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Navigating the New Independent Film Marketplace
In the January 2008 issue of MovieMaker Magazine, I discussed the pervasive role that fear would likely play throughout the 2008 Sundance Film Festival marketplace. As predicted, fewer companies acquired less films and paid modest, if any, minimum guarantees. Fear contributed to an ultra-conservative market atmosphere that discouraged risk-taking by distributors, producers, financiers and moviemakers.
What role will the “fear factor” play within the Sundance and “Indiewood” marketplace this year? How can independent moviemakers and producers best succeed inside this specialized and competitive arena?
Keen observers anticipate a continued flat market with even fewer “marquee” seven-figure acquisitions. The escalating costs required to release a film theatrically will continue to drive distributors away from significant commitments for multiple screens in numerous markets. The majority of independent films acquired last January underperformed with their traditional theatrical releases in 2008. Fear figures to play a prominent role again this year given the surplus of films in the market, the present recession, the credit crunch and competition for audiences who are viewing many of last year’s independent films on their televisions and computers through broadcast, VOD, downloads and streaming.
Given this uncertain and challenging marketplace, how can the independent moviemaker navigate the choppy waters to a safe distribution harbor? This article offers some practical advice.
1. Action cures anxiety: As soon as possible, if you have not already done so, organize a marketing and distribution game plan. Create marketing materials that embrace the unique aspects of your film and your anticipated target audience. This exercise helps focus your team (sales consultants, publicists, etc.) on your film’s key selling points and facilitates getting everyone on the same page. Additionally, busy distribution executives appreciate user-friendly materials that minimize their time expended and money spent.
2. Create your own DIY distribution platform: Develop your own your Plan “B” distribution strategy. This will be vital in the event you do not hit a grand slam and secure a significant distribution deal from a mini-major. The exercise will also help you to better understand the current distribution landscape and will provide leverage and confidence as you assess your distribution options at the bargaining table. Seek advice from other moviemakers, producers and leading industry professionals about their experiences. Recruit experts to guide you down this specialized road, but do not take your hands off the steering wheel. The savvy independent moviemaker understands that he or she must also retain direct involvement in the marketing and distribution of his or her film.
3. Manage expectations (yours and others’): The road to investment recoupment can be long and bumpy. Be realistic and examine all distribution options. For the most part, a substantial distribution deal with a mini-major is unlikely in today’s marketplace. You may find yourself carefully assembling your distribution choices like pieces of a puzzle. Pay particular attention to the digital horizon where the greatest number of people will eventually view your film. Understand the immense value of your digital rights; they may be your primary route to future revenues. Finally, avoid so-called “digital rights experts” seeking disproportionate commissions from your gross revenues to secure deals that may already be within your grasp.
4. Be prepared with distribution-ready elements: If you have not already done so, prepare your film’s elements, including E&O insurance and all music licenses (sync and master use), so that you are capable of prompt and seamless delivery. Your ability to deliver your film may influence a distributor’s decision to work with you. At a minimum, it will accelerate the payment of any minimum guarantee. Needless to say, having a delivery-ready project will also come in handy, should you decide to release the film yourself.
5. Be optimistic: There is a silver lining in every cloud. In fact, these are favorable times to create and distribute breakthrough independent films. In the new marketplace, you can have more involvement and control with your distribution matters and greater opportunity to share your film before larger audiences. While it is useful to understand how fear has transformed the traditional marketplace for distributing independent films, it is even more important to focus on the emerging opportunities to manage your film’s distribution in the new marketplace.
Steven C. Beer is a shareholder in the international entertainment practice of Greenberg Traurig’s New York office. He concentrates his practice on film, music, television, licensing and media law. He has served as counsel to numerous award-winning writers, directors and producers, as well as industry-leading film production, film finance and film distribution companies. Additionally, Beer has served as counsel to numerous multi-platinum musical artists and has worked with high-profile production companies and record labels. He is the founder of R&B FM, LLC, a production company specializing in music-oriented films, and a co-founder of the Center for the Protection of Athletes Rights (CPAR). Beer received his BA, summa cum laude, from Washington University in St. Louis and his J.D. from Villanova University School of Law.
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COMMENTS | POST A COMMENT 
- Comment by Tracy Balsz on 1/13/09 at 5:36 pm
Adding to Steven’s very well delivered message about DIY distribution, think of your project as a product. From my personal experience designing and implementing DIY distribution strategies for indie filmmakers, the DVD cover art is the most important selling point in DVD distribution. Retailers/wholesalers and buyers do not have time to look at the content, rather they rely on the professionalism of the packaging.
- Comment by Sean Glass on 1/14/09 at 1:41 am
Best article ever. This guy’s a genius.
- Comment by Mark Lipsky on 1/15/09 at 11:14 am
There actually *is* a distribution company with a new idea. indieWIRE wrote about Gigantic Digital here: http://www.indiewire.com/article/gigantic_releasing_moves_indie_film_distribution_into_new_era/ Our next release, Morgan Dews’ “Must Read After My Death,” will open in February on screen in NY & LA (as well as a few other markets) and day-and-date nationally via Gigantic Digital. In other words, this is a first-run film that will be accessible to a couple of hundred million more moviegoers than any 3000 screen studio release.
Yes, there’s the issue of how folks will know it’s playing on Gigantic Digital and we’re working our asses off addressing that with the media. Our basic argument is a comparison with an office worker who happens to be telecommuting rather than working from their cube. The work they do from home is no less valuable than the work they do from the office. Same concept. If a new, first-run film happens to open online in Dallas or Seattle or Boston rather than in a bricks and mortar theater, why wouldn’t the local media alert their readers, viewers and listeners to its ‘local’ premiere? Especially when the streaming quality is as good as it gets, when the presentation is commercial-free and when the ticket price is just $2.99 for 3-day unlimited viewing. Why not review it and write a feature about it if they like it?
It’s a harder sell right now than it should be but we’re fighting that fight. We’re actually doing something about the awful state of things rather than just talking about it. Will it work? Yes. In February 2009? Maybe. I hope so. I hope we’re only a tiny bit ahead of the curve rather than way ahead. But this *is* the future for independent films. You know, films by directors who aren’t household names. Films without movie stars. Films without millions in studio (or studio-lite) dollars behind them. Films in a language other than English. Films that would otherwise never be seen by anyone in today’s (and tomorrow’s) onerous theatrical environment. Our success will be your success. Pray for us.
OK, maybe just wish us well.
- Comment by telecommuting jobs on 9/18/09 at 12:44 pm
The talk of film executives as the festival opened was of a reversal from last year, when a few major buyers had the choice of an unusually strong list of available films.
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