The Face-to-Face Teaching Exemption and Fair Use in Education Distribution: Clearing up some misconceptions
Written by Orly Ravid and Guest co-Author Jessica Rosner, who has been a booker in the educational, nontheatrical and theatrical markets since the days of 16mm. Recent projects include Jafar Panahi’s This Is Not a Film and John Boorman’s Queen and Country.
A recent blog by Orly Ravid covered just a little bit about educational rights and distribution. This blog is intended to develop that in response to a comment about the “Face-to-Face” teaching exception. This exception defines what films can be shown for no license or permission by the producers or rights holders.
The Copyright Act provides for an exception to needing a copyright holder’s permission to exhibit a copyrighted such as a film. That exception, however, is only for “face-to-face teaching” activities of a nonprofit educational institution, in a classroom. That’s why it’s called the “face-to-face” exemption.
I emphasized the key words to clarify that this exception does NOT apply to social club or recreational screenings of films or any exhibition that is not in “classroom” or “similar space devoted to instruction” where there is face-to-face instruction between teacher and student and where the exhibition relates to the educational instruction. Second, not all institutions or places of learning are non-profits. All this to say, the “face-to-face” exemption is not a carte blanche free-for-all to show any copyrighted work in any context as long as there are books around within a mile radius. This is important because educators and distributors are often unclear about what can and cannot be done under this exception to proper permission to distribute or exhibit a film without permission (which often includes a fee).
Below is some key information about the state of educational distribution in 2015 and can be done lawfully without the licensor’s permission (under the Copyright Act):
Viable options for educational distribution that involves either selling physical copies, download, or licensing streaming rights or other rights and type of rights or sales, including price points, terms, limitations, etc.
It’s important to understand that “educational sales & use” is not legal term and that educational institutions have the right to purchase any film that is available from a lawful source and use it in an actual physical class under the “face-to-face” teaching section of copyright law (discussed above). Also okay is for them to keep a copy in the library and circulate as they choose.
However, if as increasingly the case, they wish to make films available via streaming or to exhibit them outside of a class they must purchase those rights. A filmmaker or distributor can charge a higher price to an institution to purchase a DVD if they control all sales but that would be a contract situation and mean the film basically has no sales to individuals. This is done but mostly with non-feature films or ones whose market is intended to be only institutions and libraries.
Streaming rights offer a real opportunity for income for filmmaker provided they are willing to sell rights to institutions in “perpetuity” (meaning, forever). They will make more money and the institution is far more willing to purchase. Many if not most universities now want to have streaming rights on films that are going to be used in classes.
Exhibition of film at universities or educational institutions that is NOT paid for (not licensed or bought from copyright holder) – when is it legitimate (lawful) and when is it not so?
It is legal to show the film in the classroom provided it is legal copy (not duped, bought from pirate site, or taped off television). Any public showings outside the classroom are illegal. Streaming entire feature films is also illegal but streaming clips of films is not.
What is the reason or rationale for the non-lawful use?
If it is a public showing (exhibition) they (and this is usually either a student group or professor, not administration) claim “they are not charging admission” and/or that “it being on a campus” makes it “educational and in extreme cases they claim that it actually IS a class. Illegal streaming is far more insidious and involves everything from claiming streaming a 2-hour film is “fair use,” (which would justify showing it without permission) or, that somehow a dorm room or the local Starbucks is really a classroom. Bottom line: not all use of film can be defended as “fair use.” Exhibiting not just clips but a whole film is usually not lawful unless the “face-to-face” teaching exemption requirements (discussed above) are met.
There is a disconnect for these educational institutions between how they treat literature vs. cinema:
All the parties involved in streaming (legal and illegal) librarians, instructors, tech people, administrators know that if they scanned an entire copyrighted book and posted on campus system for students to access it would be illegal but some of the same people claim it is “fair use” to do with a film. I actually point blank asked one of the leading proponents of this at the annual American Library Association Conference if it was legal to stream CITIZEN KANE without getting permission or license and he said yes it was “fair use” when I followed up and asked if a school could scan and post CATCHER IN THE RYE for a class he replied “that is an interesting question.” It is important to note that “fair use” has never been accepted as a justification for using an entire unaltered work of any significant length and recent cases involving printed material and universities state unequivocally that streaming an entire copyrighted book was illegal.
