that film should be triggering about 25% – 50% of the 1,500 institutions. Licensors get 55% of that revenue. On average, a documentary with a smaller profile and more niche would trigger about 5-10% of the institutions over 3 years.

More extreme in the range, ro*co notes that its highest grossing film reached $1,000,000, but on average ro*co aims to sell about 500 educational licenses.

If the film has global appeal then it will do additional business outside the U.S. All rights and educational distributors comment that on average, good revenue is in the 5-figures range and tops out at $100,000 +/- over the life of the film for the most successful titles. The Film Collaborative, for example, can generate lower to mid 5-figures of revenue through universities as well (not including film festival or theatrical distribution). Bullfrog notes that these days $35,000 in royalties to licensors is the higher end, going down to $10,000 and as low as $3,000. For those with volume content, Alexander Street noted that a library of 100-125 titles could earn $750,000 in 3 years with most of the revenue being attributable to 20% of the content in that library. Tugg (non-theatrical (single screenings) & educational distribution) estimates $0-$10,000 on the low end, $10,000 – $75,000 in the mid-range, and $75,000 and above (can reach and exceed $100,000) on the high end. Factors that help get to the higher end include current topicality, mounting public awareness of the film or its subject(s), and speaking to already existing academic questions and interest. Tugg emphasizes the need for windowing noting the need for at least a 6-month window if exclusivity before the digital / home video release. First Run Features (an all-rights distributor that also handles educational distribution both directly and by licensing to services) had similar revenue estimates with low at below $5,000, mid-range being $25,000 – $50,000, and high also above $75,000.

Back to windowing and its impact on revenue—Bullfrog notes it used to not worry so much about Netflix and iTunes because they “didn’t think that conscientious librarians would consider Netflix a substitute for collection building, or that instructors would require their students to buy Netflix subscriptions, but [they] have been proved wrong. Some films are just so popular that they can withstand that kind of competition, but for many others it can kill the educational market pretty much stone dead.” Yet, theatrical release is usually not a problem, rather a benefit because of the publicity and awareness it generates.

Passion River explains that filmmakers should not be blinded by the sex appeal of VOD / digital distribution—those platforms (Amazon, Hulu, iTunes, Netflix) can and will wait for hotter films on their radar. An example Passion River offers is Race to Nowhere which sold to over 6,000 educational institutions by staying out of the consumer market for at least 3 years. This type of success in the educational space requires having the right contacts lists and doing the marketing. But I would say, consider the film, its revenue potential per rights category, the offers on-hand, and then decide accordingly.

Stay tuned for Parts 2 & 3, which will go into the nitty gritty details of educational distribution.

The legal information provided in this publication is general in nature and should not be construed as advice applicable to any particular individual, entity or situation. Except as otherwise noted, the views expressed in this publication are those of the author(s). This alert may be considered a solicitation for certain purposes.

February 18th, 2016

Posted In: Distribution, education, Legal

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This post is part 4 of an ongoing series of posts chronicling how rapid technological change is impacting the exhibition side of independent film, and how this affects filmmakers and their post-production and delivery choices. The prior three can be found at the following links: January 2013August 2013October 2014

DCPs can be proprietary hard drives. Alternatively (not shown), then can look virtually identical to external hard drives

When I started this series back in 2013, a fairly new exhibition format called DCP was starting to significantly impact independent exhibition and distribution, and I was very afraid. I was sure that the higher costs associated with production, the higher encryption threshold, and the higher cost of shipping would significantly impact the independents, and heavily favor the studios.

Flash forward to today, and of course DCP has taken over the world. And thankfully we independents are still here. Don’t get me wrong…I still kinda hate DCP…especially for the increased shipping price and their often bulky complicated cases and how they are so easily confused with other kinds of hard drives…but they are a fact of life that we can adapt to. Prices for initial DCP creation have dropped to more manageable rates in the last two years, and creating additional DCPs off the master are downright cheap. And most importantly, they don’t fail nearly as often as they used to…apparently the technology and our understanding of it has improved to the point where the DCP fail rate is relatively similar to every other format we’ve ever used.

While DCPs rule on the elite level….at all top festivals and all major theatrical chains…filmmakers still need to recognize that a wide array of other formats are being requested by venues and distributors every day. Those include BluRays, ProRes Files on Portable Hard Drives, and, most significantly, more and more requests for downloadable files from the cloud.

To track the evolution of formats over the last two years, please refer to the booking charts of Film Collaborative films below. Of the many things that The Film Collaborative does, one of our core services is booking our clients’ films in public venues all over the world – including everything from film festivals, traditional theatrical venues, universities, art galleries, etc. October is always the busiest month of the year…as it is the month of the year with the most film festivals. By comparing the last three Octobers, we can see quite clearly how venue deliverables have changed over the last two years.

Quick observations of the above include:

  • Bluray use for exhibition has remained relatively constant over the last three years in terms of total Blurays used, although its percentage rate has declined by about 23% from last year.
  • DCP use for exhibition has increased from 6.1 percent in 2013 to 31% in 2014 to 39% in 2015. It should be noted that the vast majority of high-end bookings such as top festivals or top theatrical chains require DCP now, and the vast majority of Bluray bookings are at the smaller venues.
  • Digital tape formats, such as HDCAM and Digibeta, have entirely disappeared to 0. As we said in our last post to this effect….stop making these entirely!
  • Requests for Quicktime files on hard drive format are on the rise…and the only reason their numbers above seem so low is because we resist booking them whenever we can—because they are an additional cost. So the 8 listed for October 2015 means in those cases we determined we had no other choice. We should discuss this further in this post.
  • For the first year ever, our company is now offering downloadable vimeo links to festivals to show the film from electronic files delivered over the internet. This is a radical direction that has much to be discussed, and we shall do so later in this post. To date we are only offering these in extraordinary situations….mostly for emergency purposes.

While DCP is certainly the dominant format at major venues for now and the foreseeable future, I still maintain my caution in advising filmmakers to make them before they are needed. Nowadays, I hear filmmakers talk about making their DCP master as part of their post process, well before they actually know how their film will be received by programmers and venue bookers. Lets face it, a lot of films, even a lot of TFC member films, never play major festivals or theatrical venues, and their real life is on digital platforms. Remember that DCP is a theatrical format, so if your film is never going to have life in theatrical venues, you do not need to spend the money on a DCP.

If and when you do make your DCP(s), know that DCPs still do on occasion fail. Sometimes you send it and the drive gets inexplicably wiped in transit. Sometimes there is a problem with the ingest equipment in the venue, which you can’t control. Film festivals in particular know this the hard way….even just a year ago DCP failure was happening all the time. A lot (most) festivals got spooked, so now they ask for a DCP plus a Bluray backup. That can be a significant problem for distributors such as TFC, since it can mean multiple shipments per booking which is expensive and time-consuming. However for individual filmmakers this should be quite do-able….just make a Bluray and a DVD for each DCP and stick them in the DCP case so they travel with the drive (yes I know they will probably eventually get separated…sigh). And the Golden Rule remains….that is never ever ever travel to a festival without at least a Bluray and a DVD backup on your person. It never ceases to amaze me how many (most) filmmakers will fly to a foreign country for a big screening of their film and simply trust that their film safely arrived and has been tech checked and ready to go. If your DCP fails at a screening that you are not at…well that sucks but you’ll live. If you travel to present your film at a festival and you are standing in a crowded theater and your film doesn’t play and everyone has to go home disappointed, that, in fact, is a disaster.

