photo from indieWire

If you have been following the world of the independent film industry over the last week, you know there have been two significant meetings regarding the state of independent production and distribution. The first meeting was in NYC organized by indieWire Magazine and MoMA as a summit to discuss independent film and its future direction in a time of economic crisis and technological change. In attendance were distributors, producers, directors, festival reps and others from the filmmaker community who all expressed alarm at the current funding crisis and the collapse of traditional distribution for indie films.

Some maintained that there is no crisis, only that bad businesses went away and good ones stayed. Others pondered what will be the new model for indie film exhibition and distribution. Will people pay hundreds or thousands to buy home viewing hardware but only pay pennies for the content? Is the cinematic experience going by the wayside in favor of home or portable entertainment? Two camps have formed, some wishing to resist the change (mostly filmmakers and distributors who found success in the old model) and some wishing to be part of it (the new breed still looking for a break and able to adapt easily). Of course, I find myself in the latter. I think there is no limit to the possibilities of new filmmakers finding success online as long as they recognize they must be artists AND business people. The new gatekeepers are not distributors but the audience. If you don’t have one, you won’t succeed as a filmmaker. Find your audience.

The second meeting was the Independent Film & Television Alliance Production Conference here in LA. The keynote was given by ex Fox studio chairman turned owner of indie production company Pandemonium LLC, Bill Mechanic, on the future of indies. His pronouncement that the current condition is fatal only to those ”who ignore the warning signs.  Who don’t adjust to the threatening conditions. Those producers and distributors who pretend there is nothing wrong” is, I think, the money statement.

In the past 10 years, the internet and video games have dominated leisure time so much so that exhibitors have seen a 21% drop in attendance in the core 18-24 year old audience. If the audience is turning to online entertainment, why isn’t Hollywood? I don’t think that the local cinema is going out of business any time soon. But I do think that both Hollywood studios and theaters are going to have to offer a better viewing experience in order to attract an audience.

Where does this leave the art film? In my opinion, the art film with no proven audience, having been gathered through months or years in the development and production process, will be a failed endeavor whether it screens in a theater or online. Perhaps part of the current problem lies in the fact that indie filmmakers thought it was the distributors’ problem to figure out how to market a film and the distributors went along with this. How can you make a product without knowing who you are making it for? Waiting until the product is finished and then shoehorning it and ad spending it into public consciousness is not the way to make something successful, obviously. I recently read an article with Mike Judge for his EXTRACT film and he said he didn’t see marketing as his job, that is for the distributor to do. UGGGH! How’s that film doing? Another long tail cult hit? If I were his investor, I’d be pissed.  Back to Bill Mechanic…

Bill says that this current crisis will continue over the next 2-3 years because of over saturation of product in the market and the economic downturn. He says that studios will have a more difficult time of it because they are entrenched in their old ways, bloated with personnel and dependent on theatrical and DVD distribution which are on the downturn. Opportunities will lie in the digital space for those unburdened with these legacy issues, heads up new indie filmmakers. Those that take the business end seriously will succeed, the others will disappear. “Those without the ambition or the brains to figure their way through these tough economic conditions cannot be saved. The winners will be smart about what they make and how they sell their films.  They will hopefully make good films but perhaps even more key they will make unique films that stand out, ” said Mechanic. I will add they will know their audience and connect with them on an interactive level during production so that when the release happens, it falls right into waiting arms.

Once again, I must defer to the wisdom of marketing guru Seth Godin from a post he made this week on his site. I see in the things that he posts many parallels of what is happening in the traditional marketing and advertising space and what is happening in the independent film space. No longer is it the duty of a company’s marketing department to simply find space on media company sites (TV, magazine, newspaper, billboard, websites etc.) to advertise wares. The duty has shifted to creating a company’s own space (websites, social media sites, blogs etc.) on which to engage with customers and build a loyal fan base. No longer are they “renting” an audience on a short term basis, they are building one of their own that is easier to keep and grow than it is to start from scratch when a  new product or campaign comes about. This also has become the duty of the independent filmmaker.

A filmmaker can no longer, nor should any longer, depend on a distribution company (the said media company) to find an audience for his film every time a new film comes out. It is up to the filmmaker to build that audience and keep them engaged with all of his projects, not start over every time a new one is completed. A platform needs to be built in order to nurture, engage, educate and convert an audience to seek out the projects. First set up the platform (website, blog, social media page) and then fill it with people, your people, not rented-for-a-certain-amount-of-time people.

In his analogy, Seth uses authors. He recounts how authors used to rely on publishers to bring them readers. The author gives up the majority of the income to the publisher and, in turn, the publisher brings them the readers. In the traditional distribution model, filmmakers make a film and give up the majority of the income to the distributor to bring an audience. But when an author or a filmmaker builds his own audience with his own platforms, using a publisher or a distributor is a choice not a necessity. If the filmmaker owns his own media distribution channel (on YouTube, Vimeo or any of the multitude of online viewing sites), the majority of the revenue goes to him, not the outside media company. 

