NEW WORLD DISTRIBUTION IN THE OLD WORLD

As DVD sales continue to crumble (allowing us to use less petroleum), VOD is growing (now in 65.7 million US homes — about 55.7% of TV homes, according to MagnaGlobal). Digital distribution revenues are starting to percolate and be more reliable. Worldwide revenue from video-on-demand movies and TV programs will reach $5.7 billion in 2016, up 58% from revenue of $3.6 billion in 2010, according to a new research report. The tally does not include pay-per-view sports events, adult entertainment or subscription-based VOD services such as Netflix, Amazon Prime and Google, among others, according to London-based Direct TV Research Ltd.  It should be noted this is not all related to new film but rather making catalog or library content available digitally. According to the study, “Internet-based TV (IPTV) is projected to overtake digital terrestrial TV (DTT) in revenue next year to become the third largest platform globally. Indeed, VOD revenue from DTT is expected to be largely confined to Western Europe” (http://www.homemediamagazine.com/vod/global-vod-revenue-climb-58-24580).

In South Korea of course we know almost all have Broadband and watch films digitally but the US digital distribution market has been slower to mature, though it is finally, and so how is new world distribution faring in the old world? I wanted to explore the digital distribution trends in Europe.

“The EU records the second highest TV viewing figures globally, produces more films than any other region in the world, and is home to more than five hundred online video-on-demand services” (European Commission “Green Paper” on the online distribution of audiovisual works in the European Union, 7/13/11).   It should be noted that this 500 number is more theoretical and that probably only 100 are worth talking about and half of those being the main revenue generators.  The EU funds new platforms but not all of them emerge successfully, much like our US government’s funding of alternative energy.

“A range of platforms offering transactional on-demand services span multiple territories e.g. Acetrax, Chello, Headweb, iTunes, Playstation Network Live, Voddler, Xbox Live.  These tend to continue the practice of addressing customers “in their own language”, and tailoring content to local preferences such as language, film classification, dubbing or subtitling requirements, advertising, holiday periods, and general consumer tastes.  This is consistent with the experience of producers and distributors whether large or small scale, who have indicated that although they license content on a multi-territorial basis where there is a business case to do so, targeted and local investments in distribution and marketing are nevertheless required in order to promote and sell films in each country” (IBID).  To read the paper in its entirety go to:

http://ec.europa.eu/internal_market/consultations/docs/2011/audiovisual/green_paper_COM2011_427_en.pdf

On a side note: many European countries are used to having films dubbed not subtitled and there is apparently a new software that facilitates dubbing in the same voice as the actor / speaker.  I’m looking into it further.  In any case, subtitling for digital is getting less and less expensive and can be done via software or labs.  If one has played a film at a film festival in another country and then plan to distribute the film there I recommend you ask the fest for access to the subtitles (if cleared for other distribution).  Traditionally, Nordic, Benelux, and some others are fine with and prefer subtitles, while others (such as Germany, Spain, and Italy) require dubbing.  In the higher educated arthouse/filmfest world, one can often get away with just subtitled versions even in the dubbing countries.

At The Film Collaborative we have noticed that iTunes has just recently expanded its footprint into Europe and is now available in the following EU countries:

Austria, Bulgaria, Cyprus, Czech Republic, Denmark, Estonia, Finland, Greece, Hungary, Latvia, Lithuania, Malta, Netherlands, Norway, Poland, Republic of Ireland, Romania, Slovakia, Slovenia, Spain, Sweden, United Kingdom.

Non-English stores include:

Spain, France, Germany, Italy, Luxembourg, Belgium, Switzerland, Portugal.

NETFLIX, Amazon (via Lovefilm), and Hulu are expanding their EU footprint too.  In the US Hulu is ramping up its competitive edge with Netflix on the SVOD HuluPlus and these days it’s looking for more films that it can do stunts around.

So what are the other key EU platforms? Trends? And which kinds of films are viable?

I asked TFC Board of Advisor / EU digital distribution guru and TFC partner Wendy Bernfeld of Rights Stuff (www.Rights-Stuff.com) to weigh in.  Wendy noted that various international platforms are increasingly interested by now in licensing art house and festival films, not just mainstream, and that they also have room for niches.  (For an example, TFC received an offer for 300 EU from one small platform but sometimes the money is quite better, and/or is coupled with rev shares and small upfronts. The point is that the deals are non-exclusive and can ripple through various windows and regions.  Keep in mind some platforms are transactional (pay per view) and revenue sharing, others ad supported  (free to consumer) and others subscription (e.g. pay per month) and hence the license fee, just like TV, but smaller often though sometimes greater.  Wendy notes that whilst some earlier pioneer platforms have gone out of business, others are launching or strengthening, and diversifying into thematic genres instead of only mainstream.  Wendy cites that some of those non-USA platforms include Orange, Viasat, XIMON (for art house/festival/docs) in the Netherlands, Voddler (Nordic), Blinkbox (UK), mubi.com (EU), not to mention many telecom and cable VOD platforms that have online offerings of their own Wendy adds that “LOVEFILM in the UK (now owned by Amazon) usually only takes larger packages, not one-offs, if dealing direct with producers/ distributors, otherwise one can go through aggregators/digital distributors and sometimes one is pressed to have had a DVD or local theatrical release already, while in other case they are willing to premiere online or Day & Date.   Lesser-known or library (catalog) films can usually find a home on a non- exclusive and on ad-supported (AVOD) basis, but more current films usually start with transactional (TVOD) basis and/or subscription platforms (SVOD)…  Many of these platforms are willing to take delivery of art house films via DVD” or a hard drive or digital master (instead of requiring the expensive encoding/digitizing the way Apple does).

Wendy believes that 2012 will see more of the same consolidation that 2011 witnessed.  Also some key platforms (such as Hulu, Netflix, Yahoo, Endemol/AOL, Nokia, Canal+, Orange) are selectively commissioning Transmedia and/or branded film opportunities.  Ad- supported (AVOD) platforms such as YOUTUBE and subscription platforms such as Lovefilm in the UK (owned by Amazon) are adding premium transactional VOD (TVOD) in order to handle current films and not just library or PAY TV window titles, and some are competing against the premium PAY TV window and occasionally buying an SVOD window exclusively instead of nonexclusively, to beat out a PAY TV licensee (e.g. as with Netflix, Lovefilm recently, in some key indie deals).   More platforms are open to REVERSE WINDOWING (a trend growing and succeeding in the US, e.g. Melancholia), which is launching online first and then opening theatrical.

Interestingly, EPIX began licensing international festival documentaries in 2010 but have now focused their attention on co-productions instead of acquisitions.  As in the US, many traditional PAY TV platforms are going cross-platform and on multiple devices (a la “TV EVERYWHERE”, and similarly the nonlinear online channels are often seeking multiple device rights and/or at least have an App).  In terms of trends, it still seems like the bigger funds and bigger platforms are still more focused on more mainstream content.  Yet having said that, here’s a summary from Wendy on key platforms for Art House films:

For films not released theatrically Wendy cites among others, XIMON & MUBI (TFC is direct with them and they also often deal directly with filmmakers) and also notes there are the local equivalents of Fandor and IndieFlix in various regions.  Some PAY TV film channels have online offerings that explore more niche or arthouse material, even where the film is not on the main channel.  MUBI (www.Mubi.com) is co-owned by the rights holder to one of the most expansive libraries of art house cinema, Celluloid Dreams. MUBI is technically available everywhere, and is sometimes syndicated as a channel carried on a telecom platform (as in the case of its SVOD service on Belgacom in Belgium).  It is also on Sony Playstation, has (last time I checked) 60% of its audience in the US and most of the rest in Europe.  Wendy explains that for bigger indie titles and mainstream ones there are about 5-7 or so VOD outlets per country, usually in the form of television related, IPTV, Telecom/Cable companies, (as well as the online and/or mobile sites, and offerings that are being put together by OTT box and consumer electronics/connected TV manufacturers.)

