M O V I E M A K E R . A R T I C L E : . A N N U A L
F I L M M A K E R ' S . G U I D E . October 20th, 2003. Creating a Distribution Strategy, By Evan Friedman, Tapelist

Okay, so you’ve shot, edited and completed your first feature. Now what to do with it? One of the most important aspects of making a film is getting it seen by as wide an audience as possible. Filmmakers have leveraged upon the booming festival circuit as a way to provide limited exposure, but how does one make a film available to the general population and see a return in profit?

The answer is, unlikely, if you’re just starting to ask this question. For many beginning independent filmmakers, the challenge of financing and completing their first feature often overshadows the final step in the process – finding distribution and making your investors their money back. Distribution should be considered early on. Ask yourself who is your audience? What are my expectations for the film? Why am I making it? And what do I expect to get back?

In today’s economic times, the independent film community has been hit hard and making your money back on a title is more of a challenge then ever. At the lower level – truly independent works struggle to find a niche amongst increasingly consolidated media companies who often protect their own properties and live little room for the independent. This is truer in this country then anywhere else. Even U.S. independents are having a harder time finding a home within the European marketplace, which respectfully so, are more so looking to support their own.

If you are considering distribution and are not fully funded, explore the opportunities of a co-production overseas. This may help in securing distribution within both the States and overseas markets. Budgets on co-productions are generally higher – and mid to high level productions often have the opportunities to do presales. That is, secure distribution before the films is even made. In presales situations, the reputation of the sales agent – the individual selling the film to the distributor, is often key. With a good track record, on independents with mid-to-high level budgets, pre-sales can be key to distribution and financing itself.

Not all films are right for presales however. Most U.S. independents do not have major name talent starring in their films, and/or are produced and directed by first time filmmakers. The visions are often less commercial, highly risky properties, done on lower budgets. Distributors, as a general rule, will often not get involved with such films until they are complete. These are works that unfortunately, struggle distribution wise in today’s marketplace. Some ten years ago, the picture looked rosier, with small titles setting record making deals. The most talented, unique and original films are made under these conditions – with brilliant works often not seeing the light that they deserve.

The recent cases in the United States of accomplished, well-known directors struggling for a decent distribution deal is far to many. In today’s economic times, many distributors are not as willing to take as many risks and it’s hurt the film going community and culture at large. Conversely so, we’ve seen an explosion in big budget sequels by the studios, all which have flopped, but were made under the premise that they are less risky investments.

The pendulum may indeed swing back forth. There will always be audiences for different sorts of works, and many directors who come from the independent film and theater world are being absorbed within Hollywood studio system, within art-house branches of distribution. In effect, there is a high level industry created around independent films; a midlevel plane of startup and accomplished distributors and production companies, and a lower level of first-time filmmakers, distribution opportunities, and sales agents, just starting out. Filmmakers need to be aware of the current climate so as to best understand the choices they are making when producing a picture, and what they should expect out of a distributor.

Films made truly independently, at the lower budget level, are often made by the directors for exposure. Financial success is less important, but the works are often used as industry calling cards. Shorts, in general, should not be seen (assuming the budgets are typical) to be recoupable in terms of funding. There are outlets for shorts, certainly, television and a few DVD/VHS distributors but it is generally understood that shorts are “loss leaders”.

If you have completed a feature, the odds are against you. There are, of course, no rules – however, it is best to generally understand that high level acquisition fees, which we see usually at Sundance, are reserved for a slim percentage of features. The rest of the pack may get by on video and T.V. deals which cover smaller portions of the budget or are percentage based deals. In the event that a feature is outstanding enough for a theatrical release, distributors will usually put most of the funds into P&A (standing for Prints and Advertising) which cover the cost of marketing a feature in a crowded climate. Films may or may not make money through theatrical – this is less often the case – but they are seen as necessary marketing for a video deal, and of course, for the filmmaker and opportunity to see their film seen as was meant to be.