Compared to the loss of revenue that ”renting” an audience from a distributor means, building a platform is cheap. Filling it with people eager to hear from you, well that’s the expensive part, mostly in time and effort. If you don’t invest in the platform, you’ll be at a disadvantage, now and forever. To build a loyal and eager following the smart way is to invest in the elements of the platform… a great film with a great story,  a whole business team not just the production team, the online presence  and the systems you need to make it easy for people to find your project and become engaged. And then embrace these people and shoot for 90% of the revenue, not .5%. Good investments are often expensive but worth more than they cost.

In today’s indieWire, there was an article by Peter Broderick, the person who coined the term “hybrid distribution.” I am going to reprint his 10 principles here because they are of such vital importance to you as an independent filmmaker in navigating the New World of indie film distribution. You can access the full article here.

“The following ten principles are distilled from the experience of filmmakers I have worked with across the country and overseas. As their distribution strategist, I have been by their side as they have explored the New World of Distribution.

1. Design a customized distribution strategy.

Every film needs a customized distribution strategy. Ideally this strategy should be designed before the film is made, increasing the chances of securing financing. To create a strategy, filmmakers must clearly define their goals and priorities, identify the film’s initial core audiences, plan different versions of the film (e.g. theatrical, television, DVD, foreign, educational), determine distribution avenues and a release sequence, identify potential partners, and decide how to initially position the film both online and off. The strategy should be flexible, implemented one stage at a time, and regularly assessed and refined.

2. Split distribution rights.

While in the Old World of Distribution all domestic rights were usually given to one company, hybrid distribution enables rights to be split more finely and effectively. Filmmakers retain direct sales rights, including the right to sell DVDs from their websites and at screenings, and the right to sell downloads and rentals from their sites. Most often filmmakers also retain theatrical and semi-theatrical. VOD, television, and retail DVD deals are usually made with separate distribution partners. Deals are often made with educational partners but some filmmakers are retaining these rights. Digital rights for avenues like iTunes are more complicated—they are sometimes given to the retail DVD distributor or the VOD distributor and sometimes licensed separately.

Rights can be usefully divided into eight domestic and two international categories:

DOMESTIC                                               
Theatrical
Semi-Theatrical & Non-theatrical
VOD
Television
Retail DVD
Direct DVD
Educational
Digital Rental & Download

INTERNATIONAL
Television
Other (Theatrical, DVD & Digital)

While splitting up rights is complicated and time consuming, it allows each right to be exploited well, avoids cross-collateralization (where expenses from one area of distribution eat away at revenues from others), and allows a filmmaker to retain overall distribution control.

3. Choose effective distribution partners.

In the Old World where all domestic distribution rights were usually lumped together, certain rights were often poorly utilized or completely overlooked. In the New World, it is important to determine how best to exploit every right without neglecting any of them. Filmmakers can handle some rights most successfully on their own. In other areas, the goal is to find the distribution partner with the skills and experience to be most effective. Ideally this partner has an impressive track record with similar films or particular niche audiences. Before signing any deal with a distribution partner, it is essential to speak with other filmmakers currently or recently in business with the company.

4. Circumscribe rights.

Grant each distribution partner only the specific rights they can handle well. For example, if a company is strong in retail DVD and digital, give them these rights, but do not also give them VOD if they have no experience with VOD.

Carefully limit the rights (scope, term, exclusivity) granted to each partner. Make sure the rights given to different distributors complement each other without conflicting. Make as many deals as possible at the same time so the rights given in one area do not subsequently prevent you from making deals in other areas.

5. Craft win-win deals.

Design deals that will work well for both your distribution partner and you. Divide revenues fairly and define responsibilities clearly. Build in guarantees (e.g. minimum number of cities and marketing spend, performance guarantee), approvals (e.g. deals, marketing, editing), and safeguards (e.g. escape clauses, expense cap, bankruptcy protection, limits on assignment, dispute resolution).

6. Retain direct sales rights.

Retain the domestic and international rights to sell DVDs (from your website and at screenings) and downloads and streams (from your website). Also retain the rights to screen the film theatrically and semi-theatrically.

Direct sales are the lynchpin of a hybrid distribution strategy. They have four significant advantages over third-party sales:

• Higher profit margins – A DVD sold directly from a filmmaker’s website can easily yield profit margins 7-8 times as high as DVDs sold in retail.

• Faster payment – Filmmakers usually receive payments faster from PayPal or a fulfillment company than they would from a distributor.