For example in even the small country Holland (where Wendy, former Canadian, resides) there are: KPN, Tele2, SBS/Veamer, Ziggo, Upc/Chello/Film1, . Others in EU include e.g. Orange, Canal Plus, (France etc), Telenet, in Nordic, etc.), Telefonica, Viasat…  Most buy TVOD and sometimes SVOD and/or AVOD.  Some web-based sites for VOD, according to Wendy, include: Veamer (NL); Popcorn (just launching in UK),  Blinkbox and Lovefilm(UK); Voddler & Film2Home & Headweb  and Viasat nonlinear offerings (Nordic),. In Benelux, Cinemalink, Veamer  , Pathe (soon launching) , idfa.tv and Ximon (Netherlands); Maxdome (Germany); Sony-related Qriocity, Daily Motion & Orange (many countries in EU) , Movieeurope, Zatoo, and sales agent Wild Bunch has launched a platform service called FilmoTV.  And there are plenty more!

Wendy’s final and most important kernel of wisdom is this:  “It is really important to WINDOW (i.e. Transactional, Subscription, Advod, Sell Through) carefully and balance traditional with new media.  But also, windows can be in reverse for certain films, especially indies, i.e. producers can build (and engage with) the audience before the film is even out and perhaps premiere ONLINE first, (or day and date with another cross-promoted window), and then one can still end up in theatres. The key is to know the audience and try to tailor the marketing and distribution patterns accordingly…producers can be more active these days to heighten the chances of film success.

There are a lot of small markets and platforms and all this takes a lot of work but if one has built community around a film and awareness then the effort may pay off and add up to a nice revenue stream. Once the first deals are in place with platforms (deal structures, relationships, contacts, contracts) it’s easier to build on that and add new films to the deals with just short amendments or riders, so the effort at the front end makes years of future dealings run smoother.

My first interaction with Viewster was during its previous incarnation as DIVA.pro which seemed to function more like an aggregator.  Now Viewster serves that purpose in some ways but is also a platform.  In that way it’s similar to SNAG FILMS, (www.SnagFilms.com) which is now both a platform and an aggregator.  Kai Henniges of Viewster (www.Viewster.com) describes the company as follows: “today we are largely a consumer-facing cross platform VOD services, a content retailer.  Our focus is on a number of CEE markets where we see the opportunity to emerge as the leading one-stop-shop.  In parallel we supply movies to leading platforms in the UK, US, Germany (Netflix, Hulu, Virgin, Lovefilm).  In these heavily competitive markets we rather work with the leading retailers as an aggregator than position ourselves against them”.  Viewster has 18 manufacturer deals and estimate being on 50,000,000 devices now.  They are especially excited about their cross platform deal with Samsung.  Viewster works with local mini majors such as Kinowelt in Germany, Aurum in Spain and also sometimes individual filmmakers.  They have 160 content suppliers so far.  When I asked what sort of films Viewster seems as working best Kai noted “a mix of classics such as Death Proof, Crank, or local films such as Empty Nest work well and course Day & Date releases”.  Kai added the need for a good trailer and key art, ideally an inspired title (e.g. “Dirty Deeds did fantastic”), preferably a known actor.  “Without any of these attributes, films are likely to languish in VOD, the selection is even more harsh than in the old home entertainment business”.

TFC recommends picking a specialist in new media / digital distribution to handle these rights as opposed to letting a more traditional company handle them unless they prove to know what they are doing and offer you fair terms (we like the 15% commission and under model or flat fee).

Filmmakers, whatever you choose to do with respect to your digital distribution, do not forget, one can reach the whole wide world via one’s own website(s) and social networking pages by utilizing DIY digital distro services (for more on this topic please refer to numerous past blogs about digital distribution and DIY platforms and services. For past blogs about these topics go to www.TheFilmCollaborative.org/blog

REMEMBER: Films do not market themselves.  There is a proliferation of films (thousands per year, and hence an emerging glut and your film will die on the digital vine if you do not connect-the-dots and create your community around your film (a la Sheri Candler).  We had a lovely discussion about this at the Lone Star Film Festival.  Ted Hope was especially charming and humorous as he rolled off the staggering stats.  Anyway, even when there are better curation mechanisms on platforms or via services, marketing is king.

For those not into monetizing piracy (though we recommend trying it!) well, you can try to stay ahead of the pirate ad-supported sites (because that’s the latest trend in piracy and it’s huge, to the tune of tens of millions).  Key would be to 1. Watermark screeners or use private streaming service; 2.  Do some serious SEO work (Search Engine Optimization) and hopefully with some other technological assistance redirect traffic your way (as did Wendy’s former ADVOD client in the UK www.IndieMoviesOnline.com 3.   Release your film at the same time worldwide and in as many places as possible and for a reasonable fee that is competitive to free.  When we (The Film Collaborative) help filmmakers sell internationally we try for a UNIVERSAL STREET DATE. And per Wendy (and also in Sheri Candler’s case studies in our book www.SellingYourFilm.com), some filmmakers partner with Bit Torrent, Pirate Bay etc to launch their films online, tapping into the audiences already there (e.g. Nasty Old People, The Tunnel). And, a little something extra never hurts.

Bon Chance!

Orly Ravid November 16th, 2011

Posted In: Uncategorized

TIPS ON PLATFORMS AND SERVICES FOR SELLING YOUR FILM WITHOUT SELLING YOUR SOUL

SELLING YOUR FILM WITHOUT SELLING YOUR SOUL

–      TIPS ON HOW TO DO JUST THAT –

–      Highlighting DIY Tools & Services You Should Know About –

By Sheri Candler and Orly Ravid

These tools and services are either ones that were used by filmmakers in the book  Selling Your Film Without Selling Your Soul or ones that we reached out to for support of the book because we believe in what they’re doing.  To be sure there are others to be covered in future posts.

1. Amplifier-http://amplifier.com/what-we-do/ – ECOMMERCE TOOL –

This company powers the estore for Nina Paley’s Sita Sings the Blues. She sells DVDs (both standard edition and artist signed edition), tshirts, necklaces, pins and soft toys. Amplifier is an ecommerce tool that allows you to sell custom merchandise directly to your fans, cutting out the retailer middlemen, by providing fulfillment and customer service. If you don’t have a warehouse and staff and equipment to store, pack and ship your merchandise and deal with any complaints (and I know you don’t), Amplifier takes orders from your site, stores your merch in their warehouse or fulfills just in time merchandise, ships it out and handles any customer problems seamlessly. They can also service custom orders (like give freebies to any order over $50 if you want to do that, or they can fulfill print on demand merchandise) all under one roof.

2. Believe Limited-http://believelimited.com/ – Monetizing YouTube and Viral Videos – Adventures of Power utilized this service to help raise their Youtube profile. There is a whole section in the book written by Ryan Gielen about what Believe did for the film. The gist of their service is video marketing that helps a film reach the top spots on Youtube, Amazon, iTunes etc by spreading video content around, collecting large amounts of views, comments and subscribers (in the case of Youtube). They design branded channels and help craft video content that is compelling enough to spread and help seed it around the Internet to ensure that it spreads. According to their service sheet for a $50K campaign that runs 6 months, they recommend creating 20-25 pieces of video content that they can drive roughly 5-6 million views on Youtube. They start from the film’s target release date and work backward to help plan out the content release strategy that will ensure a continuous build up of interest and viewers. 

