tfc_blog

Written by Orly Ravid

Now that Sundance has announced its new line up, it seems appropriate to discuss the issue of a film’s distribution after premiering or acquisition at festivals.

It is often the case that films do not get released until 6 months to a year or even more from when the film had its festival premiere…At least this is the case when traditional distribution is pursued as opposed to planning the distribution and marketing to coincide with the premiere and work off that plan accordingly.

Here are 10 reasons for the delay in time between a premiere launch at a festival and traditional distribution into the marketplace:

1.  The time it takes to find buyers. These days the market cycle is longer than it’s ever been. Sometimes even a year after a festival or market, sometimes longer to sell titles.  It’s a buyer’s market, so few films enjoy the pleasure of contested bidding that forces prices up and faster closings.  Sundance, of course, is one of the few festivals that commands such a dynamic and more films than at most other festivals will secure distribution, at least domestically, as a result of premiering there.

2. Once a deal is closed, then there’s the contract and delivery which takes time… months sometimes.

3.  Long lead times for press are required, at least four months, and that planning usually does not happen until after deal closure.

4. The distributor needs time to find open slots/appropriate slots in the calendar for theatrical – and it’s competitive out there so getting a booking takes time, and getting the right one for the film takes even more time, again, months.  Sometimes even 6 months is needed to book the right theatre for the right time.. Some of the best screens are locked in well in advance.

5. Cash flow is needed to launch marketing campaigns. This can be an issue for some distributors. Recouping some revenue from previous releases will be needed in order to fund future ones.

6. Major digital outlets take several months to upload and make a film available. Cable VOD has solicitation windows. DVD and digital also require set up times and announcing the title and marketing it ahead of time so again months of planning and slotting. One wants to be strategic about release time.

7. The time of release is sometimes specific to the film. It may be theme driven and demand specific timing or it may want to avoid direct competition. Also inventory shifts in retail stores dictate the optimal time for DVD release (ie. certain times of year, like Christmas or Halloween, call for more of a certain kind of film).

8. Internal scheduling of the distributor. As you know, distributors will have other releases that they need to navigate given what their key outlets have planned.

9. Grass roots and other marketing also demand lead time.

10. Overall, the difference between DIY and traditional distribution is that in DIY, you can plan months in advance to set up the outlets and use the press attention at a festival premiere to catapult the film into the market, even if you aren’t 100% sure which festival will be your premiere. Having everything in place to pull the trigger when you get that acceptance puts you in a good position to release. In traditional distribution, the distributor cannot do advance planning and so the planning starts after the initial buzz has been created at the festival.

I know some of you have been confused or frustrated by the lag time between a festival premiere of a film and the release. Hopefully this helps to explain the matter.

November 30th, 2012

Posted In: Distribution, Film Festivals, International Sales, Uncategorized

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In light of the American Film Market just wrapping up and Sundance on the horizon, we thought we would devote some time to explaining how film sales works and what the landscape is looking like for independent films at the moment. Many of you may not truly be aware of how a sales agent relationship works. Indeed, by conversations we’ve seen on forums and in social media spaces, many newer filmmakers do not understand the repercussions of signing a sales agent agreement for their films.

Typically sales agents do not act like real estate brokers, but more like intermediary distributors.  What I mean is they do not facilitate a deal that a filmmaker does directly with third parties and then charge a commission that gets paid out as does a real estate broker. Typically, sales agents first license all the rights from a filmmaker (meaning they then possess all the rights, meaning the film isn’t yours to control during their agreement term) and then re-license them per territory or in a worldwide deal depending on the territory they have been assigned to sell in contractually. The agreement is between the agent and the buyer, not between the filmmaker and the buyer.  Often sales agents’ terms are 20 years, or 15, 12, 10, 7, but rarely less than 7 and the more old school ones are longer. The reasoning is that they need the rights to be able to sell the rights. So for at least 7 years, the film is no longer in your possession and by the time you get control of it again, it is indeed considered an old title.

Film sales office Asian Film Market

There are some advantages to working with a sales agent of course.  They will spend money traveling to markets, producing sales materials, courting buyers and they handle all delivery and oversee the distributors they’ve signed agreement with, keeping a watchful eye and monitoring accounting.  Sales agents usually have better buyer contacts than most filmmakers and more leverage, and they have more market intelligence. Bear in mind that they front this money for the film (that they own for a time), but it all must be recouped from the sales revenue with sales commission before any is passed back to the filmmaker. There are also times when the delivery items (also known as deliverables in a sales agent agreement) must be completed and paid for BEFORE the agent will take it out to buyers. In some cases if this hasn’t been delivered upon signing the agreement, an agency may pay to have these items fulfilled if they find a buyer who requires them (like 35mm prints) and the deal is large enough to recoup this additional cost plus commission.

The taking rights component is an issue because these agreements last for a number of years and the filmmaker is shut out of much or all of festival distribution and the ability to conduct direct distribution efforts (internet distribution) plus all the rest.  I’ve written all this before; and many seasoned filmmakers already know it, but I write it again to remind of one key thing during this AFM/film sales season: DO THE MATH.

At The Film Collaborative we do sales too, sometimes, in a very boutique fashion.  We spend little at markets; we sell only certain strands of films that we have lots of experience in handling.  We do NOT take rights ever and the deals are, almost always, between the BUYER and the FILMMAKER.  Rare exceptions are when we are doing a bulk TV deal and even then filmmakers still have 100% approval and collect within a few days of us having collected from the broadcaster.

There’s more that can be said about the specifics of sales and samenesses v. differences between our model and the traditional one, but the point is to remind of this one key point: Oftentimes the potential deals that a traditional sales agent can do for you and what you can do for yourself or with us are the same, but the math (because of fees and expenses) will net you less.

There are times when certain types of films have a certain sales potential that may be better served by a motivated sales agent who has the cash to augment the deals and can command more and stand better to collect etc.  But most of the time, for indies, the deals these days are so few and far between and for such small prices that if one does not pick a company that follows our model, one will get screwed.  Sometimes, the screening fee from festival distribution is the same or more than the sales money (yes, screening fees can be negotiated!).  Sometimes the benefit of DIY distribution by the filmmaker can net  more than an MG on a sale.  Sometimes there are no sales.  Sometimes the expense recoupments due to a sales agent exceed the sales revenue.  So the key is get real sales projections, back up with corroborating information, and DO THE MATH. Admittedly, this is no easy feat these days and sometimes the sales potential isn’t pretty.

Sometimes films represented by veteran agencies do the exact same deals we do, but instead of the filmmaker getting the money directly from the buyers, it passes through a sales agent who recoups expenses and higher fees such that the net is ultimately less to the filmmaker, who cannot even exploit any rights to her own film.

Before signing agreements with sales agents, ask the agent about the sales potential of your film, the one they are asking to represent (and own for a time). Ask to see the projections in writing and analyze that they really are comparable films (genre, actor names, topic, timeframe of the sale should be in the last year or two, not 5 years ago when the film world was very different). Ask about their intentions for marketing your title, beyond designing a one sheet and perhaps a new trailer. Ask how many films they are representing this year at the markets and will your title get its proper attention. Beyond the markets, will your film be promoted in any other way (publication coverage, special screenings, social media outreach, highlighted on their website and in their weekly email blasts)? Think if it will be worth it to relinquish all rights to your film for at least 7 years. Be  in reality about the real sales potential of your film, do the math, and make your decisions accordingly.

November 13th, 2012

Posted In: Distribution, International Sales

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by Bryan Glick

Sandwiched in between SXSW and Cannes, it is very easy to dismiss or overlook the Tribeca Film Festival. Yet, last year’s crop of films included the world premieres of two of the highest grossing documentaries of 2012 Bully and Jiro Dreams of Sushi.  However, most buyers seemed much more hesitant to strike this year.

Part of the issue is that Tribeca Films went all out acquiring The Giant Mechanical Man (starring Jenna Fischer and Chris Messina), Sleepless Night (France, estimated budget €2.5m) Struck By Lightning (with Christina Hendricks and Dermot Mulroney), Booker’s Place: A Mississippi Story (documentary), War Witch (Canada, estimated budget $3.5m), Resolution (estimated budget $1m), Side By Side (documentaryproduced by Keanu Reeves and Death of a Superhero (Germany/Ireland, estimated budget €3.8m) (The latter two premiered at Berlin and TIFF), so most major buyers settled for one title or none at all.