As mentioned previously, more and more venues that cannot afford to upgrade to DCP projection are choosing to ask for films to be delivered as an Apple ProRes 422 HQ on a hard drive. Since this is not a traditional exhibition format, a lot of filmmakers do not think they need to have this ready and are caught unawares when a venue cannot or will not accept anything else. At The Film Collaborative, we keep a hard drive of each of our films ready to go at our lab…as mentioned we do not prefer to use them because of the extra shipping cost (DCPs are trafficked from festival to festival so at no shipping cost to us, while hard drives are not used often enough to keep them moving like this). However we do find we often need them in a pinch. So do keep one handy and ready to go out. This should not be a big deal for filmmakers, since the Apple ProRes 422 HQ spec is the most important format you’ll need for nearly all types of distribution deliveries, whether it be to distributors or digital aggregators or direct to digital platforms. So, if you plan to have any kind of distribution at all, this is a format you are almost certainly going to need. Make a couple to be safe.

Is the Future in the Cloud?

As I have touched on before, the Holy Grail of independent film distribution would seem to live in the cloud, wherein we could leave physical distribution formats behind and simply make our films available electronically via the internet anywhere in the world. This would change the economics of independent film radically, if we could take the P out of Prints & Advertising and save dramatically on both format creation and format shipping. Unfortunately today’s reality is far more complicated, and is not certain to change any time soon.

I can’t begin to tell you how often…nearly every day…small festivals looking to save on time and shipping will ask me if I can send them the film via Dropbox or WeTransfer or the like. The simple answer is no, not really. So every time they ask me, I ask them back…exactly how do you think I can do that? What spec do you need? What is the exact way you think this can work? And they invariably answer back…“We don’t know…we just hoped you’d be able to.” It is utterly maddening.

Here’s the tech-heavy problem. Anyone can get a professional-sized Dropbox these days…ours is over 5,100 gigs (short for Gigabytes, or GB) and an average 90 minute Apple ProRes 422 HQ is around 150 gigs…so that doesn’t seem like a problem. Clearly our Dropbox can fit multiple films.

The current problem is in the upload/download speed. At current upload speeds, a Apple ProRes 422 HQ is going to take several days to upload, with the computer processing the upload uninterrupted all the time (running day and night). Even this upload time doesn’t seem too daunting, after all you could just upload a film once and then it would be available to download by sending your Dropbox info. However, the real problem is the download…that will also take more than a day on the download side (running day and night) and I have yet to ever come across a festival or venue even close to sophisticated enough to handle this. Not even close. Think of the computing power at current speeds that one would need to handle the many films at each festival that this would require. And to be clear, I am told that WeTransfer is even slower.

To make this (hopefully) a little clearer…I would point out four major specs that one might consider for digital delivery for exhibition.

  1. Uncompressed Quicktime File (90 mins). This would be approx. 500 gigs. Given the upload/download math I’ve given you above, you can see why 500 gigs is a non-starter.
  2. Apple ProRes 422 HQ (90 mins). Approx 150 gigs. Problematic uploaded/download math given above. Doesn’t seem currently viable with today’s technology.
  3. HD Vimeo File made available to download (90 mins). Approx 1.5 – 3 gigs. This format is entirely doable—and we now make all our films available this way if needed. This format looks essentially the same as Bluray on an HD TV, but not as good when projected onto a large screen. This can be instantaneously emailed to venues and they can quickly download and play from a laptop or thumb-drive or even make a disc-based format relatively inexpensively. However, there are two major problems…a) most professional venues that value excellent presentation values and have large screens find this to be sub-par projection quality and b) this is a file that is incredibly easy to pirate and make available online. For these reasons, we currently use these only for emergency purposes…when we get last minute word that a package hasn’t arrived or an exhibition format has failed. It is quite a shame…because this is incredibly easy to do, so if we could find the right balance of quality and security…we would be on this in a heart-beat.
  4. Blu-Ray-Quality File (Made available via Dropbox)(90 mins). This spec would be just around the same quality as a Bluray (which is quality-wise good enough for nearly all venues) and made available via Dropbox or the like. It is estimated that this file would be around 22 – 25 gigs. This would be slow, but potentially doable according to our current upload/download calculations. This is the spec we at TFC are currently looking at…but to be clear we have NOT ever done this yet. Right now it is our pipe dream…and our plan to implement in 2016. I will follow up on this in further posts!

To conclude, where we stand now, we have yet to find a spec that is reasonably made available to venues via the internet, both in terms of quality and safety protocols…but a girl can dream.

It is critical to note that the folks I am talking to recently are saying this may NOT change in the foreseeable future…because internet speeds worldwide might need to quintuple (or so) in speed to make this a more feasible proposition. Nobody that I know is necessarily projecting this right now. And that’s a sobering prospect that might leave us with physical deliverables for quite a while now. And for now, that would be the DCP with Bluray back-up. If this changes, you can be sure we will write about it here.

But hey, maybe that Quantum Computer I’ve heard about will sudden manifest itself? Gosh, that would be cool. In the meantime…how about a long-range battery that runs an affordable electric car and is easy to recharge? That would be super cool too. We can save the world and independent film at the same time.

In the meantime…if you think I am missing the point on any of the nerdy details included in this post, or you know anything about how digital delivery of exhibition materials that I might have missed, please email me. Trust me….we want to hear from you!

November 24th, 2015

Posted In: Digital Distribution, Distribution, Film Festivals, Theatrical, Uncategorized

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Dear Filmmakers of the World,

I write to you to ask: what do you need, what do you want?

For five years The Film Collaborative has been excelling in the film festival distribution arena and education of filmmakers about distribution generally and specifically as to options and deals. TFC also handles some digital distribution directly and through partners. And we have done sales though more on a boutique level and occasionally with partners there too, though never for an extra commission. You know how we hate extra middlemen! We even do theatrical, making more out of a dollar in “P&A” than anyone and we do a really nice job TFC has a fantastic fiscal sponsorship program giving the best rates out there.

TFC published two books in the Selling Your Film Without Selling Your Soul series and we are probably due to write a third, detailing more contemporary distribution case-studies. I got a law degree and am committed to providing affordable legal services to filmmakers and artists, which I’ve started doing.

We have never taken filmmakers rights and find that most filmmakers are honorable and do not take advantage of that. We trust our community of filmmakers and only occasionally get burned. And we have accounted without fail and paid every dollar due. No one has ever said otherwise. We do what we say we’re going to do and I am so proud of that and so proud of the films we work with and the filmmakers in our community.

So, now what? What do you, filmmakers of the world, want more of? What don’t you need anymore?

Personally, I find it staggering and sad how much information is still hidden and not widely known and how many fundamental mistakes are made all the time. Yet, on the other hand, more information is out there than ever before and for those who take the time to find and process it, they should be in good shape. But it’s hard keeping up and connecting-the-dots. It’s also hard knowing whom to trust.

