by Orly Ravid, Founder, The Film Collaborative

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

dvdlibrary-488672_640

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

What is it?

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

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

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

What type of films do well on the educational market?

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

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

Sourcing content

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

classroom-371455_640

Windowing & Revenue

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

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

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

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

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

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

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

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

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

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

February 18th, 2016

Posted In: Distribution, education, Legal

Tags: , , , , , , , , , , , , , , , , , , , , , , , ,

Some of you may have heard that about a week ago the European Film Commission announced the Digital Single Market Plan (which may also apply to TV licensing). Variety covered the story HERE and HERE.

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.

Cannes Marche du Film

photo credit: movantia

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.

May 14th, 2015

Posted In: Digital Distribution, Distribution

Tags: , , , , , , , , , , , , , ,

Selling Your Film Outside the U.S.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.

October 15th, 2014

Posted In: Amazon VOD & CreateSpace, book, case studies, Digital Distribution, DIY, iTunes, Netflix

Tags: , , , , , , , , ,

Whether engaging in digital distribution via a distributor or on one’s own (DIY), the burden of producing deliverables is increasingly shifting onto filmmakers.

At TFC, when we speak of empowerment through education, we are often talking about the digital landscape as a whole. However, there is also a lot to be learned in the details. I’m sure every filmmaker can rattle off a list of annoyingly small screw-ups with deliverables and assets that ended up throwing multiple members of his or her team into a tizzy for an entire day, wasting precious time, manpower and financial resources.

Accordingly, arming yourself with a little more knowledge about how the industry works, and, in particular, how technology works, can help you dodge a few more bullets down the road. Here are 3 nitty gritty tips we’d like to pass on:

1) Trailers

It’s very easy to put your trailer up on YouTube or Vimeo these days. So easy in fact that filmmakers often forget that these platforms are anomalies when it comes to requirements for eligibility.

For other mainstream digital platforms, pretty much any time there is a digital storefront, whatever is outside of the pay wall needs to be viewable for all audiences: free of foul language, nudity, excessive violence, etc.

I can’t tell you the number of trailers we have seen with words like fuck and shit still in them…iTunes is not going to take a trailer with any language that needs to be bleeped out on television. Neither will it accept scenes with a butt shot, a sex toy, naked breasts…the list is long and can get murky real quick, and, like MPAA ratings, may be quite subjective and potentially unfair.

We totally get it…filmmakers want to be as provocative as possible, don’t like being inhibited, and want their trailers to represent as closely as possible the tone of their film. And they usually make their trailers long before they ever have to think about digital distribution. But if you don’t want to have to go back and recut your trailer down the road, you need to think about these things. If you want two versions of your trailer, that’s fine, but at least one one of them has to be no more than, let’s say, PG.

photo credit: CaptMikey9 via photopin cc

photo credit: CaptMikey9 via photopin cc

2) Closed Captioning and Subtitles

Many platforms, including iTunes and Netflix, now require that all new films be submitted with closed captioning for the hearing impaired. Closed captioning is different from subtitling in that it sometimes includes descriptions of non-speech elements, like sound effects or music. Captioning costs run from $350 to $800 per title.

Most filmmakers send their films out to a captioning/subtitling lab, or use rather expensive software to do it themselves (more information about these labs/software can be found on the ResourcePlace section of our website). Usually, filmmakers receive a small, emailable, external file from the lab and submit to their distributor/aggregator without giving it much additional thought.

However, we have seen a number of cases where mistakes have been made, which can result in a rejection of your content by the platforms and a delay in your scheduled release date. There are many closed captioning requirements, particularly regarding things like when captions come on and how long they stay on screen, and we have seen some problems in this area.

But by far the biggest cause of rejection is when closed captioning covers some of the lower thirds in the film. This is especially true in documentaries, where subjects are interviewed and their names appear as text graphics on screen. In those cases, the offending line of closed captioning must be moved (usually to the top of the screen).

There are two ways that these errors can be prevented. One is to go through your film and note the approximate time codes of all your lower thirds and ask your captioning lab to pay special attention to these areas.

The second way is to check the lab’s work before submitting to a distributor/aggregator. The most common file extension for closed captioning is .SCC (Scenarist Closed Caption). This is the file you are going to submit. However, it is not possible to view this file alongside your film in QuickTime or VLC. So you should ask your lab to convert it into a subtitle file and send that to you as well (this file would be solely for checking purposes…it shouldn’t be submitted to anyone).

The catch is that the most common form of subtitle file, .SRT (SubRip), does not hold placement, so while it is OK to ask for this file type merely for checking timing and accuracy of dialogue, you will not see any difference between lines that are on the bottom or those that have been moved to the top—they will all appear on the bottom. So the key is to ask for a different file format if you have dialogue spoken over lower thirds. Subtitle file types that hold placement are .STL (Spruce subtitle format) or iTunes Timed Text (iTT), a subset of TTML. For more on subtitling than you ever want to know, visit <a “href= http://en.wikipedia.org/wiki/Subtitle_(captioning) “>Wikipedia.

Lastly, speaking of subtitle files, we have seen many filmmakers obtain subtitle files from international film festivals (especially Spanish) and want to know if they can submit that as an extra to their North American release.

The answer is yes as long as it, like closed captioning, doesn’t cover up the lower thirds, and as long as your English master is textless (i.e. no burnt-in English subtitles). An important lesson here is that if your film has any lower thirds where dialogue is spoken over it, you will not be able to use .SRT files for any of your localized languages…use one of the other formats (.STL or .ITT).

So if someone produced an .SRT file for you, and you have lower thirds with dialogue spoken over them, you’ll need to get it converted and fixed before submitting to digital platforms.

Knowing exactly what you need will help you save time and get the best deal from your Subtitling Lab., because you will have pre-negotiated what you need in advance.

3) Digital Output

One of our members from Australia asked us about getting all of their lab deliverables taken care of at once so that they could qualify for The Producer Offset, which is a refundable tax offset (rebate) for producers of Australian feature films, television and other projects. While this credit may not apply to filmmakers who are not down under, I’d like to reiterate here what I told him: that producing deliverables too soon can cost you more in the long run.

If you produce a DCP or HDCAM, which can cost $2K or more, and approximately $350, respectively, before you sell your film, what happens when your distributor asks you to submit deliverables with their logo in front of it? You have to go back and do it again.

As far as DCP goes, until you are SURE that your film is playing at a top-notch festival, or that your film is even going to have a theatrical release, it may be best for you to wait, and only produce deliverables like ProRes, Blu-Ray and DVD in the short-term.

And by way of conclusion, speaking of DCP, TFC’s head of Festival Distribution, Jeffrey Winter, has offered a post on DCP headaches HERE.

September 10th, 2014

Posted In: Digital Distribution, Distribution, DIY, iTunes, Netflix, Trailers

Tags: , , , , , , , , ,

It’s a new year, Oscar Campaigning is in full swing and that must mean one thing….Sundance is upon us!

There is no doubt that Sundance is the best launching pad for documentaries in the US if not the world. 10 of the 15 Oscar Shortlisted Docs premiered at Sundance, including the highest grossing doc of the year, 20 Feet from Stardom. Furthermore almost 90% of all docs had some form of domestic distribution secured.