Outside of Tribeca Films, Sundance Selects and IFC Midnight were among the most active buyers. The latter took US rights to the world premiere Replicas (Canada with Selma Blair and Joshua Close and US and UK rights for As Luck Would Have It (Spain with Salma Hayek which premiered at Berlin.  Meanwhile, their sister division, Sundance Selects, went for North and Latin America, UK, and Scandinavia rights to  The Flat (Germany, documentary) and also grabbed the best narrative film winner Una Noche (US/UK/Cuba with Dariel Arrechaga) for North America.  In addition, the fest also hosted the North American premiere of Beyond the Hills (Romania)  which they acquired out of Berlin.  IFC got in the game with US rights for Knife Fight (Sweden with Jennifer Morrison and Carrie-Anne Moss, estimated budget $7m).

The only other distributor to acquire multiple films was Film Buff. They secured digital distribution rights to Knuckleball! (documentary) and US rights to The Russian Winter (US/Russia, documentary)
The star studded Revenge for Jolly (with Elijah Wood, Ryan Phillippe & Kristen Wiig) got US and Canada covered courtesy of Sony Pictures Worldwide and the festival award winning The Revisionaries (documentarywas acquired for North America by Kino Lorber.  Cinedigm continued its banner year with US rights to Don’t Stop Believin’: Everyman’s Journey (documentary about the band Journey who hired their new lead singer via Youtube). Another company making their presence known was, Entertainment One, who couldn’t resist getting  North American rights for Freaky Deaky (with Christian Slater, Crispin Glover and Michael Jai White, estimated budget $10m). Meanwhile, Strand Releasing paid six figures for North American rights to Yossi (Israel, estimated production budget $500K), continuing a very effective partnership with the popular Israeli filmmaker Eytan Fox. Other films to sell include Whole Lotta Sole (UK, with Brendan Fraser and Colm Meaney) which went to Arc for near seven figures, Room 514 (Israel) was bought for North America theatrical by Film Movement, and Unit 7 (Spain, estimated budget €3.5m which sold for US Pay TV and VOD to HBO.

Presently, the Tribeca festival arguably does a better job serving as a platform for films that have already been seen elsewhere or have distribution in place. Films that had North American or world premieres, but were bought before the fest include Magnolia’s Jack and Diane (with Juno Temple and Kylie Minogue), a partnership that featured sports themed documentaries sponsored by ESPN Films with Broke, Benji, and Town of Runners,  The HBO Doc release One Nation Under Dog, the Netflix exclusive documentary The Zen of Bennett (about singer Tony Bennett), Cinema Guild’s “Planet of Snail (Finland/Japan/Korea),  and Fox Searchlight’s box office bomb Lola Versus (with Greta Gerwig and Bill Pullman) which to date has grossed just barely over $250,000 theatrically in North America. Two special release docs Wagner’s Dream (NCM Fathom Events) and Queen: Days of Our Lives (Eagle Rock Entertainment) were also a part of the slate. Another film to sell before the festival was the Morgan Spurlock documentary Mansome, which Paladin acquired for US Theatrical. It has since grossed a very wimpy $36,280 showing that the days of, “Super Size Me” have long since passed.

This Keanu Reeves produced doc opened last week

FINAL THOUGHTS: Several of these deals have only taken place in the past few weeks (though the fest was back in April) and there were fewer than five deals to report during the festival. There is still a lot of value to screening at Tribeca, but it seems it serves more as a pre-launch into the Cannes market. With Tribeca Films buying so many films both before and after the festival, it raises the question of what is there for other buyers? They have also yet to have a film that has broken out both theatrically and on VOD though “Struck by Lightning” has real potential to do strong business.

Conspicuously absent this year was Magnolia Pictures, Oscilloscope, and The Weinstein Company. All of them are based in Manhattan and TWC and Magnolia struck documentary gold with films they bought at last year’s festival. It is doubtful that any of them would jump into the fray at this point, but it does seem to hint that the commercial prospects for films this year at the festival were not perceived to match those of last year’s slate. The festival still has to figure out how to excite the industry in NYC and convince them that they should go to a festival in their own town.

All that said though, the amount of deals shows that the festival is an increasingly good alternative to Sundance and potentially even SXSW.

ADDITIONAL FESTIVAL DEALS
Since the last blog posts about SXSW and Sundance there are a few more deals to report and some DIY movement.

-Sundance saw a number of films announce deals or DIY  plans in the past month.

-Wolfe Releasing secured US DVD/VOD rights to the Sundance documentary Love Free or Die.  In addition and in partnership with Wolfe, Kino Lorber will handle the film for educational/non-theatrical screenings. It will have its television premiere on PBS stations nationwide as part of the series “Independent Lens.”

– Fellow US Documentary competition title A Place At The Table (It was called “Finding North” At Sundance) was acquired for the US by Magnolia Pictures. They will release in partnership with Participant Media. The deal was negotiated by Josh Braun of Submarine Entertainment.

-Drafthouse films went for Wrong and will release the film in North America in 2013. It is only the third World Dramatic film to get distribution in the states from this years festival.

-Kimstim Films will be releasing Bestiaire theatrically starting October 19th. This makes it the second of the New Frontier films to secure a theatrical release this year.

-Grand Jury Prize winning documentary The House I Live In will be released theatrically by Abramorama with guidance by Cinetic. Snag films has acquired domestic distribution rights to the film.

-Earlier this month, world documentary competition film Big Boys Gone Bananas did a DIY theatrical, Oscar qualifying run in NY and LA.

There are still over two dozen films from this year’s Sundance that have yet to sell or establish DIY distribution. Of those, almost half were in the world dramatic competition section. Still, when compared to other film festivals, its sales numbers are fantastic! Over ¾ of the films that premiered at the festival this year have been acquired or announced plans for DIY distribution.

On the SXSW front, IFC Midnight decided to stick its teeth into The Jeffrey Dahmer Files (Formerly called “Jeff”). They acquired both North American and UK rights. The deal was negotiated by Submarine Entertainment.  Producers Distribution Agency is betting on Brooklyn Castle which they will release in the US October 19th. Based on how their first three features The Way (BO gross $4.4m), Exit Through the Gift Shop (BO gross $3.2m) and Senna (BO gross $1.6m did this should be one of, if not the highest grossing film to come out of SXSW.  Finally, Tribeca Films could not say no to Somebody Up There Likes Me (with Nick Offerman). They took North American rights to the SXSW world premiere. The deal was negotiated by Gray Krauss Stratford Des Rochers LLP. Snag Films continues its best of fest approach and acquired domestic distribution rights to Grand Jury Prize documentary Beware of Mr. Baker Abramorama is handling the theatrical.

A full list of sales deals from Tribeca is listed below. Box office grosses and release dates are current as of August 19th.

 

Film Company Territories Sales Company Box Office/
Release Date
As Luck Would Have It IFC Midnight US and UK Premiered at Berlin
Benji ESPN Films PRE FEST
Beyond the Hills Sundance Selects North America Wild Bunch
Booker’s Place: A Mississippi Story Tribeca Films North America Greenberg Traurig, LLP
Broke ESPN FILMS PRE FEST
Death of a Superhero Tribeca Films              $607
Don’t Stop Believin’: Everyman’s Journey Cinedigm US
Évocateur: The Morton Downey Jr. Movie Magnolia US Submarine Entertainment
Freaky Deaky Entertainment One North America Paradigm
Jack and Diane Magnolia Pictures Worldwide
Knife Fight IFC US WME INDEPENDENT
Knuckleball Filmbuff Digital Distribution Rights        September
let fury have the hour paladin
lola versus fox searchlight acquired pre fest $252603
Mansome Paladin US Theatrical $36,280
One Nation Under Dog HBO Doc Films PRE FEST DEVELOPED
Planet of Snail Cinema Guild US Bought out of IDFA $7978
Queen: days of our lives Eagle Rock Entertainment PRE FEST ALREADY ON DVD
Replicas IFC Midnight US Turtles Crossing LLC
Resolution Tribeca Films North America XYZ Films
Revenge For Jolly Sony Worldwide US and Canada UTA Independent Film Group
Room 514 Film Movement North America
Side By Side Tribeca Films North America Justin Szlasa and attorney Marc Simon $6956
Sleepless Night Tribeca Films US Bac Films
Struck By Lightning Tribeca Films US Traction Media and ICM Partners
The Flat Sundance Selects North/Latin America, UK, Scandinavia
The Giant Mechanical Man Tribeca Films US $7,396
The Russian Winter Film Buff US
The Visionaries Kino Lorber North America            October
The Zen of Bennett Netflix  Exclusive bought Pre fest
Town of Runners ESPN Films PRE FEST
Una Noche Sundance Selects North America
Unit 7 HBO US Pay TV and VOD Vicente Canales’ Film Factory
Wagner’s Dream NCM Fathom Events and the Met Screened with The Ring Cycle in May
War Witch Tribeca Films US Premiered at Berlin
Whole Lotta Sole Arc US
Yossi Strand North America Films Distribution partner Nicolas Brigaud-Robert

 

NB: In an effort to put these  films in a useable context for filmmakers/investors/distributors, we have provided information (when available) on country of origin, notable names involved, and estimated production budget. From this information, one can see where the sales trends seemed to be at the festival.