3.  ConneXtion –  http://www.theconneXtion.com – Fulfillment services of all Media Jon Reiss recommended them to handle fulfillment for our book and he has been happy with them as is Topspin which considers them a preferred vendor.  The ConneXtion was founded in 1997 and has been running the direct2fan (d2f) business for artists, labels, authors, filmmakers, comedians, nonprofits ever since.  They’ve worked with films such as The Yes Men.  They handle fulfillment and manufacturing for DVDs, CDs, Merch, books both on digital and brick and mortar side.  COSTS are: OFFICIAL D2F STORE: $200 setup fee & 80% paid on all physical items and digital albums sold direct2fan. DISTRIBUTION to DIGITAL RETAIL: No setup fee; 85% paid on each dollar from retail. ConneXtion’s services are: DISTRIBUTION -D2F:  physical and digital cds/merch/etc sold via an estore; DIGITAL to RETAIL (ie iTunes, Amazon, Emusic/400+ others); PHYSICAL to RETAIL (ie. brick and mortar stores); DISTRIBUTION of PHYSICAL items via AMAZON, eList/Newsletter Management (coming Fall 2011), Tix, Licensing, and Clearance of Cover Songs, and eMarketing.

4. DISTRIFY www.Distrify.com – DIY TOOLSET

One can use Distrify to sell a film anywhere on the web and via social media platforms by embedding their widget. Ideally one gets one’s fans to embed the widget on forums, blogs, websites, etc.. If your trailer and film are on Distrify, when you share the clip, you’re also sharing the store to buy the film or find out about upcoming screenings. When your audience shares it further, you’re always spreading the point-of-sale along the way. Anyone who shares it gets paid a share of sales they generate. One does not have to start selling through Distrify right away – one can use it to promote screenings and events through the trailer interface. If the film’s not available in the user’s area, they can make their interest known directly through the player as well. Distrify compiles the statistics for filmmakers and give them the mailing list data – all part of their service. Any new screenings you add are also automatically listed in all the players that have been embedded around the web. And when one wants to start selling the film, one can add it as well. There are no up-front charges, fully non-exclusive, and they don’t need any rights.  They take a 30% transaction fee on sales and split the 5% affiliate revenue with the filmmaker. Distrify worked with Adventures of Power and is also working with Lionsgate in the UK, for example.  Excerpt from the book regarding Adventures of Power: “In terms of the player/purchase options, Ari noticed a huge emerging fan base in Mexico that he speaks of in his interview. He realized 50% of his 100,000 Facebook fans were in Mexico. Distrify added Spanish closed captions as well as English and they introduced streaming as an option in Mexico. They’ve been told that several companies prevent streaming in Mexico, and they added the Mexican Peso as a currency that people can sell with.”  The Adventures of Power team was especially impressed with the Facebook tab – which will soon have customizable art, html linkage, and of course, the Distrify player widget.  It’s easy to add (embed) the widget – so not only is it easy to get on the film’s website and blog, etc. but it is easy for affiliates to embed as well. NOTE: The key will be to have consumers be comfortable with buying films this way and via DIY services in general and that should get easier and easier with time. And of course marketing and publicity are up to the filmmaker’s team as usual.

5. Dynamo Player – www.Dynamoplayer.com – DIY TOOL

Filmakers use Dynamo Player by embedding the video viewer on their own website and by having a film’s fans embed it on their websites or blogs for a rental period of the filmmaker’s choosing. Prices are set by the filmmaker, payment is immediate via Paypal and a monthly statement is sent letting one know how many streams were sold, geographic information, and where the traffic originated. Dynamo is non-exclusive and enables any filmmaker to immediately upload their film, set a price, publish the film on their own site and elsewhere with no up-front costs or monthly fees. Filmmakers receive 70% of every transaction, every time, with no hidden costs, no matter what features they use and they get paid immediately by every viewer, no matter where they watch the film. They can include a free trailer, supplemental videos, multiple language versions and other bonus material at no additional cost. Viewers pay easily with PayPal, Amazon or credit card in just a couple of clicks. A single-click auto-debit option is coming soon as well. Payments are made to the rights holder by PayPal or Amazon, on-demand, at any time. Some filmmakers get paid every week if they want and we are happy to write checks for high volume publishers. Dynamo accepts all currencies and works in any country.  Dynamo provide sales numbers and a range of related data by day, week, month or by a custom range of dates. Sales statistics are immediately available, so there is never a need to wait for a monthly report to see your sales performance, but a formal downloadable or printable monthly report will be available in July. Filmmakers can also see statistics for trailer views, player interaction, payment follow-through and more, so they can gain insight into viewer behavior and tweak the presentation of their film to boost sales.  Filmmakers can control access by DVD Region, continent or country with a simple set of checkboxes. Dynamo enables geo-blocking at no cost because we consider it absolutely necessary for independent filmmakers to have this option while shopping their films in different markets. Dynamo often includes films in public announcements, blog posts, tweets and other marketing efforts. Dynamo filmmakers have been featured in stories on IndieWire, GigaOm and other media sites, and have earned new sales when their films have been embedded within the articles.

6. EggUp – www.EggUp.com – DIY Platform / Tool

EggUp is a publishing platform for filmmakers and film distributors. They note that they “help filmmakers and distributors rent and sell their films online while preventing piracy”. Their free online publishing tools can help one distribute and sell film or video which is all packaged and encrypted into a file called the “Egg”. The Egg is made available for download and allows consumers to watch and share with friends and family virally while filmmakers are able to make money. With EggUp gets a website to promote their film together with an integrated pay per view solution. They also list your films in our film catalog called GoEggit. One can distribute the Egg on a website, and other online retailers with your very own buy now button without setup fees and inventory.  They are Worldwide and can Geo Filter as needed.  Again the key is marketing one’s film; they can’t do it for you.

For pricing and fees etc go to:

http://www.eggup.com/how_it_works/transactionfees

http://www.eggup.com/pricing

7. LBi-http://www.lbi.com/us/ – ePR and Internet/Viral Marketing Services

Case study Adventures of Power utilized LBi for their ePR services paid for by their distributor Phase4. LBi focused on media placement for trailers and news stories on a large array of film and entertainment websites. LBi provides a multitude of services, including social media maintenance, but AoP did not find their “voice” authentic for the film’s social media sites and instead funneled the firm’s work into utilizing relationships with website editors and bloggers to secure unpaid editorial features for the film, a useful service since filmmakers typically do not have these relationships.

