A video made for THE MAIN EVENT: Finding YOUR Audience, a panel I moderated at SXSW. Thom Powers, founder of the fantastic NYC doc series Stranger Than Fiction and doc programmer for TIFF, shares a few tips with filmmakers hoping to capture some of STF’s success for their own releases.
Thom Powers on making a doc screening a success from Laure X on Vimeo.
I met Danielle DiGiacomo of IndiePix at Sundance a couple of years ago and since then have enjoyed working with her on a couple of different things- my company will be distributing a film she associate produced, and we both screened films for the Tribeca Gucci Documentary Fund with IndiePix Studio‘s incoming head Ryan Harrington. She is an insightful and dedicated documentary lover with a unique perspective on digital distribution.
[I]nfinicine: What made you interested in working with an online video market like IndiePix? Was it just the films or were you a techie type?
Danielle DiGiacomo [DD]: Although I was more proficient at say, recording 90210 episodes onto videotape than my mother, I would never dare to call myself a “techie.” I fell into IndiePix because of the serendipitous meeting (through my great friend and head of Narrative Acquisitions, Jordan Mattos) of IndiePix visionary Bob Alexander, the need for a job, my love of independent film, commitment to documentary, and a rapidly shifting industry that allowed a small, flexible company to meet previous unfulfilled needs of independent filmmakers.
[I]: What do predict for the future for indie filmmakers in terms of distribution options? Do you think there will still be theatrical options or will things be mostly online?
[DD]: I think there will always be room for theatrical, but I think studios and filmmakers have to start being more strategic about it. I don’t think the blanket strategy of marketing all independent films the same way is working anymore; even mini-majors need to shift their thinking about getting an audience into the cinema.
That said, I think that filmmakers are waking up to the fact that, despite its cache, theatrical is not only a money-loser but also not the way to attract the biggest audience possible. Theatrical has never been viable for more than a thimble-full of independent filmmakers. So, yes, I think theatrical will always be there, but more and more films will roll out theatrically in a different way (for example, day-and-date models). No one can predict the exact future of what will take off online and which models will be the most financially viable, but something will surely take off.
[I]: How technically adept are most of the filmmakers you work with at IndiePix at this point in time? Can you talk about the challenges filmmakers have with negotiating technology?
[DD]: Everyone is different, but I don’t think it’s that hard to be technologically savvy. 98% of the people I know have either an iPod or an iPhone, and most online technology is relatively user-friendly for people of our generation — particularly people who shoot on HD Cameras and edit on Final Cut Pro. What I do see a broad range in is the level of business and self-marketing strategy that filmmakers have. There is a spectrum ranging from super-savvy (think the 4 Eyed Monsters and their mastering of viral marketing, podcasts, MySpace, etc.) to nearly clueless (those filmmakers who never thought of where their film would possibly end up after the final cut). We have some filmmakers who have done loads of leg work promoting their films through the Internet, and know about every online or viral service available. It really is a full time job keeping up, but independent filmmakers absolute HAVE to think about their potential audience and distribution/marketing strategy even while in development stages.
[I]: What has been the evolution for IndiePix so far in terms of the way it tries to sell films and what do you see as the future strategy?
[DD]: IndiePix has evolved and expanded rapidly in the past three years. After starting out as a catalog with a Download-to-Own capability, we rapidly expanded to distributing exclusive DVDs on our website, and since then, have opened up channels in the retail, brick-and-mortar markets, and have even started doing some small theatrical and international television sales. We also have cemented a strategic partnership with the Cinema Guild to handle the educational market.
Recently, we launched IndiePix Studios, which will be under the direction of Ryan Harrington (formerly of A&E IndieFilms and Tribeca Gucci Fund). This will serve as one-stop shop for filmmakers. Each film is different and requires different focus and distribution strategies. We try to have very personal relationships with the filmmakers to make sure we maximize the possibilities for their particular film and capitalize on our mutual resources.
