5 Mistakes that cost filmmakers TENS or HUNDREDS of THOUSANDS of dollars

Film Distribution is a weird and wonky system full of highly specific jargon and terms of art that are meant to be difficult to understand by its very nature.  I’ve already written several blogs on the basics of how these agreements are structured in a way that a person who is not a lawyer should be able to understand. However, even if you gain an understanding of this wonky system, there are a lot of things that can really hurt your film’s bottom line.  Some of these things could even erase any profits you might have otherwise seen.  Here are 5 mistakes I’ve personally seen filmmakers make that have cost them a minimum of 5 figures per filmmaker.  

Not Fully Appreciating Exclusivity

Managing the rights of an independent film isn’t easy.  There’s a lot more to it than uploading to Amazon and expecting a few million hits.  In fact, making your film available on any wide-scale platform is going to make it nearly impossible for a sales agent to sell whatever territory the film has already been exploited in.  Even if you take the film down, you’ve blown exclusive deals, and those are the only deals that pay anything notable upfront.  One of the first things a territorial distributor does is to google the film from their home country to see where it’s currently available.  If they see it’s available in their territory, they decline.

I’ve lost multiple territorial sales for multiple filmmakers due to someone prematurely exploiting a film in a certain territory without letting the sales agent know about it.  Don’t be one of those filmmakers.

To be clear, films are not evergreen and there will come a time when the smart play is legal wide aggregation in order to cut losses from piracy and build your notoriety in those territories in order to better sell future work.  That time starts at the earliest 2 years from the market premiere of the completed film.  If you do it too much faster, you could be leaving significant amounts of money on the table.  

Sending Screeners too early

Most of the time a distributor, sales agent, or even producer’s rep will only watch a film once.  Additionally, they’ll only watch the first 5 minutes of it and if they’re not hooked, they won’t keep watching.  I’ve seen many distributors walk out of buyer screenings around that mark.  There’s very little you can do to prevent this from happening entirely.  Even though a strong hook in the first 5 minutes will help lessen this happening, buyers are busy people with too many films to watch so you won’t be able to fully prevent it due to shifting market demands and mandates. 

What you can control is how early you send out your film.

In general, it’s unwise to submit anything aside from the final, finished cut of your feature film.  Distributors and sales agents get a lot of submissions, and often won’t watch with the eye of what the film could be, only what it is now.  While they may give you some leniency because they know it’s not finished there’s more than likely going to be some degree of subconscious response reminding them that they weren’t big on the film when they watched it.  That will manifest in several ways, nearly all are bad for the filmmaker. 

Dropping promotional assets too early.

It’s totally natural to be excited when you get your new promotional assets like your trailer, your poster, box art, or anything of the sort.  When excited, I’ve seen many filmmakers run straight to social media to show off to their friends.  This is unwise.  

Distributors use poster drops and trailer drops to get press coverage in the trades to grow awareness of the film on a global level.  If you just put it up on Facebook, we can’t get the same drop in the press.  Your friends will be more impressed if you drop an exclusive from BloodyDisgusting, Collider, or /film to show off your poster, trailer, or exclusive sneak peek.  In general, it’s always wise to ask your distributor if you can show off their work to your social media contacts, if they say they’re looking to get an exclusive, hold off and check back in a week or so for a status update.

Making the wrong Genre

I know, I know this one has been beaten into the heads of most independent filmmakers.  There’s a reason for that though.  The sad fact of the matter is that not very many people watch dramas without names or high-level accolades.   A bad horror movie is an easier sell than a great drama.  If you make a drama, without recognizable names you’re only likely to make money in your home country, and at least in the US, you’re likely to make significantly less than you would have made if you made something like a thriller.

One suggestion I often give on this front to filmmakers who are still in the script stage is to consider telling the same story in a different way while emphasizing suspense over emotion in order to make the film into a thriller instead of a drama.  You’re going to make a lot bigger splash with a thriller than a drama, and if all other things are equal in terms of cast and production quality, you’ve got a much better chance at recouping your investment.  

Pulling their film without a plan.

Sometimes you have to take your film back from a distributor.  There are a lot of sharks out there and there’s a good chance you’ll need to exit a distribution agreement at some point in your filmmaking career.  Generally, when it’s time do to this you will have a very good reason to do so.  That being said Just because you’ve taken your independent film down make it as though it was never there.  If the film is taken down, platforms often won’t put it back up through a different distributor, meaning you’ll be in a rough spot to get it back up.  

This is not universal, but it is common that once a film is taken down its exceedingly difficult to get back up.  To be clear, if your distributor or sales agent is in breach of contract you may not have a better option than to take your film down.  You just need to be aware that you might have some trouble putting it back up, and you won’t make any money from the film in the interim.  

As I said at the top, this all gets wonky really quickly.  It’s more than most filmmakers can really take in over just a few times sitting down at their computer.  That’s why Guerrilla Rep Media offers FREE monthly content digests delivered straight to you as part of our Indiefilm Business Resource pack.  It’s easy to sign up and once you do you’ll receive a monthly email full of useful educational content completely for free.  Additionally, you’ll get lots of other goodies like a free e-book, free white paper, investment deck template, festival brochure template, and more.  Sign up below.  

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The 3 Main Independent Distribution Models

We all know there’s more than one way to distribute a film.  What we might not think about is that there’s also a lot more to your independent film distribution choice than the self or traditional binary pervasive across many online forums and social media groups.  Here’s a breakdown to help filmmakers better understand the companies that are involved in distributing their indie films, and the broad business models they operate under so you can make a more informed choice.  

High Touch / Prestige Releasing

What we all want, A24, Sony Pictures Classics, Focus Features, etc.  These are the companies that release at most 1-2 films per month and generally have some degree of limited theatrical baked into the deal.  They give a lot of time and attention to every release, and they’re exceptionally picky about what product they take.  Most of the time you’ll need strong recognizable names or a top 5 world film festival to capture their attention.  Even then it’s far from a guarantee that you’ll be able to attract this level of attention. Sometimes you can sneak in through a sales agent who has a relationship but even then you’ll need a superior product to have a shot. 

The pros of this should be obvious.  Getting a distribution deal from one of these entities is a game changer for both you and your film.  If you can say that a major studio released your last film, you’ll be in a much better position to fund your next film.  They’ll put lots of time, effort, and money into promoting it as well, or at least more than every other type of company on this list.  You’ll probably even get a reasonably sized minimum guarantee out of the deal. 

There are downsides though.  The downside on the filmmaker side is that more than likely the MG is all you’ll ever see.  Even the Blair Witch Project had to go to court with a copy of Time Magazine proclaiming the film to be the most profitable film of all time to receive royalty payments from their distributor.  Unfortunately, most of us are not Blair Witch.  

On the distributor side, this model is extremely risky if you don’t have the backing of another revenue source or deep institutional investment.  Essentially, if you don’t have either of those forms of backing it only takes one flop to through the company into financial disarray.  Unfortunately, this means that we probably won’t be seeing too many companies enter at this level in the near future unless they’re spinoffs of larger tech, media, or maybe even retail companies.  

Hybrid Releasing / Producer Boosting

In this model, the distributor or sales agent relies on producers to handle the legwork on marketing providing assets and support in getting the film out there.  The key here is to view the work as a partnership, with the distributors handling assets, access, and amplification of the producer’s efforts while the producers handle the grind that’s involved with engaging the core niche audience of a film without doubling the production budget in ad spends.  

The benefits of this model on the filmmaker's end are that it allows the distributor to offer a much lower commission and significantly lower recoupable expenses.  If the company is extremely filmmaker-friendly, they’ll also pay out the filmmakers on a distributor gross corridor so that the filmmakers will receive money from the first dollar in.  This is the model I personally developed and implemented at Mutiny Pictures.  We paid filmmakers in line with the Mutiny Commission at the same rate as the Mutiny commission.  The only things that came out first were uncapped expenses for things like DCPs, special delivery costs, and legal expenses.  As such, the vast majority of our filmmakers received a check in their first report.  

For distributors, the upside of this model is that it allows the distributor to run a leaner operation while releasing 2-3 times more films than the high-touch model.  This allows distributors to take bigger bets on a-typical releases as they’re more likely to have their bases covered by the fact that statistically at least 1 in 10 films will break out when they’re properly managed.  A well-run distribution company that’s out of its initial revenue lag will be able to support itself on one breakout every two or three months, so long as they don’t overstaff.  

The Drawback of this is that it’s less likely a distributor or sales agent will be willing to offer a minimum guarantee on this model.  There are a few reasons for this, the primary being that the only companies really pursuing this model are smaller and younger and thus don’t have the backing of a large catalog consistently churning revenue.  Given that situation, it would be too big of a risk for them to offer an MG they would not be able to cover with a guaranteed sale.  The secondary reason may be that if it really is a partnership, filmmakers receiving a check early on may limit their willingness to help promote their own film.  I’ve had that happen a lot.

This model is my personal favorite, but it’s not ideal.  In an ideal world, filmmakers would be able to focus on making their next film after they deliver their first one for distribution.  Unfortunately, that’s not the world we find ourselves in.  

Shlock-Gunning / Aggregation++

Throw it out there and see what sticks.  This would include aggregators, and companies like indie rights or Filmhub, but also could include other indie labels that put out too many films a year with relatively high expenses that don’t put too much effort into selling them.  Basically, they, throw everything at a wall and see what sticks.  

I want to be clear that in the case of some companies like IndieRights or FilmHub, this model is not necessarily a bad thing for filmmakers.  Filmhub would probably not like that I’m saying this, but in general, I use them as an alternative to traditional aggregators like BitMax, Quiver, or even Distribbr.  Of any company on the shlock-gunning list, I’d say my favorite is Filmhub as they’ve found an ethical and economical way of monetizing their wide access to AVOD, FAST Channels, and TVOD platforms.  

The issue with this model is when it’s not properly disclosed.  If your distributor is giving you the high touch or the hybrid pitch but then unceremoniously dropping your film it’s a problem.  To be clear, platforms don’t always tell distributors exactly when a film will show up, so sometimes there’s a bit of this that’s unavoidable.  I would share some names of companies I know that use these tactics, but they can get a little nasty at markets given most companies would take umbrage at this sort of accusation.  One way to suss them out is their volume of releases.  If they distribute more than one film per week, you might well be dealing with a schlock-gunner.  

I might discuss the matter in future unrecorded live streams, and if you want access to those check out my mailing list, Patreon, and sub stack, all linked below. 

Thanks so much for reading, and check back next week for more.

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Commercial Doesn’t NECESSARILY Mean Crap

Everyone has seen at least one bad movie in their lifetimes.  They’ve probably seen more than that.  However, unless you also work in film acquisitions or have done first-round review for film festivals you have not seen as many bad movies as those of us who do those jobs have.  That’s for the simple reason that any movie you have seen out in the wild had to go through someone like us.  There’s a narrow exception for self-distributed content that is generally limited to silos on Transactional Video On Demand (TVOD) platforms and some easier to access Advertising Supported Video on Demand (AVOD) platforms, but in general, unless someone with the power to act as a gatekeeper for film festival programmers or independent film distributors has given it the go-ahead, the general audience won’t see it. 

