Distributing Your Film

Distribution answers the question, How will your audience get to see your movie? It is the physical and technical process of getting a movie from its original film negative or hard drive to its audience. Your audience cannot see your movie unless it is distributed to them. In the past decade, new forms of distribution have emerged while traditional models have transformed. This is both good and bad news for filmmakers: it has never been easier to put your film in front of an audience, and it has never been harder to get an audience to watch and pay for it. We’ll start with a general overview of how distribution works and look at ways you can distribute movies yourself.

image WATCH YOUR TRAILERS

Studio distribution executives typically go to theaters where a film’s trailer is playing to see how the audience reacts. If the trailer doesn’t play well, they’ll make a change. Also, exhibitors sometimes promise to play a trailer but don’t; executives need to be on their toes to make sure exhibitors honor their agreements, sometimes employing “checking services” that do just that.

Distribution Basics

Once upon a time, there were two categories of distribution: theatrical (into movie theaters) and in-home entertainment, which includes physical media such as Blu-ray discs, DVDs, and television. Then, after YouTube launched in 2005, technology evolved and media converged with online and mobile devices, and the traditional model changed. People can now watch films when and where they want, on their computers, game consoles, tablets, or phones through netcasting, podcasting, or streaming from public sites like YouTube and Vimeo.

In today’s world, where devices are becoming interchangeable, some home screens can look almost as good as theater screens, and audiences want movies the way they want them, film distributors are shifting their model away from a focus on the places you can see a movie to strategic approaches toward the ways you can make money from a movie.

It’s worth noting that getting money for a movie is generally possible only if the film is feature length; there is little commercial market for short films. Although there are many ways to experience a feature film, there are really only four ways to make money from it; after all, selling the movie is the most important aspect of the business of filmmaking. Again, it’s important not to let technology—the means or the device through which you experience a film—get confused with how you might make money from it. The technologies keep changing, but the selling principles remain constant. Here are the four ways to sell a movie:

  1. You can rent your movie. When you buy a theater ticket, you are “renting” the seat in the theater. You are also renting a movie when you get it from a physical rental source for a few days, watch it on an airplane or in a hotel, purchase it on your TV for streaming video-on-demand (VOD), or rent it from the iTunes store.
  2. You can sell your movie. People can buy movies on DVDs, or via digital downloads and cloud lockboxes. Movies can also be bought from the iTunes store for about double their rental price. These films never need to be returned; the purchaser owns them forever.
  3. You can let audiences see your movie for free and collect advertising money. Advertising-supported platforms include basic cable and free television, Hulu, and YouTube. Filmmakers can make money from advertising-supported free screenings; for example, several thousand people have made more than $10,000 from their share of YouTube advertising on their channels. Sponsored screenings, in which a company or foundation pays for a screening, is another way films can make money even when the audience sees them for free. The Corporation for Public Broadcasting, or PBS, has been doing this successfully for decades.
  4. You can offer your movie on subscription. This can be done through premium cable, such as Showtime or HBO, or via Netflix, Hulu Plus, iTunes, or Amazon Prime.

As you can see, when you sell your movie, you’ll use one or more technologies to get it to your audience. An audience member might see a movie on a mobile phone for free (if it is sponsored), for pay (if it is a digital download), or for rent (if it is being streamed for a one-time-viewing fee), or pay for it multiple times to access it in different venues and formats.

Distribution takes into account all of these factors and seeks to share a movie with its audience for the maximum amount of money possible. Studios and independent distributors have well-worn mechanisms for doing this. But what if you need to do it yourself?

DIY Distribution

There are far more movies made than get any form of distribution. For example, at the 2015 Sundance Film Festival—a bellwether of independent cinema—4,105 full-length, completed films were submitted. Of these, 118 were screened as part of the festival. Perhaps 100 will get distribution. What happened to the other 3,987 movies? For most of them, nothing: no DVD sales, no Netflix, no cable TV. This sad squandering of creative capital also represents an incredible loss of financial resources; we estimate more than $3 billion a year is spent on movies that get no distribution whatsoever.