Remedies to unlawful exhibition of copyrighted works for distributors or licensors:
Independent filmmakers need to make their voices heard. When Ambrose Media a small educational company found out that UCLA was streaming their collection of BBC Shakespeare plays and took UCLA to court supported by many, other educational film companies, academics reacted with fury and threatened to boycott those companies (sadly the case was dismissed on technical grounds involving standing & sovereign immunity and to this day UCLA is steaming films including many independent ones without payment to filmmakers). For decades the educational community were strong supporters of independent films but financial pressures and changing technology have made this less so. (Jessica Rosner’s personal suggestion is that when instructors protest that they should not have to pay to stream a film for a class, they should be told that their class will be filmed and next year that will be streamed so their services will no longer be needed). Orly Ravid gives this a ‘thumbs up’.
Of course remedies in the courts are costly and even policing any of this is burdensome and difficult. Some films have so much educational distribution potential that a distribution plan that at first only makes a more costly copy of the film/work available would prevent any unauthorized use of a less expensive copy or getting a screener for free etc. But not all films have a big enough educational market potential that merits putting everything else on hold. And once the DVD or digital copies are out there, the use of that home entertainment copy in a more public / group audience setting arises. As discussed above, sometimes it’s lawful, and sometimes, it’s not but rationalized anyway. It is NEVER legal to show a film to a public group without rights holder’s permission. Another viable option for certain works, for example documentaries, is to offer an enhanced educational copy that comes with commentary, extra content, or just offer the filmmaker or subject to speak as a companion piece to the exhibition. This is added value that inspires purchase. Some documentary filmmakers succeed this way. It is extremely important to make sure your films are available for streaming at a reasonable price.
Parting thoughts about educational distribution and revenue:
Overall, we believe most schools do want to do the right thing but they are often stymied when they either can’t find the rights or they are not available so get the word out.
Streaming rights should be a good source of income for independent filmmakers but they need to get actively involved in challenging illegal streaming while at the same time making sure that their works are easily available at a reasonable price. It can range from $100 to allow a school to stream a film for a semester to $500 to stream in “perpetuity” (forever) (all schools use password protected systems and no downloading is allowed). TFC rents films for a range of prices but often for $300. You may choose to vary prices by the size of the institution but this can get messy. Be flexible and work with a school on their specific needs and draw up an agreement that protects your rights without being too burdensome.
Orly & Jessica
Orly Ravid August 20th, 2015
You can read for yourself what the fuss is all about but essentially, the EU Film Commission’s plan is to combine the 28 European territories into a common market for digital goods, which would eliminate “geo-blocking,” which currently bars viewers from accessing content across borders – and yet purportedly, the plan would preserve the territory by territory sales model. Filmmakers, distributors, the guilds, et al argue that this proposal would only help global players / platforms such Netflix, Amazon and Google, which would benefit from a simpler way to distribute content across Europe.
The IFTA (International Film and Television Alliance) expressed concerns that this would enable only a few multinational companies to control film/tv financing. Variety noted that although politicians insist the idea of multi-territory licenses won’t be part of the plan, those in the content industry remain concerned about passive sales and portability and the impact on windows and marketing.
In the US, digital distribution is just hitting its stride and is also finally getting anchored properly in Europe. Now this idea would be one step closer to one-stop-digital shopping, or selling. Though allegedly that’s not in the plan – but it would sure be a step in that direction.
Some are railing against it and warning against eliminating territory sales and windowing, hurting financing, and truncating important local marketing. Well, maybe and maybe not. I think it depends on the type of film or film industry player involved. A blockbuster studio hit or indie wide release sensation with international appeal may very likely be big enough to sell many territories, be big enough to warrant spending significant marketing money in each territory’s release, and be culturally malleable enough to lend itself to new marketing vision, materials, and strategies per market. On a related note, I remember hits such as Clueless being translated into different languages not just literally, but also culturally – modified for local appeal. That’s great, and possible, for some films.