This functionally means that anyone who works or has worked in these positions, myself included, has seen a Jurassic park sized pile of poopy submissions.  Which is to say that we know the milieu of a crappy film.  We can, and frankly should talk about the flaws inherent to the current system of gatekeeping, and how sometimes gatekeepers don’t know the difference between a revolutionary piece of cinema and more of the same old skeet. That conversation is beyond my personal scope to change it alone, especially not in a single blog post.  Instead, this blog is an examination of how to avoid getting lumped in with the pile of crud we constantly reject.  The basics are really easy to sum up:

Commercial Films Get Selected.

I don’t think I need to tell you why sales agents and distributors are drawn toward feature films that they deem commercial.  They’re all business people, and if they don’t think they can make money with a project they won’t pitch it up the chain to their bosses and generally won’t take it out if they are the boss.  Sure, there are exceptions here, but when you’re spending two, three, five, or even ten years making something you don’t want to bank on getting lucky at the end of it.  If you make a commercial film in a known genre, your road to getting that film seen is going to be a lot easier.  

Related: What Distributors Mean by Genre

While this is obvious for indie film sales distributors, you may not be familiar with the fact that most festivals make a similar calculation.   There’s a pervading assumption that film festivals focus solely on the art, weeding out the diamond in the rough to give emerging independent voices a leg up.  There is at least a bit of truth in that, and in general film festivals will focus significantly more on art than sales agents.  What that assumption ignores is that most festivals also need to pay their bills, cover the expenses of their year-round staff, and overall build their brand so they can attract bigger new releases.  This means that nearly every festival is also concerned about filling the theaters for the films that they select.  Many if not most festivals also program with something of an eye for whether a film will have a life outside of their own screening as it grows their own renown.  In short, festivals also care whether your film is commercial.  

Dramas Don’t Sell

What mat makes us scream, gets our heart pumping, and brings us to the edge of our seats tends to be pretty universal for us as a species.  What makes us emotional, or what makes us laugh isn’t nearly as universal.  This means, that dramas and comedies tend not to export outside their country of origin unless you have a few big stars in them or they serve as a once-in-a-generation breakout.  This is why those of us who work behind the back office tend to refer to those genres as regional films.  

Speaking as a distributor, even domestically it’s really hard to get people to pay attention to an independent drama without names in it.  It doesn’t matter how well made it is, if it doesn’t have a name people would often rather re-watch a Marvel movie than watch an enlightening indie drama that helps us better understand the human condition.  I want to be clear here, I like those movies.  I think we need more of them out there in society.  However, if they don’t make money and make it hard for programmers to fill seats, it’s hard for us to focus on them when there’s so little profit margin for most independent film distribution companies. 

If People Don’t See It, Your film has no impact.

If you want to make some revolutionary avant-garde piece, you’re going to have an uphill battle to get people to see it.  If your work is about your strong and uncompromising vision and the statement you need the world to know, you could be doing yourself a disservice by focusing solely on the packaging you put your messaging into.  Auteurs don’t get discovered as easily as they used to, and there’s such a glut of content it’s nearly impossible to have the impact you most likely desire without traditional distribution infrastructure behind you.  Of course, there are exceptions, but they tend to involve years of building your own audience which can detract from the work that drives you to the point of burnout if you’re not careful.  

Instead of banging your head against the wall trying to make your film exactly as you want to, you should consider boiling down your message to its core and then creating a story that fits into a strong, marketable genre in order to at least plant the seeds of your message for when you come back to the message film you initially needed to make.  It could likely be a faster path to your end goal and will help you combat the issues inherent to my next point. 

Tastemaker Fatigue is Real. 

We as tastemakers, programmers, gatekeepers, buyers, distributors, and whoever else needs to review unreleased movies often have limited time and mental energy to get through our stack of submissions that piles much higher than you would ever expect if you haven’t seen it in person.  First-round programmers at most of the top 10 major film fests have to say no to at least 9 out of 10 submissions.  This means that they look for any possible reason to say no and when they find it, they put it on the poo poo pile.  

Even if it makes the most timely possible statement and would get programmed if you don’t know somebody who can get you to a final stage programmer directly, the odds are not in your favor.  The only way you can get an advocate like that is if you’ve been in the festival before or you attract a talented producers rep or distribution executive to champion your project.  Generally, for those people to be your champion your work needs to be commercial.  

Commercial doesn’t mean Crap

So what am I advocating for here?  Do I want you to make the same old bloody, gore-y, craptacular boobfest of a horror movie?  No, I’m not saying that.  Well, unless you want to.  If you do, it will get distribution, I might even help.

Defalcating Dung beetles!  I just went against my own point for a shill and a bit.  Let’s try again.  

The commercial doesn’t NECESSARILY mean Crap

No one will tell you that every overtly commercial film is a masterpiece of cinema.  There have been quite a lot of major blockbusters that turn out to be stinky bowel movements.  What I am saying is that if you have a message you want to get out to the masses, one of the best ways to do that is to insert that message into a broader story that meets genre guidelines.  Bryan Singer’s X-Men has strong undercurrents of self-acceptance and coming out in a time where that wasn’t really acceptable in a movie targeted at Teenagers.  James Cameron’s Aliens is an Allegory for the War in Vietnam, and Stanley Kubrik’s The Shining is a tale of the fate of indigenous people and the increasingly aggressive subjugation they faced.  

I doubt anyone out there would say that those movies or those messages would be considered shitty examples of cinema or messages, and almost anyone would consider them strong examples of highly commercial genre films.  But that’s just one executive producer’s opinion.  If you want more of my opinion, you should join my mainlining list via the button below.  You’ll get monthly content digests to help you continue to learn on a manageable schedule.  You’ll also get a FREE e-book, white paper, and some really useful templates to help you finance your film. Check it out via the link below. 

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3 Things Every New Film Investor NEEDS to know

I write a lot about the film business with filmmakers as a target audience.  However, in my non-educational content job, I have to interface with film investors on a fairly regular basis.  This blog is adapted from one such situation where a first-time film investor had a lot of impulses that might actually hurt their film.  The response got rather lengthy, so I asked my client if he minded if I adapt it into a blog.  The client didn’t mind at all, so now I can share the insights with him with significantly more people.

With that in mind, here are 3 things that every new film investor should know. 

1. Films are not evergreen.

Once a film is more than a year past its initial release, it loses a significant portion of its perceived market value.   Buyers just won’t touch it.  You released the film this year, so you have a bit of time, but that time is not infinite.  This means that negotiations around a minimum amount of money over time is not always productive, as it will likely be out of the highest actual period no matter what happens.  Often, even if you get the rights back, the film will have been so heavily shopped no one will take a look at it anyway.

This is a mistake that a lot of filmmakers make.  Unfortunately, you do not have all the time in the world to shop for your film.  Eventually, you’ll want to make sure you get it out there, even if it’s at something of a loss.  If you want longer, it’s unlikely that your prospects will get better.  

Of course, I want to be clear that you shouldn’t take any old deal as soon as it’s offered.  It’s just important to remember that barring some incredibly specific extenuating circumstances,  your film won’t be worth as much next year as it is now.  Your Also, if the distributor or sales agent is in clear breach, you should still try to get your rights back. 

2. Generally, films take a few markets to make a cash upfront sale, and the pay chain is absurd.  

It often takes a few in-person touchpoints before the sale is finalized.  While I’m going to be pushing for a quick sale, sometimes it takes a while for the money to come through.   

Further, you should remember that a lot of time it will take a while for those payments to trickle through to the producer.  I’ve outlined the issue in detail in the blog below, but to give you an idea, an MG-oriented sale will likely have something like 10% due on signing, 40% due within 30-90 days from notice of delivery, and the remaining 50% due prior to release or within 30 days of release.  Also, most SVOD sales in the US pay out a set amount of time after the beginning of the license period.  

Related:The problems with the indie film distribution payment system.

3.  No one likes dealing with inexperienced people with huge egos.

If you’re an accredited investor, you’ve probably dealt with this issue on the other end.  You likely have money due to your own entrepreneurial endeavors, a high-paying position that likely required you to employ other people, an expansive portfolio of investments that may have required you to interface directly with other entrepreneurs, or some combination of the above.  

While the primary goal of any film production should be to get all of your money back, the industry is incredibly specialized.  Nobody likes being told how to run their business by someone without much experience in the driver’s seat of this highly specialized industry.

It’s important to remember that once you get to dealing with more powerful members of the industry, trying to throw your weight around to get a better deal isn’t likely to break in your favor.  Unfortunately, most good sales agents or distributors will just decline to take out your film, and the less-than-good ones who remain will find legal ways to avoid paying out as long as possible if they pay out at all.   

This industry may be in a period of upheaval, but currently, sales agents and distributors still hold a lot of power.   So if you want to make a profitable film, or a widely distributed one, you’re going to have to take some time to understand the common industry practices.

It’s incredibly difficult to negotiate with someone when you’re at a massive informational disadvantage, and more than likely you will be at an informational disadvantage purely by the nature of the specialization of the film sales and distribution industry. 

If you want to lessen your informational disadvantage, you should sign up for my mailing list to get monthly blog digests segmented by topic, you’ll also get a free film business resource pack that includes an ebook, whitepaper on the macroeconomics of the film industry, an investment deck template, and a whole lot more!  Click the button below to grab it.  

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What you CAN and CAN’T negotiate in an Indiefilm Distribution Deal

A HUGE part of my job as a producer’s rep has been to negotiate with sales agents and distributors on a filmmaker’s behalf.  While I happen to think my contracts are exceptionally fair, most filmmakers tend to do some level of negotiation.  However, others can overplay their hands and lose interest.  I’ve checked up on some of the ones that did, and they didn’t make it anywhere.  So, no matter who you intend to negotiate with here’s a list of what tends to be possible to negotiate.  

One thing to keep in mind is your position as a filmmaker.  Distributors tend to have more power in this negotiation.  Filmmakers do still have power, as you own your film, but it’s important to keep in mind that in many circumstances, they’ll have significantly more options than you will. 

It’s also important to note that these contracts are only as good as the people and companies you’re dealing with.  So vetting them is important.  The link below has more information on that.  

Related: How to vet your sales agent distributor.

There are of course exceptions to these rules, but you knowing the general rules will help. Those exceptions are directly tied to the quality and marketability of your film.  

What you CAN negotiate

These are things you CAN negotiate, within reason.

Exclusions

Distribution deals are all about rights transfers and sales.   In general, you can negotiate a few exclusions to keep back and sell yourself.  It’s important to note that you shouldn’t try for too many of these though, as the distributor needs to be able to recoup what they put into your film.  Here are some of the common ones

• Crowdfunding fulfillment

• Website sales

• Tertiary regions the film was shot in.  

In general, all rights are given exclusively, but crowdfunding fulfillment might need to be carved out so you can fulfill your obligations to your backers.  I’ve never had trouble with this one.  