The alternative is DIY distribution—doing it yourself. Increasingly, independent filmmakers are not waiting for deals with distribution companies or agents but are pioneering ways of getting movies in front of audiences, most frequently by using online and mobile distribution techniques. Often the first step is to decide how you are going to sell—get money for—your movie. Although there are four possible ways to do it (see above), you only have three realistic options. Your choices are to rent it, sell it, or offer it to audiences for free with advertising or sponsorship support; you won’t be able to sell it on subscription since you likely have only one movie to offer up.

image ANALYTICS

If your movie is premiering online, make sure you have analytic tools installed on the download website so that you can track how many people are visiting the site, as well how they are finding it—through direct searches, social media, or recommendations from friends or other sites. This information will help you refine and improve your distribution and marketing strategies.

If you are going to sell your film, you can do so via digital download or DVD. DVDs can be burned on your computer, or you can get them commercially produced for as little as $1 each. If you want to offer your film as a paid digital download, there are several emerging websites that will encode and host your film, and even let you set the purchase or rental price for your customers for either a monthly fee or a percentage of your sales income. Amazon.com also offers a service in which they will sell your movie for VOD or on DVD for a percentage of sales. Because the opportunities for this kind of distribution are expanding daily, we recommend you research the possibilities yourself and find the solution that will best meet your needs.

You can also do it yourself by creating a website with e-commerce capability, which allows customers to pay with PayPal or a credit card. (PayPal accounts are free, although they charge a small percentage of each sale; you can easily set them up online.) You will need video hosting, which may be available from your school or inexpensively through Google, Amazon, or other providers.

If you are planning to rent your film, that means you want a good old-fashioned theatrical release. Go for it! Nothing is as impactful as a movie on the big screen with a large live audience enjoying a shared experience. You should approach any venue that has a screen—a museum, a civic center, a gallery, an auditorium in a business center, a place of worship—and don’t be afraid to try regular movie theaters, too. Smaller theaters often like to support local filmmakers, and many of the larger theater chains are beginning to offer similar arrangements, especially if you plan to screen on an evening when there is not much business, like Mondays or Tuesdays. Based on some initial success, you may be able to arrange more screenings. If you have some budget, you can actually rent the theater exclusively for your screening, a practice called four-walling. When you four-wall a theater, you get to keep all the box office income, so you may be able to cover your costs if you sell enough tickets.

If you want to offer your film for free, two common solutions are YouTube and Vimeo. Vimeo is a more respectful community that does not have advertisements, but it does offer a “tip jar” for filmmakers. The video quality on Vimeo is better than that on YouTube; you can preserve your aspect ratio and more easily choose your starting frame. You can also keep your copyright on Vimeo, and you have more control over who sees your movie, as opposed to YouTube, where you give up more rights and control. In addition, there are newer sites that offer similar services. Because video-uploading opportunities are expanding, do some research to determine which site will be the best fit for your movie. But remember: always read the site’s terms and conditions before uploading your film anywhere.

To upload a movie, simply create a free account and follow the directions. If the site allows, you should make a new channel for yourself or for your film—this is also free. If the film is longer than a single permitted upload, you will need to split it into two or more parts; title these Part 1, Part 2, and so on. After you upload your film, the service will process your video so that it is web-ready—meaning that it will play on web and mobile devices—and after several minutes, it will appear on your channel. At that point, your video is actually being hosted by the site, which means it “lives” there, and when someone watches it, your film will be streamed, or sent through the Internet in real time, to his or her viewing device.

In some cases, you may also be able to offer your film to a local television station or to a cable broadcaster that provides public-access airtime. Alternatively, your school may have its own television station or online channel. If any of these opportunities are available to you, contact the appropriate person and ask about requirements; every station or channel will have its unique process for submission.

No matter what form of distribution and sales you have chosen, get the word out. Move your publicity and marketing machine into high gear, and start building up excitement for opening night!