TFC continues to grow and improve on what it excels at, e.g. especially festival/non-theatrical distribution. We’ve got big growth plans in that space already. My question to you is, do you want us to do more Theatrical? Digital? Sales? All of it? More books? What on the legal side? Please let us know. Send us an email, tweet, Facebook comment, a photo that captures your thought on Instagram, or a GoT raven. I don’t care how the message comes but please send it. We want to know. TFC will listen and it will follow the filmmakers’ call.

We’re delighted to have been of service for these last 5 years and look forward to many more. The best is yet to come.

Very truly yours,

Orly Ravid, Founder

p.s. our next new content-blog is coming soon and will cover educational distribution and copyright issues.

July 29th, 2015

Posted In: Distribution, education, Film Festivals

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We thought we’d start off 2015 with a bit about digital platforms that filmmakers can utilize directly, without giving rights to a distributor and without necessarily having to go through an aggregator. When I say “platform,” what I mean is a place on the Internet that film viewers would go to consume cinema. While filmmakers are always encouraged to distribute off their own websites and social media pages, that is not the subject of this blog. To accomplish DIY off the film’s site and social media pages, filmmakers are encouraged to work with Distrify or VHX, for example. For now we cover the following distinct platforms that filmmakers can directly access: MUBI, FANDOR, VIMEO, WOLFE ON DEMAND, and DOCURAMA (just a tad, and more will be discussed in a few weeks).

MUBI

mubi.com

mubi

MUBI is a curated video-on-demand subscription service.

MUBI describes its offering as a hand-picked selection of the best cult, classic and award-winning films from around the globe. “Every day MUBI’s in-house film experts select a great new film and you have 30 days to watch it. So there’s always 30 brilliant films to enjoy. We have a huge audience of passionate cinephiles from every corner of the planet who watch, rate, review and share great cinema.” See more at mubi.com/about.

Q: How film viewers can access it?

The service is the only subscription service available worldwide (193 territories). So whether you are in Venezuela or Vancouver you’ll be able to experience a beautiful collection of 30 hand-picked films. MUBI works on the web, mobile devices, internet-connected TVs and games consoles. On MUBI’s mobile apps you can download films and watch offline.

Financial model of platform How audiences pay (if at all) and how do filmmakers make money:

MUBI brings one new film to the platform every single day. Each film plays on the platform for a 30-day window. Revenue is split 50/50 with the filmmaker (or whomever is the rights holder) based on views over the 30-day run. A MUBI membership costs around $4.99 USD in most countries for a month or £2.99 in the UK or €4.99 in the EU.

Deals Offered to Filmmakers:

MUBI typically licenses films for a 2-year period, non-exclusive. They license by territory, but also do global deals or groups of territories.

How Films Get Onto MUBI:

MUBI takes films directly from filmmakers and also from studios, distributors and aggregators.

Q: What does your company do to drive audiences / consumers to this platform?

“Beyond the normal channels (digital, social, offline) we work in partnership with festivals and organisations [organizations] like Cannes, Berlinale, MoMa, AFI, Lomokino, Picturehouse Cinemas, we curate seasons and retrospectives, host screenings, run events… the list goes on! Also, in the UK (one of our focus countries) we have a mutli-level advertising campaign launching in 2015.”

Revenue ranges:

[This question is almost never answered by any businesses so don’t hold it against MUBI for not answering.]

Speaking from experience, however, we at TFC have enjoyed seeing hundred of dollars that eventually added up to some small version of thousands for a film that did not do better business anywhere else. In fact, I would say MUBI was a source of revenue that was particularly useful for a smaller art house film that would not be sought out on the more commercial platforms such as iTunes.]

What MUBI does to market films:

“We have huge communication channels offline and off. When a title is selected as the ‘film of the day’ all these channels are directed towards promoting that film. The difference with MUBI, for the filmmaker, is that instead of your film sitting in a library of a thousand films, your film is one of just thirty. Every day we send out a dedicated ‘Film of the Day’ email to hundreds of thousands of people globally, the email features “Our Take” – the reasons why we selected the film and why it’s worth watching. We build editorial context around films rather than leaving them fighting alone. We run one of the most respected online sources for film criticism, Notebook. So if your film is on MUBI it’s less about creating a long-term revenue stream and more about exposure for the film in a targeted, well-contextualised burst which can be a great complement to (or continuation of) a theatrical or DVD release. A film is on MUBI for 30 days but for those 30 it is the centre of our attention. It works for the audiences and filmmakers alike, great films can find people that want to watch them.”

Special initiatives MUBI has brewing (this is from December 2014):

“In the UK we’re currently showing a Godard retrospective, and right now in the US we have a Joe Swanberg double bill.”

New from MUBI: iPad and iPhone App

Follow MUBI on Facebook: facebook.com/mubi
Follow MUBI on Twitter: twitter.com/mubi

FANDOR

fandor.com

fandor

Fandor can be accessed via apps available through iTunes (iPhone, iPad) and Google Play (Android phones and tablets including Kindle Fire), and as a channel on Roku.

Fandor offers an extensive and rich library of over 6000 films, from around the world, in over 500 genres, and of all lengths, handpicked for people who love the transforming experience of great cinema. Fandor fulfills the promise of an online cinematic experience, marrying curation with contextual information for a global community of film lovers and filmmakers.

Fandor Availability / Accessibility:

Fandor is available in the US and Canada, accessible anytime to subscribers.

Financial model of platform—How do audiences pay (if at all) and how do filmmakers make money:

Fandor members subscribe on an annual ($90) or a monthly ($10) basis. Both subscription types offer a 2-week free trial. Subscription revenue is shared, with 50% going to the film rights holders, divided based on availability and audience viewership.

Deals Given to Filmmakers:

Because our model is a revenue share, the amount that filmmakers earn will vary based on viewership. 20% of the shared revenue is split among all films on the platform; the remaining 80% is allocated based on seconds of viewing to individual films.

Fandor Gets Films Direct From Filmmakers And Distributors:

Fandor has partnerships with hundreds of distributors and approximately 125 filmmakers (direct).

What Fandor does to drive audiences / consumers to its platform:

“We have an extensive marketing program that includes advertising, social outreach to over 160K fans, public relations, personalized email and integrated promotional campaigns. We also have a network of 4 blogs that addresses Fandor customers (The Fandorian), film aficionados (Keyframe), the film industry (Hope for Film), and filmmaker-to-filmmaker (Hammer to Nail).”

Fandor’s response to our request to share revenue ranges for films on its platform:

“We’re a private company and typically don’t share our financials and membership data.”

Special initiatives Fandor has brewing:

“We have two initiatives currently targeted to film festivals (Fandor|Festival Alliance) and to filmmakers (FIX). These initiatives are part of a larger effort to build relationships across the film world as part of a larger mission to advance and preserve film art and culture.”

See the release explaining these…

An example of a Fandor marketing campaign:

“Probably the best example is the Shocktober campaign we did for October. We showcased a different horror film each day through the month of October. The campaign was integrated across our ads, our website, our social networks, and email. We also did two video trailers. I’ve attached a .gif we used for social and email, and following are links to the videos. The campaign culminated in a day/date release of the remastered THE CABINET OF DR CALIGARI on Halloween.”

fandor_gif

The Sin Within
Stranger Danger

VIMEO ON DEMAND

Browse available films and shows at vimeo.com/ondemand
Sign up vimeo.com/creatorservices/ondemand

vimeo

Vimeo allows one to distribute films, series, and videos with all the power of Vimeo, its community, and its legendary

HD player. Anyone can use Vimeo On Demand – from established and first-time filmmakers to creators of video tutorials or video performances. “Vimeo On Demand helps creators distribute feature films, documentaries, series, episodes, TV shows, instructional videos, and more. It puts all the control in the hands of creators, who can choose to offer buy and rent options at their own prices, sell on Vimeo and their own website, worldwide or in select countries.”

