tfc_blog

The IndieWIRE panel I am commenting on was at the Elinor Bunin Munroe Film Center on July 16, 2011. indieWIRE Editor in Chief Dana Harris moderated a discussion about the past 15 years of film distribution with (left to right): Richard Abramowitz, Amy Heller, Bingham Ray, Bob Berney, Ira Deutchman, Mark Urman, Arianna Bocco and Jeanne Berney. It can be found here:

 

The Sundance distribution announcement was just made today.

  1. So glad to know, as Mark Urman noted, that even big A-list cast films have a hard time getting listed properly on Cable VOD in terms of cast.  We know that Sundance indie Adventures of Power also was not always listed properly in terms of noting its full cast (namely Jane Lynch & Adrien Grenier who both have massive fan bases were sometimes left off the film’s VOD description).  What will it take the MSOs to get it together? Please let’s not all name or rename our films with numbers or start with the letters A,B,C,D, or E.  If Comcast can insert ads into programming surely they and all the other dozens of MSOs (Multi System Operators) can find a way to help attract an audience for films on their system by categorizing them and filling in complete descriptions even on mammoth platforms.
  2. The glut of content was discussed and the marketing challenges all distributors of cinema face.  We all know it’s cheaper to make films now, there are more of them, they don’t die or go away, they just multiply annually and even some of the panelists spoke to younger generations not even committed to being filmmakers, but just making films because they can and it’s made to seem so cool. Indeed. And what I want someone to say, well ok I will just say it, is when the real numbers behind film distribution are revealed across the board perhaps we’ll see a trim in supply. The best, most creative and most committed will survive  and thrive.  Investors will be choosier because they’ll have all of the REAL information they need to make educated decisions. As for how to clear through the clutter, well, that goes back to the basics of know-your-audience, down to the “T” and don’t pretend it’s everyone. I look forward to even more lifestyle and interest oriented programming and content servicing and all the more reason for filmmakers to cultivate audiences directly, where there is no room for glut or confusion.
  3. They joked about no one knowing VOD numbers, except for Arianna of IFC of course and Mark sometimes when his VOD client (Tribeca Films I presume) fills him in.  Well, we have some from our forthcoming case study book Selling Your Film Without Selling Your Soul and I want to challenge ALL FILMMAKERS to share your numbers and stop the madness of mystery! And I agree, it’s time that these numbers start getting tracked and reported in a more automated fashion as theatrical box office and DVD sales are now. Still those number only show gross, and not the spend needed to achieve those numbers.
  4. Amy of Milestone noted younger people have different habits in terms of what they want to view and how they view.  So maybe we need younger folks running distribution companies now. TFC is hiring.
  5. Arianna of IFC notes that piracy is a huge issue and that young people do not want to pay for content.  So we can either be disturbed by that, or we can work with that knowledge and release in a way that will maximize revenues, instead of forcing audiences into outdated window methods. One film we recently observed tried to monetize its distribution via sponsorship, but waited way too long to get started, tried to do so without a distribution plan in place, is having its theatrical launch 6 months after its festival premiere and cannot seem to make a decision on the rest of its distribution whilst it awaits fat-enough-offers that are not coming.  That sort of paradigm is a set up for failure and leaves the film open to piracy when a clear plan from the start and an immediate release after festival premiere could have led to quicker monetization (sponsored, DIY and/or via a donation campaign on VODO).  We caution against proceeding with filmmaking or distribution when there is no viable plan in place.
  6. A question via TWITTER that came in was: Where do you want to be 15 years from now? Richard Abramowitz is amazed he’s still in the biz now… and that’s honest in that it speaks to deep concerns about the changes in the business and the truth is, the more transparent service providers are about their numbers, the more likely they will survive. Those less transparent are not likely to sustain themselves.  What I object to is the mythology in this industry and the mask of success that hides the real story of spending more than you made back because there are too many expensive services or middlemen.  Who can tell me about their PROFIT? Not just for themselves, but for the filmmakers and investors they represent? Who will publicly admit the numbers on how much was spent for each service even on services they did not really need if they were better educated, and each middleman and what that yielded?  When people do not, it’s largely because they want to get the next project funded and, to me, this is no better than a pyramid scheme.  You know what eventually happens with those, right? See 2008 for an indication. Anyone who wants to challenge TFC on its transparency please do, I am ready.
  7. ‘Theatre going experience is in our DNA (like gazing at a fire)’, says Bingham Ray. The communal experience is what it’s all about. Amen. I say let’s bring back the drive-in. I especially want it for Sundance film Co-dependent Lesbian Space Alien Seeks Same.
  8. Ira speaks to the Opera audience. He noted, as audiences get older they crave that experience (communal screening) more. I love that Ira Deutchman grew a business out of this niche. Niche is golden.  A lesson for us all.
  9. Ira spoke to “eventizing” theatrical– several noted about adding Q&As, live music, director attendance, panel discussions– to enhance theatrical and all of those screenings do well. Indeed. We have observed the same and that speaks even more to filmmakers knowing their audience and being more engaged in their own releases. There is nothing of this that one cannot do.
  10. Ira ends quoting Richard Lorber “everything is possible and nothing works” harking back to 25 years ago when distribs celebrated small victories and spent little – before the rise and fall of indie bubble and the studios dressing big releases in indie clothes. My comment is regarding the “professional” the middle man, the lack of transparency even still is a burden, the fees paid excessive if one analyzes from the point of view of sustainability and healthy business.  Service deals are announced like acquisitions.  That’s why they say “film business” is an oxymoron but it need not be.  And that’s why TFC’s resolve now is to not work with unsustainable filmmakers. We do not want to feed the habit, enable unrealistic expectations. If you spent too much on making your film, if your expectations are unreasonable, if you are not committed to being educated about both film and engaging audiences, and most of all, if you are just a money bag and not a creator but rather buying into the dream that your film (which you did not even create) is going to make you rich or richer, please go home.                                                                                                                                                                                                                                                                                                                                                                                                                                                      And now, on a less cranky and more joyous note: What I love about the Sundance distribution initiative:

11. It’s offering filmmakers a truly filmmaker friendly set up by having a good partner and fair contract terms.

12. The terms offered by a truly excellent partner like New Video were already good in general, but are now even slightly advantaged.

13.  That the deal is non-exclusive and allows filmmakers proper agency and control.

14.  That I partly inspired it starting in 2009 and that the folks at Sundance listened, discussed, and worked it out slowly but surely and that there is more to come.

15.  The Sundance brand connected with its alumni of filmmaker’s brands and on key platforms that function as the key portals to film lovers (and yet not at the exclusion of other viable modes of DIY and traditional distribution) is the model I have always championed even before TFC launched, because it makes sense. It’s good for filmmakers; it’s good for audiences and back to # 1 and #2, initiatives like this are the way to help clear a path through the content of clutter to the curious eyes of cinema loving consumers.

 

 

 

July 27th, 2011

Posted In: Digital Distribution, Distribution, Distribution Platforms, DIY, Long Tail & Glut of Content

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We all struggle with this, filmmakers, distributors alike.  I remember giving a presentation to distributors about digital distribution and theatrical came up. I talked about the weirdness of showing a film 5 or 6 times a day to an almost always-empty house save a couple showings. This makes no sense for most films.   When I released Baise Moi in 2000, we broke the boxoffice records at the time, and the “raincoat crowd” did show up at the oddest morning hours, but that is the exception, not the rule.  Not every film has an 8-minute rape scene that just must be seen by post-punk-feminists and pornography-lovers alike. It’s an odd set-up for smaller films and it’s not the only means to the end we are looking for.