This is the unfortunate truth in a crowded marketplace – but if many of these films didn’t lose money they would likely be integrated into Hollywood distribution channels and seen as a potential money makers. There will always be more risk in making independent films, and many independent filmmakers have truly taken the term one step further by actually becoming the distributor.

For some, budgets are not dictated by their experience, or the films quality, but rather the forms of the films, and the mold they do not fit. For works under which the filmmakers find the offers for their titles are too low, with not enough commitment on the distributor’s behalf, some have taken it upon themselves to self-distribute theatrically. This is often done as a means of seeing the film to it’s complete and final stage, rather then getting lost in what can be a crowded and difficult film festival circuit, and/or a more active, guerilla means of promoting a title. While some films are four-walled into theaters (rented out for flat fees), there are cases of filmmakers making percentage based deals with the theater owners if enough credibility is behind the title.

Where most films open theatrically in New York and L.A. for proper reviews, many working the guerilla circuit start outside the major cities, working their way up to the majors while building buzz. If you start locally, and decide upon the self-distribution route, you must be able to properly promote the works from the ground up. Market, promote, do television, print and radio locally, campaign for your film. Regional distribution can be the most effect way for a filmmaker to work, provided they are willing to put in the time and energy. I’ve personally heard of cases of filmmakers with lower budgets making their money back and then some, all within the theatrical realm. Can’t get a local theater to bite? Try alternative venues, like local community theaters, culture and civic centers.

If they know you locally, in a smaller town or city, you may wind up doing much better then a larger, overcrowded market like New York where you voice is harder to be heard. Consider contacting the local television stations, not only for promotional means, but to see if they are interested in the rights to regional distribution rights of your title. Through Tapelist, believe it or not, we have regional stations, who operate on broadcast stations in major cities, looking to air lower cost independent film content. It can be a win-win for the filmmaker and broadcaster to have a steady supply of independent film content, which if properly packaged, can attract audiences at lower acquisition rates and many times not effect national distribution chances.

Regional television opportunities in every city, in the country of course, could actually indeed fund films if they were to proliferate at the rate of film festivals. Speak with local Festivals in the area about partnering and then approach the television managers themselves. See what opportunities there are, and if they’re aren’t, try another station or out-of-market broadcaster.

Many cable companies, due to DBS penetration have brought on their own cable locals, which are often open to bring content not found anywhere else. Promotionally, or as a distribution outlet, these stations will often work non-exclusive or exclusive for just their regions. For narratives, documentaries, experimental works, and shorts, a film, especially by a regional filmmaker or shot locally can have even more value.

Tapelist deals with broadcast and cable stations, both locally and across the country. Television seems to be the best place to compete as an independent filmmaker – as it allows general audiences to discover your work and become accustom to independent film work in general. There are of course many local PBS stations, as well as national PBS programs, that look to acquire independent narratives, documentaries and shorts and this should not be underestimated.

You must, as an independent, if you choose to take the hard road, and create hopefully more visionary, original and unconventional works be committed to such a involving distribution process. It is often agonizing and brutal, taking as much time and investment as the making of the very product. However, at the lower-to-mid budget level the choices are slim, with of course certain exceptions. Be prepared for the journey you will take – it is pure fantasy to believe your film will make back its full budget unless it is highly unique. Make a film with the hopes of course of landing a good distribution deal through conventional distribution channels but have back-up plans in case this isn’t a reality. Determine if exposure or earning the films budget back are more important and proceed as necessary. Films that languish without distribution for too long become stale to the industry, the filmmakers and the audiences. And of course, most importantly, make a great film. There are hundreds of smaller, to midlevel, to even start-up distributors who can deal with higher budget ranges and distribution opportunities which filmmakers never hear about – and distributors therefore often have a harder time finding strong pieces of work. Commit to the quality of your vision – always be aware of the choices you make and the reality of the distribution marketplace – and create a strategy around this so there will never be any surprises.

You can find out more about Tapelist at http://www.tapelist.com. Distributors, exhibitors (festivals and independent theaters), film-goers, educational institutions, distribution outlets, museums, cultural institutions and filmmakers can get on at http://www.tapelist.com.