Generally, it’s wise to retain the right to sell your film transactionally through your own website using a platform like Vimeo OnDemand or Vimeo OTT.  Distributors tend not to utilize these platforms, so they generally won’t have an issue with it so long as they get advisement on release timing AND it’s only available on said platform transactionally.  That is to say, people must pay to purchase or rent the film.

If the film was shot in a very minor territory like the Caribbean, Paraguay, parts of Africa, or maybe parts of the Philippines, it might be possible for you to retain those territories and sell the film yourself.  Be careful with how many of those you do.  

Marketing Oversight (Home Territory)

Pretty much no matter what territory you’re from, you have some pretty meaningful ability to negotiate additional marketing oversight.  This is not an unlimited right, however, and it’s common that final say will remain with the sales agent or distributor.  It’s important to do your diligence on how they’ve used that oversight in the past.  

Term (To an extent)

If a Distributor or sales agent brings you an agreement with a 25-year term and no MG, walk away.  If a Distributor tries to get a 12-15 year term, try to get them down to 10.  That’s the industry standard for what we work on. 

Exit Conditions (to Some Extent)

You need to make sure that you have aa route out if things go sideways.  In general, you need a bankruptcy exit, and I would push for an option to exit on acquisition of the distributor, or if a key person leaves.  

What you CAN’T GENERALLY negotiate
(but should probably look out for)

Here’s what you generally can’t negotiate.  There are exceptions to how much you can negotiate this, but no matter what these are things you need to fully understand.  

The Payment Waterfall

I wrote about the waterfall fairly extensively in the related blog linked below.  The biggest issue is that most distributors start taking their commissions BEFORE they recoup their expenses.  I understand how and why they do it, but it’s generally not the best.  

The biggest negotiation you MIGHT be able to get is what’s known as a producer’s corridor, which effectively helps you get a small amount of money from the first sale.  Generally you’ll be placed (essentially) in line with the distributor or sales agent, which means it will take significantly longer for them to recoup their expenses.  That said, any way you slice those numbers, you still get paid more.  

Related: Indiefilm Distribution Payment Waterfalls 101

Related: The Problem with the Film Distribution Payments  

Recoupable Expenses

Recoupable expenses are money a distributor or sales agent invest into the marketing of your film.  They generally have to get this back before paying you.  The exception above is notable.  Generally, there is little ability to negotiate this but you should make sure you get the right to audit at least once per year.

Related: What is a Recoupable Expense in Indiefilm Distribution

Payment Schedule

The payment schedule is how often you receive Both a report and a check.  In general, they start out quarterly and move to semi-annually over 2 years.  There are exceptions, some of my buyers report monthly.  However, in general, after 2 years most of the revenue has been made, and the reports will continue to get smaller and smaller. 

DON’T EVEN BRING THESE ONES UP

These are issues you just can’t bring up.  The distributor might walk away if you do.  

Their Commission

Don’t bring up the sales agent’s commission.  You probably don’t have the negotiating power to alter it beyond the corridor I mentioned above.

EXCLUSIVITY

I wrote a whole blog about this linked below, but the basics of it are that we’re essentially dealing with the rights to infinitely replicate media broken up by territory and media right type.  The addition of exclusivity is the only way to limit the supply, which is the only reason the rights to the content have any value at all.  

DIRECT ACCESS TO THEIR CONTACTS.  

These contacts are generally very expensive to acquire, and the entire business model of the sales agent or distributor relies on maintaining good relationships with them. No distributor is ever going to give this to you. They’ll get very annoyed about you even asking.   

Thanks so much for reading!  If you think that this all sounds like a bit much, and would rather have help negotiating, check out Guerrilla Rep Media’s services which include producer’s representation.   your film using the button below. If you need more convincing, join my email list for free educational and news digests and resources on the entertainment business which include an investment deck template, a contact tracking template to help you keep track of the distributors you’re talking to, and a whole lot more.  

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7 Things I Learned as CEO of a US Film Distributor

If you’re reading this, you might already know that I founded and lead a company called Mutiny Pictures.  That company has since sold to Bayview Entertainment. Given I’ve been a producer’s rep for quite a while, I thought I was prepared to step up to leading a team to take films to market directly, I found that while I was up to the task there was still quite a lot of personal growth involved for myself and every level of the team. This is to be expected out of any new venture.  Here are some of the biggest things that I personally learned throughout running a US Distribution company.  

(Almost) Nobody pays on time.

Filmmakers often complain about Sales agents and Distributors not paying on time.  While it goes without saying that there are a lot of shady, dishonest sales agents and distributors out there, I was surprised exactly how few reputable companies did not pay on time.  Given that when it comes to film distribution and international sales all stakeholders are part of the same waterfall or pay chain, if one stakeholder is paid late that eventually means that the filmmaker is paid late. We can’t pay you money we don’t have.   

So if you’re a filmmaker reading this, you should know that just because your sales agent is late on their reports doesn’t mean they’re not being honest with you.  It also doesn’t mean that they’re the reason you’re being paid late.  It’s entirely possible that possible their vendor, supplier, or other provider hasn’t paid them yet. 

That said, they should still communicate with you about when this is happening, and if they’re paying late you should still be tracking it as much as you can.  

Analytics and Reporting really, REALLY suck at every level of the distribution.

Given I do other forms of online and affiliate marketing and used to run marketing for a tech startup, I was utterly flabbergasted by the utter disgrace that is analytics around digital film marketing.  In most industries related to digital marketing, the insights are nearly immediate.  However, If you deal with a servicer or aggregator, they often won’t give you any level of real-time insight.  The best most do is once a week, which is nearly meaningly when it comes to agile marketing practices.  

I did find a workaround for my clients, so I’ll share it here.  If you’re a filmmaker and want better insights, sign up for the Amazon affiliate program and use those links to your film to market it. This is less about the few extra cents you get from pushing your work and more about real-time sales insights.  It can cause some issues around online postings and social media algorithms though, so it’s not a perfect system.  I’d love better suggestions in the comments if anyone has any.

Insurance and legal paperwork are way more of the job than you realize.

This wasn’t exactly a surprise.  At its core, film distribution and international sales are businesses based almost entirely around tracking rights and trading signatures on paper.  is entirely about buying and selling intangible rights restricted by non-physical attributes like territory, right types, region, and other highly specific terms of art.  It’s easy to mess this up, so it only makes sense to have solid insurance coverage.  What I didn’t expect was how many hours in my standard week were around litigious paperwork around insurance, compliance, reporting, and proposals, as opposed to growing the business. 

Additionally, you as a filmmaker will need to provide a lot of insurance paperwork.  

You have to pitch earlier than you think.

If you want to have a film on all major TVOD platforms, you generally need to have them pitched/placed 5-6 months ahead of the date.  You can do it in 3 months on a rush job.  This was surprising given I submitted my first book for publishing less than 3 days before it was available on Amazon.  If you sell to an SVOD outlet, they normally require delivery at least 3-6 months in advance as well, and they’ll either pay over the course of the license or a set period after the license begins.  

Payouts take longer than you think.

Reporting is one thing, payment is another.  Most platforms only pay quarterly, and they pay 30 days after the end of the quarter.  There has recently been an additional 90-day delay that was initially for COVID, but that seems to be less of an issue than it used to be.  Additionally, they won’t pay for partial quarters, meaning if you launched in February, you won’t get any data from a lot of platforms until August or even November. If there’s a service involved, you might get an additional 30-day delay.  

This makes it really hard to run a business, and the only thing you can really do is use a different aggregator or servicer.  You can supplement this with direct vendor payments from streamers and physical media outlets, but those are only getting more difficult to place.  There are very few companies that are occupying the servicer or aggregator space in the market, and unfortunately, the ones with the greatest physical reach tend to also have the worst reporting timelines.  

There’s a great amount of room for an aggregator with fast recording and greater ability for brick-and-mortar physical releases.  However, given the rapid decline of physical media, there might not be time for such a company to access that window before it closes forever.  

The industry still operates on a tentpole model.  

The sad truth of the matter is that on the ultra-low budget scale, only about 2 or 3 in 10 movies make money.  If your sales agency or distributor is made up of really good curators, you might be able to get that to 4 or even 5 out of 10.  If you’re hitting that high, most industry people will be amazed.   If you’re running a distribution company, this means you either need to be exceptionally picky and run a very lean company, or you need to take everything you can and see what sticks.  I’ve written another piece on this going into more detail. 

Producers get in their own way a lot.

I said earlier that it’s no secret that there are a lot of shady sales agents and distributors out there.  That said, not all filmmakers are saints either.  Some filmmakers are a complete joy to work with, but others will second guess everything you do and think that the only film that you should ever focus on is theirs.  

I had a filmmaker say precisely that to my face.  We got tons of press for this person, but nobody wanted to watch it and the film tanked.  When this filmmaker wasn’t getting the returns they expected they started taking up a ton of time in angry calls and emails.  This reduced A LOT of my available time to actually get their film out there, which further impacted the returns and became a vicious cycle.  

Marketing a movie is best when it’s a partnership between the filmmakers and the distributor.  In general, you should discuss when you’re making any level of announcement with your distributor so that it can make the biggest possible splash.  It’s generally unwise to drop assets like posets and trailers without talking to your distributor, as you may ruin potential exclusive press drops.  Worse, if you put your film up in various territories through self-distribution channels, it could cost you thousands or tens of thousands of dollars in lost revenue.  Even if you can take a film down, most buyers won’t want it if it’s already been placed on any platforms in their region. I could go on about this for a while, so I’m going to leave it for another blog.  

This is a collaborative process, so they’re definitely give and take, but keep in mind there’s probably a reason you didn’t self-distribute and instead decided to work with your distributor.

In the end, this is a relationship business.  If your distributor likes you, they’re more likely to go the extra mile for you.  That’s a reality of human nature. If you want your distributor to like you, you might want to grab my free IndieFilm business resource package as it’s got lots of goodies to help make marketing your movie easier for all involved.  The resource pack got templates for contacting distributors, and tracking that contact so you don’t bug them, an e-book on the film business, and a whitepaper on the metrics of the film industry.  Plus, you’ll get monthly content digests to help you better understand the industry in a manageable way and occasion updates on new releases, courses, workshops, and announcements from Guerrilla Rep Media.  Check it out below.

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How COVID-19 Affected the Indie Film Industry

Many Filmmakers, like everyone else affected by COVID-19, are itching for some level of a return to normalcy.  Unfortunately, like many others think that there may never be a full return to normal.  It may well end up as a pre-COVID and a Post COVID period.  Similar to how the world changed before and after the great depression, 9/11, The internet, or World War II.  Societal traumas tend to leave lasting scars, and that tends to effect the market as a whole and certain industries in meaningful ways.  So let’s look at what one executive producer thinks is likely to happen in the film industry as a result.

2023 Update: I put some self-reflection on this blog commenting on how I think my predictions were, and adding more context to what’s happening in 2024 and beyond.