But for most of the films we distribute at TFC and for the great majority on the festival circuit, they’ll be lucky to sell even 10 territories and many won’t sell even half that. Some sales in Europe are no minimum guarantee or a tiny minimum guarantee, just like it is State-side. Some films are financed per EU territory (government funding often) but that’s on the decline too.
The dilemma here about a digital single market in the EU recalls another common dilemma about whether to hold out for a worldwide Netflix sale or try to sell European TV or just EU period, one territory at a time. I’m not forgetting Asia or Africa but focusing on the more regular sales for American art house (not that selling Europe is an easy task for most American indies in any case). Sure, if you can sell the main Western European countries and a few Eastern ones that’s worthwhile taking into account. However, so often one does not sell those territories, or if one does, it’s for a pittance. Some sales can be for less than 5,000 Euros, or half that, or zero up front and not much more later. It’s not like the release then is career building either or a loss leader. It’s just buried or a drop in a big bucket.
In cases such as these, it makes little sense to hold off for a day that never comes or a day that really won’t do much for you. All this to say, I don’t think this proposal is one-size-fits all but I do think it’s worth trying on especially if you are in the petite section of the cinema aisle. If you are not sure how you measure up, ask around, comparison shop – see what films like yours (genre, style, topic, cast, festival premiere, budget, other names involved and other aspects) have done lately. Sometimes a worldwide Netflix deal may be the best thing that ever happened and I reckon that similarly, sometimes a plug and play EU digital deal (if this vision comes into fruition) will give you all that you could get in terms of accessing European audiences, while saving you money (in delivery and fees etc.). And then, get this, you can focus on direct-to-audience marketing – something few agents or distributors do much of anyway.
I kept this blog entry short as I stand by for more information out of Cannes and beyond and also await our TFC resident EU digital distribution guru Wendy Bernfeld (Advisory Board Member and co-author of the Selling Your Film Outside the U.S. case study book) to weigh in. In the meantime, I think it would be swell if one Cannes do digital in the EU all at once.
Please email me your thoughts to contactus [at] thefilmcollaborative.org or post them on our Facebook page so we can update this blog. We turned off comments here only because of the amount of spam we received in the past.
Orly Ravid May 14th, 2015
Tags: Amazon, arthouse films, digital film distribution, Digital Single Market Plan, EU, Film commission, Google, independent film, International Film and Television Alliance, Netflix, Orly Ravid, Selling Your Film Outside the US, The Film Collaborative, Variety, Wendy Bernfeld
As part of TFC’s ongoing mission to help filmmakers find the right audience and the right distribution strategy for their specfic project, this month, we sat down with Scilla Andreen, CEO & Co-Founder of INDIEFLIX to talk about the service, what’s new, and what’s ahead.
1) How does IndieFlix work? Would you consider it a service or a platform?
Variety calls IndieFlix the Netflix of independent film. Based in Seattle and founded by filmmakers, Carlo Scandiuzzi and Scilla Andreen, IndieFlix launched with 36 titles as a DVD on-demand service in October 2005. In 2013 the model evolved into a subscription based streaming service for movie enthusiasts. IndieFlix helps you find great independent films from around the world and makes them available for $5 per month. We like to think that we entertain and enrich people’s lives by connecting them to more than 8,000 films selected from over 2500 film festivals and 85 countries. Our library includes shorts, features, documentaries and web-series. We have worldwide rights to over 85% or our library so members can watch our films from anywhere in the world on a variety of platforms including Amazon’s Fire TV, Kindle Fire, Xbox 360, Sony, Apple’s iPad, iPhone and Roku—basically any internet connected device.
2) Why should filmmakers work with IndieFlix?
If there is anything we have learned it’s that teamwork and transparency are essential to the future of independent film. Distribution costs a lot of money, and studios spare no expense with their blockbusters. But because of this the filmmaker is often the last person to ever get paid and they have no idea who their audience is or where they originate. We have created a model of efficiency, transparency and data that literally turns the old model of distribution on its head with our unique royalty payment system called (RPM) Royalty Pool Minutes model. In this model, filmmakers are paid for every minute their film is watched. We are currently building out the filmmaker dashboard to include analytics, and data on where the audience lives and on what device (such as Roku, Xbox, iOS etc.) they watch the film on. We will also be adding data on the point in the film at which a user exits a film. This is possible of course because technology allows filmmakers to be their own gatekeepers. My job is to grow the subscriber base and curate a library with a user experience that makes finding films to watch not only fun and entertaining but also meaningful. I want our audience to love finding and watching films on IndieFlix because the more they watch the more the filmmaker gets paid.