August 22nd, 2012

Posted In: Distribution, Film Festivals, Theatrical

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by Orly Ravid

It is difficult to definitively explain what The Film Collaborative (TFC) does in a few sentences. Often, when asked for a company bio for a speaking engagement, we are asked to sum up in a few words, but here is the thing…we do different things for different films and that is what makes this non profit company devoted to independent film distribution different. We are a membership organization and we offer a menu of services that are separately available.  For our members, we are largely an educational and informational organization. We will work with any film/filmmaker to provide consultation and educational resources which are included in our membership fees.

We can provide services such as: worldwide festival distribution, worldwide sales, domestic sales, worldwide direct digital, domestic theatrical, limited domestic educational distribution, grassroots / social network marketing services, and contract negotiation services. These are all subject to additional fees so the filmmaker must have significant budget to allow for the labor and expenses incurred and our acceptance depends on the workload currently undertaken by the company.

We also serve in a sales agent capacity with SOME films. Due to this dual nature (educational and service oriented), we are very discerning about the films we take on in this capacity. We can work on any aspect of distribution, but with a strong emphasis on direct distribution being part of  your overall distribution strategy. We can connect you with service providers/buyers we think are right for your film, and ones we trust and recommend, but WE NEVER OWN YOUR RIGHTS and filmmakers can cancel the service at any time. This clearly sets us apart from other sales agents and can be confusing to those who are accustomed to typical sales agent arrangements. The deals we make are almost always between the buyer and the filmmaker. The only exception to this are bulk deals whereby doing the deals individually is just tortuous for all involved.  We are very boutique in our sales agent offerings, not wanting to disappoint or take on more than we can handle. If we don’t think a title is suited to our strengths and our mission to offer quality films of artistic merit with strong distribution potential, then we don’t take them on for sales representation. Which brings us to merit…

Not all films will have distribution potential, not all films are good, not all films have an audience, or not a significant one. There, we said it! Time and again we see filmmakers willingly, enthusiastically going into debt, either raising money from investors or credit cards and coming to us for help in getting their creations out into the world. Sometimes those creations just won’t have a life out there and no matter what is spent in time or money, a significant audience won’t be found. We drill down into every member’s film in order to give the best assessment, but there are times when the prognosis is not favorable to the kind of success they are seeking.

For members’ films, we remove our  personal tastes from the equation and try our best to determine WHO in the world would be enthusiastic for the film and how many such folks are out there? And where are they? And can they be reached given the resources available? When you made the film, were you thinking of an audience?  When you came to us expecting the film to: get TV sales, international sales, a nice Netflix fee, a theatrical release, a theatrical even after you did a DIY DVD and iTunes release, were you basing that on another film that is similar? Do you understand the decision making process involved in the buying of films for release? Was any research at all conducted BEFORE the production started? With the amount of information on our site and thousands of others online, there is no longer an excuse for not knowing the answers to these questions well before a production starts.

I am starting to want to be the tough love nursemaid and say we don’t want your babies to be orphans. Filmmakers now have to educate themselves a bit before conception and well before giving birth so they will be able to  cover all the rearing their film baby is going to need to claw its way through the mobs of other film babies, their TV siblings,  Webcontent cousins, and the rest of their multimedia distraction family. As with conceiving real babies, it is all fun and games until the reality of raising a child sets in. You need to be fully prepared for the long haul.

We have information, we keep up with the current shifting sands of distribution, we receive opportunities because we represent quality films, we have contacts, years of expertise, we’re friendly, we’re not gonna f*ck you over, but we cannot save every film from oblivion nor can we convert every film into a success however you define it.  So much of that has to start with you, being clear and honest with yourself, before you say “action”.

 

photo credit: Adam Foster | Codefor

August 8th, 2012

Posted In: Digital Distribution, Distribution, International Sales, Marketing

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By Sheri Candler

As a result of my recent trip to Europe to participate in the annual FERA General Assembly and Sheffield DocFest, I found some great new independent film resources I would like to share. Sometimes we get too focused on North American resources so it is good to pull in useful information from all over the world. This will be a series of posts over the next few weeks that highlight these new services. First up, Assemble

Assemble (formerly MovieSparx) is a tool for filmmakers and distributors who want to ease the headache of building audiences and selling films on the web. It  is clever software that creates and manages your web-presence, gathers and tracks your audience and provides a sales mechanisms to sell your film and related products. I spoke with Founder James Franklin about how the software works.

What made you want to build this? What need did you see in the industry that wasn’t being fulfilled properly?

JF: Simply put – we felt that the vital online presence for a film was almost always a hit and miss affair. Film websites are too often rubbish and do the film a disservice.
About 8 years ago I founded a London based design studio working just for indie film projects. We ran a lot of promotional campaigns for films around the world and learnt an enormous amount over some very high profile projects. Whilst doing this, and when I would speak at festivals about what we learnt, the same questions and problems would come up from filmmakers over and over again.

The main problem was that although everyone agreed that promoting a film and finding an audience online was important and a great opportunity, the reality was that it was very time consuming, had a steep learning curve and was a prohibitively difficult and painful struggle. Just to make matters worse, the budgets were always too small for creating the necessary marketing assets and the tools available at the time had to be hacked by techies to work for an indie film. Generally the assets for each film project – website, widgets, mailing list, shop etc – would be about 70% the same as every other project and about 30% unique. But each time everyone would have to work hard to just get that 70% out the door – we and the filmmakers felt like we were constantly re-inventing the wheel. And so we decided about 3 years ago to create a web-tool that would power these elements out of the box – film  website, online shop, widgets etc. It was going to be easy, efficient, flexible and beautiful. We would also pour our knowledge and experience into the system so that best practice was baked into it from the beginning. The very first release was at SXSW in 2010.

There are a few guiding principles we’ve stuck to. Firstly, that it’s always in the filmmakers interests to help promote the film direct rather than promote yet another platform – it’s all about the film project not us. Secondly, that the production team are always the most committed and passionate of advocates and with the right tools and experience can do the best job of promoting and selling the film. Lastly, we understand the importance of the film’s marketing materials /key art / branding – this is what really sells the film and is very important online. Anything we make has to work with the branding and be both functional and well designed.

What does Assemble do for productions? Walk me through the steps all along the way of a production using Assemble from conception of a film to distributing it. Are there some example films at different stages? Describe what they are doing.

JF: We provide the best possible web presence that adapts to each stage of a film. That web presence includes the film website, branded trailers & embeddable widgets, facebook apps, a shop and other important modules. Each Module is made just for film so it works exactly as you would expect out of the box. For instance, adding an award adds a laurel to the website. Each module works with the others, so the shop can appear in Facebook and the trailer for instance. Each of those modules adapts depending the stage the project is at – so in development, it makes the most of the one photo and short synopsis you often start out with. Then the modules adapt for fund-raising or crowd funding, production, festivals and finally distribution.  Lastly each module adapts by country so that it can properly support different territories being at different stages – ready for download in the USA but in theatrical in Australia – without interfering with each other.

Currently the modules are:
– Website
– Blog
– Shop
– Widget / Branded Trailer
– Facebook page app
– Screenings
– Mailing List
– Sign-up for media
– Crowd-Funding support
– Gallery
– Awards and Laurels
– Reviews

There are too many features and options to go through everything in detail. But to give an example about how this this works just for film and is designed to be more efficient, take a look at the screenings module. This handles events and screenings either as part of a theatrical release or at festivals. Usually screening dates and times end up on a single page which has to be constantly updated and is hard to find or a film relies on a potential audience remembering at a later date.

With Assemble, once the production team have entered an event or screening’s details into the back end it appears automatically, in chronological order across all assets – on the website, the trailer, in Facebook and so on. It can be automatically added to the Facebook page as an event for people to share with others. People can even send it to a friend as an invite, or share it to social networks. It can even set up a reminder for you so you’ll get an email the day of the screening. If there’s a screening near you it will flag up on the website home page. When a screening date has passed it’s automatically added to the past screenings. We can even supply a feed of data for partners.

Of course, if there isn’t a screening near you, you can demand one with a simple form or if available, you can set up semi-theatrical or community screenings and sell screening licenses. All of this works straight of the box.