8. Prescreen – www.Prescreen.com —  PLATFORM

Prescreen is a new platform that curates films and distributes them via a daily email to an opt-in audience.  Their list is presently approximately 40,000 and growing daily. It is free to sign up to receive the Prescreen daily email. One has the opportunity to ‘rent’ the movie to stream. Each movie they feature lives on Prescreen for 60 days (and this is an exclusive period in terms of digital distribution). On Day 1, the movie costs $4 and one will have up to 60 days to view the film; while on Days 2 – 60, the movie costs $8 and one has 60 – (x days) to complete the film. Though a moviegoer has up to 60 days to complete the film, ‘renting’ on Prescreen is similar to that of any other mainstream steaming services offering 48 hours to complete the film once one starts the stream.  TFC worked with Prescreen for its first film during the Beta phase, HOW TO START YOUR OWN COUNTRY, and the numbers of transactions are as follows:  As of 10/18/2011 (when this was drafted) the movie will still be available on Prescreen for another 27 days, so the numbers will probably change. 19 sold during Private Beta; 46 sold on Day 1; 18 sold after Day 1 (21% of total sales have come after Day 1).  Prescreen noted: “This 21% is consistent with the breakout we’re seeing for other movies as well. Across the site we’ve seen about 22% of purchases come after Day 1.” RE: The 60 Days and WINDOWS (I quote Shawn Bercuson Founder & CEO): “Individual filmmakers typically view Prescreen as a marketing and distribution outlet while bigger libraries and producers tend to see prescreen as a promotional tool given the finite amount time a movie lives on Prescreen (60 days)… We built Prescreen as a way for content owners to gain more visibility into their target market and transparency about their core audience. At scale, we believe Prescreen is most powerful when used as a promotional tool along side other distribution windows in other mediums (theatrical, DVD, etc). By doing so, a content owner is able to leverage existing marketing dollars from other windows and capture (and capitalize) on the audience however way they want to consume online. Once the content owner understands his/her audience, they can market within the digital medium much more efficiently and cost effectively. “

9. Sonicbids-http://about.sonicbids.com/bands/how-it-works – PAIRING BANDS TO BRANDS: Sonicbids is an online matchmaker between bands looking for gigs and promoters and brands who need music. According to their website, their mission is to help create and empower an Artistic Middle Class through the use of innovative technology. The site helps fashion an EPK for bands who are looking for bookings, either live or in partnership with brands (your film is a brand) so that they may be found by promoters or marketing people. They also allow bands to search people looking for talent for international music festivals, clubs, songwriting contests, radio, licensing and more and vice versa. This how Hunter Weeks and Mike Dion found music for their film Ride the Divide‘s soundtrack.

Excerpt: “In the case of Ride the Divide, they specifically targeted bands that

lived in one of their niche communities. They used a source for music called SonicBids.com, where musicians offer their music for use in films, events and concerts. Half of the musicians in RTD came from Sonicbids and they specifically searched for musicians from the states along the Rocky Mountains.”

10. VODO- http://vodo.net/ – Peer-to-Peer (P2P) Monetized File Sharing

Case study Pioneer One has been releasing their episodes on VODO since day one. To date, their series has been downloaded over 3.2 million times and raised almost $80,000 for the production costs through fan donations.

According to their website, VODO was launched in late 2009 to help creators promote and distribute their independent films, music and books using Peer to Peer technology [some call them pirate sites]. VODO believes there is immense untapped potential for independent creators in P2P distribution and that the new model of networked, free-to-share, peer-powered distribution will soon present better opportunities for creators than the old scarcity-powered models (theaters, DVD, etc.). Each month they release and promote one free-to-share film, in conjunction with their distribution partner BitTorrent and viewers are encouraged to donate funds to the productions they view. Pioneer One raised $30,000 in its first eight weeks using VODO. The Yes Men Fix The World raised over $25,000 in its first month using VODO.

FULL DISCLOSURE: Both Prescreen and Dynamo player sponsored our book but we pursued them because we believe they provide a good service to films and filmmakers and are great solutions.

Orly Ravid November 7th, 2011

Posted In: Uncategorized

LEGAL TIPS for FILMMAKERS – Don’t Do a Deal Without Them

Legal Tips for Filmmakers

By The Film Collaborative Legal Counsel Cherie Y. Song, Esq.

 2257 Regulations

§ 2257 of Title 18 of the U.S. Code, the enforcement guidelines for the Child Protection and Obscenity Enforcement Act of 1988, requires producers of visual depictions of actualsexually explicit conduct to maintain records to ensure that actors in such depictions are not minors and to label materials containing such depictions with the location of the records.  In 2006, Section 2257A broadened the record-keeping and labeling requirements of 2257 to visual depictions of simulated sexually explicit conduct.  Failure to comply with either is a criminal offense.

What does this mean for the indie filmmaker?  Practically speaking, if your film contains at least one simulated sex scene, regardless of genre, and the film’s original production commenced after March 18, 2009, then you may be subject to the record keeping requirements of Section 2257A unless you’ve timely filed what’s called a “safe harbor” exemption letter with the U.S. Attorney General certifying, among other things, that in the regular course of business, you collect and maintain IDs of all performers and give the statutory basis for eligibility for the safe harbor.

Because distributors, as “secondary producers,” may be required to maintain records that identify the filmmaker for any depiction and that verify the filmmaker checked the legal age of performers prior to the date of original production, a growing number of them are requiring such safe harbor letters from filmmakers to minimize their liability.  Obtaining a safe harbor letter may be a condition to close the deal, so make sure you look into this in advance.

Terminate and Revert.

You’re sick and tired of waiting for him to live up to his promise, and you remind him and remind him a second time, and he still forgets.  You’ve had it and want out.  Where do you go from here?  In the context of a distribution deal, you want your contract to contain a clearly written default/termination provision that allows you an “out” if the distributor fails to do something material, say pay you overages or send you statements.  Make sure your rights automatically revert to you upon termination (but subject to any pre-sold territories).  In addition, make sure you have an “out” if the distributor files for bankruptcy or assigns the contract to an unaffiliated third party who may not necessarily be able to live up to the promises the distributor made.  Then you can take your film and try to monetize it in any unsold territories, which may be difficult, but it’s better than the alternative, which is to be stuck in a bad relationship.

Terms Should Be Defined.

It’s not uncommon – in fact, it’s the norm – that distribution contracts contain undefined terms, or better yet, terms whose definitions are to be given meanings “in accordance with industry standards.”  Some filmmakers prefer the IFTA definitions because they are believed to be on their faces more “fair” than the definitions contained in some distributors’ contracts.  Read the definitions carefully, and make sure you’re not inadvertently giving your rights away.  For example, if you want to stream your film on your website(s) or social networking pages, make sure the definition of “Digital Rights” in your contract excludes this right.  You may want to consider putting in a reservation clause as follows:  “Notwithstanding anything to the contrary contained herein, Licensor shall retain the right to [list reserved rights].”  In all cases, you should have a qualified distribution attorney review the contract to make sure it reflects the deal you made.

Please also refer to TFC’s Digital Distribution Tips in regard to definitions of digital rights. Technology of delivery is not the only factor that should be considered in defining and categorizing rights. One must consider payment methods and potential modes of receiving content.

Payment Triggers.

If you’re getting a minimum guarantee (usually paid out in installments), your contract should contain clearly defined triggering events for payment(s) and a time period within which such payment(s) should be made.  If distributor fails to pay the full MG within a certain time period following complete delivery, you should have the right to terminate the agreement, get any materials in distributor’s possession returned to you and all rights granted to the distributor should revert to you so you can take your film elsewhere.

Disclaimer:  This article contains information of a general nature that is not intended to be legal advice and should not be considered or relied on as legal advice.  Any reader of this article who has legal matters involving information addressed in this article should consult with an experienced entertainment attorney.  This article does not create an attorney-client relationship with any reader of this article.  Cherie can be reached at CherieSong@me.com

Orly Ravid October 24th, 2011

Posted In: Uncategorized

DIGITAL DISTRIBUTION TIPS – BETTER SAFE THAN SORRY

Digital Distribution Tips by Orly Ravid of The Film Collaborative.
These digital distro tips were posted on indieWIRE
and I wanted to add a tad about the cool new digital platform PRESCREEN www.Prescreen.com which launched after I composed the tips.