Accessibility:

Vimeo On Demand is available worldwide and allows viewers to watch films on pretty much any screen, from computers and tablets to connected TVs, all in full HD (even 4K!). Vimeo On Demand is a global, open platform where any filmmaker can sign up and start selling their videos.

Financial model of platform:

Vimeo On Demand offers creators the ability to sell their movies to rent or own. “Viewers pay by credit card or PayPal. Creators earn 90% of the net revenue from every sale—which is the best deal in the film business!”

Direct-to-Filmmaker Distribution:

Vimeo accepts films first-time filmmakers and distributors.

Q: What does your company do to drive audiences / consumers to Vimeo?:

“Vimeo has 170 million monthly visitors and more than 30 million registered users. We regularly promote curated selections of movies from Vimeo On Demand to this massive audience on-site, via email and on social media. We also have ongoing paid marketing campaigns and publisher partners working to bring viewers to Vimeo On Demand.”

Revenue:

“Vimeo On Demand has been proud to power some of the most successful direct distribution releases ever. We are not allowed to share our users’ revenue data.”

What Vimeo does on marketing front for its films:

“Our Audience Development team is actively working to market films via our own platform as well as through digital advertising, social media marketing, and a growing list of publisher partners. Vimeo On Demand is the only direct distribution platform that brings a built-in audience and markets films on the platform.”

[NOTE: My colleague David Averbach has informed me that there is a way, for filmmakers who are allowed to offer VOD off their film’s website, but not other external sites, to hide Vimeo On Demand videos from vimeo.com.]

WOLFE ON DEMAND

WolfeOnDemand.com

wolfe_on_demand

The worldwide LGBT digital movie-watching platform!

Accessibility / Availability:

The platform showcases more than 150 films, more than 100 of which are available worldwide.

Financial model:

TVOD (Transactional Video on Demand via Internet) and Streaming (rental)
$3.99 streaming and $14.99 download for features.
$2.99 streaming and $9.99 download for docs.

Revenue to Filmmakers:

WOD split is 50/50. Wolfe have also entered into a strategic relationship with Vimeo and WOD will soon live on their platform. Wolfe’s site is powered, in part, by Distrify which takes a cut of revenues, as will Vimeo. Wolfe also notes that the partnering with Vimeo will also involve additional marketing opportunities.

Direct with Filmmakers and Distributors:

“We work with all kinds of filmmakers directly as well as distributors.”

Q: What does your company do to drive audiences / consumers to this platform?:

“Wolfe has been in the business of releasing LGBT films since 1985. With 30 years in the business we have the experience, relationships community good will and connections to help connect films with the audiences who want to see them. We utilize our mailing lists, social media, advertising, PR, community outreach and creative marketing as well as a wide array of other marketing tools and strategies. Wolfe’s strength is in consumer marketing. We dedicate considerable resources to unique programs domestically and abroad to drive traffic to WolfeOnDemand.com.”

Revenue Ranges:

[Like the others, Wolfe did not disclose.]

Special initiatives Wolfe has brewing:

Yes, stay tuned for some exciting news to be announced in late January 2015.

DOCURAMA

docurama.com

docurama

We’ll be covering this one in a few weeks as information is being updated…

As the name suggests, this platform focuses on documentaries.

The channel is available on iOS, Roku, XBox, Amazon Fire, Western Digital, Opera, to name a few.

We will send proper information about Docurama in a few weeks. For now, TFC recommends working directly with these platforms when they are a fit for your film. We will update about other platforms as we learn of them, if we think they are worthy of focus.

Happy direct digital distribution,

The Film Collaborative

January 14th, 2015

Posted In: Digital Distribution, Distribution Platforms, DIY, Vimeo

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As 2014 draws to a close TFC reflects on five (5) film distribution lessons from 2014 in anticipation of our 5th Anniversary at Sundance 2015.

1) DIGITAL TECHNOLOGY POSITIVELY IMPACTING FESTIVAL & OTHER PUBLIC EXHIBITION DISTRIBUTION BY REDUCING COST AND HEADACHE:

As we have seen every year for several years now, we are experiencing additional technological revolution that will change our business forever. In 2014, we said adieu to the preview DVD (for festivals, distributors, exhibitors, press etc.) in favor of the online screener link. We said goodbye to the HDCAM and the final nail in the coffin of the Digibeta. We struggled with the problems of the DCP and all its imperfections and inevitability (at least for a few more years). And we are RIGHT ON THE VERGE of the greatest evolution we will experience in recent years, which will be full delivery of films for exhibition via the Internet…whether it turns out to be Vimeo or Drop Box or iCloud or other. If we can remove the SHIPPING part of the independent film business, filmmaker (and distributor) profits may greatly increase without that part of the equation. We are almost there now…

2) THE HARD-TO-ACCEPT REALITY OF MARKETING SMALL FILMS:

As much as all of us at TFC have talked about the need to identify and target niche audiences, the ones who would be the most interested and excited to see a project because it speaks to a belief or lifestyle or cause, most indie filmmakers still aren’t heeding this advice. Of the consultations I had this year, most were with filmmakers who made micro-budget dramas with no notable names and were without prestigious festival accolades. They still believed a distributor would be willing to take on their project and give it a full release. Even those who realized this wasn’t going to happen found the financial burden associated with the kind of release they envisioned too difficult to bear, especially because they were likely to never see that money again (hence why distributors weren’t willing to take on the burden).

If you’re going to work small, you need to think small, but deep. You NEED a small, but highly passionate audience that you can reach given the resources and assets you have. Their enthusiasm will help you if you can harness their attention early on. I won’t say this is easy, but before you embark on a project that could take thousands of dollars and years of your life, first think about how you will approach the audience for your work and how you will maintain it on a consistent basis. If you think someone else is going to take care of that for you, you haven’t been paying attention to the shifts in the indie film marketplace.

If you think someone else is going to [attract and maintain a niche audience] for you, you haven’t been paying attention to the shifts in the indie film marketplace.

3) WHEN BROADCASTERS WANT STREAMING RIGHTS – WHAT TO DO?:

Increasingly, broadcasters are seeking streaming rights along with traditional TV broadcast rights and they have holdbacks on streaming and SVOD at a minimum, and often on transactional digital (DTO/DTR) too. For sure they limit / prohibit cable VOD. As a filmmaker, you only have leverage to demand a higher licensing fee if your film is a hot commodity. Otherwise, while online (or in-app) streaming will possibly gut your transactional VOD sales, you can’t beat the reach a broadcaster can give to your film. Think very hard about turning down a broadcast deal that includes online streaming. Will your iTunes/Amazon/Google Play sales really be so much if very few people have heard of your film? iTunes and Amazon are not going to promote your film like a broadcaster would.