3) What are some of your favorite creative marketing solutions and/or partnerships that you have high expectations of?
Our most successful campaigns are with our device partners Roku and FireTV. We haven’t yet done a campaign with the others. As far as creative campaigns, we have no shortage, but those are more brand awareness campaigns like the time we had biking billboards ride up and down Main Street in Park city during the Sundance Film Festival. We were giving away cold hard cash to demonstrate to people what IndieFlix does…We pay filmmakers that’s why we created the company.
Another favorite campaign was handing out printed matches that said, “Strike a Revolution: IndieFlix is the perfect match.” I handed those out at the Cannes film Festival and actually met one of my investors there…Talk about a good match.
We also really enjoy marketing campaigns that we do with the filmmakers. When the filmmaker participates and we market together there is always a great return. Like our collaboration with filmmaker Kurt Kuenne. We met Kurt through Oscilloscope. We now offer three of his films on IndieFlix including: Dear Zachary, The Legend of Dear Zachary: A Journey to Change Law and Drive-In Movie Memories. We will also be releasing a rare black and white director’s cut of his film Shuffle in coming months. We will be highlighting his work through an exclusive branded director’s channel and an interview we conducted with him about the process of making Dear Zachary.
Of course Chris Temple and Zach Ingrasci the directors of Living on One Dollar, Lauren Paul and Molly Thompson of Finding Kind and Sarah Moshman and Dana Michele Cook of The Empowerment Project: Ordinary Women Doing Extraordinary Things are all exemplary filmmakers of the new order. They have mastered the art of making great movies and marketing their story globally.
4) Can you share any data? Revenues? Users? Number of films you have?
We are a privately held company and do not typically share numbers. However I am excited to say that we currently have low six figures of total users, and our library has grown to 8000 titles. A large portion of those titles we have worldwide rights.
It is exciting to have a growing user base but it is important to us that these users are watching. We want filmmakers to look at their dashboard and see their films being watched and minutes tallying up.
5) Any success stories? And can you share details?
To be honest our greatest success stories started with the films in the IndieFlix Distribution Lab where we put the entire weight of the company behind these films to market them in schools and communities off-line as well as strategic windows online. Of course IndieFlix is the first window and then we roll out onto iTunes, Comcast and Netflix.
We’ve also found great success with short films. The Indieflix “QuickPick” allows users to sample movies as they would music. You can sort through shorts based on running time, genre and rating. It’s a quick and easy way to sample movies.
Films about zombies, include nudity, tattooing, and music docs also do very well on IndieFlix. Social justice films are equally successful.
I’ll leave you with a quick story about a German filmmaker that had a hard time finding broad distribution due to some of the challenging nature of his film and the title. We picked up the movie changed the title (with his permission) and the film is now thriving.
6) What type of content is and is not a good fit for IndieFlix?
We have learned that our audience is really a lifestyle connoisseur. They enjoy wine, art, books and travel. They like to discover and they care about how they spend their time and money. We have found that content that is entertaining high production value and covers a wide variety of topics here in the US and abroad including fashion, art and music is very popular. In the same breath I will add that zombies, horror, mystery and documentaries are very popular. And just like in Hollywood comedies are always a favorite.
What I have learned is that marketing content gets watched. The best movie can sit in our library but if we don’t bring it to the users attention no one will watch it no matter how good it is. I guess to answer the question the best movies are the ones that start great conversations and people feel compelled to write a review, leave a comment and share it.
7) What are common misconceptions about IndieFlix?
The most common misconception is that Indieflix will take anything. It’s true that when we first started the company back in 2005 our policy was if you had played at a film festival you could submit and be accepted at IndieFlix. We quickly learned that the film festivals are not the most reliable way to curate content. We started our own curation process, which has evolved over time. We now accept 5-10% of all submissions.
8) What are some key selling points?