There has been a lot of chatter about the recent New York Times article talking about too many films entering into a shrinking marketplace. I am usually quite the pessimist and cynic, but in this instance it is one of the best things that could have happened for film. THERE IS NO EXCUSE NOT TO HAVE DISTRIBUTION.

I REPEAT…

THERE IS NO EXCUSE NOT TO HAVE DISTRIBUTION. Looking at the films from last year’s festival, it becomes clear that the options are endless. And many films have combined approaches for their DIY. Netflix is distributing the audience award winner, The Square starting January 17. The film had a small DIY theatrical with the help of Participant Media, but that’s not the end of it. When it debuts on Netflix, it will also be available on GATHR only expanding the film’s reach.

With all this said, every filmmaker should be making distribution plans from the beginning. Put money aside to cover a festival premiere (publicist, lodging, travel, prints, etc) and for the strong possibility of a self financed release. Perhaps you’ll never have to use it. But it is better to be prepared.

Now with my rant out of the way, here’s a look at how the film’s from last year’s festival fared in distribution.

EVERY SINGLE US DOCUMENTARY and DOCUMENTARY PREMIERE selection had some form of domestic distribution, but multiple world doc films have yet to line something up in the States.

____________________________________________________________________

DOCUMENTARY WINNERS

TV DOCS  (HBO, SHOWTIME, CNN):

HBO acquired TV rights to or produced 7 documentaries from last year’s festival.

Gideon’s Army, Life According to Sam (whose subject passed away this week), Manhunt, and Valentine Road all world premiered in the US Documentary Competition. The Crash Reel and Which Way is the Front Line From Here? The Life and Time of Tim Hetherington screened as documentary premieres and the network acquired world doc entry Pussy Riot – A Punk Prayer for $1,000,000.

Not only does the network connect these films with far more viewers than they could reasonably expect in a theatrical release, but these films are also some of the critical favorites. Four of the seven films are on the Oscar shortlist for documentaries and a fifth won an Emmy.

HBO is not the only TV player in town.

Showtime aired History of the Eagles Part One and The World According To Dick Cheney which were both in the Documentary Premieres section. The Eagles Doc was also an Emmy Award Winner.

CNN Films partnered with Magnolia on Blackfish. The film has been seen by over 20,000,000 people worldwide and grossed north of $2,000,000 in the US. It made the Oscar Shortlist and has been cited as a key reason Sea World’s revenue is down over 30% this year. The acquisition was for $1,000,000, split between the network and Magnolia and certainly profitable for the latter. The company also had Pandora’s Promise which grossed $66k theatrically, but got hundreds of thousands more views on the TV screen via the broadcaster.

sundance docs 2013

MUSIC DOCS 

Three of the five highest grossing Sundance docs from last year were about singers/musicians (3 of the top 5 were also sold by Submarine and 4 of the top 5 were distributed by Radius-TWC or Magnolia) Clearly, they are resonating with a larger audience and the top players in documentaries recognize this. What’s truly impressive though is two of these films were day and date releases.

Sound City was a self financed release and dominated iTunes while also grossing over $400,000 in the care of Variance Releasing. While Variance handled the theatrical release of Sound City and Dave Grohl and his team did their own direct distribution through VHXGravitas Ventures handled the traditional VOD release of the film both in North America and internationally, including on iTunes.  The film has grossed north of 7 figures on VOD since Gravitas Ventures launched it almost a year ago. Muscle Shoals has managed just under $700,000 with Magnolia at the helm, but theirs is a traditional distribution situation and the acquisition amount was not stated. Twenty Feet From Stardom also had a traditional release and has grossed just under $5 million and is RADIUS-TWC highest grossing film to date. The film, acquired for just over a $1 million, is also a top performer digitally and has been selling well internationally.

SELF FINANCED IS POPULAR

Over 25% of Sundance 2013 docs pursued some form of self-distribution.

Running From Crazy, Blood Brother, The Square, God Loves Uganda, American Promise, Linsanity, When I Walk, Sound City, Pandora’s Promise and the yet to be released Citizen Koch all went for self financed theatricals.

Linsanity and Citizen Koch both raised over $100,000 on Kickstarter for their theatrical releases.  Linsanity has made $299,408 in cinemas. This more than justifies the DIY campaign and assuming they didn’t pour extra money into the release would net them just over $100,000 before digital and other ancillary are factored in.

The Square, which is the first Netflix Documentary pick up, had a small Oscar Qualifying run that turned into a little bit more and helped the film make the shortlist. It has grossed over $50,000 to date. That threshold was also exceeded by fellow shortlist film God Loves Uganda. Variance is releasing God Loves Uganda and should either film make the final Oscar cut you can expect additional revenue. That said, neither release appears to be profitable on its own. Variance said a few years ago they wouldn’t do a release for under $20,000 and cinemas do take a large chunk of revenues. Add the cost of Oscar Campaigning and the absence of the Netflix deal and God Loves Uganda clearly needs the Oscar nomination to boost its bottom line for digital (It will air on PBS later this year).

Running From Crazy quietly earned $33k, When I Walk did not report totals and Blood Brother has grossed over $50,000, but all through TUGG screenings.  Blood Brother’s total is at once impressive and instantly disappointing. The film won the audience and grand jury awards, but failed to generate major buyer interest. ITVS has TV and Cinedigm has digital rights, but the film has become one of the lower grossing performer’s for a major festival award winner. At the same time, it screened at festivals left and right and, while skipping week long engagements, has screened at churches and small towns around the country. It may ultimately reach $100,000 via TUGG.

_____________________________________________________________________

DOCUMENTARY UNDERPERFORMERS

While Sundance continues to push for a lot of political docs, they are far from the best performers at the box office. After Tiller is a great film, but hardly a Friday night date movie. Festival revenue has provided a boost for the Oscilloscope release, but with under $70k in theatrical and a solid push for Oscar (it was not shortlisted) feels like a disappointment.  Similarly award winners The Square and Blood Brother also are far from the top of the pack at the box office.

Meanwhile, over 1/3 of the World Doc films have nothing lined up for the States and Fire in the Blood is the lowest grossing Sundance Doc from last year that reported box office totals. It still has made about $20k and much of it from TUGG.

Other underperformers include Cutie and the Boxer, which was not day and date, and The Summit, which was one of the biggest doc deals at low 7 figures from Sundance Selects, but failed to pass $300k theatrically. Compared to films like Dirty Wars (IFC) which pulled in $371, 245 and Inequality for All (Radius-TWC) grossing $1.1 million, the buy was a bust.

Next week, we’ll take a look at how the narrative films from Sundance 2013 fared in release.

January 15th, 2014

Posted In: Distribution, DIY, Film Festivals, Theatrical

Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

How much to spend on developing key art, and when to spend that money, is one of the many important decisions a filmmaker has to make. Yet like many aspects of the filmmaking process, there is no one-size-fits-all standard. When we were discussing the prospect of my writing this post, one of my colleagues at TFC remarked that for a film that costs, say, $250K to make, a $10-20K or more spend on developing key art (and mind you, this is separate from a marketing budget where you have to pay to get that key art out into the world, and separate still from designing and maintaining a web site) is not unreasonable, assuming one wanted to hire a top agency. Other filmmakers get someone they know to do it for free, if for no other reason than they are out of funds. Most micro-budget indie filmmakers will undoubtedly fall in between these two polar extremes in terms of what they will end up paying, but in the end, what you produce, and when you produce it, is a decision that should not be rushed or taken lightly.