1. The Majors will bounce back quickly

Historically, the film is industry mildly reversely dependent on the economy.  It remains one of the cheapest ways to get out and one of the best ways for families to bond while in isolation.  The most unpredictable part about this recession’s likely impact on the film industry is the much greater presence of free or cheap entertainment options available right now as compared to the past. 

In any case, A significant amount of the pain that’s likely to be felt from this crash is going to be on the lower end of the spectrum.  Right now many of the major studios are already gearing up for their next projects since the projects they have will either be released ahead of schedule while people are quarantined or they’ll need to find alternative release plans. 

2023 Update: This was right. The majors bounced back quickly. They may not bounce back as quickly from the strikes though.

2. Freelancers will be hurt in the short term.

There’s no sugarcoating this.  Freelancers are going to be hurt in the short term.  Government stimulus may help, but won’t solve the issue.  If you’re in a position to help out by hiring someone to help with your web maintenance or other jobs they can do in isolation, you should do so. 

As this crisis continues to drag on, it’s really important we band together as a community and help each other to get work made, even if it ends up making many of us less money than it normally would. 

2023 Update: I was wrong, it wasn’t just freelancers that were hurt. As Aide dries up we’re likely to see a lot more pain on the lower 3 quintiles of the economic spectrum. I think this will hurt the entertainment industry as we’re a mass-market product that still only makes significant margins from transactional sales. I’m not sure film is still reversely dependent on the economy, and I’d write a blog about it if someone comments.

3. SVOD Surge

Given people are going to be locked at home with less money than normal and lots of time, we can expect to see viewership and subscriptions to Subscription Video on Demand platforms go up significantly.  Not all of these new subscribers will cancel when we return to the new normal.  I’m not the only one seeing this, it looks like development and acquisitions are on the rise form many of these people. 

It’s very possible that the balance of power between distributors and creators could see a minor shift in the coming months as distributors are going to need more content and the current embargo on production in many states, regions, and territories might cut down on the glut of content that’s been driving down acquisition prices recently. ​

2023 Update: The consolidation in streaming platforms ended up keeping license fees for the major streamers as low as they were pre-pandemic. It’s unlikely that trend will get much better any time soon.

4. AVOD Surge

Given the general financial issues that were facing the majority of Americans prior to this recession, many may seek to cut recurring subscription services.  This may well give rise to AVOD platforms like TubiTV and PlutoTV.  I bet Fox is really happy that they bought Tubi right about now. 

2023 Update: This was very much true, but the amount of consolidation in the AVOD space is looking like there will be a royalty cut due in part to advertisers tightening their belts. This will cause a lot of problems for indie productions.

5. TVOD Plummets

Transactional VOD hasn’t been healthy for quite a while.  If people are hurting for money, it’s unlikely they’ll continue to buy movies one at a time when there are so many films that are available for free or with a low subscription cost.  This might not happen immediately, but as the crisis wears on and belts get tighter the TVOD crunch might well continue to worsen. 

2023 Update: This one was right on the money. IT’s a rough time for micro-budget films outside of SVOD and AVOD.

6. ​Presale Surge

Given that we’re likely to see a surge in demand for content right as equity markets are drying up we may well see a surge in presales from distributors in order to fill the gap.  This is somewhat speculative, but there is ample historical precedent, most recently in 2008 after the economic meltdown.  However, it should be noted this can only go so far given production embargos. 

2023 Update: Presales did surge, and they’re still growing for small and midsize films. I’m negotiating a few right now.

7. Theaters may fold at a high rate

Theaters have been in trouble for quite a while.  Independent theaters have been very hard hit, but even giants like AMC may end up closing many of their locations instead of re-opening them.  The possible Amazon Acquisition of AMC is really quite interesting for the entire landscape. Drive-throughs also seem to be seeing a bit of a resurgence.

​2023 Update: Some indies folded, the chains largely survived, although some smaller chains took a haircut. Luckily, theatrical exhibition is still around.

8. Rise of legal simulstreaming

People are feeling lonely and isolated.  Film is an inherently social medium.  Given we can’t go to the theater as we did before, we might end up seeing the rise of simulcasts for consumers to watch content with their friends.  This is something that happened with the Netflix computer App, and Alamo Drafthouse starting virtual streamings limited to certain territories is quite an interesting development. 

2023 Update: Sadly I was wrong about widespread simulstreaming, but I am aware that it happened with families via zoom a lot at peak quarantine.

9. Death of DVD greatly Hastened

It’s no secret that physical media (DVD/Blu-Ray) has been in trouble for a while now.  Now that it’s been confirmed COVID-19 can live on plastic (like a DVD case) for several days, I can see consumers being even more hesitant to buy movies like this when there are so many options available on Streaming for free. 

2023 Update: I was right about this one, although there’s a bit of a nostalgic re-emergence of rental stores going on so there may still be a very limited niche market for physical media.

10. Easier Microbudget sales for a time.

I’ll end on a cheerier note for Most of my readers.  Acquisitions seem to be picking up since so many catalogs are being watched much more quickly than originally expected.  This spells an opportunity for many filmmakers.  

2023 Update: It was easy for a little bit, but the WGA (And probably SAG) strike may still represent an opportunity for micro-budget filmmakers. That said, I stand in solidarity with the Union and I think the cause is just, but I don’t really think micro-budget films are similar enough to be called competition, so let’s get those low-budget films out there so we can swell the ranks of the guilds.

If you want someone to help you sell your movie, track down a presale, or strategize how to market your movie Check out Guerrilla Rep Media Services below.

Also If you’re not convinced about Guerrilla Rep Media Services yet, grab my Free Film Business Resource pack for an ebook, a whitepaper, an investment deck template, and a whole lot more.

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How and Why to treat your Production Company Like a Small Business.

Last week we talked about the 4 major types of Media Entrepreneurship, so this week I thought I’d expand on the most common production company that my readers seem to run.  That’s the small production company that they hope to scale into something bigger.  Here’s why your production company is a small business, and how to treat it like one so you can see it grow.

1. ACCEPT YOU HAVE A SMALL BUSINESS

The film is both a business and an Art.  The two don’t have to be enemies and work much better together.  For more on what I mean, click the related link below.  I have a different point to make here.

While this may seem like the goal is to become a more scalable startup, in reality, it’s probably more like a small business that may grow to a medium business in time.  You’re unlikely to be able to use high-growth strategies like Silicon Valley Tech Startups to grow your business from a prototype to a highly used platform.  The requirements are different, and the film is less suited to iterations than software and apps are.

As such, if you’re a filmmaker, you probably have a small business.  Small businesses grow slowly over time by growing their audience and scaling up their offerings as revenue and investments allow.  If you want to grow your production company as you would a small business, start by making one great film and then make a bigger and better one once you’ve found your audience.

2. BUILD & ENGAGE WITH YOUR AUDIENCE

If you want to build a business, among the most important things to have are customers.  For filmmakers, this means having a deeply engaged audience and creating content for them on a regular basis.  Part of that is creating a genuine presence on social media, but the more important part is continually creating products for that audience to give them a reason to keep coming back and engaging with your business. ​​​

3. INCORPORATE AUDIENCE FEEDBACK INTO YOUR WORK

If you really want your audience to keep coming back, it’s important that they feel valued.  Incorporating their feedback into your films can be a great way to greatly deepen your relationship with your audience.  This is something that Marvel has used to great effect.  Half of the Endgame was callbacks to fan-favorite moments from the other 73 1/3 movies in phases 1 to 3.

Some higher-level creators have an antagonistic relationship with their fans.  The only way you can really afford to do this is if you have the backing of a large network to make sure that people can’t forget to come back to your work.  TV Tropes calls this Phenomenon Creator Backlash. ​

4. GROW YOUR SUPPLIERS AND WHO SELLS YOUR PRODUCTS

If you’re a small business in the manufacturing sector (which you’re not far from) you need to make sure your product is available as far and wide as possible in order to continue to expose your work to a new audience and grow your potential customer base.  This means you need to partner with distributors.  Distributors have higher prestige and higher paying outlets than you can get to on your own.  Also, since they have access to those higher-level outlets, you’re more likely to be discovered through them than on other platforms that are inundated with so much content it’s unlikely anyone will discover the work that you didn’t drive there yourself. 

Yes, this will mean that you'll need to make a lower percentage of the overall sale than you would by yourself.  So long as you're dealing with reputable distributors, this is just the cost of doing business.  Publishers sell their books at a 55% discount over retail to bookstores, and most any distribution warehouse for a given good or service will also sell the product at wholesale price and take a cut before paying the manufacturer.  Again, for this to be valid, you need to have honest and accurate reporting throughout the supply chain. ​

5. DON’T FORGET WHERE YOU GOT STARTED

Never forget your early adopters. The people who were with you from the beginning. They can be your biggest supporters and greatest brand advocates if you continue to show you value them. However, they can sometimes be hard to please, as I’m sure I’ll see in the comments.  Both Starbucks and the City of Seattle will never forget that's where the chain was born.  You shouldn't forget the people who knew you when.  

Thanks so much for reading this! If you liked it, please share it. It’s extremely helpful. Also, consider joining my mailing list and in so doing get access to my indie-film business resource package. It’s got an ebook, a white paper, an investment deck template, festival brochure templates, and a whole lot more.

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How Independent Filmmakers can THRIVE in the current distribution Marketplace.

To cap off my first-ever distribution month, I thought I’d talk a little bit about where Independent Film Distribution is heading.  Markets are going to be a big center of commerce for the film industry for a few years, but they’re going to continue to wane for the truly independent filmmakers, which means one of the biggest areas for entry for filmmakers is likely to go away.  With the fall of Distribber, and how Amazon looks like it’s going to scale back its filmmaker direct distribution programs there’s only one real path left for filmmakers.  That path is to build an audience that’s highly engaged with your content and distribute not only your film to them but other products related to your Intellectual property (IP.)

BUILD AN ENGAGED AUDIENCE

The first step in this (as I’ve brought up in at least half of the blogs this month…) is to build a highly engaged audience and following.  This is something that Youtubers have become fantastic about.  You have to have lots of touch points with your audience and provide them a perspective that they emote with but can’t find anywhere else.  By that I mean…

Create Niche Content that speaks to an underserved audience

With a massive glut of generalized content, You have to identify an underserved niche and start to make authentic, high-quality content that speaks specifically to a small niche of people.  This turns the old TV model on its head, instead of being a 6/10 for 10 people, you need to be a 10/10 for 2 people, and budget your film in such a way that you can keep your business afloat on the revenue from that much smaller audience.  Luckily, when you do this you’ll be able to successfully sell the film, as you won’t be competing as directly with outlets with huge, bland libraries. 

Think less about the format

Movies don’t just have to be 90-minute feature films any more.  If you can establish a following, keep content coming in the form of shorts, webseries, and features.  Don’t spend more time on them than you have to, but make sure that you continue to release new content to engage with your audience. 