We’ve also worked hard to never lose a potential customer. For instance, if someone in Canada wants to watch the film but it’s not available on DVD or for download yet, rather than giving the unhelpful message ‘this is not available in your region,’ the system will automatically work out an alternative (it may be on at a festival near them, or available from a distributor, or on Amazon – we can route them through to wherever is best). At the very worst, if it’s not available at all to them we can get them to sign up to the mailing list or demand it.

Some example sites at each stage are:

How Far Is Heavena simple film website
The Spirit Level – integrating with IndieGoGo
 Planeat – shop with downloads and merchandise
Just Do It – powering the shop only alongside a VODO release
Black Gold – long tail of distribution (the film is from 2006)
Europe Loves Cinema – a site with a slate of films
Tigerlily Films-a production company site with many films

As the above all geo-detect, the design changes depending on where you are visiting from.

Is the software mainly built for one title at a time or for a production company in the long term?

JF: It works well for both. The system really comes into it’s own when you run a production company or distribution website and your slate of titles off the system. They all integrate together and save a lot of time and work as well as collecting all the valuable data across the whole lot. That is key, if production companies are to thrive in the
future they must take ownership of their audience data and take it with them to the next project. That way it gets easier every time. Only Assemble can make that part happen.

What advantage would it be for a filmmaker to use a distributor to access this since your site says it is for distributors as well?

JF: It’s a flexible system and so will work for both individually. Ideally, the production team should be on the system from development and running even a basic web presence from the beginning, that way they can start to take control online. And the big advantage for a production team is that our tools work with even the most complicated rights and distributor structure.

When Assemble says it builds websites, is that on the production’s own URL or is it through your platform as a 3rd party?

JF: We power websites for films, much like wordpress powers blogs. You can use your own URLs with the system. The design for each site can be done either through us as a customised project or by a third party designer. The idea is that it’s as flexible and beautiful as possible whilst still being easy.

The description says it builds an embeddable trailer. Do you mean it makes a trailer built by the production embeddable? Why wouldn’t we want this on Youtube instead where we can track views and where they come from? Does Assemble do that too?

JF: We’ve made a very flexible widget that acts as a branded trailer. We think it’s very important to use Vimeo and You Tube as part of a campaign and so we use these to provide the trailer video – You Tube and Assemble play well together. The widget then ‘wraps’ around the Youtube video to create a branded trailer which also can hold extra modules like the shop, a watch the film page, twitter feed, blog, screenings and so on. And you still get your view count up and can track who’s watching it with You Tube.

Does Assemble provide training on how to use the system? For many indie productions, this whole process of building an audience and selling directly is completely unknown so how does Assemble help demystify the process?

JF: Yes, we provide training. We’re also adding a series of how-to videos to help things. We also hope to add more general videos on how to make a success of the project using Assemble.

Does Assemble help market the projects or is it only a tool to use by film productions themselves? Would the audience ever come to Assemble or are you more a B2B?

JF: We are not another platform. We are a B2B business, we don’t want to build a relationship with a project’s audience, rather we provide the tools to enable the production team to do that. However, we do help market projects in various ways and we can advise on how to do this as we’ve many years experience at this. One of the key ways a film can market itself online is firstly through social media sharing and secondly affiliate networks.

Assemble heavily supports sharing with social media and building an affiliate network. We help advise people if needed on how to make both of these work hard for a film project. For example, we have by far the most flexible and innovative affiliate tracking system, you’re not tied to one rate and can offer different percentage kick-backs. We find discount codes can work just as well and sometimes better. In addition, we are constantly innovating and testing, then putting what we learn back into the system.

When you say you sell downloads, what makes those downloads disabled to be reuploaded on the internet? Is there a mechanism for hampering that activity?

JF: If a project sells DVDs then these can be easily ripped too. We do review for Youtube and download links. Our own download mechanism can alert us if there are excessive downloads on a single link. We think the pricing of downloads should mean that for a potential customer, it’s easier to just buy the download rather than have the hassle of finding the torrent or download link. People who would pay generally prefer to pay honestly, thats the best way to stop piracy eating revenue.

July 10th, 2012

Posted In: Digital Distribution, DIY, Facebook, Marketing, Social Network Marketing

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This piece was researched, compiled and written by TFC associate Bryan Glick.

Back in March we looked at the films that were bought out of Sundance and since then the deals have kept coming, including some from major players like Sony Pictures Classics (SPC)  and IFC.

Among the companies making fresh acquisitions, Tribeca Films nabbed North American rights to two US Dramatic competition entries, “The Comedy” and “For Ellen”. In fact every film in the US Dramatic Competition now has a US Distributor. SPC secured worldwide rights to “Smashed” for $1,000,000 and Sony Worldwide opened their eyes to  US Rights and Canada Ancillary for “The First Time”. Music Box bought “Keep The Lights On” for North America, in what is certainly a change of pace from their typical fare.  Meanwhile “Filly Brown” became the fourth film to get bought by Indomina who is making it clear that they are presence in the indie world. They have worldwide rights for the film. The Late Adam Yauch’s Oscilloscope got the North American rights to the opening night film “Hello I Must Be Going” and IFC showed they could acquire the entire festival if they wanted to by adding North American rights for “Save the Date” to their packed slate, and finally Wrekin Hill took a chance on “The End of Love” for which they now hold North American rights.

On the World Dramatic side “Teddy Bear” which won the directing prize became only the second film to get US Distribution from this competition section.  While in the World Documentary section “China Heavyweight” was acquired for the US by premiere documentary distributor Zeitgeist.

Oscilloscope embraced their music roots and will do a special release for “Shut Up and Play The Hits” in North America, while IFC Midnight  had to snatch up “Grabbers” for North America, leaving “John Dies at the End” as the only Midnight film to not sell this year. In the Next section, IFC got North American rights to yet another film with the audience award winner “Sleepwalk With Me” and Phase 4 got into the game with US and Canadian rights to “That’s What She Said”. This brings the total sale of Next films to five, with another four still looking for a buyer. While that might seem bleak, this is better than its first two years and slowly this section is showing that it can play with the big dogs in the US Dramatic Competition Section.

In the premiere section Strand is in for the long haul with US Rights for “California Solo” and “Red Hook Summer” is being distributed by Spike Lee’s own company in partnership with Variance and Image Entertainment. Only “Price Check” has yet to find a distributor.

In the US Documentary section, Film Arcarde & Lionsgate got a slam dunk with North American rights to “The Other Dream Team”, which reportedly sold for mid six figures Oscilloscope secured US, non-TV rights to “Chasing Ice” and Bravo got in on the action with “The Queen of Versailles”. Finally, “Detropia” just started a kickstarter campaign to raise funds for a DIY release.  Meanwhile , the Doc Premiere film “Under African Skies” saw a small theatrical run courtesy of A&E (who will also be premiering it on TV) and was bought by Snag Films for all digital platforms.

FINAL THOUGHTS. This year was yet again dominated by the power of the IFC brand. IFC/IFC Midnight acquired a whopping 8 films and their sister division Sundance Selects got 2! Magnolia/Magnet was a not even close second with 6 films. Oscilloscope, Indomina, and SPC all showed prominence with four films a piece. Other companies acquiring multiple films include Music Box, Zeitgeist, Tribeca Films, The Weinstein Company, Kino Lorber, and Fox Searchlight.  A full list of sales is viewable below.

Box office grosses are current as of June 10th.