• Revenues aren’t split with middlemen – Filmmakers receive all of the revenues, after manufacturing and fulfillment costs.

• Customer information – Filmmakers receive data on all customers who make purchases from their websites, but do not get any information on consumers who buy through third-party retailers. This data enables filmmakers to stay in touch with purchasers and offer them other products.

7. Assemble a distribution team. (I especially love this one as it has to do with marketing!)

It is as important to have a distribution team, as it is to have a production team. This team includes some or all of the following: strategist, producer’s rep, foreign sales agent, webmaster, outreach coordinator, theatrical and semi-theatrical bookers, print and online publicists, and fulfillment company.

8. Partner with nonprofits and online communities.

Nonprofits can be indispensable distribution partners. They can build awareness among key core audiences by hosting screenings at national conventions and local chapters, by co-sponsoring house parties, and by promoting films through their publications and websites. Online communities can also increase buzz, audience, and sales (through affiliate marketing), potentially helping your film go viral.

9. Maximize direct revenues.

In addition to selling DVDs directly from their websites, filmmakers can also sell other products they produce (e.g. soundtrack albums, companion books, posters, hats, and t-shirts). Filmmakers can also purchase related products from third parties (e.g. books, DVDs, CDs) that will be of particular interest to their audiences. As online retailers, they can buy these products at wholesale and resell them from their sites at retail.

10. Grow and nurture audiences.

Independents can expand their films’ audiences by building mailing lists, communicating effectively and developing ongoing relationships with subscribers. They should provide them with valuable and engaging content, while keeping sales pitches to a minimum. They should also create a content-rich, dynamic, and interactive website that encourages participation. Their ultimate goal is to develop a core personal audience that can support future projects through contributions and purchases.”

It also occured to me while reading this a lot of musicians, writers and artists could benefit from his advice. It is a whole new DIY world now in the arts and all artists who are looking for commercial success will do well to put these principles into action.

While talking with a short filmmaker recently, I suggested that he try some digital distribution via iTunes. I know that it isn’t very easy to use iTunes as a filmmaker in that it will involve using an aggregate company since Apple will not deal with indie filmmakers directly. Here is a partial list I have compiled of companies currently handling iTunes submissions. Of course, a small percentage of sales will go to each company handling the distribution, but since iTunes has considerable reach, I think it is worth it to profit share.

I have not personally vetted each company represented so I encourage you to do your own research and ask for feedback from other filmmakers who have dealt with them. I am sure this is not an exhaustive list as companies are getting new agreements every day. If you know of other companies not mentioned, please add them in comments.

http://www.shortsinternational.com/

http://www.newvideo.com/

http://fansoffilm.com/page/about-fans-of-film
http://www.distribber.com/
http://www.nelsonmadisonfilms.com/coop.php
http://www.ingrooves.com/partners
https://www.indieflix.com/ssl/Filmmaker/HowItWorks.aspx
http://www.tunecore.com/
http://www.stonehengeproductions.com/Stonehenge/home.html

I’ve mentioned before about the importance of building an audience for your film starting at the script stage. The reason I say to start marketing your film early is that I am assuming  as an independent filmmaker you do not have access to the millions of marketing dollars studios have to advertise their films. Without these millions, it will take more time and effort to raise awareness of your film in the public’s mind and you can’t start thinking about this once the film is completed. You must start early.

One way to start gathering an audience is through blogging. You can even start to do this before your script is finished. Actually, starting to gather input and feedback from your core audience (typically your friends and family) gets them invested in your project from the early stage and when they feel a part of the process, they will see it through to the end, as long as you continue to solicit feedback. You might find that you can improve your script by feeling out the audience response and making tweaks along the way. It is a lot better to find script problems in development rather than in unsuccessful distribution. Loads cheaper too!

You can make your blog page a web page. Many platforms enable you to customize a site so that it looks like a website and they are far easier to maintain if you are not technically inclined (like me!). Just be sure to pick a blog platform that enables you to have your own URL. For example, you do not want to have your site called www.supportmyfilm.blogspot.com rather make sure it says www.supportmyfilm.com or whatever you want to call it. Most, if not all, blog platforms allow you to post photos, videos, and audio clips so when time and money is low, consider just starting a blog. You can always upgrade later if you think it is needed.

Don’t just offer a sales approach to your blogging. Think of how much you would read some one’s posts if he only talked about himself or he was hard selling you. Be sure that you are blogging to have a conversation with your audience. Ask for input and comments. Offer insights into the process, interviews with other collaborators, commentary on the industry in general. Really think about the audience you want to capture and what they would be interested in reading. You can talk about other films or filmmakers who inspire you, what you like or dislike about using certain types of equipment or software, ask which film festivals people attend or filmmakers recommend. If your film is genre like horror or sci fi, incorporate those kinds of subjects in your posts. The choices are really endless but pick topics that would be of interest to your audience.