Sell Merchandise

Once you have a dedicated following, think about ancillary ways you can monetize your brand and your content.  Bands sell T-Shirts at their shows as their primary source of revenue, and film trends tend to follow about 5-10 years behind the music industry.  You have to start building ways to monetize your Intellectual Property and your Brand beyond simply selling your movie at 3.99 a pop. 

Community Screenings

Theatrical releases are not cost-effective for many filmmakers.  Instead, you can focus on building community screenings that give your core audience a place to congregate, and if you organize them well they can also be a great place to sell merch. It’s also a great place for you as the filmmaker to Skype in and answer questions directly. 

Create Custom Experiences around your IP

Mark Cuban (former owner of Landmark Theaters and Shark on Shark Tank) is fairly well known for saying this is the future of entertainment.  It’s not always easy for Indies to commute in this space, but if you’re releasing a horror film you might consider a themed haunted house as part of a release or as part of a community screening.  There are other ways to make this work in conjunction with your core IP, but it’s difficult to scale and tends to be a custom solution for each film.

​​Thanks so much for reading!  This blog is something of a mix between a distribution blog and something to make you think a little bit more like an entrepreneur.  If you like this sort of content, make sure you come back in February for Entrepreneurship Month.  If you don’t want to miss it, make sure you subscribe to my mailing list or check out my Youtube Channel.  If you want to be extra awesome, throw me a few bucks on Patreon. Links below.

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Can Independant Filmmakers Survive the Streaming Wars?

It’s no longer a controversial statement that streaming has changed the whole game for independent film distribution.  It hasn’t been controversial for quite a while.  However, it is becoming apparent that not only has streaming changed the game, it might as well have become the game, at least here in the US.  That’s not really a good thing for Indies.  Here’s why.

Streaming has made such a vast library of content available people don’t need to buy movies.

The biggest reason that Subscription Video On Demand streaming has engulfed the entire media landscape is that it’s put a giant library of films at the fingertips of anyone for only around 6-15 bucks a month for most platforms.  It’s putting entire on-demand catalogs that are even more convenient than owning a film on DVD.

It wasn’t so big a threat when there were only a few companies in the space, but once HBO blew the doors open with the launch of HBO NOW the writing was on the wall for those of us paying attention.  We all knew that Disney and Warner would follow.  With Disney+ putting a gigantic pile of legacy content on their platform, it’s going to get harder and harder for independent films to compete.

Physical Media used to be the primary way people could watch films when they felt like it.

It used to be that licensing a film to A TV station was pretty lucrative, and didn’t really affect your physical media sales.  In fact, it often increased them.  People didn’t want to have to wait around for your film to screen if they liked it, so they bought the disk.  Yet SVOD companies license a film, and for the term of the license their subscribers can just watch the film wherever, whenever they want. 

This level of convenience has made it significantly more difficult for filmmakers and distributors to sell content for a transactional fee which has a much higher margin per unit sold.  When Netflix started the game, it was still just one platform, and many people didn’t have the level of internet needed to stream without a significant amount of lag.  This result often ends up that filmmakers and distributors are left with whatever the license fee for each film is, and will see little to no revenue beyond those licenses.

It basically means that not only is streaming taking up a much bigger part of a given film’s revenue mix, it’s also shrinking the pie. 

With so many platforms and so much content, there must be lots of licenses and acquisitions being made though, right?

It depends on how you’re looking at it.  Sure, these platforms are creating massive amounts of content, and acquiring still more.  However, the price they tend to pay for acquisition is lower than you’d think, and some of the terms tend to be a bit unreasonable.  For originals, it’s a long road requiring a strong package that 95% of filmmakers will never reach. 

You might think that many new platforms are going to be looking to make even more original content in order to make sure subscribers keep paying for their content.  There’s some truth to that, but the problem is that there are so few outlets likely to survive the streaming wars that the system of gatekeepers that the streamers were supposed to break may become even fewer than they were before. 

The big problem here is that there are A LOT of these same sorts of platforms seeking the attention of an oversaturated audience and market.  The impact is that there’s a lot less money to go around for indies, and much of the consumer base is just subscribing to a few services, and not buying a lot outside of that.  So unless a filmmaker has a strong engaged audience, they’re not going to be able to compete. 

Essentially, the SVOD wars intensify the problem creators have been facing for several years, and that’s the fact that while anyone can get their film out there, getting anyone to see it is an entirely different matter. ​

It all comes back to audience engagement.

This comes back to one thing. Build and engage with your audience, and create content that speaks to them on a deep level. It needs to evoke an emotion or speak to an experience that no one else can. In order to succeed, we Indies need to defragment our market and find our tiny place in it. We don’t need to be 8 people’s 6/10, we need to be 2 people’s 10/10.

Thanks for reading. This one was more of a think piece than my general practical advice. Let me know what you thought about it in the comments. If you like this and want more, please consider joining my mailing list, you’ll also get a great film business resource pack that includes templates, a free ebook, a whitepaper, and more!

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22 Indiefilm Distribution Definitions Filmmakers NEED to know

If you’re going to read and understand your distribution agreement, then there’s some terminology you have to grasp first.  So with that in mind, here’s a breakdown of some key terminology you ABSOLUTELY need to know if you’re going to get traditional distribution for your film.

This is one of those blogs I should probably start out by saying that I’m not a lawyer.  Always talk to a lawyer when looking at a film or media distribution contract.  With that out of the way, I’d recommend we get started. 

1. License

At its core, a license for an independent film or media project is the right to exploit the content for financial gain.  Every other piece of a license agreement is clarifying the limitations of that license. 

2. Licensor

A licensor is a person or entity that is licensing a piece of media to another entity to either distribute or sub-distribute its content.  In general, this is the filmmaker when the filmmaker is dealing with a sales agent or producer’s rep, or the sales agent or producer’s rep when they’re dealing with distributors. 

3. Licensee

The License is the entity that is acquiring the content to distribute it and exploit it for financial gain.  In the instance of filmmakers and sales agents, it would be the sales agent, in the instance of sales agents and distributors, it would be the distributor. 

4.  Producer’s Representative (Producer’s Rep)

An agent who acts on behalf of a filmmaker or film to get the best possible sales and distribution deals. 

Related: What does a Producer’s Rep Actually do, anyway?

5.   Sales Agent

A Company that licenses films from sales agents or Producer’s Reps in order to sub-license the film to territorial distributors around the world.

6. Distributor

A company that directly exploits a film in a given territory on agreed upon media right types.

Related: What’s the difference between a sales agent and distributor

7. ​MG (Minimum Guarantee)

This is a huge one.  It’s the amount of money you get up front from a sales agent, or a sales agent receives from a distributor.  The biggest difference between this and a license fee is that at least in theory an MG has the potential to receive more in residual payments beyond the additional payment.  In practice, this is less common. 

8. License Fee

A license fee is a set amount of money paid by a distributor to exploit media in a defined territory and set of media rights.  Unlike a minimum guarantee, a License fee is the total amount of payment the licensor will receive over the course of the license, regardless of the financial success the film goes on to achieve.  License fees can be paid in one lump sum, or over the course of the license. 

9. ​Revenue Share

​Revenue share is the other most common way films can receive payment.  Revenue share essentially means that the licensee will split the revenue with the licensor according to an agreed-upon commission generally after they recoup their expenses. 

10. ​Producer’s Corridor

A producer’s corridor is an alternate payment waterfall of money a filmmaker is paid prior to the licensee recouping their expenses.  This generally means that the producer is paid from dollar one. 

11. Term

Term is the length of time a contract is in place.  For most independent film sales agency contracts, the term is generally 5-7 years. 

12. ​Region

The instances that generally apply to traditional distribution in the modern-day region refer to a set of territories in which a film can be distributed in. While they vary slightly from sales agency to sales agency, they are generally English Speaking, Europe, Latin America, Asia/Far East, and others.

13. ​Territory

When it comes to film distribution and international sales. territories are areas within a region that add greater specificity to where a sales agent can parse rights.  Latin America is both a region and a territory.

14. Media Rights

The sorts of media that a distributor has to exploit in a given territory or set of territories. 

Related: Indiefilm Media Right types

15. Benelux

A territory consisting of Belgium, the Netherlands, and Luxembourg. 

16. Four-Wall

The act of renting theaters in order to screen your film in them.  It generally involves a not insignificant upfront fee, and as a result, all money returns to the licensor. 

17. Community Screening

An alternative to a theatrical run for films with a strong niche or cause.  See below for more information. 

Related: How Community Screenings can replace a Theatrical Run

Related: 9 Essential Elements of Independent Film Community Screening Package

18. Payment Waterfall

When it comes to independent film distribution agreements, a payment waterfall is contractual representation How many flows from stakeholder to stakeholder?  If there is a producer’s corridor or some other non-standard modifications of a license agreement, there may be more than one waterfall in said contract. 

Related: IndieFilm Distribution Payment Waterfalls 101

19. Collection Account

​​A collection account is an account that a sales agent pays into which pays out all other stakeholders according to a pre-defined set of parameters.

20. ​Reports

In the context of independent film distribution and international sales agreements, a report is a statement made monthly, quarterly, bi-annually, or annually that states all incomes and expenses for a film.  Generally, this is accompanied by a check one is due.

21. Payment Threshold

When it comes to film and media distribution, a payment threshold is a minimum payment owed by a licensee in order to issue a payment to a licensee.  This payment amount is generally dependent on what payment method is being utilized.  For instance, the minimum is for a wire transfer is generally higher than a check which in turn is generally higher than for a direct deposit. 

22. Recoupable Expense

A recoupable expense is an investment made into marketing or distribution-related expenses by a licensee.  This investment will need to be paid back before the licensee pays the licensor, with the notable exception of the producer’s corridor.  Generally, these investments will fall into one of 3 categories of capped, uncapped, and uncovered expenses.   For more information, please check out the blog below. 

Related: What are recoupable expenses?

BONUS! - Expense Cap

An expense cap is a cap on the total amount of expenses that a licensee is able to take out before paying the licensor. There are exceptions, see the related link above for more information.

Thank you so much for reading the glossary! I hope it’s Helpful. If this is all intimidating and you need a little help, consider hiring a professional to assist you in the process.  So you could consider checking out Guerrilla Rep Media’s services. These blogs Blogs are largely a public service and marketing tool for me, most of my business is from representing and consulting with filmmakers just like you.  You can learn more and submit your film via the link below.  Or, if you're not ready for that, but want to support more content like this, join my email list to stay up to date on new offerings and get an awesome film business resource package while you’re there.

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Can You Get Your Movie on Netflix or Disney+ By Yourself?

At least until recently, a lot of filmmakers assumed that they could get on any platform they needed to be on just by calling up Distribber or another aggregator like Quiver.  With the fallout of the fall of Distribber, many filmmakers are wondering what they can do for distribution.  So, I thought I’d share some knowledge as to what platforms a filmmaker can still get on themselves using aggregators like Quiver, and what platforms you’ll need an accomplished sales distributor, or producer’s rep to get on.

I’m going to break this into general media right types.  If you’re not sure what that means, learn more by clicking through to the related blog below. 

Related: Independent Film Media Right types.