Film Company Deal Amount Terrtitories Sales Company Box Office/
Release Date
2 Days in New York Magnolia N/A North America CAA August 10th
28 Hotel Rooms Oscilloscope N/A US Preferred Content
5 Broken Cameras Kino Lorber N/A US CAT&Docs $22,787
About Face HBO Doc N/A TV Pre-Fest July 30th
Ai Weiwei: Never Sorry Sundance Selects N/A North America Cinetic Media, Victoria Cook July 27th
Arbitrage Roadside Over $3,000,000 North America WME
Bachelorette TWC Over $2,000,000 North America CAA
Beasts of the Southern Wild Fox Searchlight Almost $1,000,000 US WME June 27th
Black Rock LD Over $1,000,000 North America Submarine
California Solo Strand N/A US Visit Films
Celeste and Jesse Forever SPC Almost $2,000,000 North And Latin America, Eastern Europe UTA August 3rd
Chasing Ice Oscilloscope N/A US  (Non TV) Submarine
Chasing Ice National Geographic N/A TV Submarine
China Heavyweight Zeitgeist N/A US EyeSteelFilms July 6th
Compliance Magnolia N/A North America Cinetic June 20th
Detropia DIY
Escape Fire Roadside N/A US CAA October 5th
Ethel HBO Doc N/A TV Pre-Fest
Excision Anchor Bay N/A North America Preferred Content
Filly Brown Indomina N/A Worldwide WME
For a Good Time Call Focus $3,000,000 Worldwide Cinetic August 31st
For Ellen Tribeca N/A North America CAA Sept 5th
GOATS Image Almsot $1,000,000 US WME and Cinetic Media
Grabbers IFC Midnight N/A North & Latin America Gersh
Hello, I Must Be Going Oscilloscope N/A North America WME
How To Survive a Plague Sundance Selects High Six Figures North America Submarine September 21st
Indie Game: The Movie HBO And Scott Rudin N/A TV Film Sales Company B.O. Gross not
 (Remake Rights) Reported
Keep the Lights On Music Box N/A North America Preferred Content
Lay the Favorite TWC Over $2,000,000 US CAA
Liberal Arts IFC Over $1,000,000 North America Gersh
Luv Indomina/BET Over $1,000,000 North America/TV ICM/Cinetic
Marina Abramovic HBO Doc TV Pre-Fest July 2nd
Marina Abramovic Music Box N/A US Submarine June 13th
Me @ The Zoo HBO Doc Mid Six Figures TV Submarine June 25th
Middle of Nowhere Participant and AAFFRM Mid Six Figures US Paradigm
Mosquita Y Mari Wolfe Low Six Figures North America The Film Collaborative August 3rd
Nobody Walks Magnolia Mid-high Six Figures North America Submarine
Payback Zeitgeist N/A US N/A $12,962
Predisposed IFC N/A North America ICM and UTA August 17th
Putin’s Kiss Kino Lorber N/A North America N/A $3,872
Red Hook Summer DIY/Variance/Image N/A North America N/A
Red Lights Millennium Entertainment Under $4,000,000 US UTA July 13th
Robot & Frank Sony & Samuel Goldwyn Over $2,000,000 North America and ICM, CAA
select territories
Room 237 IFC Midnight N/A North America Betsy Rodgers
Safety Not Guaranteed Film District Over $1,000,000 US ICM $97,762
Save the Date IFC N/A North America CAA
Searching for Sugar Man SPC Mid Six Figures North America Submarine July 27th
Shadow Dancer ATO $1,000,000 North America CAA
Shut Up and Play the Hits Oscilloscope N/A North America WME
Simon Killer IFC Films N/A North America UTA, Caa
Sleepwalk With Me IFC N/A North America UTA August 24th
Smashed SPC $1,000,000 Worldwide UTA and CAA
Something From Nothing: The Art of Rap Indomina Over $1,000,000 Worldwide UTA
Teddy Bear Film Movement N/A North America Visit Films August 22nd
That’s what she said Phase 4 N/A US and Canada Submarine
The Comedy Tribeca N/A North America Submarine
The D Word HBO Doc N/A TV Pre-Fest
The End Of Love Wreckin Hill N/A North America Preferred Content
The First Time Sony Worldwide N/A US/Canada Ancillary N/A
The Imposter Indomina N/A North America A&E Films July 13th
The Invisble War Cinedigm and New Video N/A North America The Film Collaborative June 22nd
The Other Dream Team Film Arcade & Lionsgate Mid Six Figures North America WME
The Pact IFC Midnight High Six Figures North America Preferred Content
The Queen of Versailles Bravo N/A TV Submarine 2013
The Queen of Versailles Magnolia Mid Six Figures North America Submarine July 20th
The Surrogate Fox Searchlight $6,000,000 + Worldwide CAA
$4,000,00 P&A
The Words CBS $2,000,000 US CAA September 7th
Tim and Eric’s Billion Dollar Movie Magnet N/A World Pre Fest $201,406
Under African Skies A&E Films N/A TV/Theatrical A&E Films
Under African Skies Snag Films N/A Exclusive Digital A&E Films
V/H/S Magnolia (magnet) Over $1,000,000 North America WME
West of Memphis SPC N/A Worldwide Peter Jackson and Ken Kamins
Wish You Were Here Entertainment One N/A North America LevelK

June 13th, 2012

Posted In: Distribution, Film Festivals, International Sales

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

 

The Sundance distribution announcement was just made today.

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

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

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

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

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

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

 

 

 

July 27th, 2011

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

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Recently I was invited to be on a panel at the International Film Festival Rotterdam (IFFR) and participate in their mentoring sessions and the lab at Cinemart.  Great experience. I am always amazed by the difference between the US and Europe. The whole government funding of films and new media initiatives as our government is about to shut down.  Well, their policies and practices do take their own financial toll too but one I think is worth it.  For all my europhileness I have to note that the Europeans can be just as guilty of not wanting to watch subtitles in fact some countries dub films instead. And of course we know that Hollywood is big business in Europe too. But all in all, art house cinema seems to reach more broadly in Europe and even some parts of Asia than it does in the US.  Films in Cannes and other top fests can sell all over Europe and never in the US or success in opening theatrically only in NY and maybe LA and overall it seems to me box office is generally down for foreign language cinema.

International filmmakers want US distribution and it was painful for me to discuss their prospects at IFFR because for so many, the prospects are slim.  But this one’s for you! (Please note this blog is focused on digital distribution and not healthy categories for foreign language cinema such as Non Theatrical including Museums, Films Festival, Colleges, Educational / Institutional).

Cable VOD was 80% of the digital revenue in the US in 2009 but it’s now declining little by little, now estimated to be in the high 70’s (approx 77%) and may decline further still. The reason for this change, which is expected to continue, is that Internet based platforms are growing.  Regarding FOREIGN LANGUAGE ON CABLE VOD: Distributors and aggregators agree that foreign language cinema is very hard to get onto Cable VOD platforms and slots for non-English cinema are reserved generally for marquee driven films and/or films with a real hook (name cast/director, highly acclaimed, genre hook).   A big independent Cable VOD aggregator notes a real struggle in getting foreign language films to perform on Cable VOD and even Bollywood titles that had wide theatrical distribution and a box office of upwards of $1,000,000 still perform poorly (poorly means 4-figure revenue, 5-figure tops). They have had some success with foreign martial arts films and will continue with those in the foreseeable future. Time Warner Cable (TWC) remains more open to foreign language cinema though it plays the fewest films, a range between 190 – 246 at any given time (with a shelf life usually of 60 days and with 2/3rd of the content seeming to be bigger studio product, and the rest indie).  By comparison Charter and AT&T play about 1,000 and Verizon plays 2,000, and Comcast plays about 4,000.  [See below for the 2010 breakdown of Cable subscription numbers.] Hence, individual titles may perform better on Time Warner Cable for obvious reasons, Comcast may have more subscribers but there’s less competition and TWC is in New York, the best demographic for art house cinema.

Generally speaking, platforms overall are far more receptive to foreign films following the recent success of DRAGON TATTOO, TELL NO ONE, IP MAN, etc.  than they have ever been before.  However as one can see from the titles noted, foreign genre films are preferred because they have the opportunity to reach broader audiences than the usual foreign film.  Genres that reportedly work include:  sci-fi, thriller/crime, action, and sophisticated horror.  Dramas have had limited success, and comedies often don’t translate, nor does most children’s content. In regard to Cable VOD – foreign box office is becoming an important proxy, because the marketing and pr tend to build US awareness on the larger titles prior to being available here.  Many companies have built very successful VOD businesses pursuing a day and date theatrical or DVD strategy.  Again, genre films work best, with horror and sci fi being the top performers.  3 of the top 10 non-studio titles in 2010 were foreign language subtitled releases.  Small art house distributors say that at most it’s a small dependable revenue stream via services such as INDEMAND http://www.indemand.com (iN DEMAND’s owners are and it services Comcast iN DEMAND Holdings, Inc., Cox Communications Holdings, Inc., and Time Warner Entertainment – Advance/Newhouse Partnership.)  Distributors and aggregators all site Time Warner as being far more open to foreign language cinema than Comcast, because it’s urban focused (NY, LA, etc) not heartland focused as Comcast is.

In terms of these titles finding their audiences on Cable VOD, Comcast announced improved search functionality by being able to search by title and Cable VOD is aware of its deficiencies and is said to be improving in terms of marketing to consumers but Cable VOD is still infamous for its lack of recommendation engines and discovery tools. Key aggregators work to have films profiled in several categories and not just the A-Z listing.