Most filmmakers would agree that good key art is essential…it can be the factor that decides whether somebody will click further to watch your trailer, or move on to another film. If it is carried over to your website effectively, it should inspire confidence in your brand. Good key art can endure and even come to possess an iconic existence of its own that will represent with your film for years or even decades to come.

But good key alone is probably not going to work miracles. If your trailer, website, official reviews, or word of mouth is disappointing, or if insufficient marketing prevents people from even knowing that your film is out there, hiring a top creative film and spending that $10-20K at the expense of everything else doesn’t make any sense. So while key art is too important to take short cuts on, its value won’t be fully realized if the rest of your budget cannot support it.

So let’s say, for the sake of argument, that you don’t have that 10-20K or more lying around for key art. Now, I have worked with dozens of filmmakers to either design (or consult with and/or assist them in developing) their key art. When I have an initial discussion with a filmmaker, I can tell right away which clients probably don’t even have $1K to devote to their the key art. How? Because the first question they ask me (after they see samples of my work) is how much I would charge to produce a poster.

This question always surprises me, especially when it comes from filmmakers for whom this is not their first film, because it reminds me that filmmakers often do not ask the right questions when producing key art.

For example, how can I give them a quote without knowing what shape is their art in, how much time it is going to take to get up to speed about the film…watch it, discuss it, understand it, determine what is possible based on the art that they have, come up with several different directions and mock them up, fail a few times until we come up with something we like, and then go through several refinement stages, figure out printing, cost, logistics? And this doesn’t include mocking each possible direction to pixel-perfection, uprezzing, retouching, or producing style sheets or ancillary artwork, like a top agency would do.

Not appropriately accounting for key art development (and overall marketing strategy) as a line item in their film budgets forces filmmakers into a situation whereby they can only order the services that will fit their budget, rather than coming from a place of asking what will be best for their projects.

So we go through this dance of whittling away steps to cut costs, and in the end, I provide only a range based on an hourly rate, with phases built in, so we can periodically access if we are going over our budget range. This way, how many hoops I jump through will ultimately be up to the filmmaker as we move through the collaborative process.

Another important thing to remember is that you can’t always determine the cost of developing a piece of key art just by looking at it. Oftentimes, the prevailing concept itself might not look all that expensive to produce, but you never know how many twists and turns were required for the creative team to reach that final product.

So, how can a filmmaker get back to asking the right questions?

Producing key art is about ideas and talent, good photography, and a solid understanding of one’s film and how it fits into the marketplace.

It’s also about patience.

This is a scenario we have seen more than a few times: let’s say your film gets into Sundance or Slamdance or Berlin or SXSW and you are racing to finish your film. You haven’t budgeted all that much for key art in the first place, but you feel like you need something to show at the festival. You have a website, but it’s the one that’s been up since your crowdfunding campaign, and it’s not all that pretty. What should you do?

Certainly, there is no one right answer. We have seen filmmakers produce amazing things in a very short amount of time. On the other hand, we have seen other filmmakers really fail miserably, and actually do their film a disservice by making too many decisions too quickly.

But let’s say your first instinct it to produce a poster. Your second instinct should be to make sure your first instinct is correct.

DO YOU EVEN NEED A FULL-SIZE POSTER?

Posters are, technically speaking, quite hard to produce if you don’t have the right art. I’m talking about resolution.

Last year, I wrote a series called Rethinking your Key Art Game Plan, where I discussed the technical requirements for producing a standard 27×40 (or 27×39) inch poster. In particular, I noted how pulling stills from a 1920x1080px master isn’t going to produce enough resolution for a poster, unless you are going for a grainy or blown-out look. These days, more and more filmmakers are working with 4K cameras, which helps quite a bit in this area.

Yet while using 1920×1080 stills to promote your film may not be ideal for a poster, they are perfect for other uses. For example, you can produce 4×6 postcards or a great website background. These might actually reach more people throughout the festival as a whole than a poster that merely hangs for a few hours in a marquee lightbox on the day of your screening.

Title Treatments

Create a proper title treatment using a vector-based program such as Adobe Illustrator, turn it into an Outline shape (rather than editable lines of type), and save it as an .eps file so it can be reproduced consistently.

(If you didn’t catch all of that last part, just convey to your designer. If your designer doesn’t get it either, hire a new designer.)

Another dilemma we’ve seen filmmakers run into is that they only have very limited still photography at the time they enter the film festival circuit, and don’t have the time or budget to do a photo shoot. Rather than force these images into a full-size poster that you have mixed feelings about, it might be better to take frame grabs from your film and produce something that’s 1440x2100px (the size needed for iTunes…VOD art generally needs to be 2:3 proprotions) and that you are satisfied with. This size would also be OK for a 4×6 postcard. You can worry about a 27×40 poster later.

Alternatively, many filmmakers simply brand a few press images from the film with their title. Work with a designer to create a great Title Treatment (the design of the title of your film) and brand the film that way, so there will be consistency when you do swing back to the key art.

SHORT-TERM OR LONG-TERM KEY ART

But let’s say you do have the art to do a full-size poster. There’s still a question of whether you design for the short term or the long term. More and more films are being released digitally without much theatrical play. Moreover, what you produce for a theatrical may not even be suitable for VOD. A panel at IFP last fall addressed this exact question, and there was apparently much disagreement:

“This panel drove home several completely contradictory messages, all in the space of one engaging hour. The first was that now you need more art than ever, to keep your audience engaged through daily social media updates both before and after your film is released. The second was that films should adhere to the same few images, so that they become recognizable brand markers. What’s a filmmaker to do?

[…]

Another catch-22 discussed during the panel was VOD vs. theatrical art. As much as it benefits a film to project a singular identity, it’s rare for a single design to suit both purposes well.

The experience of viewing a poster inside a lightbox at the theater is very different from the experience of browsing titles on Netflix, and key art must adjust accordingly. Besides the obvious (smaller space, bigger images) the VOD art typically focuses more on celebrity, genre, and easily conveyed aspects of the storytelling.”

They provided the following graphic as an example of the differences between theatrical art and key art for VOD.

theatrical_vod
Sawyer Studios Theatrical vs. VOD Digital Art Slide

It is quite clear that the some of the theatrical posters do not work very well for VOD. But I am not convinced that at least some of the VOD posters here could not have worked for theatrical (apart from the fact that a few of ones for VOD are just plain bad). These days, even as one is doing a theatrical, the same poster can be seen all over the Internet, and perhaps on postcards too. So whatever you produce, you should think about how the image looks when it is viewed at a variety of sizes, and pay special attention to the iTunes size and the Netflix size.

Perhaps the designers of the theatrical posters in this graphic did not consider this when they were designing. (Or perhaps a marketing team came along and wanted something else for VOD.) The point is, think as far ahead as possible and aim towards producing key art that will work for both theatrical and for VOD. Because if it does need to be redesigned, there’s a good chance that you will be the one paying for it, one way or another.

THE HIDDEN COST OF USING POSTERS ON THE FILM FESTIVAL CIRCUIT

Many of you know that TFC also offers Festival Distribution as one of our services. We get asked all the time for posters. Sometimes three, or five, are requested. But we generally do not send them for every festival. Here’s why:

Digital Printing
Printing fewer than 15 posters

We have used Uprinting in the past and recommend them for one-off digital printing.

