Festivals have been a hot topic in the blogosphere as of late for their role in the distribution landscape. Recently, Jonathan Marlow of Green Cine Daily caused a bit of a stir when he suggested that festivals, which have replaced traditional theatrical as a distribution mechanism for indies and docs, start ponying up part of their ticket sales to filmmakers. AJ Schnack, DIY Filmmaker Sujewa and several others got into the fray, arguing that festivals provide benefits to filmmakers that go beyond screening fees. (It’s my opinion that this all should work on a kind of intern- paying job- mentor hierarchy in which the middle level of films, who are the most hard-hit in the current move away from independent theatrical exhibition, get fees from fests). But how many filmmakers are really even thinking about distribution at this point?

NewFest, The New York Lesbian, Gay, Bisexual, & Transgender Film Festival, is celebrating its 20th year with its 2008 festival going on now. Kyle Schickner, director of NewFest centerpiece film Steam (starring Ally Sheedy and Ruby Dee) shared some of his thoughts about distribution:

(ICI): How much thought did you put into distribution in general before you started shooting?

Kyle: One has to of course always be aware of distribution on some level, but honestly, I try to just put together a good film, something I would like to see, and figure others will respond to it as well. The problem with taking distribution into to much consideration, is you start to make decisions based more on selling the movie, and less on what serves the film best. And then what you get is “What Happens in Vegas”.

(ICI): Did you alter the way you produced the film itself in anticipation of screening it online and on mobile/portable devices?

Kyle: Sadly no. I am an analogue man in a digital world. My co-producer is always trying to get me up to speed.

(ICI): How difficult do you feel it is for independent filmmakers to access the many different marketplaces for broadband and mobile distribution?

Kyle: It is difficult for independent filmmakers to get access to ANY audience. But I think in the next 5 years, there will be a “revolution” with all the new technology (like what is happening with music) and voices that would normally not get heard, will find an audience. In many instances a huge audience. Hollywood is always a decade behind the trends.

(ICI): Do you have any concerns, hopes or positive experiences to share about digital distribution past/present/future? Do you feel like GLBT films will have an easier or more difficult time accessing an audience digitally?

Kyle: GLBT content will have a much easier time finding an audience. One of the things FenceSitter Films does is we make movies that deal with women, people of color and/or the GLBT community and unfortunately, mainstream Hollywood has always felt there these is simply not a big enough market for these films. Obviously we feel differently, and all these new outlets will prove once and for all that the GLBT community is STARVING for content and will seek it out.

Digital distribution isn’t just a quandary for filmmakers or “the industry”- politicians are worried about it too. Just how copyright law can be maintained, transformed, or judged gratuitous is something that the Congress is grappling with (though unsurprisingly, not in a very productive way).

Over at think tank Cato’s Unbound, which operates in a kind of debate format, Rasmus Fleischer has posted his argument as to why the entire Copyright law is superfluous, essentially because in the digital age, all media is so easy to copy that it is not possible to protect works from being duplicated without payment.

Though this leaves out the issue of protection of the original work entirely, even at a basic digital level it seems to me it is possible to imbue works with some kind of authorship, though it is clear that the ease of copying files makes it difficult to prevent duplication.

Technology-wise, there seems to be a plan afoot to imbue source files with a digital watermark- so that the files could still be copied but where they came from would be reflected in their DNA. While serious pirates might work to get around such marking, the average person would not probably object- especially if the cost involved was either not direct to the consumer or came as part of some kind of subscription-based plan (the days of individual-download pricing do seem numbered).

Filmmakers may not see the value in copyright anymore. As Fleischer suggests, many forward-thinking indie filmmakers are moving to a community model for distribution and making money, an “added value” experience for viewers who can participate in more than just watching a film. One problem is that without protections, other people can make money off your film too, and if their distribution network is already established, they may shut you out of your own release.

Tim Lee will be rebutting the article tomorrow at Cato Unbound. Stay tuned.