1. CARVE OUT DIY DIGITAL:
Distributors and Foreign sales companies alike often want ALL RIGHTS and including ALL DIGITAL DISTRIBUTION RIGHTS.
What to watch out for overall is not the purview of these tips however this is: No matter what, at least CARVE OUT the ability to do DIY Digital Distribution yourself with services such as: EggUp (http://www.eggup.com/), Distrify (http://www.Distrify.com/), Dynamo Player (http://site.dynamoplayer.com), and/or TopSpin (http://www.topspinmedia.com), off your own site, off your Facebook page, and also directly to platforms. Several of our case studies employed or will now employ these options even when sometimes also engaging in traditional distribution (e.g. Adventures of Power, Violet Tendencies, American: The Bill Hicks Story to name few). Platforms and services can almost always Geo-Filter thereby eliminating conflict with any territories where the film has been sold to a traditional distributor and often times a distributor will not mind that a filmmaker sells directly to his/her fans as well in any case. ADDITIONALLY, since I wrote this blog Prescreen, www.Prescreen.com launched its platform and we used it and so far it seems like really a great way to boost the profile of a film and jumpstart one’s digital distribution. It worked well for How to Start Your Own Country and we are trying other films now as well.

2. PLATFORMS ≠ AGGREGATORS ≠ DISTRIBUTORS:
Platforms are places people go to watch or buy films. Aggregators are conduits between filmmakers/distributors and platforms. Aggregators usually focus more on converting files for and supplying metadata to platforms and that’s about it. Marketing is rarely a strong suit or focus for them but it should be for a distributor, otherwise what’s the point? Aggregators usually don’t need rights for a long term and only take limited rights they need to do the job. Distributors usually take more rights for longer terms. Sometimes distributors are DIRECT to PLATFORMS and sometimes they go through AGGREGATORS. It makes a difference because FEES are taken out every time there is a middleman. Filmmakers should want to know the FEE that the PLATFORM is taking (because it’s not always the same for all content providers though usually it is other than for Cable VOD, for example) and know if a distributor is direct with platforms or goes through an aggregator. Also, filmmakers should have an understanding what each middleman is doing to justify the fee. On the aggregator/distributor side, we think 15% is a better fee than 50%, so have an understanding of what services are included in the fee. If a distributor is not devoting any time or money to marketing and simply dumping films onto platforms, then one should be aware of that. Ask for a description in writing of what activities will be performed. Companies such as New Video (worked on our case studies Bass Ackwards and Note by Note) function well as both a distributor and an aggregator.

3. THINK OF DIGITAL PLATFORMS AS STORES
A film should try to be available everywhere however sometimes that is too costly or not possible and when that is the case one should prioritize according to where the film’s audience consumes media. Think of digital platforms as retail stores. Back in the DVD days (which are almost gone), one would want a DVD of an indie film in big chains such as Blockbuster and Hollywood Video but especially a cool, award winning indie would do well in a 20/20 or Kim’s Video store because those outlets were targeting a core audience. With digital, it’s the same. While many filmmakers want to see their films on Cable VOD, some films just don’t work well there. Some films make most of their money via Netflix these days and won’t do a lick on business on Comcast. Other films do well on iTunes and some die there whereas they might actually bring in some business via Hulu or SNAG. Docs are different from narrative and niches vary. Know your film, its audience’s habits and resolve a digital strategy that makes sense. If money or access is an issue, then be strategic in picking your “stores” and make your film available where it’s most likely to perform. It may not be in Walmart’s digital store or Best Buy’s. Above all, if you dear filmmaker have a community around you (followers, a brand), your site(s) and networks may be your best platform stores of all. Though there is something to be said for viewing habits so I do recommend always picking at least a couple other key digital storefronts that are known and trusted by your audience.

4. CABLE VOD LISTINGS
By now many of you may have heard that it’s hard to get films marketed well on Cable VOD platforms. Often the metadata either isn’t entered or entered incorrectly and it’s nearly impossible to fix after it goes live. Hence, oversee the metatags submitted for your film and check immediately upon release. Also, since genre/category folders and trailer promotion are not always an option for every film, it is the case that films with names starting in early letters of the alphabet (A-G) or numbers can perform better. Then again, there’s a glut of folks trying that now so the cable operators are getting wise to this and not falling for it. All the more reason to focus on marketing, marketing, marketing your title, so audiences are looking for it and not just stumbling upon your film in the VOD menu. There are only going to be more films to choose from in the future, not fewer.

5. ART must work SMALL
Filmmakers, if there is one thing I must impart to you once and for all it’s this: TAKE GOOD PHOTOGRAPHY!!! Take it when making your film. Remember, most marketing imagery if not all for digital distribution (which will be all of “home entertainment”) must work SMALL so create key art and publicity images that also work well small and in concert with the rest of your campaign. Look at your key art as a thumbnail image and make sure it is still clearly identifiable.

6. KNOW YOUR DIGITAL DISTRO GOALS
This harkens back to Jon Reiss’ points. I have seen distribution plans wasted because a vision for the film’s path was not resolved in time to actualize it properly. If your film is ripe for NGO or corporate sponsorship and you want to try that, you will need loads of lead time (6 months at least!) and a clear distribution plan to present to potential sponsors (who will always need to know that before agreeing). If making money is a top concern, then know how YOUR FILM’s release is mostly likely to do that and plan accordingly. It may be by collapsing windows or it may be by expanding them. All films are different and that’s why our case study book has different examples to look at. American: The Bill Hicks Story for example did Day & Date Theatrical/VOD with Variance & Gravitas. That strategy can increase revenues, but is not for every film so know what sort of release makes sense for the film before starting so you don’t inadvertently lose out on options. With Prescreen now an option, if interested, one needs to carve out that window before EST (electronic sell through) / DTO (digital download to own) and streaming digital rights are sold. TFC is doing this with the film HOW TO START YOUR OWN COUNTRY for example. If showing the industry that your film is on iTunes matters to you for professional reasons more than financial then know that is your motivator but know that getting a film onto iTunes does not automatically lead to transactions, marketing does.

7. TIMING IS EVERYTHING:

Digital distribution often has to be done in a certain order if accessing Cable VOD is part of your plan. That is not the only reason to consider an order and an order is not always needed, but it can be a consideration. Sometimes Cable VOD is not an option for a film (films often need a strong theatrical run before they can access Cable VOD) and, in this case, the order of digital is more flexible and one can be creative or experiment with timing and different types of digital. However, Cable VOD’s percentage share of digital distribution revenues is still around 70% (it used to be nearer to 80%) so if it’s an option for your film, it’s worth doing, at least for now.

It is very often the case that if your film is in the digital distribution window before Cable VOD (on Netflix for example), that will eliminate or at least dramatically diminish the potential that Cable MSO’s (Multi System Operators) will take the film or even that an intermediate aggregator will accept it. There is more flexibility with transactional EST (electronic sell through) / DTO (download to own) / DTR (download to rent) services such as iTunes but much less flexibility with YouTube (even a rental channel) or subscription or ad-supported services such as Netflix (subscription) or Hulu (which is both). Films that opted to be part of the YouTube/Sundance rental channel initiative (such as Children of Invention) could not get onto Cable VOD after. The Film Collaborative has to hold off on putting films in its YouTube Rental Channel if cable VOD is part of the plan. Of course, there are exceptions to every rule due to relationships or a film proving itself in the marketplace, but better to plan ahead than be disappointed.