So let’s say your film gets into Sundance or Slamdance and you need to print a few posters. You can get 3 posters printed and sent directly to the festival for $80. That’s not going to break the bank. But if you commit to doing that for every festival thereafter, you must be prepared to lose at least $40 (the cost of 1 to print and ship) of your festival fee each time you book somewhere.

If you are thinking that you can simply print a bunch of posters and send to festivals yourself, there also a few things to remember. First, poster tubes cost money (although Fedex will supply their own packaging, but their shipping rates are expensive), and when all is said and done, mailing them yourself doesn’t cost all that much less than having a printer ship directly. Believe me, I’ve tried.

Offset Printing
Printing more than 100 posters

America’s Printer has always done a great job for us with 4 color printing, and can even ship them individually for you.

In terms of printing, you also may not want to order too many at once (for example, you can have them printed in 4-color offset printing in quantities from 100-1000, which will cost $600-$800 ) because you will undoubtedly want to add additional laurels (for art house films) or awards or even quotes to the one sheet as you get further into the festival circuit. Printing too many will lock you into something you may not wish to use forever. But printing as few as 30 digitally will cost as much as printing 500 using an offset printer, so there’s a bit of a “doughnut hole” here.

And many filmmakers just don’t have that much loose cash to spend.

Our recommendation is to only get a large quantity of posters made if you have a theatrical. In the meantime, you may want to limit the festivals to which you have posters sent to Industry festivals where buyers are present. For the other festivals, supply them with a link to the hi-res version of your one-sheet: many festivals will print on their own. This is especially helpful for international festivals. They may not print larger as large as 27×40, but at least the cost comes out of their budget, not yours.

TIPS ON LANDING ON THE RIGHT CONCEPT

I was asked to write this article to address the question of how one decides on the best visual representation for one’s film. In other words, what should you put in your poster?

The short answer is, there is not just one answer. You can ask 5 different people and they might each tell you something slightly different. But let me try to break it down with a few tips.

  1. Whatever you do, it should be polished and look like some thought was put into it. You would think that I’d be setting the bar a little higher as the first tip. But no. If someone whose film were premiering at a A- or B- list festival showed me the their poster, and it looked like the VOD poster for Arthur Newman or The English Teacher in the graphic above, I would tell them to either scrap it and start over, or to leave it at home.
  2. Know your marketing strategy before you start designing. I could write a blog just on this topic. More than one, actually. The number one problem that filmmakers have in this regard is that they are too close to their own film. So first, it’s important to talk to your team, and to others outside your team (shameless plug alert: also a perfectly good thing to talk about when you are consulting with TFC via one of our membership packages) about where your film fits into the market and who is going to be buying it…literally…which distributors, which niche market. If you feel that your film has crossover potential to a second niche audience, find a way to cater to both, but don’t dilute the message to serve two masters. Make sure you have the art to support whatever strategy you come up with. A designer can help you evaluate this, but this whole process might have to be repeated if the art comes up short. The task is for buyers to see the market potential. If you feel like a concept “cheapens” your film, don’t dismiss it completely until you’ve talked to somebody who can give you some perspective. Take your time and don’t rush. Build your brand thoughtfully. You are making key art to sell your film, not so you can hang a cool poster in your office.
  3. Hire a real designer. Don’t just get someone who knows Photoshop to do it for you for free. Make sure there is budget for this before you make your film. Ditto a web designer. Get someone who knows the industry. Someone who will watch your film and discuss ideas at length and who can at least talk through several directions with you before committing. Loop this person into the market strategy discussions.
  4. Your art should stand out but not be too obscure. What do I mean by this? Two tests: (1) Get a reality check—before you brainstorm, take a look at the artwork in the Criterion Collection. This is an example of what NOT to do. These films are mostly classics that are being rebranded in a pretty pretentious way. It’s fine for them. But not for you. You do not want to make a poster like this. Maybe some day. Not now. (2) Take the key art that your designer mocks up and paste it in a screen shot of the iTunes Store in the “Independent” genre (or a more specific genre in the store). Make it look like it were in the store already. How does it stand up? Would you notice it? Is the title completely readable? Would anyone recognize that *one* slightly recognizable star you have in your film at this size?
  5. Look at existing key art in the genres your film is attempting to target. Grab these poster images off the web, and give those to your designer as a reference. For certain type of films, it’s OK to be reductive. Others, you’ll want to be more original. For example, for docs and horror, go for originality and/or quirkiness. For foreign language narrative films set in exotic locales, go for scenic beauty plus audience identification with the protagonists. For LGBT films, go for sex or edge. For non-LGBT narrative films, put the most famous actor you have on the poster. For comedies: it better be amusing. For romance: it better be romantic. For thriller: it better thrill. Some of this seems obvious, but it also can be a lot easier said than done. There is no one right way, but there are many wrong ways. It’s important that you know what those are.
  6. Make a great trailer to go with your art. Hooking them with a poster does no good if the trailer they watch right afterward underwhelms. Think about your niche when producing this trailer. Think about how your poster gives folks a preview of what they will see in the trailer, and then exceed their expectations. Produce a trailer that’s PG. You can also produce another one that’s not, but you will need one that has no nudity, curses, drugs or sex toys for digial platforms. So now you’ve been warned. Encorporate your Title Treatment into the trailer to tie in your branding.

Another reason to take your time with your key art: use it as a way to get your audience involved. Maybe they haven’t heard from you since your Kickstarter campaign. Maybe you’ll pick up some Facebook fans at your first couple of festival screenings. Why not find a creative way to create a dialogue with the people who are supporting you?

As I stated at the beginning of this post, you will encounter a lot of opinions out there along the way. And “success” when it comes to key art is nearly impossible to measure objectively…is your campaign successful if people like it (even if they don’t really love your film)? If a buyer ends up using it? If your film does well in the marketplace? While there are many films that industry peeps can point to and credit key art for that film’s success, the vast majority of films will not fall into this category. Nor will they be offered a 7-figure deal from a major studio at Sundance. In the end, though, one of the toughest transitions a filmmaker has to make is the switch from proud parent to business person. Put yourself in the mindset of someone who knows nothing about your film: does the key art you produced really make people want to see your film? And will they even remember your brand when the time comes when they actually can see it? Everything else, as they say, is crap.

January 8th, 2014

Posted In: Key Art

Tags: , , , , , , , , , , ,

Written by Orly Ravid and Sheri Candler

Now that the line up for feature films screening in Park City has been announced and the Berlinale is starting to reveal its selections, let’s turn our attention to the potential publicity and sales opportunities that await these films.

For those with  lower budget, no-notable-names-involved films heading to Park City this January, we understand the excitement and hopefulness of the distribution offers you believe your film will attract, but we also want to implore you to be aware that not every film selected for a Park City screening will receive a significant distribution offer. There are a many other opportunities, perhaps BETTER opportunities, for your film to reach a global (not just domestic) audience, but if you aren’t prepared for both scenarios, the future of your film could be bleak.

For any other filmmaker whose film is NOT heading to Park City, this post will be vital.

Sundance Egyptian

Have you been a responsible filmmaker?