Also, this analysis is based on the US Market

Theatrical

Most distributors just won’t do this for most films, however, the ones that can do it tend to either rent the theaters outright or be extremely skilled salespeople with deep connections to the booking agents for theaters who will book the films on a revenue share basis.  It's just too much work for buyers to work directly with Filmmakers in this fashion.

For filmmakers, the most economical solutions tend to be either paying to rent a theater for a few screens or using a service like Tugg, to have a screening demanded if the film has enough of a following to make it work.  I have my issues with their model, but that’s a topic for a future blog/video. 

Physical Media:

Distributors have a lot more options for physical media than filmmakers tend to.  Some distributors still replicate DVDs on a massive scale, which gives them the ability to get higher quality disks and get them into brick-and-mortar stores like Walmart, Target, Family Video, or kiosks like Redbox.  Many distribution companies also have access to libraries.  Also, Blu-Ray in general is only really available on a wide scale through a distributor.

Even if they use a Manufacture on Demand (MOD) service, they tend to have access to companies who will put them out on the online storefronts of pretty much anywhere that sells DVDs and Blu-Rays.  This is largely due to the fact that those companies tend to only publish catalogs. 

If you’re a filmmaker, you’ll generally be limited to either buying a few thousand DVDs with no guaranteed warehouse solution or distribution network, or you’ll be limited to using something similar to Createspace to put them up on Amazon. While this tends to have the highest margins, it doesn’t tend to move a lot of products, and the quality of the product is generally pretty low. 

Broadcast, PayTV, and Ancillary (Generally Airline)

To get on any network or PayTv channel, you’ll need the help of a distribution company.  Same for airlines.  These entire right types are not generally available to you as a filmmaker. 

Video On Demand (VOD)

For ease, I’m going to break this into a few categories that are generally accepted within the industry.  Those categories are Transactional VOD (TVOD) Subscription VOD (SVOD) and (AVOD)

Transactional Video On Demand (TVOD)

In General, TVOD is pretty accessible to filmmakers on their own.  Filmmakers can pay an aggregator to get you on most platforms for a fee. These platforms include iTunes, Google Play/YouTube, Fandango Now, and many others.  Also, Filmmakers have been able to put their own work up on Amazon Instant video largely for free until recently, although it seems those winds may be changing.  Either way, filmmakers can use Vimeo OTT or Vimeo On Demand to sell the film directly through their website.

There are, however, more than a Few TVOD platforms that only a distributor can access.  These include a subset of TVOD called Electronic Sell Through VOD (ESTVOD) that’s primarily used for paid on-demand offerings of cable and satellite providers, as well as the occasional hotel chain.  The hotel chains VOD offerings have greatly declined in recent years as free WiFi has become commonplace.  Additionally, there’s a service that enables your content to be rented through library systems that are only accessible to distributors with decently sized catalogs. 

Subscription Video on Demand (SVOD)

In order to get on any platform like Netflix, Hulu, Disney+, HBO NOW, HBO MAX, or any other major streaming platform, you need the help of a distributor.  Distribber SAID they could pitch you, but that turned out to not be as true as you might hope, and their pitch fee was the size of most commissions a sales agent would take.  Also, their success rate was abysmal for someone charging up front.  This was primarily due to them pitching dozens of films a month, and as such them not getting much attention.

If you want to utilize your SVOD rights as a filmmaker, you pretty much have three options.  Put it on Amazon Prime, (at least for now.) You can start your own subscription service using Vimeo OTT, or try to sell it to people who started their own subscription services that you’ve found.  I doubt those last people will have much money though. 

Advertising Supported Video On Demand (AVOD)

Finally, we come to Advertising Supported Video on Demand or AVOD.  This is an exciting space that’s only recently emerged.  The two biggest players that do it profitably are TubiTV and PlutoTV.  Both of which only deal with filmmakers and sales agents with large catalogs of high-quality, distributable films.  This means they generally only deal with distributors or sales agents.

If you’re a filmmaker, you can put your movie on YouTube in the normal way for AVOD dollars, but it’s generally inadvisable for feature film content.  It’s good for vlogs about film distribution though..,

Thanks so much for reading! 

Educational content isn’t my primary business, the reason I know this stuff is I work in the field. If you’d like to work with me, submit your project idea via the link below. Distribution and brokerage tasks are on commission, earlier stage projects involve some reasonable fees. Also, If you like content like this, you should join my mailing list. It will get you lots of great blog digests of content just like this, as well as notices of major releases from Guerrilla Rep Media.

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What does current state of Independent Film Distribution look like in 2020?

2019 was quite a year for most of us, and while we’re entering 2020 with more stable economic footing than we expected, there are definitely some notable industry trends heating up that I thought to weigh in on a bit and let those of you who frequent my tiny corner of the internet know my thoughts on the matter. 

Note from the future: Oof. That stable economic footing did not last.

The SVOD Wars

Anyone who’s been on the internet, watched TV, or stepped out of their house in the last 10 months has probably seen at least about 50 ads for Disney+.  It’s the latest major entry into the Subscription Video on Demand market (SVOD) and it really changed the power dynamics of that particular section of the industry.  Disney is moving a lot of their legacy content onto the platform as with the fall of DVD the vault isn’t as profitable as it once was.  Now that Disney is here, it’s going to shape up the landscape a significant amount.  For more on that, check back in a few weeks for a post elaborating on the state of SVOD and how it changes the whole landscape. 

The fallout from the Distribber Debacle

If you follow Alex Ferrari of Indie Film Hustle as I do, you’ll be well aware of the issues facing Distribber and GoDigital. Through reports from the people they took money and films from, it seems clear that they’ve proven themselves to be every bit as untrustworthy as the sales agents and distributors we’ve all heard about.  So the big question here is if aggregators don’t deliver or screw you, where else can a filmmaker go to get their film out there? Should they use the old path, and go to a film market?

Film Markets

I’ve said it before, and I maintain that I would not have a career had I not gone to the American Film Market.  However, if I were to give advice to anyone starting out today, I don’t know if I’d tell them they should go.  While there were a lot of buyers at AFM last year, none of them seemed to be buying enough to sustain that sort of system.  According to the Hollywood reporter, this year AFM hit “Schlock bottom” and the rich got richer. 

It’s not the right political climate for that to continue, and most of the people reading this probably aren’t studio heads or those making 5-10mm dollar features. ​

For more on Markets, Check out my book!

AVOD Surges

I think it’s very likely that we’ll see a massive surge in the Advertising supported video on demand market over the course of 2020.  That market is poised to explode, especially in the even of an economic downturn.  People are aware of AVOD, but many don’t really watch much of it due to a lack of content.  That’s changing.  Quickly.  TubiTV and PlutoTV’s buyers were some of the only people acquiring catalogs en mass at AFM in November.  Their user base is global, and growing. 

If there is an economic downturn, it’s likely that more people will have less money and more time.  That spells a boom for free entertainment, and the longer people watch the more ad impressions the platform racks up, even if the Cost per impression goes down due to lack of purchase power of the viewer.  If your content is up there, the more you engage with a new user base and the greater the royalties. 

So how do you maximize your profit in this landscape?

BUILD YOUR AUDIENCE!

Everything mentioned above are tactics to make your content available to your audience.  They all share the same problem, the inability to generate an audience or help a new audience discover your work.  So if you do one thing to build your filmmaking career, it should be to grow your audience.  If you have an engaged audience, it can sustain your career more than anything else.  It can make it more likely you’ll get picked up by an SVOD platform, it can help you have leverage with aggregators and sales agents you meet at markets, and if you are looking to grow your audience by having a free AVOD platform they can watch your content through that’s much more selective than something like YouTube can help you to do so.  

So if you want to grow your profits from film distribution, the solution is simple.  Build an audience hungry for your content.  If you want some help with that, the button below will let you join my email list and get a marketing packet that will help you with some additional information, money saving links, and templates. 

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5 Things to expect from the 2019 American Film Market #AFM2019

AFM this year will be interesting.  Here’s the current state from someone who’s been going for 10 years, and has been a Practicing Producer’s rep for 6 years.  Two quick things before we get started.  

First, You should definitely go to AFM at least once.  It’s eye-opening, and if I hadn’t done it I probably wouldn’t have a career.

Second: These opinions are mine alone, and have not been approved, endorsed, or otherwise condoned by the International Film and Television Alliance (IFTA) owner of the American Film Market.  (AFM is also a Registered Trademark of the IFTA.)

And with that, we’re on to the less optimistic (or legal) parts of the current state of AFM and Film Markets.

Film Markets could be in trouble.

All Film markets might be in trouble.  I’ve spoken with many buyers, and they’re pretty much ready to pack up shop.  There’s nowhere near as much money in it as there used to be, and it’s difficult to contuse to turn a profit in this changing landscape.  They’re not going away in the next year or so, but they are likely to recede over time. 

AFM is Becoming much more filmmaker focused in their marketing, which means less involvement from Buyers and Sales agents.

AFM Themselves have been shifting focus to their filmmaker services and somewhat away from their buyer and exhibitor services.  

That's not necessarily a bad thing in general.  It's what I tend to do with content like this, but I go for a very different customer set than AFM has historically. 
​ 
Buyer numbers have been on the decline for a few years, and if they continue to decline it will be difficult to attract the higher-priced exhibitors, and the culture of AFM and all markets is likely to change.  The Image below should help illustrate my point. 

The current system is prone to collapse in a down economy

2008 was Terrible for AFM.  I’ve been expecting a recession to happen at any point since around this time last year.  While the time that I was expecting it to happen seems to have passed, I’m still convinced of an impending recession, but willing to admit I might have missed the timing and the immediacy. 

In any case, when the recession happened in 2008, the market dried up and it still hasn’t fully recovered.  If we were to see another recession, it might spell the nail in the coffin for AFM and potentially the entire market scene.  What would replace it has yet to be seen, as after Distribber’s recent collapse it will be very interesting to see how filmmakers can get their films out there. 

Buyers have been on the decline for a few years. 

I mentioned this above, but total buyer attendance have been on the decline for the past 2 years.  It’s difficult to tell whether the size and number of deals have been increased, but given that the number of tickets sold on the top 100 box office films have remained largely stationary despite the box office revenue going up as well as a few other metrics and the general sentiment of my contacts on the sales agency side I’d be inclined to doubt it. 

Again, if buyers dry up, sales agents won’t keep coming.  When I’ve talked to sales agents about this over drinks, there’s a feeling of extreme pessimism bordering on depression about the current state. 

AVOD and SVOD buyers likely to be the biggest players this year. 

Given that many believe there’s a looking recession, SVOD and AVOD players are going to be even more sought after than they already are. AVOD is free for all, and SVOD doesn’t require extra payment on the consumer end. Given that the economy is a house of cards, many people who are struggling financially are more likely to cut services and stop buying individual rentals. They might even cancel subscriptions, which is likely to lead to a greater viewership of TubiTv, PlutoTV and other similar services.