Top 25 Multichannel Video Programming Distributors as of Sept. 2010 – Source NCTA (National Cable Television Association)

Rank MSO BasicVideoSubscribers
1 Comcast Corporation 22,937,000
2 DirecTV 18,934,000
3 Dish Network Corporation 14,289,000
4 Time Warner Cable, Inc. 12,551,000
5 Cox Communications, Inc.1 4,968,000
6 Charter Communications, Inc. 4,653,000
7 Verizon Communications, Inc. 3,290,000
8 Cablevision Systems Corporation 3,043,000
9 AT&T, Inc. 2,739,000
10 Bright House Networks LLC1 2,194,000
11 Suddenlink Communications1 1,228,000
12 Mediacom Communications Corporation 1,203,000
13 Insight Communications Company, Inc. 699,000
14 CableOne, Inc. 651,000
15 WideOpenWest Networks, LLC1 391,000
16 RCN Corp. 354,000
17 Bresnan Communications1 297,000
18 Atlantic Broadband Group, LLC 269,000
19 Armstrong Cable Services 245,000
20 Knology Holdings 231,000
21 Service Electric Cable TV Incorporated1 222,000
22 Midcontinent Communications 210,000
23 MetroCast Cablevision 186,000
24 Blue Ridge Communications1 172,000
25 General Communications 148,000

FOREIGN LANGUAGE CINEMA VIA OTHER DIGITAL PLATFORMS and REVENUE MODELS:

DTO (Digital Download to Own (such as Apple’s iTunes which rents and sells films digitally) – this space has been challenging for foreign films in the past, and most services do not have dedicated merchandise sections. Thus, the only promo placement available is on genre pages, so the films need to have compelling art and trailer assets to compete.  iTunes and Vudu (now owned by WALMART – see below) are really interested in upping the ante on foreign films over the next 12 months.  Special consideration will need to be made for the quality of technical materials, as distributors have encountered numerous problems making subtitled content work on these providers.

SVOD (Subscription VOD such as NETFLIX’s WATCH INSTANTLY) – this space is probably the best source of revenue for foreign content because the audience demos skew more sophisticated and also end users are more inclined to experiment with new content niches.  Content in this space should have great assets and superior international profile (awards, box office), and overall should evoke a “premium feel” for the right titles, license fees can be comparable to high end American indies.  Appetite for foreign titles will increase as the price for domestic studio content continues to accelerate.  Genres are a bit broader than VOD/DTO, but thrillers, sci fi and action still will command larger sums ($). Good Festival pedigree (especially Cannes, Berlin, Venice, Sundance, etc.) will also command higher prices.  Overall, it’s a great opportunity as long as platforms keep doing  exclusive deals.  NETFLIX has surpassed 20,000,000 subscribers and a strong stock price and is in a very competitive space and mood again. (See more below).  Hulu expects to soon reach 1,000,000 subscribers  “to approach” half a billion in total revenues (advertising and subscription combined) in 2011, up from $263 million in 2010. That’s from $108 million in 2009. (see more below)

AVOD (Advertising Supported VOD – such as SNAG and HULU) – Another great space for foreign content (as evidenced by the recent exclusive HULU – Criterion deal – (see below) although that deal is actually for HULU’s subscription service (Hulu Plus). These platforms are more willing to experiment with genres and content types and favor art films and documentaries over genre films. Depending on the film, annual revenues can approach low to mid four (4) figures in rev share.  SNAG recently was capitalized to the tune of $10,000,000 but seems to be spending that money on marketing and not on “acquiring” so a film’s revenue is likely to be dependent on performance and rev/share unless one strikes an exclusive deal with SNAG and manages to get an MG.  HULU’s revenues are covered above.  Films report low 4-figures but sometimes 5 and 6 figure revenues but up until now those higher performing films have been English language and appeal to younger males.

TELEVISION / BROADCAST SALES: For foreign language cinema unless one has an Oscar™ winner or nominee, or an output deal, the prospects of a meaningful license fee are slim. Even worse, if you do secure a deal, it will likely preclude participation in Cable VOD, Netflix and any of the ad-supported VOD platforms such as Hulu and Snag.

KEY SPECIFIC TOP SPECIFIC DIGITAL PLATFORMS / RETAILERS:

AMAZON reportedly is readying a service that would stream 5,000 movies and TV shows to members of its $79-per-year Prime free-shipping membership program. Amazon being corporately tied to extremely popular entertainment information service IMDB and the film festival submission service WITHOUTABOX gives it a potential edge in the market, one that has never been fully harvested but easily could be and seems to be looming. And since its inception, Amazon has let film content providers open up shop on their site directly without a middle-man. Middle man aggregators get slightly better terms. Amazon presently offers 75,000 films and television shows combined and plans to soon exceed 100,000. It should be noted Amazon VOD has been US-focused though recently bought Love Films in the UK.

FOCUS FEATURES’ NEW DIGITAL DISTRIBUTION INITIATIVE: There is not much information out on this yet but FOCUS/UNIVERSAL are launching a new digital distribution initiative that may or may not brand their own channel on iTunes etc., but does seem to be focused on niche cinema to some extent and this may speak to foreign language titles. An option to watch out for.

GOOGLE is working on encroaching into the content delivery market with its launch of GOOGLE TV, which unfortunately has not created quite the fanfare the company planned for.  It boasts: The web is now a channel. With Google Chrome and Adobe Flash Player 10.1, Google TV lets you access everything on the web. Watch your favorite web videos, view photos, play games, check fantasy scores, chat with friends, and do everything else you’re accustomed to doing online. GOOGLE TV does come with the Netflix App and others. Google partnered with some of the leading premium content providers to bring thousands of movie and TV titles, on-demand, directly to your television. Amazon Video On Demand offers access to over 75,000 titles for rental or purchase, and Netflix will offer the ability to instantly watch unlimited movies and TV shows, anytime, streaming directly to the TV.

HULU: Hulu’s numbers keep growing for certain films, which has to-date not been foreign language but that may change given the Criterion Collection announcement. Hulu is also now a subscription service (HULU PLUS) and announced the Criterion deal is for that. Criterion of course specializes in classic movies from the canon of great directors–Ingmar Bergman, Jean-Luc Godard, Federico Fellini, etc.–and has about 800 titles digitized so far, many of which are also available via Hulu competitor Netflix. It’s understood that this will be an exclusive deal, and that the Criterion titles that Netflix does offer will expire this year.  Hulu Plus subscribers will initially get access to 150 Criterion films, including “The 400 Blows,” “Rashomon” and “Breathless.” Hulu says the movies will run without ad interruptions, but may feature ads before the films start; the free Hulu.com service will offer a handful of Criterion titles, which will run with ads.  Hulu, owned by Comcast’s NBC, Disney’s ABC and News. Corp.’s Fox introduced the Hulu Plus pay service last year. Hulu CEO Jason Kilar says the $7.99-per-month offering is on track to reach one million subscribers in 2011. Competing for exclusive content seems to be on the rise as platforms compete for household recognition and top market share.

iTunes (APPLE): iTunes dominated consumer spending for movies in 2010 but that may not last long. One can get onto iTunes via one of its chosen aggregators such as New Video, IODA, Tune Core, Quiver…  Home Media Magazine reported the findings of an IHS Screen Digest report that showed that Apple was able to hold off challenges from competitors like Microsoft’s Zune Video (via XBOX Kinect), Sony PlayStation Store, Amazon VOD and Walmart’s VUDU.  Despite the new competition,  the electronic sellthrough and video on demand market rose more than 60% in 2010, Apple iTunes still came out on top, perhaps due in part to the release of the iPad last spring and Apple TV last fall.  Research director of digital media for IHS, Arash Amel, said, “The iTunes online store showed remarkable competitive resilience last year in the U.S. EST/VOD movie business, staving off a growing field of tough challengers while keeping pace with a dramatic expansion for the overall market.”  However, it’s important to note that although iTunes staved off competition, the overall iTunes consumer spending fell almost 10% in 2010 to 64.5%.  It was 74.4% in 2009.  Insiders predict it will not hold its market dominance for long.

Microsoft’s Zune Video was one of Apple’s biggest competitors last year, accounting for 9% of U.S. movie EST/iVOD consumer spending in 2010 but this does not seem a key platform for foreign language cinema.

MUBI:  www.Mubi.com having added Sony Playstation to its platforms reach, MUBI now has reportedly 1,200,000 members worldwide and is finally in a better position to generate revenue.  Still its own figures estimates amount to 4-figures of revenue and that’s for all its territories.  Mubi’s partnership with SONY does not extend into the US.

NETFLIX as reported in Multichannel News “as its subscriber base has swelled, Netflix has become a target for critics complaining that it is disrupting the economics of TV” is now a competitor to Cable and in fact Cable VOD companies won’t take a film if it’s already on NETFLIX’s Watch Instantly service. But Netflix is realizing it erred by losing focus on the independent and is now quietly offering bigger sums that compete with Broadcast offers and that are on par with the 5 and 6 figure revenues generated by Cable VOD for the stronger indie / art house films. Having films exclusively may be the driving force of future monetization in digital, or least in SVOD.  Regarding 2011 outlook, Netflix’s “business is so dynamic that we will be doing less calendar year guidance than in the past,” the execs said.  For the first three months of the year, Netflix expects domestic subscribers to increase to between 21.9 million and 22.8 million, with revenue between $684 million and $704 million and operating income between $98 million and $116 million. Internationally — meaning, for now, Canada — the company expects 750,000 to 900,000 subscribers with revenue of $10 million to $13 million and an operating loss between $10 million and $14 million.