What does this mean? Time and again we at The Film Collaborative see filmmakers willingly, enthusiastically going into debt, either raising money from investors or credit cards or second mortgages (eek!) in order to bring their stories to life. But being a responsible filmmaker means before you started production, you clearly and realistically understood the market for your film.  When you expect your film to: get TV sales, international sales, a decent Netflix fee, a theatrical release, a cable VOD/digital release, do you understand the decision making process involved in the buying of films for release? Do you understand how many middlemen may stand in the money chain before you get your share of the money to pay back financing?  Was any research on this conducted BEFORE the production started? With the amount of information on sites like The Film Collaborative, MovieMaker, Filmmaker Magazine, IndieWire and hundreds of blogs online, there is no longer an excuse for not knowing the answers to most of these questions well before a production starts. This research is now your responsibility once you’ve taken investors’ money (even if the investor is yourself) and you want to pursue your distribution options. Always find out about middlemen before closing a deal, even for sales from a sales agent’s or distributor’s website, there may be middlemen involved that take  a hefty chunk that reduces yours.

Where does your film fit in the marketplace?

Top festivals like Sundance, Berlin, Cannes, Toronto give a film the start of a pedigree, but if your film doesn’t have that, significant distribution offers from outside companies will be limited. Don’t compare the prospects for your film to previous films on its content or tone alone. If your film doesn’t have prestige, or names, or similar publicity coverage or a verifiable fanbase, it won’t have the same footprint in the market.

Your distribution strategy may be informed by the size of your email database, the size of the social media following of the film and its cast/crew, web traffic numbers and visitor locations from your website analytics, and the active word of mouth and publicity mentions happening around it. These are the elements that should help gauge your expectations about your film’s impact as well as its profitability. Guess what the impact is if you don’t have these things or they are small? Yeah…

Understand the difference between a Digital Aggregator and a Distributor?

Distributors take exclusive ownership of your film for an agreed upon time. Aggregators  have direct relationships with digital platforms and often do not take an ownership stake. Sometimes distributors also have direct relationships with digital platforms, and so they themselves can also serve as an aggregator of sorts. However, sometimes it is necessary for a distributor to work with outside aggregators to access digital platforms.

Do  understand that the digital platform takes a first dollar percentage from the gross revenue (typically 30%), then aggregators get to recoup their fees and expenses from what is passed through them, but there are some that only take a flat fee upfront and pass the rest of the revenue back. Then distributors will recoup any of their expenses and their fee percentage, then comes sales agents with their expenses and fees. And finally, the filmmaker will get his or her share. Many filmmakers and film investors do not understand this and wonder why money doesn’t flow back into their pockets just a few months after initial release. You guys are in the back of the line so hopefully, if you signed a distribution agreement, you received a nice advance payment. Think how many cuts are coming out of that $5.99 consumer rental price? How many thousands will you have to sell to see some money coming in?

Windowing.

If you do decide to release on your own, knowing how release windows work within the industry is beneficial. Though the time to sequence through each release window is getting shorter, you still need to pay attention to which sales window you open when, especially in the digital space. Anyone who has ever had a Netflix account knows that, as a consumer, you would rather watch a film using the Netflix subscription you have already paid for rather than shell out more cash to buy or rent a stream of the latest movies. But from a filmmaker/distributor’s perspective, this initial Transactional VOD (TVOD) window maximizes profits because, unlike a flat licensing fee deal from Netflix, the film gets a percentage of every transactional VOD purchase. So if you release your film on Netflix or another subscription service (SVOD) right away without being paid a significant fee for exclusivity, you are essentially giving the milk away. And when that happens, you can expect to see transactional purchases (a.k.a. demand for the cow) decrease.

Furthermore, subscription sites like Netflix will likely use numbers from transactional purchases to inform, at least in part, their decision as to whether or not to make an offer on a film in the first place. In other words, showing sales data, showing you have a real audience behind your film, is a key ingredient to getting on any platform where you need to ask permission to be on it.  Netflix is not as interested in licensing independent film content as it once was. It is likely that if your film is not a strong performer theatrically, or via other transactional VOD sites, it may not garner a significant  Netflix  licensing fee or they may refuse to take it onto the platform.

Also be aware that some TV licensing will be contingent on holding back subscription releases for a period of time. If you think your film is a contender for a broadcast license, you may want to hold off on a subscription release until you’ve exhausted that avenue. Just don’t wait too long or the awareness you have raised for your film will die out.

Direct distribution from your website

Your website and social channels are global in their reach. Unless you are paid handsomely for all worldwide distribution rights to your film, your North American distributor should not run the channels where you connect with your audience; the audience you have spent months or years on your own to build and hope to continue to build. These channels can be used to sell access to your film far more profitably for you than going through several middlemen.

Many low budget American films are not good candidates for international sales because the audience worldwide isn’t going to be big enough to appeal to various international distributors. Rather than give your rights to a sales agent for years just to see what they can do, think seriously about selling to global audiences from your own website and from sites such as Vimeo, Youtube, and iTunes. In agreements we make with distributors for our members, we negotiate the ability to sell worldwide to audiences directly off of a website without geo-blocking unsold territories. If you are negotiating agreements with other distributors, the right to sell directly can be extremely beneficial to carve out.  If you do happen to sell your film in certain international territories, it is wise to also make sure you do not distribute on your site in a way that will conflict with any worldwide street dates  and any other distribution holdbacks or windowing that may be required per your distribution contract.

You can sell DVDs, merchandise, downloads and streaming off your own site with the added benefit of collecting contact email addresses for use throughout your filmmaking career. Above all,  don’t hold out for distribution opportunities that may not come when publicity and marketing is happening. So many times we are contacted by filmmakers who insist on spending a year or more on the festival circuit with no significant distribution offers in sight and they are wasting their revenue potential by holding back on their own distribution efforts. You can play festivals AND sell your films at the same time. Many regional fests no longer have a policy against films with digital distribution in place. When the publicity and awareness is happening, that’s the time to release.

Festival distribution is a thing

Did you know that festivals will pay screening fees to include your film in their program? It’s true! But there is a caveat. Your film must have some sort of value to festival programmers. How does a film have value? By premiering at a world class festival (Sundance, Berlin, SXSW etc or at a prestige niche festival) or having notable name cast. Those are things that other festivals prize and are willing to pay for.

You should try to carve out your own festival distribution efforts if a sales or distribution agreement is presented. That way you will see these festival screening fees and immediately start receiving revenue. Our colleagues, Jeffrey Winter and Bryan Glick, typically handle festival distribution for members of The Film Collaborative without needing to take ownership rights over the film (unlike a sales agent). TFC shares in a percentage of the screening fee and that is the only way we make money from festival distribution. No upfront costs, no ownership stake.

Deliverables

This is an expense that many new filmmakers are unfamiliar with and without the proper delivery items, sales agents and distributors will not be able/interested in distributing your film. You may also find that even digital platforms will demand some deliverables. At TFC (as well as with any sales agent/distributor), we require E&O insurance with a minimum coverage of $1,000,000 per occurrence, $3,000,000 in the aggregate, in force for a term of three years. The cost to purchase this insurance is approximately $3000-$5000. Also, a Closed Captioning file is required for all U.S. titles on iTunes. The cost can be upwards of $900 to provide this file.  Additionally, many territories (such as UK, Australia, New Zealand and others) are now requiring official ratings from that territory’s film classification board, the cost of which can add up if you plan to make your film available via iTunes globally. For distributors, closed captioning and foreign ratings are recoupable expenses that they pay for upfront, but if you are self distributing through an aggregator service, this expense is on you upfront.