Thanks so much for reading. If you want more on AFM, Check out Last Week’s blog, my first appearance on IndieFilm Hustle, or my book. Also, if this all seems a little dauting, consider submitting your film via the link below.

6 Things for Filmmakers to Prepare for the 2019 American Film Market #AFM2019

With AFM 2019 right around the corner, it’s time for filmmakers to prepare for the market and do their best to get a traditional distribution deal.  For those of you who don’t know, AFM is still the best place for American Filmmakers to get traditional, non-DIY distribution.  So, with that in mind, here are the major things you need to prepare. 

Also, For legal reasons, I need to say that the following: The American Film Market® AFM® are registered trademarks of the International Film and Television Alliance® (IFTA®) Any and all Opinions expressed in this video are Not Endorsed by the International Film and Television Alliance® or leadership at the American Film Market.

Just in case you'd rather watch than listen, Here's a Youtube Video on this topic!

Leads Lists

You need to know what sales agents and distributors you want to submit your film to. This starts with research and leads lists.  You need to figure out which sales agents tend to work in your genre and budget level, what similar films they’ve helped sell recently, what their current market lineup is, whether they require recognizable names, and who the name of their acquisitions lead and CEO are. 

To make your job easier, I put a free template in my resources packet which you can get by signing up below. 

Join my mailing list and get the FREE AFM Advance contact tracking template. 

Trailers

You need to get their attention, and a trailer is a great way to do it.  I’ve gotten limited theatrical agreements based on an excellent trailer.  See that trailer here.
​
If you don’t have a trailer, you can submit without it.  However, it will be much less likely to achieve the desired results. ​

Pitches

There are elements of an indie film pitch.  I tackle the topic in extreme detail in my book, but here’s an overview of what needs to go into that 10-30 second pitch.

• Title of Film

• Stage of development

• Any attachments

• Genre

• Sub-Genre/Audience

• Budget Range

Check out my book on Amazon for the full chapter

Related: What investors need to know about your movie

Key Art

You’ll need a poster, even if it’s a temp poster that’s eye catching and will convince the sales agent they can move units.  It can be a temp poster, but it needs to invoke the spirit of the film and imbue a sense of intrigue for anyone who looks at it. 

Promotional materials

Once you’ve got the key art, you can use it to create promotional materials.  One of those would be a quarter page flyer, another may be a tri-fold brochure.  I’ve included a pages and word document for use at festivals in the resources packet, but it could be modified for AFM.  If I get a few people tweeting at me or commenting the want it on my youtube videos that they’d like that, I might make it. 
​
​Screening links

If your film is done, you need screeners. The distributors will need to see it, and they’ll probably want a Vimeo screener. Youtube unlisted or private won’t due, as the compression on Youtube makes it difficult to see all the technical issues with the film.

If you can get it out in advance of the market, all the better. It normally takes a few markets to start seeing money from your film if you don’t get a minimum guarantee. Getting that started would be in the best interest of all involved.

Thanks so much for reading. If you liked this and want more, come back next week for what you should expect from AFM 2019, as well as where the market seems to be heading. OR, if you can’t wait, you could listen to me on Indie Film Hustle Talking about AFM. 

You could also check out my book!

 It’s the first book on Film Markets, used as a supplemental text in at least 10 film schools, and is still the highest selling book on film markets.  Check it out on Amazon Prime, Kindle, Audiobook on Audible, Online at Barnes and Nobles, Your Local Library, and anywhere books are sold. Also, join my email list to get a great indiefilm resource package totally free!

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The 6 Steps to Negotiating an Indiefilm Distribution Deal

Much of my job as a producer’s rep is negotiating deals on behalf of filmmakers.  However, now that I’m doing more direct distribution, I’m realizing there are several things about this process that most filmmakers don’t understand.  As I tend to write a blog whenever I run into a question enough that I feel my time is better spent writing my full answer instead of explaining it again, here’s a top-level guide on the process of negotiating an independent film distribution deal.

Submission

Ashley P.
Judah J.

Donald Evans
​​Clever Username

Generally, the first stage of the independent distribution process is submitting the film to the distributor.  There are a few ways this can happen.  Some distributors have forms on their website (mine is here) Others will reach out to films their interested in directly.  Some will have emails you can send your submissions to.  There are a few things to keep in mind here, but in the interest of brevity, just check out the blog I’ve linked to below.  There’s a lot of useful information in that blog, but I will say that YES, THE DISTRIBUTOR NEEDS A SCREENER IF THEY’RE ASKING FOR ONE.

Related: What you NEED to know BEFORE submitting to film distributors

Initial Talk​

Generally, the next step is for the distributor to watch the film.  I have a 20-minute rule, and that’s pretty common.  Generally, if I make it through the entire film, I’ll make an offer.  If I don’t, I won’t ever make an offer.  If I’m requesting a call, I’m normally doing so to size up the filmmaker and see if they’re going to be a problem to work with. 

This is not an uncommon move for distributors that actually talk to filmmakers and sales agents.  Generally, we want to discuss the film as well as size up the filmmaker before we send them a template contract. 

Template Contract

Generally, when we send over the template contract, it will be watermarked and a PDF so that the filmmaker can understand our general terms.  This also won’t have any identifying information for the film on there.  We’ll also attach it. Few appendices to the contract can change more quickly than the contract itself.  My deliverables contract is pretty comprehensive as of right now, but honestly, I think I’ll pare it down soon as I haven’t had to use much of what’s in there yet. 

Red-Lining

The next major step in the process of the distribution deal is going through and inserting modifications and comments using the relevant function on your preferred word processor.  Most of the time they’ll send it in MSWord, but you can open Word with pretty much any word processor and this is unlikely to be too affected by the formatting changes that happen as a result of putting the document into pages or open office.  That said, version errors around tracking changes do happen, and if you find yourself in that situation comment on everything.

What you should go through and do is make sure track changes are turned on, and then comment on anything you have a question about and cross out anything that simply won’t work for you.

NOTE FROM THE FUTURE: Since someone commented on this at a workshop, I’m aware that Redlining has another historical context in the US, but it is the common parlance for this form of contract markup as well. I’m in favor of negotiating distribution deals, and not in favor of racist housing policies.

Counter-Offers

Generally, distributors and sales agents will review your changes, accept the ones they can, reject the ones they can’t, and offer compromises on others.  While there are some exceptions to this framework, after the first round of negotiations, it’s often a take-it-or-leave-it arrangement.  If it’s good enough, sign it and you’re in business.  If not, walk away.

Quality control

Most sales agents and distributors will have you send the film to a lab to make sure the film passes stringent technical standards. If you have technically adept editor friends, you’ll want them to do a pass first, as each time you go through QC it will cost you between 800 & 1500 bucks. You will need to use their lab, but it’s best for everyone if it passes the first time.

​If you need help negotiating with sales agents or just need distribution in general, that’s what I do for a living. Check out my services using the button below.  If you want more content like this, sign up for my email list so you can get content digests by topic in your inbox once a month, plus some great film business and film marketing resources including templates, ebooks, and money-saving resources.

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How Filmmakers Can Use Community Screenings to Maximize Impact and Profits

For those of you who are unfamiliar, a community screening model is an alternate version of a theatrical where instead of booking theaters across the country.  There are so many places with high-quality sound systems across the country that it can make a lot of sense to book these secondary locations instead of spending the money to four-wall a theater.  Since we talked about what a community screening package generally includes, I thought I’d go over what it takes to book those screenings this week. 

1. Identify your Target Audience

​As stated above, community screenings are best utilized when there’s already a strong presence of your niche audience gathered around the same geographic location.  This most likely means that you’re going to need to target a niche like the Faith-Based community, the LGBT community, or some other cause-oriented community. 

The Secret utilized community screenings to great effect, as did other documentaries like Food Inc and Forks over Knives.  This tactic is most commonly utilized by documentary filmmakers, as their films tend to attract dedicated niche audiences with slightly more ease than a narrative film would.  That said, if you can build a following for yourself and your film within this niche, there’s no reason that these same sorts of tactics couldn’t work as well. ​

2. Figure out a communal gathering place for them

If your community has a regular meeting place, such as a church, rec center, yoga studio, or other area that has a large screen that can be used to show movies it can be an extremely effective place to start talking to someone about hosting a film screening. 

Even if your film isn’t a faith-based film, some unitarian churches may still be worth approaching.  The biggest downside to places like Unitarian churches, (or general use area like a rec center) is that they don’t always have the same sort of community built around them that places like churches tend to. 

3. Research those community leads lists

Once you find an example community gathering place, you’re going to want to look for similar places around whatever region you’re looking to advertise community screenings too.  I wouldn’t generally say to do a screening at more than one location per city, but since you’re not going to close every place you try, I’d consider getting 5-10 per area you want to screen in. 

​Keep in mind, You’re living in a large, sprawling city like Los Angeles or Denver.  If you are, you might want to consider holding one in different areas of the city.  For Denver, you could consider one in LoDo, one in Aurora, one in Cherry Creek, and one in Highland’s Ranch.  In LA, you could consider one in DTLA, one in Culver, one in Burbank, one in Santa Monica, and one in Westwood, etc.

4. Create a screening package

I covered this last week since this blog was likely to come out long.  Read it below:

RELATED: The 9 Essential elements of an indifilm Community Screening package.

5. Generate marketing materials

The marketing materials I’m talking about are for marketing the people who would host the community screening, not those who would attend.  The materials for those who would attend will be covered in more detail on the expansion of section 4 next week. 
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What I mean here are things like a pre-written email that you can plug some names into and send, a brochure on your film and why it would appeal to both your target audience and the people hosting it, a tiered pricing plan for your screenings that ideally start as a revenue share and go up from there.

6. Sell the community Screening package to them.

Finally, it’s time to dial for dollars and reach out to them. If possible, it will help your close rate immensely to send them the brochure in advance, but that can get a bit pricy. You can try sending a cold email, but it’s reasonably likely that you’d end up in more spam filters than would likely be helpful. I know that telemarketing isn’t fun, but it can be extremely useful in terms of actually moving these sorts of packages.

Thanks so much for reading! If all of this sounds like a lot, that’s because it is! Lucky for you, it’s also a service I offer. Check out the Guerrilla Rep Media Services page. If you’re still figuring out what the next steps are for your film, you should grab my free film business resources pack. It’s got Templates for festival brochures, distribution, tracking sheets, an investment deck template, a free ebook, a whitepaper on the economics of the film industry, and more. Also, you’ll get monthly content digests to help you grow your film business knowledge base on a manageable schedule.

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9 Essential Elements of an Independent Film Community Screening Package

If you’re making a film with an extremely niche audience, it can make A LOT of sense to consider hosting some community screenings in place of a more traditional theatrical run. While this tactic is most commonly used for documentaries that have a strong social message, it’s also a tool that can be quite effective when utilized by narrative films targeting a very well-defined niche.  Here’s what goes into the package you’ll be selling to anyone who might want to screen your film.

Essentially, what you’re selling is an event kit that includes pretty much everything that an event organizer will need to create an event around your film so both of you can make money. 