Recently, The Film Collaborative released Eyes Wide Open in NYC, LA, Palm Beach and Palm Springs. We have a little over $10,000 (all in it will be about $12,000 tops).  We have made our money back and the great reviews and extra marketing / visibility will drive ancillary sales but we also did not invest or risk too much as you can see. That is a great formula (one that small, disciplined and seasoned distributors such as First Run Features, Strand, Zeitgeist, employ) but it is not viable for all films. First of all we have an “A” list festival film (Cannes & TIFF & LAFF) and second it caters to two or three niches (gay and Jewish/Israeli) though one can argue that the niches also slightly cancel each other out to some extent, the film did well so obviously the campaign worked.

But there are many films for which that strategy would not work. Either theaters could not be booked, or reviews would not always be great, and / or the film would simply not galvanize a theatrical audience. Plus, once you start adding up 4-Wall fees, the bottom line leans more likely to be shades of red. The Quad Cinema sent an E-blast promoting its 4-Wall program. It was a good sales pitch and I am not going into it all here, but the take home is that you’re more likely to get a broader theatrical, and/or a distribution deal, and/or picked up by Netflix and other digital platforms if you open theatrically in New York.  I would argue that is true to some extent but also VERY MUCH dependent on the FILM itself and there should still be a cost-analysis and overall strategy consideration before one pays the Quad for their services and hopes for the best.  Here is a link to the info and we are happy to email the blast to any who request it www.quadcinema4wall.com . It should also be noted that generally speaking, The New York Times does not consider your film among “All the News That is Fit to Print” unless it’s opening wider than just New York.

So how to decide?  Companies such as Oscilloscope are all about theatrical, but they pick their films carefully and my guess is Adam Yauch can afford to lose money too if it comes to that. Home Video companies such as New Video, and Phase4 are doing some theatrical, but on an as-needed basis and yes, to service the ancillary rights, but that’s a very experienced analysis on their part.  When we posted on Twitter about the Cable Operators warning they will start requiring a ten (10) city theatrical, all at once, believe me, if everyone blindly follows suit, the bar will get raised even higher right until we all go broke. The point is to mitigate the glut and distinguish films in the marketplace not get us all to be lemmings and empty our bank accounts.  There is math to be done and I know it’s hard without all the back-end numbers at your disposal, but they are coming. We will publish case studies of all our films and we encourage you to get down to the detailed back-end numbers analysis before spending more on the front end and often gratuitously.

We have experienced and heard about the impact a filmmaker can have in his or her city when working the film and then really impacting the gross and that is inspiring, but usually not long-lasting because it takes a lot to get people to pay to see your film in a theater when there are so many other films and so many more marketing dollars behind them.  And what’s in it for you? The only reviews that matter are the big ones and we all know what they are… and remember what we said above about The New York Times.

The general perception of indie film releases is interesting. Most don’t take into account the money that is spent to get the “gross”.  More of the time the distributor (or whomever booked the film) gets less than half of the box office revenues. Sometimes as little as 25% – 30% though of course sometimes more.  And there are the expenses.  The Kids Are Alright may not even be in the black right now, but you’d never know that reading certain coverage. I love Exit Through A Gift Shop and actually flagged that release as a stellar release and then I learned that the marketing spend was actually a lot more than I realized such that the spend may be up to a million dollars. I don’t actually know, and not sure anyone will tell me. I do know that the bottom line for many of The Weinstein releases was reported to be in the red because of spending. If you have a film that can sell a lot of units and especially in an evergreen manner, and if you can trigger a great TV sale and if you have foreign sales legs, then there’s a real upside. If you don’t, then be clear what you’re goals are. Sometimes it’s just a career move and that makes sense. Canadian filmmakers need a theatrical release to get their next projects funded (say that like this: ‘pro-jects’). Sometimes people just want the awards qualification and that’s another ballgame.