REDBOX: Redbox, whose brick-red DVD vending machines are scattered across the country, is aiming to have a Netflix-like video streaming subscription service up and running by the end of 2011, company executives told investors mid February. Redbox is a wholly owned subsidiary of Coinstar. The Oakbrook Terrace, Ill.-based company claims to have rented more than 1 billion DVDs to date through vending machines at about 24,900 U.S. locations nationwide, including select McDonald’s, Wal-Mart Stores and Walgreens locations. It should be noted though that Redbox is very studio title focused and wide release focused but its streaming service will likely move beyond that.

WAL-MART bought VUDU and is expected to be a major player. Walmart is the world’s largest retailer with $405 billion in sales for the fiscal year ending Jan. 31, 2010. In the U.S., Wal-Mart Stores, Inc. operates more than 4,300 facilities including Walmart supercenters, discount stores, Neighborhood Markets and Sam’s Club warehouses.   VUDU, is Walmart’s recently acquired online media source where consumers can rent or buy movies and TV shows for their internet-ready HDTV, Blu-ray Disc players or PlayStation 3 consoles.  Like iTunes, there are no monthly fees.  Consumers can buy and rent movies when they want, and 2-night rentals are only $2.  It will be interesting to see how VUDU will rise as a contender in 2011 and whether iTunes will suffer as a result of their success.  Wal-Mart advertises that regarding VUDU: “from Internet-ready HDTVs to WiFi enabled Blu-ray players, you’ll find all the VUDU ready electronics you’re looking for at Walmart.com. Whether adding a flat panel TV to your dorm room or upgrading your home entertainment center, our selection of VUDU ready HDTVs has you covered. You’ll also save money on our VUDU ready products when you select items with free shipping to your home. With VUDU, you’ll be able to stream HD movies directly from the Internet to your TV in dynamic surround sound for a great low price. Shop VUDU ready HDTVs and Blu-ray players at Walmart.com — and save. “ And the retail giant makes sure all relevant devices / electronics it carries are VUDU-enabled.  2011 and beyond will be telling.  Wal-Mart caters to the average American so it remains to be seen if there is an appetite for foreign language film via VUDU in the months and years to come. In its inception VUDU was catering to early adaptors of new technology and those eager to watch HD but now it seems to be becoming more generic. New Video is a preferred aggregator to VUDU, among others.

VODO (Free / monetized Torrent): www.VODO.net: This has not been tried in the US by most distributors if any and not for foreign language cinema but it has worked for several projects such as Pioneer One which generated $60,000 USD by having the content made available for free and then getting donations in return.

Other emerging retailers entering the digital space:

Sears and Kmart are the latest over-the-top threats to pay-TV providers’ video-on-demand businesses. Sears launched its online movie download service, Alphaline Entertainment, which will let Sears and Kmart customers rent or purchase movies, including on the same day they are released on DVD and Blu-ray Disc, provided through digital media services firm Sonic Solutions.  Titles currently available to rent or buy from Alphaline include studio and successful TV shows. Under Sonic’s multiyear agreement with Sears, the companies will provide access to Alphaline services through multiple devices including Blu-ray Disc players, HDTVs, portable media players and mobile phones. Sears and Kmart, said in a statement. “We’ll continue to increase the reach and flexibility of the Alphaline Entertainment service by providing consumers on-demand access to the latest entertainment from a range of home and mobile electronics.” Sears, which merged with Kmart in 2005, is the fourth largest retailer in the U.S. The company has about 3,900 department stores and specialty retail stores in the U.S. and Canada.  It remains to be seen if they take on foreign language cinema. New Video is also an aggregator to them.

That’s all she wrote folks. Until the next time.

March 10th, 2011

Posted In: Amazon VOD & CreateSpace, Digital Distribution, Distribution, Distribution Platforms, Hulu, International Sales, iTunes, Netflix, Uncategorized

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Don’t worry folks, I have not forgotten the 3rd and final part of the blog series “IF I WERE A FILMMAKER GOING TO SUNDANCE”… it’s posting this week. But in the meantime, this just in, well actually not, it’s been brewing for a while…

Festivals getting involved in distribution is all the rage. For festivals with very strong brand recognition, it makes sense to move into this arena. We’ve been recommending it to fests for years (since 2005) and we are happy to see some, such as Sundance, are getting into the fray. It makes sense for the biggest brand festivals to be using their name recognition to bring attention to the films they screen. We at TFC have a Foreign Language Oscar Initiative with Palm Springs International, a festival known for its curation of world cinema. It makes sense that together we will bring the recognition of PSIFF chosen films to a wider audience.

The Sundance brand, being strongly recognized with consumers even outside of the independent film industry, is ideal for filmmakers to use to their distribution advantage as close to the festival as possible. With the festival getting involved in distribution, the time between festival premiere and release will only help. For festivals that do not yet have a very strong consumer brand or niche it may make less sense.

An article today in the New York Times talks about some of the fests’ distribution plans.

We’ll be drilling more into this in the coming months. For now, we wanted to address TriBeCa Films distribution.

TriBeCa Films is a for-profit company and in that way they are acting like a traditional distribution company taking rights, offering Minimum Guarantees (MGs) but charging interest, all the usual stuff.  That’s the difference between TriBeCa and what Sundance has indicated its distribution will look like. The difference between it and let’s say a digital aggregator such as IndieFlix is that it has strong direct Cable VOD relationships (e.g. Comcast) and TriBeCa has a strong marketing partnership in AMEX (as noted in the article) which brings significant financial sponsorship support to marketing and we expect other partnerships are in the works.  It’s been said that overages from TriBeCa Films have been quite healthy and that the Cable VOD distribution paid off.

They started with 11 films last year and they plan to increase to 26 this year.  They partner with New Video for their DVD and for access on other digital platforms (iTunes, Amazon etc), an excellent partner but yet another middle man. The theatrical aspect of their distribution seems modest at this moment but that is no different than many other distributors and it may change in time.

Sundance is just starting to formulate its plans, but it is a non-profit and is not seeking to behave like a traditional distributor. Rather, their initiative will facilitate certain components of distribution access to key platforms under the strength of its brand and that would be a key difference.

The NYT piece cites Janet Pierson’s unwillingness for SXSW to join in the digital distribution business. As she rightly surmised, distribution is complicated, it is not always revenue generating, it can be cost-intensive, it can invite great scrutiny from filmmakers and industry and certainly does complicate a film festival’s activities and politics. So maybe for SXSW, it is enough to be at the top of the technology front and be a successful event for the convergence of art, technology and media happenings and leave well enough alone.

These are changing times indeed, with no shortage of options on accessing platforms where audiences could find your work. Branding and marketing are crucially important, and so on that note, until the next blog post.

February 28th, 2011

Posted In: Digital Distribution, Distribution, DIY, Film Festivals, Uncategorized

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*This is Part II of the “If I Were a Filmmaker Going Sundance…”

*Part III to will be written in the aftermath of the glow of the fest.

Sundance 2011, insofar as distribution was concerned, saw a spike on both the traditional sales and the DIY front.   42 deals were done so far and more to come. One difference between this year’s Festival and those of recent years is that several acquisitions were done prior to the Festival and more deals occurred right at the beginning of the Festival rather than taken several days or weeks to materialize. In addition, some of the acquisition dollar figures were bigger than in recent times. There was a definite sense of ‘business is back’  (though mostly still for bigger films with either name directors or cast or both – and this we address below).  And DIY is seeing a new dawn with directors like Kevin Smith announcing a self-distribution plan and Sundance’s solidified commitment to helping artists crowdfund (via Kickstarter) and market their films (via Facebook for example) access certain digital distribution platforms (in the works and TBA).

Starting with the deals. So far I counted 42 (one at least was a pre-buy / investment in production) and two so far are remake rights deals.

I only list the deal points that were publicized… meaning if no $$$ is listed then it was not announced.

Deals done Pre-Sundance:

1.  Project Nim (James Marsh who did Man on Wire)  – sold to HBO for a hefty yet unreported sum.

2.  Becoming Chaz – produced by renowned World Of Wonder and sold to OWN (actually we gleaned OWN invested in the film and at the fest Oprah announced her commitment to doing for docs what she did for books via a Doc Club).