You may also be asked to submit delivery items to a sales agent or a distributor such as a HD Video Master, a NTSC Digi- Beta Cam down conversion and a full length NTSC Digi-Beta Pan & Scan tape all accompanied by a full Quality Control report, stereo audio on tracks 1&2, the M&E mix on tracks 3&4 and these may cost $2000-$5000 depending on the post house you use. If your tapes fail QC and you need to go back and fix anything, the cost could escalate upwards of $15,000. Then there are the creative deliverables such as still photography, key art digital files if they exist, electronic press kit if it exists or the video footage to be assembled into one, the trailer files if they exist. Also, all talent contracts and releases, music licenses and cue sheets, chain of title, MPAA rating if available etc.

Distribution is a complicated and expensive process. Be sure you have not completely raided your production budget or allocated a separate budget (much smarter!) in order to distribute directly to your audience and for the delivery items that will be needed if you do sign an agreement with another distribution entity. Also, seek guidance, preferably from an entity that is not going to take an ownership stake in the film for all future revenue over a long period of time.

For those headed to Park City, good luck with your prospects. TFC will be on the ground so keep up with our Tweets and Facebook posts. If the offers aren’t what you envisioned for your film, be ready to mobilize your own distribution efforts.

 

December 19th, 2013

Posted In: Digital Distribution, Distribution

Tags: , , , , , , , , , , , ,

The month of October seems a good time to look at films in the horror genre and we will be releasing a series of posts all month long that addresses the business of releasing these films.

Long the domain of ultra low budget filmmakers everywhere, horror audiences are now spoiled for choice when it comes to finding a film that terrifies. Yes, everyone with access to a digital camera and buckets of fake blood seems to be honing their craft and turning out product by the thousands. Unfortunately, most of it is high on splatter and low on story and production value. That may have made up the majority of the horror film sales 7 years ago, but distribution advances paid for such films are now exceedingly low (maybe $5K per territory, IF there is a pick up at all) and now the genre is perfect for the torrent sites.Unless you plan to make films as an expensive hobby, the pressure to produce a stellar horror film that people will talk about (see The Conjuring, Insidious, Paranormal Activity) is very high.

horror films

The trouble for filmmakers creating in this genre is there is so much being made of questionable quality, it is like asking audiences to find a needle…in a stack of needles (hat tip to Drew Daywalt). The same challenges for fundraising, marketing, and distribution that plague every production, plague horror films as well. To get good word of mouth, the film HAS to be great and have a significant marketing push.

At a recent event hosted at the LA Film School by Screen Craft entitled Horror Filmmaking: The Guts of the Craft, several involved in the horror genre talked about budgeting and distributing indie horror films. All agreed the production value bar has to be raised so much higher than everything else in the market in order to get people to part with their money for a ticket when competing with studio films. Talent manager Andrew Wilson of Zero Gravity Management pointed out that comments like the film did a lot with so little doesn’t hold water with audiences outside of the festival circuit. “You still need it to be good enough to get someone to come into a theater and pay $12…the guy who is going to pay $12 doesn’t care that you did a lot for a little bit of money. They want to see a film that is as good as the big Warner Bros release because they are paying the same amount of money to see it.” While you may be thinking, “I don’t need my film to play in a theater,” and that may be, the films seeing the most revenue in this genre are the ones that do.

The panel also addressed selling horror films into foreign territories. While horror does travel much better than American drama or comedy, there are horror films being made all over the world and some are much more innovative than their American counterparts. France, Japan and Korea were cited as countries producing fantastically creative horror films. American filmmakers with aspirations of distributing their films overseas need to be aware of the competition not just with fellow countrymen, but with foreign talent as well.

Other film distributors are candidly talking about the complete decimation of the market for horror, largely brought on by the internet and piracy, but also a change in consumer habits. Why buy a copy to own of that low grade splatterfest when you can easily stream it (for pay or not) and move on to the next one? More where that came from. There was once big money in fooling audiences to buy a $20 DVD with a good slasher poster and trailer, but now they are wise to the junk vying for their attention and don’t see the need to pay much money for it.

In a talk given last year at the Spooky Empire’s Ultimate Horror Weekend in Orlando, sales agent/distributor Stephen Biro of Unearthed Films actually warned the audience of filmmakers not to get into horror if money was what they were seeking.”The whole system is rigged for the distributors and retailers. You will have to make the movie of a lifetime, something that will stand the test of time.”  He confirmed DVD for horror is dead. Titles that might have shipped 10, 000 copies to retailers are now only shipping maybe 2,000. Some stores will only take 40 copies, see how they sell and order more if needed in order to cut down on dealing with returns. Of the big box stores left standing, few are interested in low budget horror titles. Netflix too is stepping away from low budget indie horror on the DVD side. They may offer distributors a 2 year streaming deal for six titles at $24,000 total, but there will be a cost to get them QC’d properly (which comes out of your cut, after the middlemen take their share of course!).

As for iTunes, there are standards barring graphic sex for films in the US and in some countries, they are now requiring a rating from the local ratings authority in order to sell from the iTunes Movie store. The cost of this can run into the thousands (based on run time) per country. Also, subtitling will be required for English language films, another cost.

The major companies in cable VOD (Comcast, Time Warner, Verizon etc) are now requiring a significant theatrical release (about 15 cities) before showing interest in working with a title. They are predominantly interested in titles with significant marketing effort behind them. The cable operators often do not offer advances and you must go through an aggregator like Gravitas Ventures to access. If the aggregator refuses your film, that’s it.

Selling from your own site via DVD or digital through Vimeo or Distrify is still an option, and the cut of revenue is certainly larger. But unless there is a budget and plan in place to market the site, traffic won’t just materialize. Still, for ultra, ultra low budget films (like made for less than $5,000) with a clear marketing strategy and small advertising budget, selling direct is the way to go. Certainly better than giving all rights away for free, for 7 years and seeing nothing. At least your film can access a global audience.

Here is Biro’s talk from Orlando. It runs almost an hour

If after reading this, you are still set to wade into the market with your horror film, stay tuned to future posts looking at the numbers behind some recent horror films and what options you’ll have on the festival circuit.

 

photo credit: <a href=”http://www.flickr.com/photos/markybon/102406173/”>MarkyBon</a> via <a href=”http://photopin.com”>photopin</a> <a href=”http://creativecommons.org/licenses/by-nc-sa/2.0/”>cc</a>

 

Sheri Candler

October 3rd, 2013

Posted In: Cable, Digital Distribution, Distribution, International Sales, iTunes, Long Tail & Glut of Content, Marketing, Netflix, Theatrical

Tags: , , , , , , , , , , , , , , ,

Next week (September 15 – 19) marks IFP’s annual “Independent FIlm Week” in NYC, herein dozens of fresh-faced and “emerging” filmmakers will once again pitch their shiny new projects in various states of development to jaded Industry executives who believe they’ve seen and heard it all.

conference

Most of you reading this already know that pitching a film in development can be difficult, frustrating work…often because the passion and clarity of your filmmaking vision is often countered by the cloudy cynicism of those who are first hearing about your project. After all, we all know that for every IFP Week success story (and there are many including Benh Zeitlin’s Beasts of the Southern Wild, Courtney Hunt’s Frozen River, Dee Rees’ Pariah, Lauren Greenfield’s The Queen of Versailles, Stacie Passon’s Concussion etc…), there are many, many more films in development that either never get made or never find their way into significant distribution or, god forbid, profit mode.