As digital distribution evolves, it seems likely that smaller operations will benefit from serving niche markets- both to concentrate sales efforts and to become more attractive to advertisers.

dGenerate is a new distribution project set to launch this summer that partners American indie producers, Chinese filmmakers, and Tribeca Film Institute and TFI’s Amazon digital distribution partnership Reframe. dGenerate head Karin Chien was kind enough to share some information about this exciting new venture.

(ICI): How did you come up with the idea for dGenerate?

Karin: Honestly, the idea came rather unexpectedly on a chilly January night in New York City, via 4 degrees of separation.

A panel at the Museum of Chinese in America (MOCA) connected me with Andrew Gluckman and Wei Wei Shannon, of People’s Architecture, who introduced me to Ou Ning, a filmmaker in Beijing, who I introduced to Alexandra Chang at NYU’s APA Studies Institute. Alexandra agreed to host a screening of one of Ou Ning’s projects, and while watching the film, I found myself blown away by its content, visuals, and production methodology. It felt to me like discovering unknown treasure, further confirmed by Ou Ning’s assurances that his film was just one of many examples of visionary filmmaking happening in China today.

So, in the time it took to walk from NYU to Andrew and Wei Wei’s apartment, I hatched the idea for dGenerate Films. It took another 9 months, however, of false starts and going at it alone to figure out that I needed a team of collaborators, and a trip to China, to properly make the thought a reality.

(ICI): How did you connect with Tribeca Film Institute and Reframe?

Karin: Through a friend of mine, Diana Williams, who sits on Renew Media’s board. (Renew recently merged with TFI).

Diana connected me with TFI’s executive director, Brian Newman, to discuss a Chinatown Film exhibition that I’m producing for MOCA. Brian and I met at Sundance about my MOCA project, and after the meeting, we boarded the same Sundance shuttle bus, where we made small talk. I happened to mention my idea for dGenerate, and Brian told me about Reframe. It immediately made sense – without Reframe’s digital delivery capacities, and non-profit mandate, distributing these films would be too difficult to attempt. Since that fateful shuttle ride, Brian and all the folks at Reframe and TFI have been hugely supportive of our efforts.

(ICI): Do you feel that Asian films have any particular advantage in the VOD/digital marketplace?

Karin: I think the VOD/digital marketplace is set up to serve niche markets in particular. At least right now. I wouldn’t say Asian films have an advantage. But I can say that without digital delivery, dGenerate would not be happening.

Besides Reframe, a number of VOD, streaming and download sites have already asked to license our content. What might also be a factor is that no other American distributor is dedicated to sourcing and distributing independent Chinese films.

(ICI): What will be your strategy for marketing films that haven’t had the benefit of a theatrical release here? Do you think people are very invested in the review system of meritizing films?

Karin: Our marketing strategy is based on our target audience. Which for now is the educational market. As a way to get to know our audience, and to introduce these films to them, we are conducting informational meetings with top scholars and academics across disciplines, as well as listening to the needs of programmers and curators of cultural institutions. We will have a full arsenal of traditional marketing tools as well: trailers, postcards, catalogues, newsletters, conference attendance, and a multimedia website.

But given that we are a company invested in digital delivery, the online space is an important one for us. We are planning to create what I call “intellectual networking,” as opposed to review-driven marketing. Our site will be a place where scholars, critics, curators, programmers, etc can contribute critical content about our films, as well as thoughts about independent Chinese cinema. Critical content will include essays and blog entries but also podcasts and video essays, which point to new ways of consuming film criticism. “Intellectual networking” will give our target audience a way to understand the films through the words of their peers.

(ICI): What kind of technical challenges are there for this type of distribution?

Karin: Formats differ across countries, but Reframe is able to digest almost any type of video or print master, which makes our technical challenges quite small. The main challenges of this type of distribution are not technical, I would say.

(ICI): What, for you, is the most exciting aspect of this type of distribution?

