February 12, 2012

Adventures in Self-Releasing: You Need to Know What a Service Deal Is

by Jeffrey Goodman | Published July 17, 2009

I’m still trying to determine whether or not there will be more theatrical stops for The Last Lullaby. I should know more in another week or so.

This week was a big one for Louisiana’s movie industry. The state increased its production tax credit from 25 to 30 percent, once again making Louisiana one of the states with the most aggressive movie tax legislation. I made The Last Lullaby in Louisiana and am really hoping to make my next movie in the state as well, so this is very good news. I’m only about 50 pages into Reed Martin’s The Reel Truth, but I can already say that this is a new must-read for any young independent moviemaker (myself included). It’s a new book and definitely comes at things from a very honest, useful place. Highly, highly recommended.

For a while now, I’ve been saying that the movie industry, more than any other industry I’ve ever seen, has an enormous gap between interest and knowledge. What I mean by this is that almost everyone I meet has a great interest in the movie industry. However, almost no one I meet has any understanding of how the industry really works. In some ways, I hope that’s some of what this blog is doing, bridging that gap a little. One example of this gap is in the concept of the service deal. So, just what is a service deal? Who are the players? And why am I griping about it?

A service deal sits between a traditional distribution deal and self-releasing. In a traditional distribution deal, a distributor usually pays an upfront fee to acquire the rights to the movie. Then the distributor makes all the determinations about how to release it into the marketplace. In a traditional distribution deal, the moviemakers generally have little to no say about the release strategy. In self-releasing, the moviemaker retains 100 percent control over the release strategy. The downside: The moviemaker does it with little or no help and for no money upfront.

Meanwhile, in a service deal, the moviemaker PAYS a company to distribute them (some of the better known service companies are Roadside Attractions, Truly Indie and Freestyle). In turn, the moviemaker maintains a great level of control over the release strategy.

My gripe, though, is this: Although I know service companies can be somewhat selective, I think it’s misleading when a press release announces that a movie has received distribution when really it’s nothing more than a service deal. The public reads this and thinks a distributor just bought another movie. But, in earnest, that’s not really what happened.

More than ever, I think it’s important as moviemakers to educate ourselves about the entire process. And, as I’ve said before, the next time a moviemaker tells you they received distribution, I think it’s really important to immediately say, “Congratulations! That’s fantastic. If you don’t mind, how much did the distributor give you?” Otherwise, we’re all just perpetuating a myth and allowing the gap between interest and knowledge to remain.

After living in Los Angeles for seven years, Jeffrey Goodman returned to his hometown of Shreveport, Louisiana to direct The Last Lullaby. Co-written by the creator of Road to Perdition, and starring Tom Sizemore and Sasha Alexander, The Last Lullaby was filmed entirely in and around Shreveport and financed by 48 local investors.

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COMMENTS | POST A COMMENT

Comment by Amy rich on 7/17/09 at 10:38 pm

I have seen your movie and its a great work and you have displayed the emotion of Price so well.No wonder your movie won so many awards,Congratulationss!! Director of a movie is a creative person and releasing of movie requires some marketing strategy, dont u you think releasing a movie all by himself is a great risk for the director?

Comment by Jeffrey Goodman on 7/18/09 at 7:41 am

Hi Amy rich,

Thank you so much for your very kind words. I completely agree with you that directing a movie and distributing a movie requires two almost completely different personalities. And, I also agree that a director self-releasing his/her movie is taking a major risk. BUT in the current climate, I think an independent moviemaker is taking just as big of a risk (if not a bigger one) accepting a traditional distribution deal and trusting that it will be the best thing for his/her work. Does that make sense?

I hope that you’ll continue to read along.

All the best,

Jeffrey

Comment by Matthew Jones on 2/17/10 at 7:17 pm

It’s very hard to market do a self-releasing movie. You need to be very sure about your strategies or plans in order to get a positive result out of your movie. Plus the fact that you might end not gaining anything or at least cover the cost of your movie.

Comment by Jeffrey Goodman on 2/18/10 at 9:38 am

Hi Matthew,

Thanks so much for your comments! I couldn’t agree more.

All the best,

Jeffrey

Comment by Turkey Tours on 9/10/10 at 8:25 am

thanks for post

Comment by Jeffrey Goodman on 9/11/10 at 8:01 am

Hi Turkey Tours,

Thank you. I really appreciate the kind words.

All the best,

Jeffrey

Comment by Cazare in regim hotelier Bucuresti on 9/12/10 at 2:01 am

I get to see lately more and more producers that are not happy with the movies they make. Why make it than? For the money. Of course, everything is about the money when you want to make movies and get noticed.

Comment by Rent a car Bucuresti on 10/15/10 at 1:52 am

I get the feeling the industry is about to change and my opinion is not in a very good way. Too much money involved.

Comment by hemroid remedy on 2/09/11 at 8:46 pm

I generally enjoy independent movies as they can focus on the story and message instead of trying to attract every common denominator.

Comment by Jeffrey Goodman on 2/10/11 at 7:34 am

Hi hemroid remedy,

I completely agree. That’s well said, and certainly articulates the appeal of indy film for many. Thanks so much for the comments.

All the best,

Jeffrey

Comment by Rent A Car Romania on 5/25/11 at 7:22 am

Yeah, it’s a toss up. I don’t know what’s the best option for the movie makers.

Comment by Jeffrey Goodman on 5/25/11 at 9:20 am

Hi Rent A Car Romania,

I agree. It is a toss up. And I’m not sure what’s best either. It really depends on each movie, and how much time the team behind it is willing to devote.

All the best,

Jeffrey