Then again, which broadcaster is it? How big is its reach? How much publicity and marketing will you get? How much digital distribution are you barred from and for how long? Not all types of films make the same money on all types of platforms so does your film demand-to-be-owned? or is a renter, at best. Not all platforms will even accept all films (e.g. all Cable VOD, Sony Playstation, Netflix). Is yours one that will digitally succeed broadly or narrowly, or at all? Will Netflix pay 6-figures like in the good ole days or a lot less, or anything? Do you have a direct-to-fan distribution strategy that you can employ in tandem so as to not need to rely on other digital platforms in the first place?

Or if you want to try it all, still, your strategy would privilege the direct sales anyway. Which is better for your goals, a film that gets national broadcast airings or a film that turns down that opportunity only to be buried in the iTunes store? Or would it not be buried? Only you can answer this as not everyone’s goals are the same and not everyone’s opportunities / potentials are the same. As we have always said, knowing your film’s ACTUAL potential and combining that with your HIERARCHY OF GOALS will help you answer these questions and decide your distribution strategy.

And while it may feel like you are giving up revenue by allowing your film to be streamed (hopefully for a limited time!) through a broadcaster’s portal, you may find this is a good career move for your next feature because people will be familiar with your work having had the opportunity to see it.

4) THE HEAVY BURDEN OF THE NARRATIVE WITH NO NAMES:

Several of us opined about the challenges facing narratives with no names.

The emerging mega strength of incredible television series available everywhere threatens narrative film even more than before, and of course, especially the smaller indie fare.

We have seen time and again how narrative dramas or comedies almost always fall flat in sales unless they have very strong names and not just C-list or B-list names. Of course there are exceptions to this rule and Sundance can be part of that, or a hot director, or simply just an exceptional break out film. But too many filmmakers look to those as the model when they are the anomaly. The pattern we, at TFC, see repeated too often is the making of a decent or good but not exceptional narrative with names that are okay but not great and then wasting time trying to make a big or even medium sale. It just does not happen. Money and time are lost and careers often not made. Again, there are exceptions, and of course certain niches such as LGBT may be one of them, but we advise discerning between passionate optimism and sheer folly.

5) TRANSPARENCY—The Kale of Film Distribution:

The big takeaway from 2014 about TRANSPARENCY is that, on the one hand, it has become a sort of new, hip standard—something cool and good, like eating kale—that more honest distributors practice and/or shadier ones pretend to because it’s more expected. On the other hand, however, we were surprised at how many filmmakers still resist it—resist sharing their data, even anonymously. And to that, all we can ask is, what are you afraid of? It’s meant to be good for the filmmaking community as a whole but maybe individually folks are scared about what the truth will bring. And some folks just want to eat bacon. We get it. Still, we encourage sharing the real data for the greater good and we will keep on working to inspire and facilitate more TRANSPARENCY.

We at TFC wish you and yours a delightful new year and we are looking forward to being even more of service to filmmakers in 2015!

December 29th, 2014

Posted In: Digital Distribution, Distribution, DIY, Marketing, Uncategorized

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A knockout victory

The Toronto International Film Festival (TIFF) is just behind us and films submitted for Sundance are a month away from their acceptance call. While the difference between Toronto/Sundance and SXSW/Tribeca is pretty clear, what separates Toronto from Sundance might surprise you.

I looked at the data from the last two year’s of each festival and came up with one big conclusion. Sundance is the bigger festival for North American distribution on just about every measurable level I could come up with.

How could this be? Toronto is the more mainstream fest, right? Not so much.

Let’s start with some comparative info that would clearly skew things in Toronto’s favor:

-62.5% of films from TIFF 2013 have US distribution

-81.3% of films from SUNDANCE 2014 have US distribution (and remember this was accomplished in 9 months compared to TIFF’s 13 months)

But what about the box office performance?

Sundance has a higher percentage of films that grossed over $1 Million, $500,000, and $100,000 than TIFF. This is including non world premiere films which would give TIFF an advantage.

But what about the size of the deals? Isn’t TIFF where the big money is? Hardly

11 films from TIFF 2014 generated 7 figure deals, 11 films from TIFF 2013 did the same. The difference is TIFF screens 2.5x as many films. Even eliminating the # of films with US distribution before TIFF started and cutting out foreign language films, producers were still twice as likely to get a seven figure deal at Sundance.

tiff vs sundance

The Documentary King

TIFF is a much more diverse slate, but sorely lacking in docs. Roughly 1/3 of Sundance films are documentaries, while only about 1/10 of TIFF films are. Even then, docs were more likely to get distribution out of Sundance than TIFF and by a very wide margin. 90% vs 52%. The majority of docs that made the Oscar shortlist came from Sundance, as have a majority of nominees in the last five years.

Foreign Language Problem

In contrast to their #1 status as a place to launch documentaries, Sundance’s World Cinema lineup is far from a sure bet.

While only 41% of Sundance 2014 World Dramatic films have US distribution, that percentage is still higher than foreign language films that screened at TIFF. The % is higher even if we include all foreign language films and not just world or international premieres at TIFF. So even in Sundance’s weakest area your odds are still better than at TIFF.

That all noted, TIFF receives some high profile foreign language films that will ultimately generate bigger deals and make a dent in the US box office, but those are few and far between in an already very unprofitable arena.

So What Does a TIFF Screening Mean? 

TIFF does two things that Sundance does not. It functions as a worldwide market and it is a frequent must for awards buzz films.

Sundance films do better on a domestic level. TIFF films are more likely to generate some form of worldwide interest and the majority of major worldwide players are in attendance.

Sundance has an international presence, but nothing on the same level of going into the Hyatt and taking the United Nations tour of film booths.

Sundance also doesn’t take studio films, which TIFF does. I would argue this is part of the problem TIFF films face. The competition for attention is so much higher with studio films in the mix that many simply get lost in the shuffle.

The DIY Mindset

In the age of DIY options at very low cost, one has to wonder why so many films at TIFF didn’t take advantage of Vimeo’s $10k offer in 2013. In fact, 55 world premieres still lack US distribution, which means with 100% certainty they turned down $10k to chase a pipe dream of success.The worldwide sales agent aspect at TIFF makes it a lot harder to discuss DIY options, but things are slowly starting to change.

This year was the first time multiple filmmakers were willing to openly discuss DIY options for release with me during the fest.

Sundance has their Artist Services program and some very notable DIY success stories (Detropia, Indie Game: The Movie, Upstream Color etc). But the biggest difference is Sundance is early in the year. There are tons of festivals left with which to build exposure going into release.

While it is almost always advisable to hit the festival circuit running, if one didn’t do that at Sundance, it’s easier to rev up the process than at TIFF when the year is nearly finished. If you don’t pursue additional festival screenings right away, your film would play TIFF and not screen anywhere until the following year. Remember there aren’t a lot of festivals in November/December. By that point people have moved onto Sundance and don’t even remember what they saw at TIFF.

The Take Away

Don’t buy into the hype about a festival without carefully looking at the info. While many Oscar winners have come from TIFF, the stats don’t lie. For domestic success, your odds are better with Sundance. This doesn’t make TIFF a bad festival, it’s easily the 2nd best launch pad in North America, but it’s important to know that your film is more likely to get a distribution deal out of Tribeca than TIFF if you have a documentary.

The consensus from this year’s TIFF was that there weren’t too many hidden gems, but with 288 features would any of us even know? At a certain point size is a liability and I think that TIFF needs to shrink its slate or get more creative when it comes to highlighting world premieres without big names.

