Chapter | five

It’s in the can. Now What?

After you complete your film, you’re at the stage where you start getting eager to find distribution. You’ve put in all this hard work, and it’s time to get your film out there and find its audience.

Many filmmakers’ instinct when they have a finished product is to immediately start shopping it to every distributor in sight. However, this is not an effective approach. I advise taking a more methodical approach to finding distribution for your film, which I outline in this chapter.

For example, the first thing you should do before you even start approaching anyone to distribute or represent your film is to put a solid strategy in place. You don’t want to be haphazardly submitting items to distributors and reps without taking into account any type of protocol.

THE THREE PATHS TO DISTRIBUTION

In today’s market, there are effectively three paths to distribution. They are Traditional, Do-It-Yourself (DIY), and Hybrid. In Chapter 6, I describe the five distribution platforms and what to expect, but here I outline the three different paths to distribution so you can decide which path is right for you.

Traditional

Traditional distribution is what we all normally associate with film distribution: theatrical, DVD, and broadcast. Unfortunately, as the market has changed, traditional distribution has become more and more rare for independently produced films. Filmmakers used to be able to rely on the tried-and-true method of premiering at a big festival followed by being picked up for theatrical distribution, DVD, and/or cable distribution, but those days are few and far between now and occur for fewer and fewer films. Furthermore, many filmmakers even reject traditional distribution deals given the choice nowadays because the offers may be so low that they feel they could do better distributing their films themselves (more on that later).

An example of this approach is the movie Bottle Shock, which premiered at Sundance in 2008. When the film’s producers got no real offers from distributors, they decided to strike out on their own and implement a DIY strategy. The result was that they were able to make far more money than they would have with any of the traditional deals they were offered.

So something to keep in mind is that even though you may still view traditional distribution as the ultimate goal for your film, it may not always be the best choice for your film, and in most cases, it isn’t totally realistic in today’s market.

DIY

DIY (do-it-yourself) distribution has replaced traditional distribution as the go-to route for most filmmakers with independently produced films. As I mentioned previously, due to supply and demand in the marketplace, there are just too many films and too few traditional distribution outlets left, so what has surfaced in its place is this new DIY route. DIY (sometimes called self-distribution) has now supplanted traditional distribution as Plan A, whereas it used to be Plan B.

But don’t worry; DIY doesn’t have the stigma that it once did, and now many mainstream filmmakers are turning to DIY voluntarily because they wish to keep more control of their films and release them how they want to, when they want to, and on their own terms.

Of course, there are both upsides and downsides to self-distribution. The biggest upside in my opinion is that any sale you make, any distribution deal you sign, you get to keep all the money for yourself. It goes directly to your bottom line, in paying your investors back and toward your profit. Conversely, the biggest downside to self-distribution that I can think of is that in exchange for not having to pay anyone a sales commission or fee or percentage of sales, you have to do all the work, which can be an enormous amount.

Don’t be fooled. The DIY route takes a tremendous amount of work and patience, but it can pay off handsomely to those who are consistent with their efforts. Before I got a publisher for this book, I self-distributed it as an eBook online. And the number one thing that made it a successful venture for me was my consistent effort at tirelessly marketing my product. Some weeks were good, some weeks were bad, but being absolutely consistent in my marketing efforts, I believe, was the top contributor to the book’s success.

With all the new DIY platforms out there, some of which I discuss later in this chapter, remember that because you do not have a distribution company behind you, you will have to do all the marketing, promotions, and advertising yourself (or with a team you hire)—whatever it takes to drive sales of your film. I describe specific ways to market your film with each self-distribution method.

Hybrid

There is a also a hybrid distribution model that is part traditional, part DIY. For example, if you make a film that doesn’t immediately get distribution, you may choose to do your own platform theatrical release. While you’re doing your own platform theatrical release, you may decide to sell your own DVDs at the screenings. At this point, you will probably also want to sell DVDs or streams/downloads off your website to capitalize on the fact that you are out there creating a buzz doing public screenings. With all this in place, you are completely self-distributed.