So what keeps filmmaker’s coming back year after year to events like this? Well, the simple answer is “hope” of course….hope, belief, a passion for storytelling, the conviction that a good story can change the world, and the pure excitement of the possibilities of the unknown.

Which is why I found a recent poll hosted on IFP’s Independent Film Week website [right sidebar of the page] so interesting and so telling….in part because the result of the poll runs so counter to my own feelings on the state of independent film distribution.

On its site, IFP asks the following question:

IFP voting

 

Before you view results so far, answer the question….Which excites YOU the most? Now go vote and see what everyone else said.

** SPOILER ALERT — Do Not Read Forward Until You’ve Actually Voted**

 

IFP result

What I find so curious about this is in my role as a independent film distribution educator at The Film Collaborative, I would have voted exactly the other way.

I suspect that a key factor in IFP Filmmakers voting differently than I has something to do with a factor I identified earlier, which I called “the pure excitement of the possibilities of the unknown.” I’m guessing most filmmakers called the thing most “exciting” that they knew the least about. After all 1) “Crowdsourcing” seems familiar to most right now, and therefore almost routine to today’s filmmakers….no matter how amazing the results often are. 2) “Television As a Platform for Auteurs” is also as familiar as clicking on the HBO GO App….even despite the fact that truly independent voices like Lena Dunham have used the platform to become household names. 3) Cross Media Story Telling remains a huge mystery for most filmmakers outside the genre sci-fi and horror realms….especially for independent narrative filmmakers making art house character-driven films. It should be noted that most documentary filmmakers understand it at least a little better. And 4) Digital Distribution Opportunities…of course this is the big one. The Wild West. The place where anything and everything seems possible…even if the evidence proclaiming its success for independents STILL isn’t in, even this many years after we’ve started talking about it.

But still we hope.

From our POV at The Film Collaborative, we see a lot of sales reports of exactly how well our truly independent films are performing on digital platforms….and for the most part I can tell you the results aren’t exactly exciting. Most upsetting is the feeling (and the data to back it) that major digital distribution platforms like Cable VOD, Netflix, iTunes etc are actually increasing the long-tail for STUDIO films, and leaving even less room than before for unknown independents. Yes, of course there are exceptions — for example our TFC member Jonathan Lisecki’s Gayby soared to the top of iTunes during Gay Pride week in June, hitting #1 on iTunes’ indie charts, #3 on their comedy charts, and #5 overall—above such movie-star-studded studio releases as Silver Linings Playbook and Django Unchained. But we all know the saying that the exception can prove the rule.

Yes, more independent film than ever is available on digital platforms, but the marketing conundrums posed by the glut of available content is often making it even harder than ever to get noticed and turn a profit. While Gayby benefited from some clever Pride Week-themed promotions that a major player like iTunes can engineer, this is not easily replicated by individual filmmakers.

For further discussion of the state of independent digital distribution, I queried my colleague Orly Ravid, TFC’s in house guru of the digital distro space. Here’s how she put it:

“I think the word ‘exciting’ is dangerous if filmmakers do not realize that platforms do not sell films, filmmakers / films do.

What *is* exciting is the *access*.

The flip side of that, however, is the decline in inflation of value that happened as a result of middle men competing for films and not knowing for sure how they would perform.

What I mean by that is, what once drove bigger / more deals in the past, is much less present today. I’m leaving theatrical out of this discussion because the point is to compare ‘home entertainment.’

In the past, a distributor would predict what the video stores would buy. Video stores bought, in advance often, based on what they thought would sell and rent well. Sure there were returns but, in general, there was a lot of business done that was based on expectation, not necessarily reality. Money flowed between middle men and distributors and stores etc… and down to the sellers of films. Now, the EXCITING trend is that anyone can distribute one’s film digitally and access a worldwide audience. There are flat fee and low commission services to access key mainstream platforms and also great developing DIY services.

The problem is, that since anyone can do this, so many do it. An abundance of choice and less marketing real estate to compel consumption. Additionally, there is so much less of money changing hands because of anticipation or expectation. Your film either performs on the platforms or on your site or Facebook page, or it does not. Apple does not pay up front. Netflix pays a fee sort of like TV stations do, but only based on solid information regarding demand. And Cable VOD is as marquee-driven and not thriving for the small film as ever.

The increasing need to actually prove your concept is going to put pressure on whomever is willing to take on the marketing. And if no one is, most films under the impact of no marketing will, most likely, make almost no impact. So it’s exciting but deceptive. The developments in digital distribution have given more power to filmmakers not to be at the mercy of gatekeepers. However, even if you can get into key digital stores, you will only reach as many people and make as much money as you have marketed for or authentically connected to.”

Now, don’t we all feel excited? Well maybe that’s not exactly the word….but I would still say “hopeful.”

To further lighten the mood, I’d like to add a word or two about my choice for the emerging trend I find most exciting — and that is crowdsourcing. This term is meant to encompass all activities that include the crowd–crowdfunding, soliciting help from the crowd in regard to time or talent in order to make work, or distributing with the crowd’s help. Primarily, I am going to discuss it in terms of raising money.

Call me old-fashioned, but I still remember the day (like a couple of years ago) when raising the money to make a film or distribute it was by far the hardest part of the equation. If filmmakers work within ultra-realistic budget parameters, crowd-sourcing can and usually does take a huge role in lessening the financial burdens these days. The fact is, with an excellently conceived, planned and executed crowdsourcing campaign, the money is now there for the taking…as long as the filmmaker’s vision is strong enough. No longer is the cloudy cynicism of Industry gatekeepers the key factor in raising money….or even the maximum limit on your credit cards.

I’m not implying that crowdsourcing makes it easy to raise the money….to do it right is a whole job unto itself, and much hard work is involved. But these factors are within a filmmaker’s own control, and by setting realistic goals and working hard towards them, the desired result is achieved with a startling success rate. And it makes the whole money-raising part seem a lot less like gambling than it used to….and you usually don’t have to pay that money back.

To me, that is nothing short of miraculous. And the fact that it is democratic / populist in philosophical nature, and tends to favor films with a strong social message truly thrills me. Less thrilling is the trend towards celebrities crowdsourcing for their pet projects (not going to name names here), but I don’t subscribe to a zero-sum market theory here which will leave the rest of us fighting over the crumbs….so if well-known filmmakers need to use their “brand” to create the films they are most passionate about…I won’t bash them for it.

In fact, there is something about this “brand-oriented” approach to crowdsourcing that may be the MOST instructive “emerging trend” that today’s IFP filmmakers should be paying attention to…as a way to possibly tie digital distribution possibilities directly to the the lessons of crowdsourcing. The problem with digital distribution is the “tree-falls-in-the-forest” phenomenon….i.e. you can put a film on a digital platform, but no-one will know it exists. But crowdsourcing uses the exact opposite principal….it creates FANS of your work who are so moved by your work that they want to give you MONEY.

So, what if you could bring your crowdsourcing community all the way through to digital distribution, where they can be the first audience for your film when it is released? This end-to-end digital solution is really bursting with opportunity…although I’ll admit right here that the work involved is daunting, especially for a filmmaker who just wants to make films.