[I]: What advice would you give a filmmaker who is just beginning their project in terms of thinking about digital sales?
[DD]: Keep your digital rights or give them to IndiePix :). Seriously though, if you do give away your digital rights, give them to a company you can really trust, and for no longer than 3 years at a time. Do your research and talk to other independent filmmakers about their experiences. And attend as many panels and receptions as you can. Knowledge is power, and it is helpful to have honest advisors in the community.
The D-Word is an essential resource for documentary film folks- an online community of filmmakers, writers, and broadcast/distribution types. Doug Block, the founder and co-host of the site, is an experienced filmmaker whose breakout film 51 BIRCH STREET, a personal documentary about family relationships, benefited from a grassroots marketing campaign that included utilizing the internet. Infinicine asked him about the transitioning state of distribution for documentarians.
[I]nfinicine: In your experience, are independent filmmakers making a transition to online forms of distribution? Are streaming and/or downloading viable revenue sources for a filmmaker who has essentially self-financed their film?
Doug Block [DB]: Like it or not, I think indie filmmakers are being forced to make a transition towards online distribution, but so far it’s mostly taken the form of promotion and self-distribution of dvds. Streaming and downloading of feature-length films just doesn’t seem viable until it can go right to your tv set rather than your computer monitor, and it’s not quite there yet. And even if it were, there’s the issue of how to make your film stand out from all the rest, which we’ve traditionally done via a theatrical release. So for now we’re talking mainly about shorts and serialized content driven by ad revenue, which is a pretty interesting concept with some real artistic potential from a filmmaker standpoint, but it’s just not the same thing as making a feature intended for a live audience.
Personally, I’ve long been excited about the potential of online distribution. Back in 1999, my documentary Home Page was the first feature film ever to be streamed for free and sold on home video online at the same time it opened theatrically — talk about day-and-date! I learned the hard way that it’s not always lucrative being a pioneer (especially when you don’t have a marketing budget), but it was a fun experiment.
It’s almost a decade later, and if any indie filmmakers are making gobs of money streaming or downloading their feature film I’m not aware of it. All the business “models” I’ve seen so far are models for the businesses but not for the artists. I’m sitting back and waiting for a wave of filmmaker success stories before I’ll go ahead and call anything a legitimate model for online distribution.
[I]: How does a network like the D-Word facilitate distribution channels for independent filmmakers?
[DB]: We’re basically a free online discussion forum for documentary professionals and enthusiasts from all over the world (over 4,000 members from 80 countries, currently). We don’t facilitate distribution channels for doc filmmakers; we facilitate discussion about distribution channels. Lots and lots of discussion. That said it’s always been part of our long-term plan to have our member’s work go online, both as a way to promote it and to facilitate collaboration across geographical boundaries. And we’re very close to getting there.
We’ve been approached by any number of online distribution/exhibition entities over the years, many claiming they want to be the main online portal for documentaries. Being able to bring a thriving, ready-made community of people who work in the documentary field, or just love seeing docs, is an incredibly valuable thing to bring to the plate. If you don’t believe me, just look at all the attempts that have been made at building film community online that haven’t taken off. It takes a ton of time and energy and passion, and we have a 9-year head start. So far we haven’t found the right match, but we’re certainly open to someone who recognizes the value in what we’re doing and is willing to make us part of their business plan.
[I]: How can filmmakers negotiate the various markets and content delivery companies and know when they are getting a good deal?
[DB]: It’s very difficult because it’s hard to predict how well the online market will do over time, it’s still very early. Is having a 50/50 split of advertising revenue a good deal? It sounds like one, but there’s no way of telling in advance how much advertising your film will generate and how much revenue that will ultimately bring in. And I don’t see any companies offering sizable minimum guarantees in the way that theatrical distributors often do. It’s obviously important to keep VOD rights if you can, they’re becoming increasingly valuable. But again it’s hard to quantify just what that value is. It’s more about keeping your distribution options open until things between home video companies like NetFlix, online distributors and broadcasters shake out.