Companies such as Gravitas are also programmers for some of the MSOs so they have greater access to VOD, but they too discourage YouTube rental channel distribution before the Cable VOD window and they do Netflix SVOD (Subscription Video on Demand), distribution after. In general, people often do transactional platforms first and ad-supported last with Netflix being in the middle unless it’s delayed because of a TV deal for example. This is not always the case and some distributors have experienced that one platform can drive sales on another but in my opinion it depends on the film and habits of its audience. You should know that Broadcasters such as Showtime will pay more if you do your Netflix SVOD after their window rather than before.

The question you have to resolve is what value does each option have and what is the best order for your film given your resources.
This tip was written for the Sundance Artists Services initiative: http://bit.ly/ArTiSts

8. THE DEVIL IS IN THE DEFINITIONS

This tip and the one above were originally written for the Sundance Artists Services initiative (http://www.sellingyourfilm.com/blog/2011/08/25/the-devil-is-in-the-definition-know-what-vod-means/). For full details on this, visit the site.

There is no standard yet for definitions of digital rights. IFTA (formerly known as AFMA) has its rights definitions and for that organization’s signatories there is therefore a standard. But many distributors use their own contracts with a range of definitions that are not uniform. When analyzing distribution options, be aware that terms such as VOD can mean different things to different people and include more or fewer distribution rights and govern more or fewer platforms.

Consider the term “VOD”. In some contracts, it’s not explicitly defined and hence can mean anything and everything. IFTA is clear to categorize it as a PayPerView Right (Demand View Right) and limit it to: “transmission by means of encoded signal for television reception in homes and similar living spaces where a charge is made to the viewer for the rights to use a decoding device to view the Motion Picture at a time selected by the viewer for each viewing”.

However in some contracts, it’s defined as “Video-on-Demand Rights,” meaning a function or service distributed and/or made available to a viewer by any and all means of transmission, telecommunication, and/or network system(s) whether now known or hereafter devised (including, without limitation, television, cable, satellite, wire, fiber, radio communication signal, internet, intranet, or other means of electronic delivery and whether employing analogue and/or digital technologies and whether encrypted or encoded) whereby the viewer is using information storage, retrieval and management techniques capable of accessing, selecting, downloading (whether temporarily or permanently) and viewing programming whether on a per program/movie basis or as a package of programs/movies) at a time selected by the viewer, in his/her discretion whether or not the transmission is scheduled by the operator(s)/provider(s), and whether or not a fee is paid by the viewer for such function/service to view on the screen of a television receiver, computer, handheld device or other receiving device (fixed or mobile) of any type whether now known or hereafter devised. Video-on-Demand includes without limitation Near VOD (“NVOD”,) Subscription Video-on-Demand (“SVOD”,) “Download to burn”, “Download to Own”, “Electronic Sell Through” and “Electronic Rental,” for example. This example includes everything and your kitchen sink.
One has to ask if a definition of VOD or another type of digital right includes “SVOD” (Subscription Video on Demand) and includes subscription services such as Netflix and Hulu Plus. Why does this matter? Well if the fee to the distributor and/or to you is the same either way then it may not matter. If there’s a difference in fees depending on the nature of distribution, then it will. Recently an issue in a deal came up with respect to distinguishing ad-supported specifically from general “free-streaming”. Is ad-supported governed by a “free-streaming” rights reference? Why wonder, Just spell it all out; better to be safe than _____.

Another example, if a contract notes a distributor has purchased “VOD Rights” but does not define them, or defines them broadly, then do they have mobile device distribution rights as well? The words “Video-on-Demand” sometimes are used only to refer to Cable Video on Demand and other times much more generally. In a “TV Everywhere” (and hence film everywhere) multi-platform all-device playable universe, the content creator needs to know.
The devil is in the definition which you must read carefully BEFORE you sign on the dotted line. Know what you want for and can do for your film in terms of distribution and carve it up and spell it out.

Orly Ravid October 10th, 2011

Posted In: Uncategorized

WAITING FOR GODOT

WAITING FOR GODOT – “To wait endlessly, and in futility, for something to happen.”

In future posts, we intend to track the progress and releases of the films that did deals at Sundance.   And we also will track deals and respective progress related to other fests such as Tribeca and Cannes (which seemed to be largely a SundanceSelects play with an occasional TWC and Magnolia deal and a few others coming.).  But for now, I want to address a phenomenon that I keep seeing and strongly feel needs to change.

Filmmakers are approaching us with films that had their festival run a year or even two years ago, OR, a film that did not have the benefit of an A-list festival selection, or maybe not even a B-list festival run, or is even more than two years old. I guess they assume that deals are still out there for their films and they are holding off on moving into the market until those deals are struck.

Film sales happen (when they happen) more often than not, for these reasons (I am speaking to filmmakers in America and trying to sell films in and/or from America):

1. FESTIVALS & AWARDS& REVIEWS:  The film has the good fortune of being an official selection of a prestigious name film festival (and attended by or at least tracked by industry). By virtue of being an official selection, the festival brand helps the film’s brand and perceived value of that film to potential buyers.  Also, publicity that actually occurs as a result of being part of the festival helps the film get noticed and attain perceived value to potential buyers. Winning prizes helps (especially Audience Awards) and getting great reviews help in attracting potential buyers.
2. The value (actual value of a deal that can be done) starts to go down after a festival premiere.  Meaning, films that don’t sell at festivals or do not start negotiations at or close to the festival’s start or end date,  go down in price.  The perception in the market is the length of time between a festival premiere and settling on a distribution deal  indicates the amount of value the film has. If there is a long passage of time, the price goes down accordingly and the likelihood of getting any deal fades. of course  this depends to a greater or lesser degree  on who is selling and who wants to buy and what their motivation is. But usually, prices go down in direct proportion with the passage of time.
3. CAST: The film has cast that increases the perceived value. And if #2 is accompanied by  #1, all the better. This is not a cast of unknowns or a cast of former notable talent.
4. GENRE / DEMOGRAPHIC APPEAL / NICHES:  Genre appeal, including horror, sci fi, western films often sell better than dramas; docs sell better than mockumentaries, often not always.  Hot topic or big concept / trend topic documentaries or documentaries involving key niches or names often sell than more obscure or more personal documentaries, of course there are always rare exceptions. Best not to bank on your film being one of those.  Films appealing to specific large enough demographics seem more “valuable” than those that don’t seem to have any specific appeal. Broad comedies can sell but highly depend on notable cast and when they don’t have the cast, it’s almost always the case that they need a big festival to create the buzz that gives them the commercial push.  Foreign sales are not attractive for  American-centric stories unless they are studio films, genre films, and/or have the cast or had/will have a big l theatrical release.
5. THEATRICAL:  A small US theatrical can help usually only if the reviews really were strong and the film has some commercial appeal or at least niche appeal (and there are distributors catering to that niche if it’s not more broadly commercial).  Theatrical in the US can’t hurt foreign sales but a tiny US theatrical can also have no impact on foreign sales whatsoever if the film is perceived as too American and does not feel either commercial enough for other territories to compete with all the world cinema or does not fit into niches for which there are buyers (if it’s not broadly commercial enough).  Or the film can fit in to the niche but the niche is also glutted so competition is stiff.  For Broadcast sales, sometimes it is simply a matter of programming and timing luck; the film fits what the stations are looking for.

