After a couple of weeks exploring the topic of Distribution 2.0 virtually (via this blog, Facebook, and my Film Specific newsletters) AND in person live (at my Micro Major Berlin workshop), I can tell you this — there are THREE Key Issues that everyone seems to be grappling with right now in regards to Distribution 2.0. They are:
WINDOWS
RIGHTS
REVENUE
Hands down, these three issues represent 90% of the feedback and questions I get when mentioning the possibilities of the Distribution 2.0 landscape.
For example, here are some sample questions I receive:
WINDOWS: “If I pursue Distribution 2.0 platforms for my film, am I going to ruin my chances of potentially bigger, traditional distribution deals down the line?”
RIGHTS: “When negotiating with a Distributor or Sales Agent, how do I effectively carve out my own rights so I can pursue Distribution 2.0 platforms for my film on my own?”
REVENUE: “How much will I actually make via Distribution 2.0 platforms and where can I find accurate revenue projections so I can communicate this in a business plan or to potential investors?”
So am I right? Do any of you have similar concerns? And more importantly, did I leave anything out?
I want to keep this conversation going and help you get all your questions answered!
For those of you interested, I’m kicking off a VIRTUAL BOOT CAMP next week (March 2) that will deal with ALL of these issues (especially the 3rd one – REVENUE). And if you register by this Friday (Feb. 26) you can save $75 off the tuition AND get a free 6 month membership to Film Specific (a $159 value).
And in the mean time, I look forward to your thoughts on this topic. Any other issues I haven’t mentioned that are of particular concern to you?
{ 4 comments… read them below or add one }
Yes, those three. For me, because I’m trying to craft a business plan for an indie feature film, the most important question is WHAT ARE THE DEMONSTRABLE POTENTIAL REVENUE STREAMS and how do they contribute to ROI? All the old numbers have disappeared.
There is also a very important issue of the territory. For, if you sale a VOD rights to a French web-service – there is a very big chance, that your content will be available worldwide, and all of the French-speaking people would be able to access it (using the proxies or sometimes even without them)- not too many platforms integrate sufficient GEO-blocking utilities, that is why, to my experience, you might get a conflict with the other French speaking distirbutors – they would have a big doubt in your content.
I’m currently shooting a feature film and self-distributing and I’ve actually encountered quite a few additional big questions as I’ve navigated the process. A big part of it is just trying to break out of the old mindset. 1. Where is my promo money best spent in a self-distribution model? 2. Is it even worth my time to pursue theatrical release at indie theatres? 3.In what order should the various mediums be release (DVD, theatre, on-demand, etc)? I’m sure there are a hundred more but that’s just what comes to mind. It’s been a great adventure and, honestly, I’m already liking the new model.
Thanks so much for posting this. I just wanted to offer my two cents as someone whose worked in traditional distribution (theatrical and physical) and has, in recent years, shifted to working primarily in digital distribution–as a large part of my business includes acquiring content on behalf of a large digital aggregator I consult for.
To that end–
WINDOWS: “If I pursue Distribution 2.0 platforms for my film, am I going to ruin my chances of potentially bigger, traditional distribution deals down the line?”
This is a concern that is growing in relevance now that larger and more high-profile titles are experimenting with new media and distribution 2.0 platforms. Previously, one could answer this with a simple, resounding YES. That said, I no longer believe this is the case–though I caution that most traditional distributors are likely going to be VERY wary of any previous exploitation of a film and, as of now, will continue to stay away in most cases. Furthermore, it’s worth noting that pursuing 2.0 distribution can blow up in your face in a big way–one only need to look as far as Sundance’s Youtube experiment–and the incredibly underwhelming results–to see how a film that shows a lot of promise can “shoot itself in the foot” and eliminate further exploitation of a film. I haven’t seen most of the films involved in the Sundance/Youtube experiment but I can say that I would think it ill-advised for any filmmaker in the same position to pursue a similar arrangement if only because of the very nature of an experiment–that is to say, it’s results are hard to foresee. A lot of people have touched on this Youtube/Sundance arrangement though few have argued a case as to WHY the results were so dismal (despite claims by Sundance, Youtube, and the filmmakers to the contrary–all claims that can be dismissed given that they’re provided by parties that are hardly disinterested and are, ergo, in no position to really comment to the “success”) but there were likely a lot of factors at play. I’ve heard excuses ranging from the quality of the platform–allegedly it was very difficult to actually locate and purchase the films–to the inability for Youtube and Sundance to generate enough interest for potential audiences to take out their wallets and give Youtube their credit card information. It’s a poor barometer for digital distribution, then, when you consider the most popular platform for download-to-own (iTunes) already has the credit cards of their users stored from previous music downloads–a part of their financial infrastructure that was over a decade in the making.
In any event–I think this question speaks to a larger issue that’s going to take quite a while to shake out. Distributors are still on their toes regarding emerging platforms and will be so long as their considered “nascent” by end users, providers, and content makers alike.
RIGHTS: “When negotiating with a Distributor or Sales Agent, how do I effectively carve out my own rights so I can pursue Distribution 2.0 platforms for my film on my own?”
See above–the question of how possible this is depends on a lot of factors. As I mentioned before I consult for a major digital distributor and when seeking content, one big roadblock I continue to hear from filmmakers is that they can’t get a DVD deal without giving away the digital rights. Forget that the DVD distributors doesn’t have any in-house digital aggregation (really there’s only 1 or 2 companies that do, outside of the studio system) but they understand that physical distribution is continuing to shrink and digital is continuing to grow–albeit slowly (on both counts). That said, I’ve also had a lot of success with filmmakers who have been willing to do something that creative professionals aren’t always so good at–putting their foot down. Often times we found that filmmakers who insist will either:
a) get to keep whatever rights a distributor can’t handle in-house (and they would have to sub-lease out–adding themselves as a middle-man)
OR
b) get far more favorable terms–for the same reason.
The one thing I would keep in mind is that a distributor that can’t do anything with a platform right except outsource its distribution has no business taking your rights for those platforms–unless you make them pay you appropriately to do so.
REVENUE: “How much will I actually make via Distribution 2.0 platforms and where can I find accurate revenue projections so I can communicate this in a business plan or to potential investors?”
This is really two questions that deserve two different answers:
1.) Neither me, nor anyone else, can tell you with any accuracy–unless you’ve had your film distributed on more traditional platforms first.
2.) See number one. Distributors in Distribution 2.0 platforms–all of them–can only make accurate projections based on prior success. If you don’t have prior (quantifiable) success, it’s likely a crap-shoot. Their simply isn’t enough past data to translate non-quantifiable success (i.e. critics reviews, festival runs, twitter buzz) into numbers for 2.0 platforms. The theatrical business has been around for about 90 years, home-video for about 30–and even given all that data and background to lean on, projections are often off–sometimes by a lot (“Snakes on a Plane,” anyone?) The simple fact is, it will be a long while until this is something that anyone can really predict with any measure of accuracy.
But all of this is just one man’s opinion. I’m just working off of the numbers and anecdotes that have been communicated to me from various filmmakers and distribution companies–both traditional and emerging–and I’ve translated that data and anecdotes as best I can to come up with the above. If anyone thinks I’m wrong on one, some, or all of the above–by all means, let us all know; just don’t get too alarmist and come to my door with torches and pitchforks!
~dc