In general, you want to either fully retain your online rights or have them be as non-exclusive as possible. That way you can have a number of online companies working with you while doing your own DIY distribution. Until downloading really becomes viable, dvd sales are still the main online revenue stream for indie and doc filmmakers. So it’s always good if a filmmaker can get some kind of theatrical or tv distribution and still retain dvd rights. And a good online deal would allow the filmmaker to get a link from wherever their film will be downloaded directly to a site — preferably their own — selling their dvds.
[I]: Can a filmmaker today “just a filmmaker” or is it necessary for them to develop fundraising, networking, producing and distribution skills?
[DB]: It’s always been necessary for indie filmmakers to develop those other skills. And it’s probably more important now than ever. But in the end, it all comes back to the fact that the best way to get your film distributed and seen is to make the very best movie you possibly can. So maybe the most important quality to develop these days is focus. To know when it’s time to do all that other stuff and when it’s time to shut out the distractions and make the film.
[I]: How has your personal experience changed as far as your engagement with digital distribution, both online and in theatres or other public venues?
[DB]: I’m very aware of the need for audience building early on and at the grassroots level, and that’s something that can be done very effectively online. From the moment you start a film, it’s hugely important to collect the email addresses of everyone who’s ever shown any interest in your work, your film or your subject. And to keep in communication with your growing email list as the project develops. There’s a lot of potential in online fundraising, which is something I’m currently exploring. Even if you don’t raise a lot of money in total you want to collect a lot of donations, for each person who donates is now invested in your film, which will pay off many times over in getting the word out about the film when it’s done.
I also love that we don’t have to deal with film prints any more. 51 Birch Street played theatrically in over 60 cities and all of it was done through digital cinema. The cost savings were so profound that we managed to actually make money on our theatrical release. Not a huge amount, but then the main idea with theatrical is to somehow cut through the clutter of films and get it on people’s radar without losing your shirt.
[I]: Do you feel things are “good” for filmmakers now? Why/why not?
[DB]: It’s certainly a great time for beginning and ultra low-budget filmmakers because the cost of shooting and editing films can be so ultra low. And there are lots of options for getting your work seen online, especially if you’re more interested in having a calling card than in making a lot of money back.
But for established indie filmmakers who work at higher budget levels it’s pretty tough going because of the economy and the seismic shake-up in traditional distribution. It’s very hard to show investors how they’re going to recoup their money, especially when there’s so much “product” out there and distribution companies are folding left and right. It’s all well and good to talk about the potential of downloads and streams, but it’s hard to back that up with realistic projections. So it takes a greater leap of faith on everybody’s part.
In the end, the truly committed filmmaker will always find a way to make his or her film. This is a funny business. You need to be aware of everything that’s going on, but you kind of need to have blinders on, as well.
Indiepix has gone in a few directions over the last couple of years. The latest is a partnership with SnagFilms, Ted Leonsis‘s widget-based monetized documentary player and a production end, Indiepix Studios. They are also staffed by very dedicated, delightful young people.
[I]nfinicine: What services are offered on your site?
[IP] Indiepix:
DVD Sale
Download to own
Download to disc
[I]: What is the structure of the deal, i.e. flat fee, percentage of sale, ad revenue, etc. Provide terms if possible.
[IP]: We do not give advances, but we do all the design, production, manufacturing and marketing. The filmmaker receives a flat 60% of all the revenue.
[I]: Does your service sell into all territories?
[IP]: Yes, it does. It depends on which ones the filmmaker(s) opt for.
[I]: How many people visit the site? How many are “members”? How many sales on average per title? What are the top-selling titles?
[IP]: Top-selling titles are SENTENCED HOME, COCAINE ANGEL, THE HOLE STORY, OFF THE GRID
120K visitors, 30K members. It is hard to say an average, sales range from hundreds to tens of thousands.