Karin: The films. I wouldn’t be doing this if I didn’t think some incredibly exciting things were happening in independent Chinese cinema. Also, as a Chinese-American, I’m personally invested in disseminating diverse perspectives from inside China. Nearly all documentaries, for example, that American audiences see about mainland China are not made by mainland Chinese filmmakers.

(ICI): When/how can we expect to see dGenerate films available for VOD or download?

Karin: We plan to launch in August 2008, in preparation for the academic calendar. Films will be available for educational DVD or download-to-rent for the public by September.

We have been approached by VOD outlets, but are still in talks. No launch date for VOD yet.

As we’ve moved increasingly into mobile technologies, English teachers have been aghast at the trend of shorter, even micro communiques with questionable spelling and grammar that have all but made the elegant postal letter obsolete.

Cinema studies grads may be the next to gasp. If When the Internet and Film Collide is the guide to the new film ouvre, ‘mobile cinema’ looks a lot like what we formerly called a “promo clip”. On mobile, attention spans are short and pixels are few. Even on laptops with giant 14″ screens, on services such as MySpace or YouTube, viewers prefer a film to be 2-3 minutes long. While technically the panel focused on a number of episodic videos (which function more like TV than film), certain challenges were shared by all the filmmakers.

Much of what was discussed was stuff you’ve heard a few times before: it’s unclear how to monetize the films (even in the shorter length); it’s hard to see how making these films will translate into future funding for filmmakers. Some of the evening’s participants were promoting their films in every available venue, from affinity partnerships to chatrooms, while others seemed content to simply make and post their content on the cheap and smile gratefully if anyone bothers to notice.

Unsurprisingly, the most developed ideas of the evening came from The Last Broadcast director and Workbook Project founder Lance Weiler. Discussing a project he had helped develop for Hammer Films called Beyond the Rave, an episodic Vampire-related series that broadcast on MySpace. In order to create stickiness for the shows, Weiler created a game that compelled viewers to find clues within the episodes (including links to other MySpace content and other sites) with the result of game-players watching episodes multiple times to get all the key info.

This strategy is one that could easily be employed by any filmmaker or content deliverer- it would not need to be particularly high-tech (inserting an individual frame with links or clues does not impair the viewing experience) and would likely have at least some resonance with viewers if there were the right reward (case-specific, naturally).

I’ll be heading to the Where Film and Internet Collide event tonight at IFC Center and to the follow-up at the Apple Store SoHo on Sunday 6/8. In anticipation, or in case you can’t make it, here’s a survey of some recent panels and discussions on the topic:

The Future of Cinema panel at Cannes 08, May 21, 2008
Gaurav Dhillon (Jaman Founder), Wayne Clarkson (Telefilm Canada Executive Director), Elliot Kotek (Moving Pictures Magazine), Marc Halperins: (Magic Lamp Releasing CEO Founder), Git Scheynius: (Director Stockholm Film Festival), Ana Serrano: (Director of CFC Media Lab @Canadian Film Centre), Bruno Chatelin: (filmfestivals.com fest21.com co-founder), Wolf Siegert, PhD. (Director of IRIS® Media – live from CeBIT Australia)

A couple of Sundance 08 podcasts:
Rights Licensing in the New Era of Distribution (m4a)
Going It Alone: Digital Distribution for the Indie Filmmaker (m4a)

And from SXSW08:
The Real Dragon: Understanding the Web and Digital Media in China (mp3)

Unraveling Independent Film Distribution, American Cinematheque, December 4, 2007
Bob Aaronson (Red Envelope Entertainment (REE), a Netflix Company), Gary Garfinkel (Senior Vice President – Content Strategy & Acquisition, Showtime Networks), Barry Schuler (Managing Director, DFJ Growth, Former Chairman & CEO, AOL, Inc.), David Shultz (President, Vitagraph Films LLC (Theatrical), Ted Sarandos (Chief Content Officer, Netflix) Mike McClellan (VP Film Buyer for Landmark Theaters Corp), with moderator Margot Gerber (American Cinematheque PR Director).