Festivals

Even if you distribute your film on your own, you may still opt to submit it to a film festival—an organized, curated presentation of movies. Although some festivals occur online, most take place in physical locations and last anywhere from one weekend to two weeks. There are more than 8,000 film festivals worldwide, specializing in everything from new films by local directors to animation, shorts, and any form of video expression imaginable, including the ultimate in independent film creation: the iPhone Film Festival (www.iphoneff.com). If you’re looking to get some attention for your movie, consider achieving festival recognition.

image MANAGE YOUR SUBMISSIONS

The best resources for applying to festivals are the websites Withoutabox (www.withoutabox.com) and FilmFreeway (filmfreeway.com). These free services provide submission information for more than 6,000 festivals, allowing you to keep track of application requirements, deadlines, and fees.

Distribution Rights

image

A film is sold to a distribution company by a sales agent, representing the producers or financiers. Through negotiation, the sales agent and the distribution company agree on contract terms. Following are the components of a distribution deal for an independent movie:

  • image Minimum guarantee. This is cash that the distributor pays up front for the film. If the movie does not make any additional money, this is the amount you will actually get. The minimum guarantee can range from zero to millions of dollars. Indie films often sell in the $20,000–$100,000 range.
  • image P&A and release commitment. Sometimes the distribution company will commit to spending a minimum amount of P&A (marketing) money to support an advertising campaign. The distributor may also agree to release the film in a minimum number of theaters or cities or to release a minimum number of prints. This promise protects a filmmaker who wants to make sure the movie gets a wide enough release and ample marketing support; however, P&A and a release commitment are rarely volunteered by the distribution company unless they are in a bidding war with other companies that also want the movie.
  • image Rights granted. The distribution company will seek all rights to exploit the film in all media and with all technologies “now known or hereafter devised.” The company will also get remake and sequel rights, as well as the right to be involved if your movie should ever become a TV series, although in these cases the filmmaker usually gets additional compensation.
  • image Territories. The rights will be sold by territory (a territory is a specific country or part of the world). Sometimes a distributor buys worldwide rights; other times, the distributor buys rights for the United States and Canada or all English-speaking countries. Selling territory rights is often subject to some negotiation, because the sales agent may feel it is possible to get more money in aggregate by selling the rights to different distributors in different countries.
  • image Distribution fee. The distributor will charge a fee for distributing the movie. This may range from 15% to 30% or more. This is money that will come off the top, after P&A costs have been recovered.
  • image Length of term. Typical distribution deals last for 20 or 25 years; in other words, 25 years from now, you could get the rights back. Distributors will often require additional 5- or 10-year extensions if they have not recouped their entire investment at the end of the initial term.
  • image Final cut. The distributor will often have the right to cut or change your movie in any way it wants, unless your last name is Eastwood or Spielberg.

image GET REPPED

If you get into a major festival, you may choose to work with a producer’s rep, who is experienced at guiding young filmmakers through the festival process and negotiating distribution deals. Before you agree to work with a producer’s rep (or anyone else), make sure you read the contract carefully, understand it fully, and have your lawyer go over it.

At first, getting distribution rights may make it seem as if there is a lot of money flowing toward a movie, but by the time the money reaches the filmmaker, it will only be a trickle. Waterfall is a term for what happens to the money. Imagine water cascading over a rocky waterfall. At the top, there is a lot of water, but as it passes over the rocks, little by little the water splashes away. At the bottom of the waterfall, there is less water than before. The typical money sequence is as follows:

  • image The film’s producers or financiers advance the cost of making the movie, sometimes by preselling distribution rights.
  • image If the movie sells, the film’s producers get the minimum guarantee. This is often less than the cost of making the movie.
  • image The distributor markets the film, advancing money for prints and ads and spending administrative money for booking theaters and its own business operations.
  • image Tickets sell. The distributor gets 40–45% of the sales price.
  • image The distributor pays itself back for its marketing costs.
  • image The distributor takes its distribution fee.
  • image What’s left over, if anything, gets split 50/50 between the distributor and the film’s producers—unless a big-name star or director is higher up the waterfall.

image FINDING A FESTIVAL

Identify three festivals that might be good places to enter your class project. Make sure your film follows the submission guidelines—that it falls within the appropriate genre, is the right length, and meets other qualifications to be acceptable. What are the deadlines? What would you need to put together for your submission package? How much would it cost?