3.  Uncle Kent went to IFC

4.  The Greatest Movie Ever Sold (Morgan Spurlock) – went to Sony Classics.

5.  Septien:  (Michael Tully) – was nabbed by Sundance Selects

6.  Mad Bastards also went to Sundance Selects

Deals done at Sundance according to sections:

US Dramatic Competition:

7.  The Ledge: sold to IFC – Low seven figures

8.  Like Crazy: (Director of Douchebag)  – Paramount for a worldwide deal – $4,000,000.

9.  Martha Marcy May Marlene: sold to Fox Searchlight, congrats to TFC Board of Advisor EXP, Ted Hope – 2 mil

10.  Circumstance: Participant is funding the release and will (along with the filmmakers) choose a distribution partner, we hope Roadside Attractions.

11.  Homework: Fox Searchlight – $3,000,000

12.  Another Earth: (Mark Cahill) – Fox Searchlight – a $3 mil deal, with an aggressive P&A as reported and for US and all English speaking territories.

13.  Gun Hill Road: Motion Film Group

14.  Pariah: Focus Features – $1 mil deal

15.  The Flaw: New Video

16.  Take Shelter: Sony Pictures Classics

Premieres (‘names’ in films):

17.  My Idiot Brother: TWC – $7,000,000 for US and key territories with $15,000,000 P&A

18.  The Details: TWC – $7,500,000 MG and $10,000,000 P&A

19.  I Melt With You: Magnolia (reported mid-high 6-figure deal reportedly w/ healthy backend)

20.  Life in a Day: NatGeo Films

21.  Margin Call: Joint deal with Lions Gate and Roadside Attractions – $2,000,000 deal

22.  Perfect Sense: IFC

23. The Future:  (Miranda July) – Roadside Attractions

24.  Salvation Boulevard: IFC

25.  The Son of No One:  (Dieto Monteil) – Anchor Bay

26.  The Devil’s Double: (Lee Tamahori) – Lionsgate – a reportedly seven figure deal

U.S. Documentary Competition:

27.  Buck: Sundance Selects

28.  The Last Mountain: Dada Films (MJ Peckos and Steven Raphael)

29. Page One: A Year Inside the New York Times: Magnolia and Participant

30. Hot Coffee: HBO

31. Crime After Crime: OWN (this will have an Oscar qualifying run before airing on OWN)

32. Miss Representation: OWN

33. The Black Power Mix Tape 1967- 1975:  Sundance Selects

34. Sing Your Song: HBO Documentary Films

Doc Premieres:

35.  These Amazing Shadows:  Sundance Selects

Park City at Midnight:

36.  Silent House: Liddell Entertainment

37.  Hobo with a Shotgun:  Magnolia/Magnet

38. Corman’s World: Exploits of a Hollywood Rebel:  A&E IndieFilms

World Cinema Dramatic Competition:

39.  The Guard:  Sony Pictures Classics – $1,000,000 deal

Next:

40.  Bellflower:  Oscilloscope

Not distribution deals per se but Fox Searchlight bought worldwide remake rights to

41. The Bengali Detective

42. TWC bought remake rights to Knuckle.

Please let me know if I missed any deals and feel free to comment in this blog. Of course more may be announced even as this posts and I am on a plane.

So we see mostly name filmmakers or cast but also definitely a few non-names generating deals the details of which are not publicized thus far.

AND NOW ON the DIY side:

RE: SLITTING RIGHTS & DIY: Andrew Hurwitz and Alan Sacks wrote an article in the Hollywood Reporter addressing all the same stuff TFC has talked about before, splitting rights, working and sometimes conflating windows and not settling for bad deal terms when one could do better on one’s own working with consultants etc. It’s nice to see trades addressing this in a context that speaks to more traditional industry players.

THE FLAT FEE MODEL EXPANDS: Distribber (now owned by IndieGOGO) announced a partnership that has been brewing with one of our Cable VOD partners, and TFC Board of Advisor Meyer Schwarztein of Brainstorm Media. Basically it expands Distribber’s flat fee digital distribution offerings to include Cable VOD (and also Hulu).  If a film gets onto all key MSOs the fee is set for now to be $9999 and there are prices per platform if a film cannot make it on to any given platform so that one is not paying for a platform or service they are not getting onto. As per the press release: “The films will be presented to audiences on the new “Filmmaker Direct” label; consumers who purchase films on “Filmmaker Direct” will know that 100% of profits go directly to the filmmaker, instead of to a parade of “Hollywood Middlemen.” For more info check out: http://www.distribber.com.  My only cautionary note: this is not a great idea for smaller films for which the gross revenues that would not justify the flat fee. One must remember and always know to ask about the splits that the Cable VOD aggregator is getting from the MSOs. They range, to the best of my knowledge to-date, between 30% and 60% depending on company and films. Studios get the higher splits for the obvious reasons. And so one has to do the math. And of course also evaluate MARKETING (which will be the focus on the 3rd and final part of this Sundance Blog series).  In any case, we work with both Adam Chapnick at Distribber and Meyer Schwarzstein at Brainstorm and are fond of and trust them both.

BRAND NAME FILMMAKER DIY: Kevin Smith fueled the torch of DIY in his own flame-filled way.  He auctioned off the distribution of Sundance Premiere Selection RED STATE to himself and has pre-booked theatres and plans to be his own decider in distribution, sans print ads (Amen). We wish him well but caution his very “old world” production and release budget (4mil Prod & and 2.5mil to release (for prints etc)… immediate launch broad release plan… a slow build never hurt anyone.  David Dinnerstein formerly of Paramount Classics and Lakeshore consulted on the release.  For more on this topic just search the WWW.

ABOUT THE SHORTS:

DIY Hats off to the Sundance SHORTS filmmaker such as Trevor Anderson and I believe 11 others who are on Sundance’s YouTube Screening Room Initiative with tens of thousands of views. Anderson exceeded 94,000 views as of the other day and has put all his shorts including this year’s HIGH LEVEL BRIDGE on www.EggUp.com which allows him to monetize them via transactional digital sales.  TFC refularly refers filmmakers to EggUp and now also TopSpin though our guru Sheri Candler advises TopSpin works better for filmmakers with an already robust following.  Whilst Anderson may not be getting rich just yet, it’s a perfect model for a prolific and vibrant filmmaker who is building a brand and getting his/her work out there.

Last but not least, Sundance announces its DIY oriented initiative.

Sundance Institute announced (I’m now quoting from its press release) its Three-Year Plan with Kickstarter as Creative Funding Collaborator / Facebook® to Provide Guidance to Institute AlumniA new program to connect its artists with audiences by offering access to top-tier creative funding and marketing backed by the Institute’s promotional support…The creative funding component was announced today with Kickstarter, the largest platform in the world for funding creative projects.  A new way to fund and follow creative projects, tens of thousands of people pledge millions of dollars to projects on Kickstarter every month. In exchange for support, backers receive tangible rewards crafted and fulfilled by the project’s creator. Support is neither investment, charity, nor lending, but rather a mix of commerce and patronage that allows artists to retain 100% ownership and creative control of their work while building a supportive community as they develop their projects… In the coming months, Sundance Institute will build an online hub of resources related to independent distribution options, funding strategies and other key issues.  The goal is to provide for filmmakers a central location to explore case studies and best practices, in addition to live workshops and training opportunities with Institute staff, alumni, industry experts and key partners.  As the first of these partners bringing their expertise to the community, Facebook will offer Institute alumni advice, educational materials, and best-practices tips on how to build and engage audiences via the service…Further development will include access to a broad and open array of third-party digital distribution platforms backed by Sundance Institute promotional support.  In the future, additional opportunities for theatrical exhibition will be explored in collaboration with organizations such as Sundance Cinemas, members of the national Art House Project, and others.”

I have been championing festivals getting involved with exhibition since and distribution beyond the festival itself since 2005 and discussed some options and ideas with Sundance staffers last year and am thrilled about this powerful and liberating announcement that so connects up with TFC’s mission whilst having some serious muscle and we look forward to being involved in some way hopefully.

MARKETING IS KING:  One thing no one talks about in much detail is MARKETING. Of course the big guns have the cash to buy marketing but the small distribs and aggregators are starting to be difficult to distinguish at times, and yet sometimes distributors do earn their fees by investing real talent and expertise and even money in marketing. So comparing what one can do oneself (if one does not get the big fat offer) with what traditional but small distribution deals bring will be the focus of the 3rd and last post in this series to come after Rotterdam but hopefully before Berlinale.

Over and out for now. Questions and Comments always welcome!

January 27th, 2011

Posted In: Digital Distribution, Distribution, DIY, Film Festivals, Marketing

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