Cinecity Podcast: Cineville-Online Distribution, November 27, 2007 (mp3)
Brits Andrew Sparrow (New Media Lawyer and Author of Film & Television Distribution & The Internet: A Legal Guide For The Media Industry), Tracey Gardiner (Fulcrum TV and Producer of SURVEILLANCE), Heather Millard (Film Sales & Distribution, Spier Films) and Marie Foulston (Online Co-ordinator, Soda Pictures) with Screen South‘s Miranda Robinson moderating.

Power to the Pixel: Adventures in Self-distribution, October 26, 2007
Lance Weiler (Director, Head Trauma), Jeremy Nathan (DV8), Matt Hanson (A Swarm of Angels), Arin Crumley and Susan Buice (4 Eyed Monsters) and moderated by Liz Rosenthal.

Updates from around the nets:

Time Warner Cable has created tiered broadband pricing. After 40G of downloads, you will pay extra. An alternative perhaps to net-favouritism strategies like slowing traffic, the plan may impinge the flow of BitTorrent and other piracy-laden file sharing methods. On the other hand, coming just at a time when the market for media online is about to break, the strategy could have retarding consequences. But won’t some other company just come along and offer unlimited access and grab TW’s customer base? I guess they aren’t worried.

Netflix expects to double their subscriber base in the next 10 years, with streaming leading the way- clearly this is the service customers desire. But will this model produce revenue for filmmakers? If Netflix can own serious marketshare (and they are making good inroads) the key will be in the contracts.

Hot on the heels of Netflix’s Roku set-top box release comes the Verismo Box, which allows users to show downloaded content directly on a TV without any computer required. Not only can users watch YouTube, Amazon Unbox, and CinemaNow, but any other media they download from BitTorrent- making it a potential Pirate’s Apple TV.

Of course, soon the kids will just make their own boxes.

Apple announced today that its iTunes store would finally be reaching the key market of Canada, to go along with its other recent conquests in the U.K.. Meanwhile, debate rages on in my homeland about Bell and Rogers’ attempts to throttle P2P sharing of copyrighted files, while the legality of such sharing remains ambiguous. And Hollywood, who can no longer tolerate Canada even for service work now that the loony is so strong, blames Canadians for up to 50% of feature film internet piracy (the worst offenders are in Montreal, naturally- those libertines!)

In the new economies of internet trade (where the products are nothing if not ephemeral), a tiny market like Canada’s can suddenly make an outsized difference- if what they are doing is not paying for what we know as ‘products’, sharing media, and then sending it all out to the rest of the world. There is a butterfly-wing result- Canadians may be few in number, but they are affluent enough to access the latest technologies as well as positioned to influence their neighbors to the south. Canadian media producers are used to not making money. The government itself may end up helping to drive this effort.

Though statistics might suggest that Americans are just not terribly interested in watching movies on their telephones (Nielsen put the numbers for mobile video penetration at 3% in 2007), there may be some rather drastic changes on the horizon. Not only are more companies creating content specifically for mobile devices, more, like Sony, are targeting the full-length movie audience.

What’s more, on June 9, Steve Jobs is set to announce a new iPhone- and if rumours prove true, this one will be a significant step up from the first model as well as a lot cheaper. While many people may be reluctant to attempt a full-length movie viewing on a tiny cell screen, on a lovely widescreen iPhone it will be a no-brainer. And the host of inevitable copycat devices will mean even more thorough penetration.

Mobile delivery is more complicated for the independent filmmaker than broadband- the gatekeepers are currently a little more reluctant to open up to the floods. There will no doubt emerge easy workarounds so that users can upload whatever appropriately formatted files they wish (much as with ringtones or other mobile files), but the ease of obtaining films from a provider will be hard to compete with. Filmmakers may need to work cooperatively to make sure their mobile files are also easy to obtain and centralized. In this case, it’s pretty easy to imagine the economics heading towards free for the consumer- ad revenue might be the best model, though a subscription service might have some initial traction before competition becomes too fierce.