Of course, the number of festivals is daunting; almost 100 of them can qualify you for a shot at an Academy Award. But be aware that if you ever want your film to be considered for an Academy Award, especially a short film, the Academy’s rules generally specify that the film must be shown theatrically before any other nontheatrical distribution method. Therefore, let’s divide the festivals into categories. There are the large festivals you have probably heard of, like Sundance and Cannes. These prestigious festivals are also film markets—places where filmmakers and international distributors meet to make deals on movies that are currently being made or are already completed (see Business Smarts: Distribution Rights).

It is hard, though not impossible, to get into large festivals, so you should also explore smaller, more local festivals. (You may want to be a large fish in a small pond, after all.) Smaller festivals, and the avid audiences that attend them, love discovering new filmmakers and forging the filmmaker-audience bond. These festivals take their application process and curatorial role seriously.

Most film festivals require a processing fee of $10–100 for each entry; plus, you will need to bear the cost of sending your application materials. Some festivals will watch your movie online, whereas others will ask you to send a DVD (which also costs money). It’s best to be judicious and only apply to the festivals you’re really interested in attending or those that target the subject matter of your film, as these costs can add up (see Action Steps: Entering a Film Festival, below).

image QUALIFY!

Entering your film in and winning certain festivals qualifies your film for consideration as an Academy Award nominee. Think it can’t happen? Check out the 2007 Academy Award–winning short film West Bank Story by director Ari Sandel. Begun as a student film, it was entered in 112 festivals and won 25 before achieving Oscar gold in the Live Action Short Film category.1

ACTION STEPS

Entering a Film Festival

Following are some tips to keep in mind when selecting festivals for your film:

  1. image Before you finish your movie, start researching festivals, noting their deadlines, categories, and fees. Many festivals have a series of deadlines, from early bird to late, and the fees increase along the way. If you plan your schedule carefully and submit early, you may be able to enter twice as many festivals for the same amount of money.
  2. image Know the rules. Some festivals will want to be the first to screen your movie, whereas others won’t have such limitations. All festivals have specific rules about application forms, length and format of entries, and other submission requirements.
  3. image Decide what matters to you in a festival. Do you need something nearby, or are you able to travel? Are you hoping for a distribution deal, in which case you’ll seek out festivals that film buyers attend, or are you just looking for an appreciative audience? Do not overlook less famous festivals, as they often get fewer submissions. You should also consider niche-interest festivals, since your film may find greater acceptance there; for example, some festivals cater to movies shot in particular locales, and others focus on films with specific themes or genres. A festival’s website is a good place to gather this information; you can also see how many screenings each film gets, and what movies won in prior years.
  4. image Consider entering at least one qualifying festival for the Academy Awards. If it is a student film, think about submitting it to the Student Academy Award competition. (The Student Academy Awards—which are different from the televised Academy Awards—are also administered by the Academy; you need to check the rules carefully if you are interested.) Remember that if your film appears on television or on the Internet before it is screened in a theater, it cannot qualify for the Academy Awards; it is perfectly acceptable, however, for it to screen at festivals. Those rules are in flux given the fundamental shifts in distribution. It is advisable that you check each year’s Academy Award rules at www.oscars.org/oscars/rules-eligibility.
  5. image Apply early. Send in your film and other materials as soon as you can, along with the application fee if there is one.
  6. image Try to develop a relationship with the curator or selection personnel. Although some will rebuff applicants, most enjoy the personal contact.
  7. image If you get into the festival, congratulations! As Woody Allen has said, “Ninety percent of life is just showing up.” Go to the festival!
  8. image When you’re there, remember you are at the festival to grow as an artist, not to party. Enjoy yourself, but also enjoy being a member of the filmmaking tribe. Meet other filmmakers. Meet the audiences, and learn from their responses to your work. Meet distributors and film producers. If you’re a filmmaker, you may find the producer for your next movie; and if you are a producer with a film in the festival, every contact you make is part of your marketing strategy. Build relationships! Build relationships! Build relationships!
  9. image Have all of your collateral material at the ready. This includes a good online presence and a trailer for your movie (in case a potential distributor asks, “How would you market it?”), a press release about the movie, and biographical information about yourself.
  10. image If your film is well received, ask the festival director about other festivals that may like it, too. Film festival directors communicate with one another, and a single film can play in many festivals.