Reminder: EVOLUTION OF A CRIMINAL & THE CIRCLE

The Spike Lee executive produced Evolution of a Criminal opens in NYC Friday October 10th at IFC Center. They are also crowdfunding to support their nationwide theatrical release. https://www.kickstarter.com/projects/948417025/evolution-of-a-criminal-theatrical-release

In partnership with Wolfe Releasing, TFC Direct will be theatrically releasing Switzerland’s Oscar entry, The Circle. It opens November 21st in NYC and will be expanding through beginning of 2015.

 

October 9th, 2014

Posted In: Distribution, DIY, Film Festivals, Publicity

Tags: , , , , , , , ,

I’m back to blogging after a long (2 years!) hiatus in law school and the first thing I want to discuss is something that frustrates us about the filmmaker consultations we give. At The Film Collaborative (TFC), it is shocking how much of what we said 5 years ago when we first started the company and what we continue to say over and over again has not trickled down and stuck to filmmakers.

While we like to think that we are changing minds and getting filmmakers to be more proactive about making their own decisions regarding distribution of their films, sadly, this doesn’t seem to be the case in the majority. The same issues keep coming up (no you probably won’t be getting a 7 figure deal for distribution…no your film is not a fit for Sundance…no you shouldn’t just sign any deal that slides across the table).

Maybe you’re afraid of letting go of the notion that your job is only to make a good film and someone will buy it for big sums and you can move on fast to your next film.

Maybe you’re worried that if you cannot look an investor in the eye and say that the odds of selling and making all the film’s money back within a year or two are good, you won’t be able to make films.

Maybe you aren’t actually following any of the information currently coming out of every festival panel and industry publication about how the distribution world stands today.

But that doesn’t mean new information isn’t available and the independent film world still works like it did in 2008.

This is information we analyze daily at TFC. Clinging to the old mythology just makes it easier for distributors to cling to non-transparency in how money is made in distribution and it’s all a vicious and unsustainable cycle. You need to know the real story on how deals are structured now, what kinds of revenue is being recouped and why, and what role audience data plays in the continuation of your filmmaking career. This is not some 90’s pipe dream of make a film, reap immediate millions.

In law, they call that “willful blindness” where a person seeks to avoid liability for a wrongful act by intentionally putting his or herself in a position where he or she will be unaware of facts that would render him or her liable. It’s not pretty to see, especially after all this time of talking about properly laying ground-work for self financed distribution. It has to stop and it will eventually because someone who is willfully blind won’t be working as a filmmaker for much longer.

Of course it’s not all about money, it’s also about building your audience and having your film seen and developing your career.  These are actually all quite connected, much more often than not.

Here’s a list of things we have been saying for years and keep saying. Please let this stuff stick, it’s good for you! And the more people practice it, the healthier this will be for artists and for the business in general.

Top 15 mistakes made by filmmakers that shouldn’t keep happening are:

Making a horror film and only start thinking in August about how to release it by October of the same year. If you are planning a digital release, you need about a 4-6 month lead time.

Not building community around your film until after you premiered it at a festival (or worse, completed the circuit) such that then you squandered opportunities to build buzz, demonstrate and test audience appeal, and build awareness and marketing or organizational partnerships for future release before your buzz is gone.

Not clearing music rights believing that your distributor will be happy to pay for clearance. Profit margins are already slim for distributors, so they aren’t going to outlay for this expense. Plus, it makes you look unprofessional and extremely misinformed if you don’t have all of your clearances. Plan to work with a music supervisor.

Stealing money from your marketing and distribution budget to feed your production budget even though both are needed. In fact, if you can’t market and distribute your film, you probably shouldn’t even make it. Stop with assuming you won’t need to market and distribute your film. You will at least need to build up some kind of audience awareness and it will be smart for you to start getting immediate revenue from direct distribution.

Making your first documentary largely out of stock footage, which is probably the most expensive kind of documentary you can make. Stock footage is expensive to clear and if you have no track record of success in filmmaking, it is better to steer clear of making an expensive film as your first attempt.

Making a film with no notable names, no clearly identifiable audience, and no plan for how to distribute or market the title. This is an especially bad idea if you were planning to have someone else buy it and distribute it because it has virtually no market value.

Relying on box office gross as an indicator of the commercial success of a film, and using those numbers for the business plan of your film. Box office revenue is only top line revenue, not net revenue and certainly not an indicator of profit.

Believing that MGs in the 6-7 figure range are common for films without A-list talent. Read the trades after a major festival or film market and see what MGs are paid and for what level of talent in the film. If you don’t have this level, you aren’t getting that MG.

Skipping taking good photography on set and thinking frame grabs of the cast and crew will cut it when formulating key art and meeting deliverable requirements from buyers. Here is our post on what is needed for making key art. Still images are absolutely imperative to film sales and film promotion, but also to populate social media channels. Don’t skimp on photography.

Having a 4-minute trailer.  Really? Please don’t. Also related, letting your intern or the editor of your film cut your trailer. Please hire a professional trailer editor because it is that important to gaining audience interest in seeing your film.

Forgetting that artwork on digital platforms is small, not theatrical poster size. It demands clear imagery with no extra text (laurels, URLs, credit block, rating etc).

Conflating “distributor” with “aggregator” and even with “platform” – they are different, the deals will be different, your expectations should be different, etc.  This leads filmmakers to make bad or incomplete decisions. See our post on distribution terms.

Many filmmakers drastically “overthink” their festival strategy, and hold back from festival invitations for fear that actions taken now will overexpose the film and hurt its chances with press and distributors later. The truth is that INACTION is the far greater danger. By all means, you should obsess about the right world and international premieres …after that, just identify the best festival opportunities in each local market and let it fly, making sure to also address the festivals that cater to your niche along the way.

Hiring a lawyer who does not know the film business to handle your film deals. Okay, that’s a shameless plug since I’m an attorney now. But truly, as much as knowing the law matters, knowledge of what can be negotiated in a film distribution deal matters so much when it comes to monetizing rights and protecting your work.

Conducting screenings of your film (test screening as well as festivals) and not having a system for collecting email contact details so you can keep in touch about the progression of the release. When will you have another chance to contact these people again? Maximize your ability to keep in contact. There are now some text to subscribe services you can use rather than pass the clipboard.

A lot of film consultants, industry bloggers, film festival panelists, and others all saying the same thing so it’s time to realize what they are telling you is true.  Can you hear me? Is this mic still on? It’s time not just to hear, but to listen and follow the advice people are freely telling you. You should no longer continue to make these mistakes.

 

Wishing you all the good things in your filmmaking career.

 

Orly

September 24th, 2014

Posted In: Distribution, DIY, Film Festivals, Marketing

Tags: , , , , , ,

photo credit: Kevin H. via photopin cc

photo credit: Kevin H. via photopin cc

I was speaking with a producer friend of mine this week, and she told me a disturbing (if familiar) story, with a surprisingly inspiring conclusion.

She recently exec produced one of 2014’s “bigger” independent films…which is set for theatrical release soon. They did just about everything right. The film is written and directed by a well known, highly respected auteur on the indie scene, with a  long career. It stars two very well-known character actors, who are just about household names if not quite “movie stars.” The budget was modest. It premiered at one of the pinnacle A-level film festivals. There it was bought by one of the biggest mini-majors in the business, and has since sold 18 territories worldwide. Even before theatrical release, the investors have all made a significant percentage of their money back…albeit not all of it (and certainly no profit).

