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Alternative Distribution: Exploring new models
by Jon Fitzgerald, Right Angle Studios
 
The Goals
The Core Audience
The Marketing
The Distribution Model
 

 
For independent filmmakers still looking to find their audience, there is hope even if it has been difficult to secure that ever elusive studio distribution deal. The old studio-driven model is starting to give way to new, innovative business models, and filmmakers are breaking down the walls and developing their own alternative means of distribution. After all, indie filmmakers are generally in control of their projects from inception through production. Why not continue to control their destiny to the end?

Nobody says it will be easy; but with the right strategy, it is possible to reach audiences hungry for independent cinema. While there are certainly a number variables and more than one formula for success, let's review the key elements that should be considered.

The Goals
The number one goal for most indie filmmakers is having a theatrical release, and seeing their work on the big screen. Some filmmakers are focused equally on generating revenues, either to pay back their investors or pay down credit card debt. Other filmmakers are satisfied with audience feedback. And then there's the career angle, as most filmmakers use first features as a stepping stone to the next project. Ultimately, filmmakers usually choose a combination of goals, but the overall goals a filmmaker sets will influence the next stage of the journey.


The Core Audience
Hopefully, even before the script stage, the core audience of the film was considered. While this concept is hyper-analyzed by the majors before they pull the trigger on a movie, it is even more crucial for the independents considering alternative distribution models. Filmmakers have to KNOW there is a core audience, and know how to reach their target demographic. The total projections may vary, but audiences can be defined by subject, ethnicity, gender, or age group. There are often crossover titles, when a film reaches more than one constituency, but it is critical to believe there is a target group that will help to define the marketing strategy. With the growth and diversity of the internet, there are boundless opportunities to reach this core audience. Once this audience is identified and reached, positive word of mouth can help spread awareness of your film to secondary groups.


The Marketing
With an understanding of the core audience, it will be important to formulate a strategy to reach them both on- and off-line. It may be too expensive to buy ads in major publications, so it will be necessary to consider pursuing a more grassroots approach, anchored by a comprehensive website. Even during production, it can be helpful to use your website and internet to build awareness for your project. Tell the story. Generate excitement within your audience group. Create newsletters. Build email lists. Join film clubs, blogs and search engines and drive all interested parties to your website where they can gather more information about your film. Collect information and data from potential future buyers. The Blair Witch Project is the best example of a movie that maximized their website and the power of the internet to generate buzz about the project, well before its release. Where does your audience spend time on the web? Who are your potential marketing partners?

Film festivals present other opportunities to build your audience. Often times, filmmakers talk about how certain fests are less valuable if distributors are not there. That may be true, if you fit into that 1% of indie films that have a legitimate shot at securing a traditional distribution deal. But if you're thinking alternative distribution may be your answer, exposure at credible regional festivals can serve a marketing purpose. From coverage in local papers, to collecting emails, and distributing your web address, while building awareness for your movie, there is value in playing the circuit.

Once you zero in on your audience, develop a unique marketing campaign to reach them and build your distribution strategy on this foundation.


The Distribution Model
If a theatrical release is important to you, one option is the Service Deal, essentially paying a $30-50,000 fee to an individual, booker or company to book the film into theaters and supervise the marketing campaign. Yes, this gets a bit expensive, but it can help to have an experienced team in your corner, without giving up the rights to your movie. It's important to remember, however, there are no guarantees on box office returns. It will be very important to run conservative budgets comparing expenses and revenue projections to ensure the Service Deal is work the risk. In many cases, films struggle to break-even on limited theatrical runs. Of course, My Big Fat Greek Wedding and Passion of the Christ are examples of notable exceptions to this rule.

Another option to consider is Theatrical Self-Distribution. Two options for filmmakers are to either:
  • Convince an independent theater to give you a week run with a slightly less favorable split than standard distributors
  • "4-wall" your film by essentially renting the venue to play your movie for limited run

In any theatrical release, a film will only stay playing in the theater for more than a week if box office numbers are strong. If a film starts small, playing at less than a handful of theaters at a time, it can be a good testing ground. However, if maximizing revenue is a primary goal for the filmmaker, a theatrical release may not be the best distribution platform. Even with a limited release, there are basic advertising costs that cannot be avoided. Studios spend millions of dollars (even on limited releases) to drive audiences to the theater, only to fail in recouping their cost most of the time.

Keep in mind that box office receipts, in general, are down. With so many options now available for consumers from DVD to VOD, and cable to broadband, it has become increasingly difficult to get people off their couch and into theaters. Yes, there are new avenues to reach audiences, particularly through the internet, but to play a film theatrically without the support of a distributor can be a costly venture. There is some truth to the idea that the theatrical release can drive the DVD and other ancillary markets; but it's important to keep this in perspective. With studios spending millions on advertising their releases, the awareness can translate to sales in other markets; but theatrical releases on a shoe-string budget can be a challenging proposition and may not necessarily yield the same results in secondary markets.

Finally, filmmakers should consider DVD Distribution, if they are reluctant to take the financial risks involved with the Theatrical Self-Distribution model, or if they have less than 100% confidence that their core movie "going" audience is willing to pay to see their movie in a theater. Again, this distribution strategy should be anchored by your website. Low cost designers, DVD duplication and shipping services are plentiful. A strong website and targeted marketing campaign can generate solid revenues from DVD sales alone. Amazon (including wholly owned subsidiary CustomFlix) and Netflix have proven indie friendly; and Google is developing their own video distribution model. If maximizing revenues is your main goal, run the numbers, be economical, and give your film a chance to yield the highest rate of return.

While the DVD platform will most likely generate higher net profits, it is important to recognize that playing this window could jeopardize any potential for theatrical release. Whether you are considering a service deal, or pursuing acquisition by a distributor, if the theatrical release is a priority for you, play that hand before putting your movie out into the DVD market. It can make sense to do "day and date" with simultaneous theatrical and DVD release; but DVD would not precede theatrical.

Opportunities do exist to carve an alternative path to distribution, and each of these new models is unique to the film. These newer distribution models require extensive research and a sense of salesmanship; but if one applies the same perseverance it takes to get a film made, it's worth the effort. Manage expectations and take a shot. Sometimes, your only option is the best choice. You've come this far. Take it to the finish line.


 
 
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