As a result, a host of new services and platforms are emerging to explore this trend, for example Chill. The idea behind this platform (and others) is promising in that it encourages a “social window” to find and engage your audience before your traditional digital window. Chill can service just the social window, or you can choose also to have them service the traditional digital window. Crowdfunding integration is also built in, which offers you a way to service your obligations to your Kickstarter or Indiegogo backers. They also launched “Insider Access” recently, which helps bridge the window between the end of the Kickstarter campaign and the release.

Perhaps it is not surprising therefore, that in fact, the most intriguing of all would be a way to make all of the “emerging trends” work together to create a new integrated whole. I can’t picture what that looks like just yet…and I guess that is what makes it all part of the “excitement of the possibilities of the unknown.”

Jeffrey Winter will be attending IFP Week as a panelist and participant in the Meet the Decision Makers Artists Services sessions.

September 12th, 2013

Posted In: crowdfunding, Digital Distribution, DIY, Film Festivals, iTunes, Long Tail & Glut of Content, Marketing

Tags: , , , , , , , , , , , , ,

By Stacey Parks

This is an excerpt of the interview Stacey Parks did with our own Orly Ravid regarding digital distribution. Stacey’s book is now available in paperback and kindle versions at www.FilmSpecific.com/Book.

 

What To Expect From A Distribution Deal: Interview With Orly Ravid from The Film Collaborative 

 Q: What’s it like for filmmakers these days in terms of getting traditional theatrical, broadcast, and DVD distribution deals for their films?

A: I think that film like any business, is affected by market forces.  There’s more supply than there has ever been.  The means of production have become less expensive and more accessible and film has gotten even more and more popular as evidenced by the proliferation of film festivals and film schools and corporate brands who have initiatives relating to film (contests and such).  There are thousands of films for sale in markets such as Cannes & AFM each year and that’s not counting the projects in development, also for sale.

So the bottom line is that there’s simply an excess of supply over demand. And the other factor that has changed is the attrition, if not the collapse, of the middle B2B infrastructure that did emerge and sustain with VHS & DVD, but that does not maintain with digital distribution.  The reason being is that when there were many DVD stores (and VHS before that) the businesses were in competition and they all needed product and weren’t always sure of what would sell or rent well so they actually stocked up, which gave the distributors a huge upside and that potential upside lead to healthy competition, which lead to a healthier business. These days, many video stores are out of business and the ones that still exist (such as Walmart) buy cheap and then return what does not sell (not that that did not happen before, but to a lesser extent), and so the traditional distributors proceed with greater caution when it comes to acquiring new films for the pipeline.

Then there’s the other issue of piracy which leads to less consumption overall and now over 20,000,000 subscribers wait for a film to be available on Netflix which can be healthy business for smaller films that otherwise could not sell well, BUT it’s not great for films that could or would sell otherwise.

The theatrical business is also hurt by both over-supply and by the ‘Netflixing’ of the U.S market.  Digital distribution is there, but again the oversupply makes things competitive and the price points are different so volume is critical, hence the middle man aggregator can do well if it has a breadth of content, but individual producers need to have a film that competes very well in order to be made whole.

And then lastly there’s the Broadcast market. Well, as TV and the Internet become one, TV buying is less of a reliable source of revenue, prices have come down considerably and more rights / revenue streams are impacted when prices are higher such that the net is affected.  Of course, bigger films can be exceptions and studios have their deals. But for the independents and smaller films, Broadcast deals are harder to get and worth less when one gets them.  And nothing but a change in supply can change any of this because technology is certainly not going backwards.

Q: I know you’ve been a champion of ‘newer’ distribution platforms like Video On Demand (VOD), but what’s in it for the filmmakers?

A: I don’t champion them as much as I address that Cable VOD is responsible for 80% of the revenue in the digital space, which is not the same as all VOD. Films that do well in VOD can make 5 and 6 figures in revenue.  By contrast, films that don’t do well make much less and sometimes almost nothing. The truth is VOD is not some magic pill; it’s simply a new delivery mechanism, with some advantages over physical media in terms of accessibility and with some disadvantages in terms of even greater glut and not always great recommendation engines or as easy of time to market (images are smaller, you don’t have as much real estate to market the film).  The proliferation of the iPad is expected to increase the transactional rental business (ex: Netflix) and that interface is also seemingly more filmmaker / film consumption friendly.  In any case, no one in distribution thinks DVD and physical media is going up; it’s only going down so for home entertainment or entertainment on the go (e.g. mobile), digital is here, we have to make the most of it.

Q: In your opinion, do film festivals still play a key role in helping filmmakers find distribution for their films? Or have you seen cases where skipping the festival route and going straight to distribution is OK too? 

A: If your film is festival-worthy or festival-appropriate going that route can never hurt and in fact, often helps. The better the festivals are, the better the film can succeed in terms of sales and also often in terms of audience awareness and interest.  Skipping festivals makes sense for non-festival-type films.  For example, genre films normally don’t need festivals although sometimes they can be helped by a good festival strategy. I think now more than ever festivals play a key role in helping audiences find films and filmmakers find audiences. AND, since at least 5 years ago I have been championing festivals getting involved more in distribution.  I expressed that enthusiastically to the folks at Sundance starting in 2009 and also to other niche festivals too. I truly believe that a more distribution-centric strategy makes sense for both filmmakers and festivals, though only for festivals with a strong brand or niche appeal.

Q: What about foreign distribution? In your experience is this still a major revenue stream for the filmmakers you’re working with?

A: Only for some of our filmmakers – for example, genre filmmakers, niche filmmakers, and some of the more commercial documentaries. For the others, it’s not really a viable option. The money for foreign distribution deals is so small for most films so we end up licensing the films when possible for a good enough deal and otherwise invoke a direct digital distribution and DIY strategy.

Q: What are some things filmmakers need to look out for when making any distribution deal? In other words, what are some of the biggest mistakes you see filmmakers making in regards to negotiating distribution deals?

A: I covered this a bit in my recent blog post and I do encourage filmmakers to read the blog when the topic relates to them because it covers a lot.  Some of the key mistakes in short are:

1. Not getting references and checking on those in order to evaluate the verity of the distributor’s claims.

2. Not knowing enough and analyzing enough the degree of middlemen between the distributor and each key revenue stream.

3. Not having enough protection for material breach.

4. Not defining and also capping recoupable costs properly.

5. Giving up too many rights for too little reason.

6. Having blind faith and being too passive in one’s own responsibility to know the film’s audience and how to reach it.

7. Not having good photography or images to help market the film.

8. On the pro distributor side, sometimes filmmakers think they know better and can do a better trailer for example. They may be right but they can be wrong too and be too close to the film to know how to “sell it”.

 

Stacey Parks is a Producer and film distribution expert with over 15 years experience working with independent filmmakers. As a Foreign Sales Agent for several years, she secured distribution for hundreds of independent worldwide. Stacey currently specializes in coaching independent filmmakers on financing and distribution strategies for their projects, and works with them both one-on-one and through her online training site www.FilmSpecific.com The 2nd edition of her best selling film book “Insiders Guide To Independent Film Distribution” (Focal) is now available at www.FilmSpecific.com/Book.

 

May 1st, 2012

Posted In: Digital Distribution, Distribution, Marketing

Tags: , , , , , , , , , , , , ,

Next Page »
© 2016 The Film Collaborative. All rights reserved.