She was lunching with one of the films other producers recently and she asked him… “If the film grosses 1 million dollars theatrically, do you think we’ll see any more money?” He said, “probably not.” So she said, “Ok what if it grosses 3 million?” And he said “probably not.” “10 million?” “Probably not.”

She said that’s when it dawned on her…. producing and selling an independent film the traditional way (i.e. selling all rights out of a festival premiere) is simply not a business. (BOOM…head exploding). In any other business, making back a percentage of your investment is not a success story. In indie film, we shrug our shoulders and say, “Well, that’s the way it goes” and move on to the next one.

The lack of a sound business model in independent film is what we at TFC have been trying to address all along. The “old way” of producing and selling indie films is actually a shell game at best, a way of moving money from one spot to the next that is equal part a gambling game and equal part a con-job. Sure, there are a few unmitigated success stories every year…just enough to create a delusional atmosphere that casts a spell over thousands of filmmakers who think they can just make their movie and walk away as it magically finds its way into the world and fills their pockets with cash.

Anyway, it just so happens that my producer friend is currently working on a new film, and with the production schedule being the way it is, she knows for sure it won’t be done for at least another year. And after that, of course the inevitable wait for the right Festival premiere, which can take several additional months. As such, she figures that this time she has plenty of time to re-imagine the traditional model, and approach the film as an actual business. My producer friend comes from an entrepreneurial background, where she created and sold tech companies.

This time, this film, she vows, she is going to approach the distribution and marketing of the film the way she did with her tech companies in the past, and build it like an actual business. Not wait around for some other company to come in later and supposedly do it for her.

My producer friend and I plan to sit down in the next few months and have detailed conversations about what that actually looks like, but for now, I am going to use this post to outline some of the basics….and (hopefully) create the beginnings of a road map that others can follow.

NOTE: I am aware that I have been vague with the particulars of the first film mentioned in this post…which may annoy some readers. This was intentional of course, A) I don’t have permission to reveal the details, and B) the basic principals and outcomes are transferable to most every film that has received distribution offers out of a major festival in recent years.

In any case, here we go…some of my basic guidelines to approaching an independent film like the building of any other business.

1) Break down and list every source of potential revenue for the film – and plan how to capitalize on them all. This may seem self-evident, but I’ll wager this is the most overlooked of all independent distribution strategies. That’s because most filmmakers want to sell their film outright, and count on the distribution company to do all the right things. But most distribution companies only do a few things well (if any), and they will inevitably leave numerous stones unturned.

Start with a comprehensive list of every way you can see your film making money, i.e festival screening fees, domestic sales, international sales, theatrical-on-demand (i.e. GATHr or TUGG), community screenings, traditional theatrical, DVD sales at live events, other merchandising, digital downloads etc. Then figure out how many of these you can do yourself, and where you’ll need help from others.

2) Know from the beginning who your audience is – and have a strategy for how to reach them. I know, I know, this is dismaying to most filmmakers. Most filmmakers see themselves as artists first, motivated by self-expression, and actually hope that their film is for everyone, not just a select target group. But remember, just by making an independent film, you are de facto not making a film for everyone (unless you have movie stars)…since the vast majority of the global population doesn’t consume independent film on any kind of regular basis.

In independent film, niche is king AND queen, and you need to think of your target audience as your core customer base. Approach them like any business would…who am I selling to and how do I reach them? And if your core customers love your product, then they’ll tell others about it too. Think long and hard and soul search on this question…if you don’t know who your film is for, you run the risk that it will be for no-one at all.

3) Smart marketing is everything. Hollywood studios find their audiences by essentially buying them, spending vulgar multi-millions on TV ads, billboards, publicity firms to access late night TV talk shows etc….basically putting their product in front of everyone who doesn’t live in a cave. But chances are you can’t do that.

Smart marketing actually stems from question 2…who is your core audience and how do you reach them? And here’s where the important question comes…where do those people congregate such that you can actually speak to them? If you determine that your audience is “women between the age of 30 and 40,” that isn’t particularly useful because that’s too disparate to reach. Not ALL of them congregate in the same place. But if you determine there is a certain set of bloggers and websites that your audience reads and by obtaining coverage or placing ads, you can reach them there, well that’s something you can wrap your head around.

I usually advise that filmmakers start well in advance and build a big excel grid of every organization, every website, every blogger, every tastemaker, every everything they can think of and methodically reach out to them with news about their film. You usually can’t do this until you’ve actually starting shooting..so you can at least share images and teasers etc…but please don’t wait until you are finished with the film. This process takes too long… often by then it is too late.

I shouldn’t have to mention that this is of course where social media comes in as well. You want your social media strategy to start on Day One of shooting if possible. And, as always, you’ll want your social media strategy to be as interactive and engaging as possible…not just a platform for naked self-promotion.

4) Have a rigorous and vigorous approach to crowdfunding. Independent filmmaking can seem downright depressing at times…but it’s times like this we should thank our lucky stars for the relatively recent phenomenon of crowdfunding. What a miracle it is….and the best part of all….you don’t have to give the money back. Plus you are building up an audience that is motivated to see your film succeed.

These days it seems reasonable…for the right project…to launch crowdfunding campaigns in pre-production, for finishing funds, and to jumpstart your distribution, as long as you have a compelling message to impart to the world. And a great video of course… it all comes down to the video (and to a lesser extent the perks). Remember, however, that a crowdfunding campaign is hard work…its like a whole other job, which can certainly seem daunting during production. But if you don’t work hard at it…it won’t work. The good news is, if you DO work hard at it, the success rate is amazing!

5) Explore the granting world. Like crowfunding money, grant money is money you won’t have to pay back (meaning the best kind). Grant money is usually a better fit for documentaries of course, but we’ve also worked on plenty of narrative features with a theme or message that attracted grantees. Also, don’t forget that there are also (some) grants for outreach/distribution, for films with an important social message. To pursue grants, you’ll probably also need a fiscal sponsoring organization to back you, which can be The Film Collaborative or a number of other independent film non-profits. To read more about TFC’s fiscal sponsorship progam, go HERE.

6) Pre-sell as little as possible. This is a quandary for many filmmakers. You need the money to finish the film, but then when it’s finished, those rights are tied up and you can’t exploit them in a way that you’d like to. And, again, unless you have bona fide movie stars, your film will be infinitely less valuable before you finish it than when it is premiering at a major festival like Sundance etc. Time and time again I hear filmmakers say, “I pre-sold my film to x territory (usually broadcast) because I needed the money, now I wish I could just give them the money back.”

7) Parcel off your rights in as many pieces as possible. This is something that TFC’s founder Orly Ravid has specialized in….i.e. engaging as many different companies as possible to handle as many different rights categories as possible. This goes back to what I said earlier, different companies are better at different things. This “parceling” is particularly important because many all-rights holders are using many middle-men companies to get to various platforms etc. You want to be as DIRECT AS POSSIBLE with your various points of sale, cutting out as many middle-men as possible.