[I]: What is the marketing strategy for the site? Why will customers purchase or rent from your site as opposed to other similar sites?
[IP]: Each of our “spotlight” films is catered to individually. So, for example, for one film we will do viral marketing, set up event screenings to sell DVDs, plan release parties, promote in email, blasts, newsletters, and at festivals, while for others we will make postcards and buy ads in independent magazines. We work very closely with the filmmaker to strategize about marketing and promotion.
[I]: Can individual filmmakers sell to the site?
[IP]: Yes, of course.
The educational market is an often overlooked source of revenue for independent filmmakers, and has a lot of models that may be used by more “commercial” vendors in the future. Rachel Gordon has a background as a director, producer, ad writer. Her consulting business, Energized Films, helps filmmakers access the educational market.
[I]nfinicine: How are streaming/digital downloads changing educational distribution?
[R]achel Gordon: The process of change in education is pretty slow, but what is happening is that some colleges and universities have been able to experiment. They’ve
started licenses to stream on servers they’ve created and maintained. Or, though less frequently, they are assigning films that are available for streaming online to students, especially in social service departments.
Unfortunately, however, technology is inconsistent and I can’t say that even these two options are the only ones taking place, but people are definitely experimenting more thanks to these new options. Some still buy VHS, believe it or not. Since there is not a singular form of technology that people use with their media so, while it’s important to keep track of the delivery
systems out there, it’s also important to be flexible about how end users receive content.
Secondarily, the new modes of delivery also alleviate storage issues as a server can be better than 100s of units. Perhaps the best impact so far is that downloading and streaming are useful for opening up more class time. Professors and students can be setup to take distance learning classes, or not use up lecture space, or do web conferences that play media where you
check in and view the same material, and that’s a pretty exciting leap.
[I]: What kinds of revenues can an independent filmmaker get in the educational market in general, for a title with a strong educational angle?
[R}: This really depends on how much they are willing to invest in it, in many
cases. I can't give you figures because people don't come looking for a film unless information is put out there, constantly and repeatedly. What an independent filmmaker should be on the lookout for, however, are advocacy groups - such as not-for-profits who have similar goals - as acknowledgement from them helps with other groups and with conference income. There are
conferences that filmmakers can be paid to go and present at with their films. They also can do re-selling at a discount to thematically related catalogs. By getting reviewed in educational publications, they can use quotes and pass their information to readily available contacts on the web.
It's time consuming and you might send out 100 emails to get 5 sales, but you also learn about your audience and how to reach them and build on them.
It's important to stress that income from sales alone may not be enough to live on for a full-time basis, but it could certainly help generate interest in your work and even provide you with people who might invest in your next project.
[I]: How can filmmakers access the educational market? Do they need a distributor?
[R]: You do not need a distributor to access the educational market, but distributors are good if you do not have the time, patience, and commitment you need to do it yourself. It can take from 6 months to a year to get reviewed by publications and really start getting through to educational libraries.
[I]: What do you think will be the evolution in educational sales from DVD to other technologies?
[R]: I don’t think DVDs are dead by a long shot. Laserdisc didn’t last, but DVD
will be sticking around for a while. I am seeing more cable and local network channels that are either connected to a school district, or college/university. I am also seeing more consortiums arise to do bulk purchasing. I do think downloading is becoming much more popular, though
most independent filmmakers are afraid to go that route.
[I]: Is it still worth it for filmmakers to make their own DVDs and sell them online? Do you see online downloads and streaming as displacing DVDs as a delivery mechanism for independent filmmakers?
[R]: I think it can still be worth it to make DVDs and sell them online, though it depends on what your priorities are. There are plenty of DVD on Demand platforms out there that will make your product for you and bill/ship it, but they also tend to take a large percentage of any sale you might make.