We all know there’s no guarantee of a sale and sometimes even when a sale occurs, it’s not necessarily a great one. Even at the top A-list fests, many films do not “sell” so even for those filmmakers a strategy of building community around your film WAY AHEAD of your first public exhibition / premiere is wise, because this way, even if you are afraid of or counseled not to start any distribution in tandem with that premiere or necessarily soon following it, and even if you think you have a shot at the big deal, or a deal and that is what you want above all things.. even then, all that community building will do is increase the perceived value of your film.  And guess what? If that deal never comes, or if the offers suck (which you may be more scrutinizing of and careful about when you do the math based on your acquired ability to distribute directly to the fans), you will always have that back up plan.

Many filmmakers come to us with thousands of even tens of thousands of Facebook and Twitter fans, lots of traffic to their site, an email list started and even good reviews of their film if it played smaller fests or if their genre was reviewed by niche film sites and this has all happened months ago or even a year ago or even two, and they are waiting for a DEAL, I have to say, DON’T WAIT. * You already have a deal*, direct to the fans of the film, the ones you have been connecting with and getting the attention of for all this time. Let them see it/buy it and stop waiting! They’ve been waiting and if you make them wait too long, they will either wander off in frustration or they may feel no other alternative but to view the film via P2P networks for free or get a DVD via E-bay that a journalist or programming staffer is selling for extra lunch money.

In short, and yes this blog is short compared to the usual (whew), don’t wait for Godot. There is nothing this marketplace is signaling that merits the wait.  Broadcast sales are a different matter, you have a doc, or Latino-interest film, or gay film, or genre film, or even film with some cast.. a TV deal can MAYBE be done but still, there’s all the rest YOU should be doing  sooner than later, or working with people who can help you do it if you don’t know how.  This includes DVD and Digital off your site, it includes all the key digital platforms and it even includes hybrid theatrical / events and other public performance of the film (educational and/or commercial).  And if your films has legs, you can carve out deals and DIY and work it all out.  But if you just sit on your film and wait you are risking losing everything and I have to ask you, based on what? What information are you working with? Part of your distribution plan should include how long will wait before you start distribution? What is your path to sales? Plan A, B and C and how can you plan for all of those? It is no longer enough to hope for distribution and sit and wait.

Filmmakers, don’t hate the messenger… I say this with love and as someone who embraces deal making as much as I do DIY. J You must have a plan of action early in your process.

Here’s an example of a filmmaker who we think did it right, and he worked with Peter Broderick:

http://www.peterbroderick.com/distributionbulletins/files/47cea5ca884d84a0e1ed01f23ef06d3d-16.html

And we’ll have other examples and even more details in our forthcoming digital case study book entitled SELLING YOUR MOVIE WITHOUT SELLING YOUR SOUL: Case Studies in Hybrid, DIY, P2P Independent Film Distribution (co-authored by The Film Collaborative, Jon Reiss, and Sheri Candler). Until then, stop waiting and get moving toward bringing your film to its audience.

Orly Ravid May 23rd, 2011

Posted In: Uncategorized

New and compelling Options for DIY Distribution

In a new media world in which people sometimes conflate distributor with platform and buyer with online/digital store, I want to draw that distinction and highlight a few new and compelling DIY options (platforms or toolkits) for filmmakers to sell or rent their films to audiences / consumers directly.  TFC always encourages filmmakers to develop their own brands while also noting the importance of being connected to other brands that generate significant traffic and indie film consumption.  In other words, sell direct to your fans off your site and other sites and social networking platforms and/or via other DIY platforms or tools but also recognize the usefulness of being available where average film consumers go, i.e. via Cable VOD if you can manage it, and other key platforms/online digital stores (depending on the nature of the film) such as: Amazon, Netflix, iTunes, Vudu, Hulu, Sony Playstation, Xbox etc.

The few DIY platforms or toolkits highlighted in this blog are:  Distrify, EggUp, Groupees, Stonehenge’s iPhone Apps.  Next time we cover this topic, we’ll investigate more into DIY platforms FansofFilm www.FansofFilm.com and Open Film www.OpenFilm.com (7,000 films, 70% shorts).

Let’s begin.

DISTRIFY www.Distrify.com

Peter Gerard & Andy Green, the co-founders of Distrify, are both filmmakers who formed Distrify. I met with Andy @ SXSW.

Distrify is not a film sales platform – it’s a toolset. One can use Distrify to sell a film anywhere on the web and via social media platforms. Once your trailer and film are on Distrify you embed it on your website like http://www.justtogetarep.com/ and Facebook page like https://www.facebook.com/just.to.get.a.rep?sk=app_203403406338325

You can then start telling your film’s fans about it and ask them to embed the widget on forums, blogs, websites, etc.

Distrify’s “sell-movies-socially” tools are designed to make effective social media marketing profitable. If your trailer and film are on Distrify, when you share the clip, you’re also sharing the store to buy the film or find out about upcoming screenings. When your audience shares it further, you’re always spreading the point-of-sale along the way. Anyone who shares it gets paid a share of sales they generate.

One does not have to start selling through Distrify right away – one can use it to promote screenings and events through the trailer interface. Here’s an example of an upcoming Anime release that is using the Distrify player to promote upcoming screenings: http://www.we-loveanime.com/

If the film’s not available in the user’s area, they can make their interest known directly through the player as well. Distrify compiles the statistics for filmmakers and give them the mailing list data – all free. Any new screenings you add are also automatically listed in all the players that have been embedded around the web. And when you want to start selling the film, you can add it as well.

There are no up-front charges, fully non-exclusive, and they don’t need any rights.  They take a small transaction fee on sales (see specifics below).

In the Beta period it is free to sign up and upload one film to Distrify. They don’t charge for uploading or hosting and there is no subscription fee for a Beta account. They do charge a 30% revenue share on sales. They note that their profit “is around 3% to 5% so it’s costing us around 25% to deliver the service to the customer . We’re working hard to reduce these costs and when we do we’ll hand the saving over to the rights holder.”

Peter Gerard followed up noting that whilst still in Beta their pricing is FREE to sign up and sell one film and a 30% transaction fee on all sales through their player and there are no costs for special encoding. Their Beta period ends in June and after they will continue this pricing option and offer some premium plans.

Distrify Beta Pricing

Free sign-up for a one-film account

They charge a 30% transaction fee on all sales made through Distrify

They split the 5% affiliate revenue with the filmmaker.

Beta users will be given a special offer when they leave the Beta period, and normal account pricing will be determined at that time.  And filmmakers keep all their rights.

How do you get paid?

Each month if you’ve earned sales revenue they will send you a sales report and transfer your earnings to you directly via PayPal or bank transfer. You may be charged by PayPal or your bank to receive the transfer. When you get your first sales report, they say “just let us know how you prefer to be paid”.

What about affiliates?

“We will soon offer your audience the ability to earn a share of revenues that are generated from their sharing. Once this is enabled they will earn 5% from each sale they refer to you. We are currently offering to split the cost of the revenue-sharing with you. This means we only charge 27.5% on a revenue-shared sale. You keep the remaining 72.5%.”

EGG UP www.EggUp.com

“EggUp is a publishing platform for filmmakers and film distributors. We help filmmakers and distributors rent and sell their films online while preventing piracy. Our free online publishing tools can help you distribute and sell your film or video which is all packaged and encrypted into a file called the Egg. The Egg is currently available for download and allows consumers to watch and share with friends and family virally while filmmakers are able to make money. With EggUp you get your own website to promote your film, together with an integrated pay per view solution. We also list your films in our film catalog called GoEggit. Distribute the Egg on your own website, and other online retailers with your very own buy now button without setup fees and inventory.”

