Are digital downloads “good” for indie filmmakers? It could be the title of a panel discussion (and may well be one in the future)- it should certainly be a topic for discussion in the forums when Infinicine.com launches properly (8/8/8!).

For now, though, let’s start off the conversation with some basic pros and cons. For the sake of simplicity, I am limiting this discussion to downloads specifically, though some points may overlap with concerns and delights of streaming, VOD, or other kinds of online distribution methods.

On the good side:

• Terms of a lot of these deals seem quite favourable to filmmakers on the surface. Quite a few DL services offer up to 75% of the revenue to filmmakers and some even pay for setup, provided the filmmaker provides an appropriate master (in some cases, this is no more than a DVD).
• When filmmakers can set up deals with these companies, they offer the filmmaker a lot of control in terms of how and what materials are presented and sometimes at what price.
• Online sales can be more than just sales, they can be marketing for other ancillaries if properly managed.

Cons:

• Many of the larger, more potentially-revenue-producing sites require a catalog of 15-20 films before they are interested in discussing a deal.
• Online revenues are not in the realm of DVD revenues at this point.
• Online sales have the potential to cut into DVD sales. If an online strategy isn’t managed in a complementary way to DVD sales, there is potential for undercutting oneself.
• Online sales can be problematic for international sales and television sales- filmmakers should make sure all their higher-revenue optional are settled before doing online deals.
• Filmmakers often do not get as good terms as a distributor or agent would get on their behalf, since they don’t have as much leverage.

What do you think? There are definitely more on either side.

You might be lingering in the past, thinking that while the major blockbusters are scanned, ripped and up on every free download/streaming/torrent site you could imagine, just by virtue of demand (or lack thereof), smaller independent or foreign titles are still somewhat protected from the phenomena. I recently got schooled by a young pirate who explained that, to mix a few metaphors, the long tail has snaked deep into the booty troves of “stolen media” traders. Even fairly obscure films are to be found on the file sharing servers and P2P networks trolled by the technically savvy film consumer. For free.

There is no limit to quality, my young pirate assures me, HD files being in plentiful supply. And once one person has a file then it is only a matter of time before the file is trading hands and multiplying. This copyright meltdown might have had some upsides for musicians, who lost traction in their industry but could potentially parlay their marketing successes into revenue at live events or for merchandise (given that they were alive and able to perform). There seems to be little parallel to films that cost several million dollars to make at minimum, and (with the exception of blockbuster hits or children’s films) do not have external revenue sources beyond sales of the film at the cinema and home media.

Still, there may be a little time left for filmmakers and distributors to figure out what to do. In the independent market, filmgoers tend to be older than the average indie rock fan. The bandwidth and technology to support true high-quality downloadable film media is just emerging. But the many competitors- and especially the many struggling competitors and competitors who are trying to respect the copyright limitations within the works themselves- may make the high seas of pirated media look very attractive.

Much as with music, what seems likely to me at this moment to happen is that filmmakers themselves will find grassroots ways to make money. And some corporate interests will find a way to make money. But the “film industry”? Those are rough seas ahead.