At the same time, if you make a 1000 DVDs for $5000, you may not want to store them and it will probably take you several years to get rid of thembut you’d technically be making more per unit on every sale.
As part of the ongoing series of online markets, Infinicine presents an interview with Charles Choi from Caachi.com, a streaming and download service that specializes in independent film and is friendly to independent filmmakers.
[I]nfinicine: What services are offered on your site?
[C]aachi: Streaming online - We provide high resolution (700Kbps) streams of the films we offer. This enables a high-quality viewing experience.
Download to own – the films distributed in this fashion are “DRM free”, to provide the greatest user flexibility in viewing.
Download to disc – Films downloaded from Caachi can be burned directly to DVD or installed in a video iPod/iPhone.
[I]: What is the structure of the deal, i.e. flat fee, percentage of sale, ad revenue, etc. Provide terms if possible.
[C]:
[I]: Does your service sell into all territories?
[C]: By default, our service sells into all territories but can be restricted to countries using IP filtering technology.
[I]: How many people visit the site? How many are “members”? How many sales on average per title? What are the top-selling titles?
[C]: For the month of July, 2008 we had around 50,000 unique visits, a 76% increase from May, 2008.
Our top grossing titles are as follows: 1. Tripping with Caveh, 2. Venus Lives, 3. Dreams on Spec, 4. Preaching to the Perverted, 5. Dat Kho
[I]: What is the marketing strategy for the site? Why will customers purchase or rent from your site as opposed to other similar sites?
[C]: We sell films by using targeted online marketing techniques involving social networks and Web 2.0 technologies. Customers will buy films from Caachi because they understand that most of their payment will go to the filmmaker or distributor and not to Caachi.
[I]: What are the marketing opportunities for films on the site?
[C]: At Caachi, we recognize that that our films must be actively marketed online to reach their audiences. To this end, we do the following today:
[I]: Can individual filmmakers sell to the site?
[C]: Yes.
There are so many online streaming and downloading markets popping up that it is difficult to know which ones are legit- and which ones will be a good place to sell a film. Infinicine has sent out a series of questions to a number of sites and will have a resource page on the new Infinicine site so you can compare their answers.
Here are the answers from HUNGRYFLIX. Hungryflix specializes in content for portable media, i.e. iPod and iPhone as well as computers and Apple TV.
[I]nfinicine: What services are offered on your site?
[H]ungryflix: Download to own (DRM free)
[I]: What is the structure of the deal, i.e. flat fee, percentage of sale, ad revenue, etc. Provide terms if possible.
[H]: HungryFlix pays its content providers 60% of all sales after PayPal fees. For example, you sell a movie for $0.99. Current PayPal fees are 2.9% + $0.30 USD. So, for a $0.99 transaction, PayPal fees are $0.33,
the content provider’s share is $0.40 and HungryFlix’s share is $0.26.
Payments will be made quarterly via PayPal. Quarterly payments will be made only if a minimum of $10.00 in profits has been earned. If this minimum has not yet been reached, the sales will be credited toward the next quarter. You will always receive credit for all sales.
(http://www.hungryflix.com/help.php)
We will be looking into other options in the near future.
[I]:Does your service sell into all territories?
[H]:Yes
[I]:How many people visit the site? How many are members? How many sales on average per title? What are the top-selling titles?
[H]:Currently around 1,000 visits a day, over 5,000 members. Sales vary, and we are looking at many ways to improve the site, which will increase sales.
[I]:What is the marketing strategy for the site? Why will customers
purchase or rent from your site as opposed to other similar sites?
[H]: The site is growing, and has many titles (over 300) that would be hard to find elsewhere, some are exclusive to the site.
We are looking into new avenues for marketing.
[I]:What are the marketing opportunities for films on the site?
[H]:Get in touch to discuss your needs, we are open to new ideas.
info@hungryflix.com
[I]: Can individual filmmakers sell to the site?
[H]:Yes, there are no restrictions as long as you own the rights.
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