1. The rights to publicly screen the film

You can’t legally screen a film to a gathering of people without a special kind of license.   Many times, this license is more of a handshake agreement, but if you’re doing anything at scale you need a special agreement.  Since if you’re doing this effectively, it’s probably going to be something that’s replicated across many screens across the country, it’s best to plan in advance and include the full license as part of the community screening agreement.

2. Questions to facilitate conversations after the film

Most of the time, the goal of a community screening is not just to show the film, but to build community around it.  Starting a conversation around the film when it’s over can be a great way for people to begin to understand not only the film, but the other people in the community watching it.  As such, providing a list of sample questions to anyone who would be hosting the event is a great way to make sure that the community building around your film is likely to go well. 

3. Art Assets for social media

Not everyone is good at social media marketing.  I would recommend that you create a set of art assets that can be easily modified to include the host and location for each of the following.

• Facebook (general)

• Facebook (event)

• Meetup

• Instagram

If you think I missed one, leave it in the comments. ​

4. A Pricing Plan

If you want to attract good event hosts, they’ll need to know what they need to pay.  Generally, it’s best to structure this as a hard cost plus revenue share, with the potential to add consumables like DVDs to the list. If you do a Revenue Share, you need to insist that you host it through your Eventbrite. 

Another couple of add-ons you could consider is Skyping or zooming in after the screening to take questions.  You could also include the ability to fly out, but that would be a MUCH higher price point that includes travel. ​

5. Easily printable standard page size flyers in both black and white and color

You should include easily printed and customizable flyers in black and white and in color for your event hosts to put up around town and use for promotion.  You do need black and white and color separately, as color is more eye-catching but black and white is more cost effective.  These should be print-ready pdfs based on a template you created.  Here’s an example i made for a masterclass I recently did in Las Cruces, New Mexico.  (it’s a .jpb it displays in this blog.)

6. Easily printable quarter page size flyers

This is the same sort of concept as the full-page flyers but sized so they can be given out or left somewhere. 

7. A Sample Press Release/EPK

This might be the most important item on this list.  One of the biggest reasons that you want to do these screenings is to increase the profile of the film.  If you get a significant amount of local press coverage, you’ll end up getting a significant boost to your SEO.  You should also make sure you include a few quotes from you about the film, and a few images to make the job of the local reporter as easy as possible. 

8. Testimonials

You should get some quotes about your film from any notable person you can that’s seen it.  If you’re past your festival run, you should consider looking at any of the reviews you got about the project. 

9. General best practices for marketing events

Not all community organizations are great at marketing events. So, an electronic file delivery of best practices for marketing a screening like this would be very useful to them.  Having recently worked with a few arts organizations, I wish I had made a template with more detail to better get the word out and get a few more people to show up.  

Thanks so much for reading! Next week I’ll release a blog about how to actually market this package.

This is a service I provide for my clients, so if you’d like me to consider taking yours on, use our services button below. if you want more content just like this, sign up for my email list to get monthly blog digests segmented by topic as well as some great film business resources.

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How To Title a Film so it SELLS

They say don’t judge a book by its cover, so you’d think it should follow that you shouldn’t judge a film by its title.  You would think wrong.  Title is a hugely important part of your film marketing, and it should be something you think about from the very beginning, not simply as an afterthought.  So here’s how to go about creating a title that will stick.

Short

Brevity is key when it comes to titles.  You don’t want more than one or two words.  If it starts with A or a number, that can be better as some cataloging systems  in various parts of the world still primarily use Alphatical Sorting.  This is less important than it used to be, as most of the major players have algorithms that take a lot more into account when recommending a film.   Altough if you look at films from the early 2010s, you’ll notice a disproportionate amount that start with a number, A, or B.  This is why. 

The reason you want it to be short is that shot can be easier to remember, and easier to make an impact with.  This leads me to the next point.

Accurate to the film

The title of the film definitely needs to reflect the film itself, otherwise it’s not going to ring true to anyone who watches the film, which will end poorly for you.  More in the blog below

Related: The SINGLE most important thing in your Movie Marketing

Punchy

Being punchy is about being memorable.  Think about the difference between A Song of Ice and Fire and Game of Thrones.  Game of Thrones the same general intellectual property, fewer words, much more punchy and much more memorable.  Although A Song of Ice and Fire is also a thematically relevant title, Game of Thrones is much easier to latch on to. 

It’s got to be Memorable

There’s a strong chance that if you and your distributor are doing your marketing and publicity right, a potential customer will have heard of your film prior to whenever they come across the ability to watch the film.  Here are some Examples

Zombie with a Shotgun
Snakes on a Plane
Kiss Kiss Bang Bang

These are all genre examples I could think of off the top of my head, but there are lots of other things that make your title memorable. Comment some of your favorites and I might include them in the YouTube Port.

 If the title is memorable, they’re more likely to move to the next step in the independent film purchase process.  More below.

Related: The independent film purchase process

Unique (or at least highly unusual) for SEO.

​Rising above the vast amount of noise due to the glut of content created in the indiefilm world is crucial to success.  Good SEO is key to that.  If people hear about your movie, you don’t want it to be hard to find.  As such, you should be thinking about how to best differentiate yourself from the slew of content out there, and choosing an unusual title is part of that.

It doesn’t need to be unique, we’re not talking about exclusivity and trademarks here.  It does, however need to be more discoverable than a film with a title like Peter Pan that’s made multiple times every single year. ​
​
When we released The Devil’s restaurant, it was as a result of a change from “The Restaurant” primarily for SEO and memorability purposes.

Easy to spell

If people keep misspelling your title, it will make it harder to index and harder to find.   I’ll admit I’m a hypocrite on this one.  “Guerrilla” is extremely hard to spell.  That said, I made the mistake so you don’t have to, and you might see some more corrections I’m making on that soon. 

Be Careful of Double-Entendres

Titles with double meanings can be great, but if it’s not something you intended it can be extremely bad. Examples off the top of my head could be Snatch, Fire Down Below, or Free Willy. Great titles, terrible for immature jerks who blog.

Expect the title to change for the international releases

A lot of movie marketing tends to change depending on what country the film is being released in. This is especially true for the title. One film I represented came to me as Paralyitic, then was distributed internationally as Still Alive, and marketed domestically as Narco Hitman. Another was Luna De Cigarres in South America, Cicada Moon in the US (Originally), and Filthy Luck internationally.

Also, yes. Your distributor has the right to change the title. The best way to avoid them doing it is to give them no reason to.

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What is a Recoupable Expense in Independent Film Distribution?

Filmmakers Ask me about Recoupable Expenses all the time.  A lot of filmmakers think that recoupable expenses mean money they have to pay.  Except in some VERY limited circumstances, that’s not the case.

A recoupable expense is simply an expense that a distributor or sales agent fronts to your film.  Another way of looking at this is that your distributor is your last investor, as they’re putting in a zero-interest loan in the form of paying for fees and services necessary to take the film to market. Most of the time, the distributor will need to get that money back before they start paying the filmmaker.  Distributors and sales agents have businesses to run and generally put money into anywhere between 24 and 60 films every year.  Without the ability to recoup what we put in, distributors would not be able to continue to invest in new films.

Before we really get into what each type of recoupable expense is.  There are generally 2 or 3 types.  Capped, uncapped, and Uncovered Expenses.  Here’s what they mean.

Capped Expenses

These are expenses that fall into a cap that cannot be exceeded by the distributor.  It’s normally a total cap that encompasses all expenses listed in an appendix.  If the expense is listed as capped, it is generally a total cap, not an individual cap.  A lot of filmmakers ask for individual caps but most distributors won’t do that. We did at Mutiny for the sake of transparency, but probably caused more problems than it solved due to confusion around the expense system.

Generally, there’s a reserve for capped expenses that often just ends up being the total amount of the expense cap.  This should be too bad as most of the capped expenses will be spent getting the film ready to take to market. 

Examples of Capped Expenses

This is not meant to be a complete list, but it is some of the most common examples. (I did take these from my Appendix B, but I added a few.)

Key Art Generation
DVD Art Generation
DVD Menu Generation
Trailer Generation
Aggregation fees
M.O.D. Listing Fees
ISBN listing fees
Publicity fees (generally Cross Collateralized with other clients at the same stage.)
Social Media Advertising
Market Fees. 
Minimum Guarantee (If Any)

These are all parts of bringing a film to market that are largely unavoidable.  Personally, I don’t spend the money if I don’t need to.  Like, if the film has a phenomenal trailer and key art, I don’t make new key art or cut a new trailer.  As a result, I don’t charge for those expenses.  This decision is solely at the discretion of the distributor, generally speaking.   Also, this is very much the rarity. 

Market fees will often be on the recoupable expenses (They’re not on mine, but that’s another story.) However, if they are there they should definitely be cross collateralized.  No single film should bear the total cost of market fees for a slate. 

Uncapped Expenses

Uncapped expenses are exactly what they sound like they are. That said, they’re not necessarily as scary as they sound like they are, providing that you’re not dealing with a predatory sales agent or distributor. Expenses a distributor covers but are not subject to caps.  These expenses are generally things that you’d often want to go higher, as it means more sales are being made.  Look at the examples below. 

Examples of Uncapped Expenses.

Again, this is not a complete list. 

Physical Media Replication.
DCP Generation.
Errors and Omissions Insurance (as needed)
Any expense outlined in As Needed deliverables. 
4-Walled Theaters (Upon Mutual Agreement in Writing)

In order to replicate more DVDs & Blu-Rays, a distributor must be selling them.  You want them to do that.  In order to generate more DCPs the Distributor must be booking theaters, which is generally a good thing.  Errors and Omissions insurance is generally only required for large PayTV or SVOD deals (like Netflix, Hulu, Starz, Showtime, and HBO) or broadcast deals.  As such, if you need E&O you probably got a big SVOD or Broadcast deal. ​​

Related: Indiefilm Media Right Types

Regarding needed Deliverables, there are some deliverables that a re only needed in very limited circumstances like Beta Tapes, and others.  There are reasons for each of them, but they get added beyond the cap as they’re difficult to anticipate.   Here’s the relevant section of a series I wrote on distribution deliverables.  

Related: Distribution Deliverables 4/4 - As Needed Deliverables. 

Uncovered Expenses​

Uncovered expenses is generally anything not listed in the appendix, although some expenses may not be covered like the 4-Walled Theaters listed above.  These are expenses that the filmmaker may be invoiced for.  They are rare, and the filmmaker SHOULD have advance notice of them.

​Some exceptions

For a long time I thought the term “Recoupable expense” was self-explanatory, but given all the questions I’ve gotten about it, I thought I would make sure it was said completely plain. As stated right at the top, most of the time, the filmmaker is not liable for unrecouped expenses. There are two primary exceptions. The first is the uncovered expenses above, where filmmakers will be invoiced immediately. This is rare, and generally VERY transparent. If it’s not, that’s another issue.

The other exception is generally if the filmmaker tries to take the film back prior to the close of the full term of the contract while expenses remain to be recouped. That's also normally spelled out in a contract. 

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