There are many selling points to being on IndieFlix.com, but here are a few:
- Zero fees
- Quick Turn Around
- Global Reach (with the ability to geo-block)
- Exceptional Customer Service
- A hungry audience
9) What’s the future of IndieFlix?
Part of what makes the entertainment industry so exciting right now is that the future is unknown and everything is moving very fast. The digital landscape is ever-evolving and we are always looking for what works best for our filmmakers to generate meaningful revenue. We balance this with providing our subscribers with an exceptional catalog of films they may not have access to elsewhere. IndieFlix has survived 3 technologies and remained a thriving player in the marketplace. We are bold in that we know who we are and who we want to be, and we are confident in evolving our focus and approach with the changing marketplace. At the end of the day, we want to be a household name, we have an excellent product in our catalog and we want to share our passion for it with the world.
10) Feel free to share any other predictions, analysis, data, and/or case studies or anecdotes. If you want to share about capital you have raised etc.
I’m just now starting a capital raise for IndieFlix. We have boot strapped for years. We have an amazing team of 21 people who are incredibly dedicated to the filmmakers, the audience, the film festivals and the entire industry.
I’m clear on what I want to build and I know exactly how I’m going to spend the money. There has never been a more exciting time to be a filmmaker. I am excited. We are looking forward to being a true change agent in our industry.
Orly Ravid April 8th, 2015
Posted In: Distribution
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 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.”
[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):
New from MUBI: iPad and iPhone App
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.”
VIMEO ON DEMAND
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.”
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!”
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.”
“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
The worldwide LGBT digital movie-watching platform!
Accessibility / Availability:
The platform showcases more than 150 films, more than 100 of which are available worldwide.
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.”
[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.
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
Orly Ravid January 14th, 2015
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
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 Ravid September 24th, 2014
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.
Jeffrey Winter August 19th, 2014
Handling self funded theatrical distribution for TFC clients, I find myself wondering why more filmmakers don’t consider the self releasing option from a long-term career standpoint and the potential upside that comes from receiving the bulk of the revenue from the release. I am continually intrigued, pleased and surprised by the success of many who do.
Here are pristine recent examples of self funded releasing. These films each found specific ways to tap into their audience and often opted to do something outside the norm. For the sake of transparency I only am listing films that are admittedly self released in their approach. I would argue Middle of Nowhere is in fact a self funded release as it is a solid example of building and controlling a filmmaker’s brand, but I didn’t include it in this list.
While Gathr have a number of films that have done very well using their demand a screening platform (such as Anonymous People which TFC advised on), no TOD (theatrical on demand) release was as monumentally successful as Girl Rising. The film was aided by many factors such as funding from the Paul G. Allen Family Foundation, partnerships with Intel, the United Nations and World Vision as well as a small army of political and grassroots influencers, technologists and publicists. The documentary featured Hollywood A-list narrators like Meryl Streep, Anne Hathaway, Alicia Keys and Selena Gomez.and reached a fever pitch of screenings via the Gathr platform in the Spring of 2013. The film was also picked up by CNN Films for broadcast.
Much of the self funded distribution space is about the value of name recognition. Louis CK has such a loyal audience that he can get away with only selling his Live stand up docs on his website that are DRM free and asking fans not to upload it for free online. The films do so well that he is making seven figures in profit and will keep distributing them this way. His level of sales success, of course, is not realistic for most indie filmmakers, but it shows the value of brand developed over time. If you build up a loyal base and treat them with respect, they will follow you and as a result you can cut out the middle man.
Detropia world premiered at Sundance, won the editing award and came from two Oscar nominated directors. But they found distributors were wary to take on the film and/or didn’t get what the directors were trying to do. After a successful Kickstarter campaign to raise funds to self distribute, the film went on to gross over $300k+ theatrically. The filmmakers made the wise choice to open the film in a suburb of Detroit instead of NYC and the film grossed over $20k from that single screen at Landmark Royal Oak, far more than they would have launched with in NYC. They embraced their target audience and much like Escanaba in Da Moonlight pushed very heavily to a hometown crowd.