Payment options: FREE, Rental, Purchase. Filmmaker will be able to choose several options.  Accept Paypal and major credit cards.  Customer credit card information does not go through their servers. They only link to the filmmaker’s Paypal account. Paypal holds customer’s credit card info.

They are Worldwide and can Geo Filter as needed.

Content: Currently about 60 films due to focusing on developing technology and negotiating deals with international governments and studios. They will be ramping up pretty quickly in the next 3-5 months with content.

When I asked about revenue thus far to filmmakers they answered with this: “It really varies since it’s up to the filmmakers. Some filmmakers make $0 due to they are not marketing their content or older film with no cult following. While others are getting consistent purchases daily since they have a full marketing strategy including PR pushing their film. It adds up but nothing making millions”.

EGG UP’s FEES:

Full length features: $1.25 per transaction ($2.00 – $1,000.00 retail)

Short film: 15% per transaction ($0.99 – $1.99)

EggUp noted that they are reviewing their fee structure and may be changing it soon.

Egg Up Overview: Image

http://i811.photobucket.com/albums/zz38/Egg_Up/EggUP_Overview3.jpg

Egg Up Filmmaker Benefit: Image

http://i811.photobucket.com/albums/zz38/Egg_Up/EggUP_Filmmaker3.jpg

JON REISS’ GUEST BLOGGER Solomon MacAuley– Raved about EGGUP:

http://jonreiss.com/blog/2011/03/03/prevent-film-piracy-and-globally-monetize-instantly/

SHERI CANDLER interview for MicroFILMMAKER Magazine about EGG UP:

http://www.microfilmmaker.com/tipstrick/Issue58/EggDist1.html

GROUPEES (YAWMA) groupees.yawma.net & yawma.net

I was introduced to this platform via TFC client Ari Gold (Adventures of Power).  Thomas Brooke who demo’d the platform / service via Cisco’s WEBEX.  I was impressed with the simplicity and comfort of the interface.

Thomas Brooke is the Founder and CEO of YAWMA. YAWMA is the social media technology company that operates Groupees. Thomas describes GROUPEES as:

“A Flash sale (24-48 hr) platform focusing on digital media entertainment (music, games, film)
- Like Groupon in the sense that we’re crowd-sourcing but deal isn’t dependent on a certain number of users buying and “tipping” the deal; rather we start with the good deal but the content owners set a goal and if achieved it unlocks extra exclusive content (to incentivize users to work as a group and spread the promo through their social graph)
- There is a high degree of Facebook and Twitter integration so purchases spread virally
- Flexible SaaS based system supporting product bundling, multiple pricing options (fixed price, pay what you want), inclusion of charity, etc.  We’ve set Groupees up as an on demand platform where content creators/licensors sign up to run a single promotion, all of which is configured through a web interface. It is a platform by invitation only- we’re sourcing quality independent music, games and film.”

Their next Groupee starts on Wednesday so if you go to: http://groupees.yawma.net

you will see the promo vid and count-down clock now live.

Here is a screenshot and the model we’re using for projections on Music groupees:

FEES: The model split is reflected at 60-40% (in favor of filmmakers / same as Apple’s fees) which is their standard rate…

When I asked why they were more expensive as Apple (which takes 30%) Thomas answered: “While it is true that Apple takes 30%, they don’t do anything for their 30% beyond providing a distribution system. Fact is we’re not just a point of distribution. We’re pretty sophisticated technology with a high degree of customization, strong FB and Twitter integration and 100% pr support (strongly question this, what do they mean by 100% PR support?) for every promotion we run. Groupon is really a better business analogy, and they take 50% but have nowhere near the social media integration or customization features. I do appreciate your asking whether to make mention but I’m certainly comfortable with this.”

“In terms of film/video, we can support straight download in any format and also video streaming. As mentioned, the service requires buyers to register so all files are secured behind a firewall. I think for indie film the concept of bundling films from different film-makers might work very well as it provides good cross promotion and from the consumer’s perspective allows you to get two cool films from a single purchasing experience. Definitely one of the premises of our platform is convenience as people are overwhelmed by our digitally connected world so by featuring quality indie entertainment as a part of a single promotion, consumers get the benefit of a curated good deal on relevant media/entertainment. I think also there is an opportunity to bundle films with music, especially where there’s a good thematic connection. Obviously, a soundtrack with a film is a no-brainer as well. We’re also currently looking at possibly bundling a video game that is from the horror genre with a horror film. “

Groupee Platform Features

• Support for all digital media formats
• Support both video download and streaming
• Web-interface for creating and configuring the Groupees promotion
• E-payments through PayPal and Amazon payments
• Live World map that tracks purchases as they occur around the globe
• Facebook and Twitter integration so purchases spread virally
• Real time sales statistics and reporting
• Flexible promotional programs including Fixed Price or Pay What You Want payments, charitable giving, cross-promotional bundles, goal setting with incentive giveaways
• Cloud-based, highly scalable platform capable of supporting 1,000,000 downloads per 24 hrs.

STONEHENGE – Distributing films  worldwide via Phone Apps www.StonehengeProductions.com — FilmApps…Get Your Film in More Hands

Stonehenge Productions enables film producers to sell their films on iTunes, Android Market and Amazon Appstore as applications for the iPhone, iPad and for Droid platforms.

Their pitch: “With a low start-up cost of just $680, you can have an application of your film available on Phones everywhere !! You keep 100% of sales revenues minus the 30% that Apple charges.”

What do you get for $680?

• • An iPhone FilmApp
  • Embedded film in the App (better than streaming)
  • About page/synopsis
  • Twitter/FB/Email (Sharing) integration,
  • A merchandise page for users to buy merchandise, DVD…(e.g. Amazon)
  • Links to the film’s/director’s site (opens within the App)
  • A trailer/video clip viewer (user can watch the trailer, clips, outtakes, behind the scenes)
  • Photo gallery of shots from the film
  • an RSS/News feed for any feed you would like to provide.
  • Custom Graphic design and layout (using your art).
  • Turn around is typically two weeks and then 7-10 days at Apple.
  • Got other ideas? Let us know what you’d like

How?

Contact Stonehenge Productions and we’ll provide you with further instructions to upload your content. It will then be turned into a customized application. You’ll get final review and you’ll continue to hold all rights to the film.

We’ll submit it to Apple and manage the whole selling process through the App store OR we’ll put it on the Android Market or Amazon Appstore.

A Stonehenge Sales Sheet: http://www.stonehengeproductions.com/sales-sheet/

Mark Smillie of Stonehenge notes “we are really working hard to build FilmApps that encourage participation over the lifecycle of the film…so pre-release to build awareness and fan base, at release to drive fans to the theater and post release to sell the film through the App channel.”“We build for Apple, Android and sell on the iTunes, Droid and Amazon app stores.”

Their latest press release for our App for the film: Race to Nowhere.  It’s a good example of a social activism app paired with a film App.  http://www.prweb.com/releases/2011/03/prweb5193274.htm

Another testimonial Mark showed me is from John Paul Rice of “One Hour Fantasy Girl” “Apps for films work: Itunes report for One Hour Fantasy Girl in Q4 2010, rental/downloads up 558% over Q3. Credit goes to @WeGoTo11”  John Paul Rice President No Restrictions Entertainment from Twitter:https://twitter.com/norestrictions/status/53291871367200768

* That’s all for now folks. More platforms and tools and DIY solutions next time.

Orly Ravid April 12th, 2011

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