8) Explore Transmedia. This is admittedly difficult for the vast majority of independent, character-driven narrative features…although there are some notable exceptions. But for genre/sci-fi features this is an area rich with possibility, through games, contests, spin-off stories etc. And most often overlooked is the potential for documentaries to explore transmedia, especially since most documentaries have countless hours of footage they aren’t using in the finished film itself. And for issue-oriented docs, there is usually a wealth of other sources, both scholarly and journalistic, that can be folded into your website. For documentaries, your website should be an equal “entry-point” into the issues raised by the documentary, and should ultimately lead to more viewers/consumers of the film. That is the very essence of transmedia…multiple entry points into the larger experience.

9) Have a well-thought out strategy for digital distribution. My aforementioned producer friend was in the tech business, so her focus is on possibly creating her own portal where her target audience can download the film directly, thereby cutting out all middle-men entirely.

Nonetheless, in today’s world you have to expect (hope) that the most viewers for your film will be paying customers in the digital realm. And thankfully, just getting your film onto a few big digital platforms these days isn’t particularly difficult (to read more about the digital distribution offered by The Film Collaborative, go HERE. But here is where #2 (target audience) and #3 (smart marketing) come in most importantly….if you just throw your film onto iTunes, how is anyone going to know it’s there?

Unfortunately, there aren’t a lot of great companies you can hire that work for very little money to assist you with the marketing part. So this may be yet another job you and your team might have to do for yourselves.

10) Keep the budget as low as possible. This may seem like the most obvious point of all, and yet it is incredibly subjective. I can’t tell you how many times I cringe when hear filmmakers say “we kept our costs down…it only cost 1 million dollars!” Well, a million dollars isn’t what it used to be….and I mean that in the reverse way it is traditionally meant. With the plethora of cheap digital cameras and desktop editing leading to an explosion in independent film, supply WAY outstrips demand… and a million dollars is quite an expensive indie movie these days. Most importantly, at a million dollars chances are there is probably no amount of DIY distribution techniques that will recoup your investment, and you’ll be back in the initial quandary, meaning you will NEED a significant traditional sale from a distributor to have any chance of making most of your money back.

So, when I say keep your budget low…to be honest I am talking more like $100,000. And I know that’s not always possible. So if you can’t do it for something in the low six-figures, you’re back to that place where you need to start thinking about movie stars.

11) Put a minimum of 10 – 15% of your budget aside for marketing and distribution costs. This is a VERY small percentage of your budget that really will only enable you to start building a core audience, but a core audience can grow wider if word of mouth is active.

Again, I know this is easier said than done. Even if you line-item that with the best intentions, many filmmakers will pilfer along the way for a few extra days of shooting, etc. But chances are you’ll find yourself with a finished film with no more money to get it out into the world….no money for festival trips, no money for smart marketing, no money to hire a publicist, etc. Recognizing that even the initial stages of marketing and distribution require capital, we at TFC implore you not to fall into the trap of being cash-strapped right at the time you need it most.

Most of all of what I have outlined above fall under the producer’s responsibilities, and are sometimes referred to the work of what might be called the PMD or “Producer of Marketing and Distribution.,” and are crucial to development of a producer business model for indie film.

Interestingly, sometimes I think there is a clearer business model for directors of independent film. Directors have a clearer path to a business model that makes sense…direct an indie gem, premiere it at Sundance to great acclaim, and then get hired by Hollywood to direct commercial TV and film (think Christopher Nolan, who seemingly went directly from Memento to Batman). But producers seem to start at step 1 with every script.

It is my hope that by following the guidelines listed in this post, at least some of the groundwork to planning a profitable business model for an independent film can be laid out in advance.

 

August 19th, 2014

Posted In: crowdfunding, Digital Distribution, Distribution, DIY, Long Tail & Glut of Content, Marketing, transmedia

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By Orly Ravid and Sheri Candler

piggy bank

In this final post of our series about distribution preparation for independent films, we wanted to stress the fact that a balance between artistic expression and financial responsibility must be achieved. A lot of independent filmmaking comes from a passion to tell stories and emotional fulfillment. No one person’s work is any more or less valid than any other. But it is necessary to acknowledge that no one is automatically entitled to an audience or to make a living from their artistic work. The work and the business acumen must be strong. Strive to achieve both or surround yourselves with people who supply whichever strength you personally lack.

The distribution marketplace is so fluid and challenging, even the best planning can result in a loss. It’s natural to have high expectations at the outset of development and many of these find their way into lofty business plans that show returns on films based only on box office statistics. Did you know that reported box office numbers are often inflated? Are you aware that the rights holder (either the distributor or the self financed producer) only receives 35%-45% of those returns from the exhibitor? And if there is a sales agent involved, that entity then receives 15% or more of the revenue after all of the expenses and fees come out from the distributor…for the life of the agreement? Always learn about fees and costs of intermediaries such as sales agents, aggregators and distributors because their fees and costs reduce the amount of revenue that flows back to the original investors. Many filmmakers and investors do not understand the complexity of these deductions and wonder why money doesn’t flow back into their pockets just a few months after initial release. If you are fortunate enough to receive a strong advance upon signing your distribution agreement, at least you will see immediate revenue. It may be a long time before you see more.

A recent article on the Media Redefined blog written by Liam Boluk and Prashob Menon cited these very sobering statistics: “71% of [independent] films generate between $5,000 and $1,000,000 in box office revenue; 50% will fail to cross $250,000.” Again, these numbers are NOT what the original investors received.  One would hope the theatrical release helped to land bigger deals in the home video and broadcast space, but normally statistics on ancillary deals are not available publicly. Obviously, this makes the accuracy of business plan financials difficult to determine in advance.

A very revealing recent interview with indie filmmaker Joe Swanberg in Filmmaker Magazine showed how precarious the life of an independent creator can be…and Swanberg is largely considered a success! Some of the figures he quotes for digital license revenue will surprise you.

He has spoken to many a filmmaker whose film was released and appeared to make money, but the production never received a dime from distribution. He also talked about the need for having business and artistic sense and checking with distributors before going headlong into production on a passion project

…before you make the movie, say, ‘Hey, I’m thinking about this. Is this something that you guys have a place for in your slate of movies?’ If the answer is no, maybe that’s not the best thing to spend a lot of money on making next.

Probably the biggest takeaways from that article were about the importance of long term relationships in the industry and Swanberg’s comment about the artistic freedom that comes from knowing the business side of your work.

I think that there is a notion that for artists to think about business is to corrupt the art process. As soon as you start considering market factors and numbers and all of that stuff, you’re not being a true artist, you’re not following your true vision. To some extent, maybe that’s true, but I think that by knowing the marketplace before I go into a movie, once I’m there, I’m completely free to do whatever I want because [there’s not that] giant question mark of whether there’s an audience for that thing.

We hope this series will help prepare you (and your investors) for what lies ahead when your film comes to market. It is advisable to map out your goals, both short term and long term, before heading into production and make sure everyone is in agreement. Opportunities may change or new ones present themselves over the course of production, but if everyone remains positive and committed to what is being created, filmmaking can be a great experience for all involved.

To visit part 1 Know the marketplace, part 2 Festivals, part 3 Terms, foreign and windows, part 4 Deliverables 

 

July 31st, 2014

Posted In: Distribution

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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.

July 23rd, 2014

Posted In: Digital Distribution, Distribution, International Sales

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