Sound City world premiered at Sundance 2013 and decided to do a day and date release less than a month after premiere. No distributor would have agreed to that. Dave Grohl himself promoted the film heavily (again the value of a fan base will pay off) and the film launched as the #1 doc on iTunes and grossed over $400k theatrically. It’s the highest grossing release from service theatrical company Variance to date. While fellow music recording doc Muscle Shoals may have grossed more money at the box office, they have to split the revenue with the distributor, Magnolia. Sound City likely made quite a bit more money back into their pockets.
Particle Fever has grossed over $850k to become the highest grossing Abramorama service release. They creatively tapped into the science community and quickly and quietly bypassed other more high profile docs like “Life Itself”. Using support from a community with solid internet leverage meant a lower P&A and this film, just shy of a $1 Mil grosser, can easily be called a success on all cylinders. It also doesn’t hurt that it scored a 95% from critics on Rotten Tomatoes. The film is now available for paid streaming on their website powered by VHX.
I Am Divine had a self funded theatrical release handled by The Film Collaborative. The film grossed $82k on a $8,000 release budget. This was run just as the film was finishing its 200+ festival screenings tour around the world for which the filmmaker has made 10’s of thousands from screening fees. We let social media and the Divine brand do much of the work as the colorful character inspired many around the world and they were excited to see his life story on the big screen. The film spent multiple weeks as the #1 Doc on ITunes when Wolfe Releasing put it out this year. A rare film to be profitable in every viewing arena.
God’s Not Dead again shows the value of a niche demographic that can be reached with the help of deep online data analysis. Working with Freestyle Releasing to open on 780 screens nationwide, the religious right pandering film has theatrically outgrossed Wes Anderson’s “The Grand Budapest Hotel,” which at its widest played over 1400 screens. This technically makes it the highest domestic grossing indie release this year. It’s passed $62 million on only a $2 Million budget production budget. The production worked with Ash Greyson’s Ribbow Media to handle a sizable social media advertising campaign directed toward Duck Dynasty, Kevin Sorbo, Dean Cain and Shane Harper fans and limited TV advertising on the 700 Club, Up TV and Pandora radio. It was a highly coordinated gamble that paid off handsomely. Lionsgate picked up the rights to distribute the movie through VOD (video on demand), SVOD (subscription video on demand) Pay-Per-View and television across the U.S. this month.
Upstream Color was the long awaited follow up from indie auteur Shane Carruth. He vetted offers while planning months in advance for a self funded release that launched out of the film’s Sundance premiere. Carefully planned and executed to reduce costs, Carruth’s intention was to give the film just enough of a theatrical release to legitimize and raise awareness for the film before sending it out to the online platforms where it would find actual significant revenue. For a while the film continued to play theaters simultaneously with the digital sales option, a feat almost unheard of in the Spring of 2013, but becoming a much more accepted and savvy practice now. Though lacking star wattage and a less than commercial story approach, Upstream Color amassed $444k and while Carruth kept full control of the release. The film is now widely available digitally.
Some honorary mentions for great self financed releases go to The Anonymous People (second highest grossing Gathr release despite no fest exposure), Spark: A Burning Man Story (Over $77k on another TOD service called TUGG with surcharged Burning Man tickets, over six figures theatrical and digital), Kids for Cash (Launched at 4 theaters in PA and grossed six figures), and Under the Electric Sky (a TUGG release with six figures, but curiously controlled by a traditional distributor, Focus Features).
Of this list, a vast number of the TOD releases are for documentary, some with star names attached and all with some kind of cause or niche audience interest to tap into and they all clearly did tap into that. Also, funds were raised to accomplish a theatrical release, hence the name self financed release. This should indicate to you that making a film meant for self funded release you NEED to have an identifiable brand, a social cause or a niche audience interest base to tap into. Think very carefully about how that film will be released successfully because these are the same considerations a distributor will look for when evaluating the release of a film.
Bryan Glick August 7th, 2014
Tags: Bryan Glick, Detropia, DIY film distribution, Gathr, Girl Rising, God's Not Dead, I am Divine, independent film, Kids for Cash, Particle Fever, Sound City, Spark: A Burning Man Story, The Anonymous People, The Film Collaborative, theatrical self release, Theatrical service company, Tugg, Under the Electric Sky, Upstream Color, Variance
By Orly Ravid and Sheri Candler
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.
Sheri Candler July 31st, 2014
Posted In: Distribution