A blog is work though, make no mistake. If you want readers to stay engaged with you and your film, you must post regularly. It doesn’t have to be every day, but at least weekly so that you don’t go too long without communicating with your audience. Once production and post production starts, this is going to get tougher to do but it is important not to abandon the readers. Share your on-the-set stories and your post production progress. Release a little clip now and then to keep the interest alive.

As part of your promotional work, you will want to publicize the blog to bring in new members of your tribe of followers. Be sure to use a share bar that will enable readers to RSS or post to Twitter, Facebook, Digg etc. Some blog platforms have this as a plug in to install or you can install an AddThis bar. If you have an email list started, send out a little note when you have a new post to remind your followers to keep in touch. This can replace your newsletter.

If your blog is serving as your website, be sure to incorporate all of your other online platforms too. If you have a Twitter account or a Facebook page for your film, include the icons that link back to those accounts. You should integrate everything you are doing online to one central base, be it your blog or website. If your blog is separate from your website, be sure it is tied to that central site.

It is possible to make extra money by writing a blog. Personally, I don’t know anyone making enough to pay the rent. Think of this activity as sowing seeds that reap rewards later on when you self distribute or find a distributor for your film because you have such a committed group of followers.

My mother recently ordered a CD from a company called CDBaby.com. The company is a large, online CD distributor specializing in independent music. After she ordered online, she received a confirmation email detailing her order and when it would be shipped. Below is the very clever and memorable message that she kindly forwarded to me:

Your CD has been gently taken from our CD Baby shelves with sterilized contamination-free gloves and placed onto a satin pillow.
A team of 50 employees inspected your CD and polished it to make sure it was in the best possible condition before mailing.
Our packing specialist from Japan lit a candle and a hush fell over the crowd as he put your CD into the finest gold-lined box that money can buy.
We all had a wonderful celebration afterwards and the whole party marched down the street to the post office where the entire town of Portland waved “Bon Voyage!” to your package, on its way to you, in our private CD Baby jet on this day, September 8, 2009.

We hope you had a wonderful time shopping at CD Baby. In commemoration, we have placed your picture on our wall as “Customer of the Year.” We’re all exhausted but can’t wait for you to come back to CDBABY.COM!! We will be patiently awaiting your return. Thank you, thank you, thank you!
Sigh…We miss you already. 

Why am I telling you about this? It serves as an example of why just a little bit of imagination in the marketing of your product (film, album, art) can make it so unforgettable that people will want to share it. This message didn’t cost CDBaby.com anything but time. They didn’t have to buy advertising time on a TV network or advertising space in a magazine or newspaper. They simply constructed a humorous message to accompany a mundane (but necessary) confirmation email and it proved so unique that I am now sharing it with you, free of charge to everyone. And maybe you will pass it on to your friends, and maybe you will visit the site to see what products they have, and maybe you will buy something. This is viral marketing, my friends. Create something so unique and memorable people will pass it on.

Continuing on from the last post about screenwriter and instructor John Truby, I thought I would share this excerpt from an article in Microfilmmaker Magazine this month from William Akers, author of the book referenced in the post title. Warning: it is going to be harsh, but he is speaking from experience.

“Everybody complains and whines and bellyaches about the lamentable state of distribution for independent film.

 “They don’t want drama. They don’t want period. Whatever happened to emotion?”
“I can’t get a distributor for my mooooovie.”
“My investors found out where I live and they’re on their way over with molten tar and pillows…”

You wanna know THE problem with independent film? That it’s independent.

The wonderful thing about studio executives, fingers-in-your-pie master manipulators they may be, is those folks exist to help make your movie better. You may not believe it, but it’s true. Writer-Producer-Directors (WPDs) screech they don’t want their vision adulterated by Brioni-suited pinheads, but the problem with most WPDs is what they desperately need is someone to adulterate their vision.

Allow me to explain.

“Everywhere I go, I’m asked if I think the universities stifle writers. My opinion is that they don’t stifle enough of them.”
-Flannery O’Connor

What independent film needs is universities, obviously.

I was on the screening committee of the Nashville Film Festival. One of the oldest festivals in the country but, admittedly, not Sundance, and they got hundreds of entries. Hundreds of completed feature films. Most were dreadful dreck. I’d watch five minutes at the start, want to jab my eyes out with hot pokers, skip to the middle, note zero improvement, and then squander five more precious minutes at the end, by now in the throes of mortal depression. Finally, I’d heave the DVD across the room, curse my fate, and drag out the next crud by the next hopeless loser.

Harsh? Probably. True, without a doubt. Plus, a story repeated at every single film festival across this great land of ours.”

To continue with this article, go here.