We have written some of our TFC Distribution Tid Bits about Hybrid Theatrical and Marketing options, but here is a bit more on the topic:

If creating buzz is what you want, you don’t need a traditional theatrical and you definitely don’t need to overpay for the privilege.

Some OPTIONS – try HYBRID THEATRICAL – do FILM FESTIVAL, CREATE EVENTS, HOLD  A SCREENING WITH ORGANIZATIONS, show in MUSEUMS (in some cases), other ALTERNATIVE VENUES depending on the film, and also there are all sorts of ways to book a few days here and a few days there at theaters (we cover that below).   Theaters are and will continue to do this more and more. AMCi announced their intentions and they are still in the marinating phase, but we know you’ll all be ready when they are.

We’re interested in these companies and services:

  1. Cinedigm:  They have a program in the works that is meant to be similar to ScreenVision and Fathom (which is no longer handling indie films generally speaking, as far as we know) but aimed at independent cinema, and working with all the big theatre chains (Regal, AMC, Cinemark).  I asked them to write a few words for me about themselves and their plans: Cinedigm Entertainment, a theatrical distributor, has built several “channels” of content for movie theatres.  This is niche content that plays at what is traditionally slower times for the theatres.  Examples are; Kidtoons a monthly matinee program; Live 3D sports, like the World Cup and NCAA Final Four basketball; and 3D and 2D concert films with artists from Dave Mathews to Beyonce.  For each “channel,” the most appropriate theatres are chosen and theatres sign on to play the content as a series, thereby creating the expectation in the marketplace for the next installment.  In the company’s newest “channel,” it looks to apply the concept to indie-films which will provide filmmakers with the theatrical element for distribution.
  2. Emerging Pictures:  Owned by Ira Deutchman (now also a Film Prof. at Columbia University). I spoke with Joshua Green, whom I have known for a while and booked with, though no real revenues were made in the past, their latest network of theatres sounds potent.  They connect up to 75 theatres and they do very well with Opera, Ballet and Shakespeare, but also indie films.  They work with all the usual indie film distributors either taking on 2nd run of films in major markets or handing the first run in secondary markets.  On screen now for example is Mother & Child, My Name is Love, and Girl with a Dragon Tattoo.  30% of the Gross is paid to the distributor or filmmaker.  They charge usually a 1-time encoding fee to get the files needed for the theatres. The fee is $1,000. If that’s an issue that can sometimes in advance to make sure the bookings will happen to make the fee worthwhile.  They create a Hi Rez file 720p VC1 file which is a professional HD version of MS Windows. They work with the Laemmle theatres in LA and Sympany Space in NY and lots of others across the country. What does well on the Art House circuit will do well with them I was told. Makes sense.
  3. Variance Films: Dylan Marchetti (former exec at Imaginasian and Think Film) is a firm believer in Theatrical and it’s his business.  He may promote its necessities a bit more than I will and its not his money to spend and he was honest about the range of success (meaning not all films work theatrically and sometimes money is lost, and we know of at least one example, but it happens).  We spoke for the first time and I was comforted by his grassroots approach (they do that work themselves) and his commitment to alternative low cost venues: event screenings, niche-specific / lifestyle specific venues, as well as traditional theatres (all the usual chains and small theatres etc).  He noted that generally speaking, they do not charge more than $50,000 and that they get paid via back-end fees only. He said a release in NY and LA for $20,000 can be done. Variance is not a believer in print advertising; they have to believe in the film to take it on; and Dylan said that there is no correlation between P&A spending and a film’s success. Amen. They don’t do PR but rather refer out to outside agencies, as does The Film Collaborative. NB: Dylan Marchetti of Variance makes a correction to this. “Fees vary wildly depending on the film and release”. So sometimes they can do backend tied fees only, but not always.

The Film Collaborative is theatrically releasing UNDERTOW (which won the World Cinema Audience Award at Sundance). Stay tuned.

July 28th, 2010

Posted In: Film Festivals, Marketing, Theatrical, Uncategorized

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