Suddenly, a traditional DVD distributor picks up on all the buzz you’re getting and sees that there is a market for your product and that you are actually selling DVDs, and it wants in on the action! BUT … you have a nice, successful online operation going and you don’t want to give up that revenue. After all, for every DVD you sell off your own website, you could be pocketing $5–$15, depending on the selling price of the DVD. After a DVD distributor picks up your film, you will make perhaps only $1–$3 per unit sold, at most.

Consequently, you are left with a conundrum. Although you always wanted a DVD distributor to offer you a deal, you also are enjoying the revenue that you’re making while self-distributing. The perfect solution is to negotiate in your contract with the distributor that you, the filmmaker, retain online distribution rights to your film. This type of agreement would have been unheard of a few years ago, but surprisingly DVD distributors are realizing that they have to acquiesce in this area if they want to be able to acquire hot-performing niche films that are already out there collecting a buzz in the marketplace. Distributors are also realizing that filmmakers who are heavily promoting a film online will only help their retail sales in the long run anyway. So everybody wins.

I interviewed famed distribution strategist Peter Broderick about this topic because he effectively pioneered this concept. Peter contends that distributors don’t have a choice anymore; rather, they absolutely have to alter their business models to accommodate filmmakers in this area. Traditional DVD distributors will be more like retail partners in the future, and filmmakers will leverage the new technologies available to them and handle their own online distribution.

Another part of the hybrid distribution model that Peter Broderick has been instrumental in popularizing is known as house parties. For example, while some filmmakers are taking their platform theatrical release to art house and independent movie theaters, others are choosing to do targeted screenings in people’s homes.

A great example of this model is Robert Greenwald’s Wal-Mart: The High Cost of Low Price. Robert really wanted to get his message out there and knew how to find his target audience online. By galvanizing online support, he organized grassroots screenings at people’s homes all across the country and built a tremendous buzz for his film. He ended up having somewhere around 1,000 house parties, each with around 10–15 people in a living room. Within a couple of months, he had sold 100,000 DVDs from people buying them at the parties and off his website.

Granted, the house party strategy works very well with documentaries that lend themselves to strong grassroots opinions and campaigns, BUT you could also apply this strategy to a narrative feature if your film applies to a core audience (for example, surfers, teenagers, sports enthusiasts … whatever). Think about what groups people belong to online and how you can reach them. Then capitalize on that enthusiasm and organize screenings around it.

It almost makes sense these days to think in terms of what types of films could appeal to which groups online and work backward from there. At least that way, you will always have the insurance of direct sales of your DVD online and know that you’ll be able to make the revenue that way to pay back your investors. Even if a traditional distributor never picks up your film, you know you can do some grassroots promoting and selling all on your own.

Something else to think about is that while you’re out there doing grassroots screenings, building an audience for yourself, you may well be able to raise money for your next film. I know of a few filmmakers who, while previewing their films to a targeted demographic at private screenings, met investors for their next films. So keep your eyes open and be prepared!

APPLYING TO FILM FESTIVALS: YOUR FILM FESTIVAL STRATEGY

Should you submit to film festivals or not? I get this question a lot!

My theory is this: there is only a handful of festivals that really matter in terms of getting distribution for your film. What I mean is that there is only a handful of festivals that acquisition execs actually attend to go “shopping” for new films. On the other hand, there are also hundreds of smaller film festivals that acquisition execs don’t attend but in some cases can still be good for additional exposure of your film. Any chance to garner awards for your film or get local press/reviews can be an asset to your overall campaign and your press kit.

The film festival strategy that I personally recommend is to have a Plan A and Plan B in place. Here’s how it works:

Plan A is to apply to Tier One festivals first: Toronto, Sundance, Cannes, Berlin, Los Angeles, SXSW, and Tribeca. What makes these festivals Tier One? The fact that they are the festivals that most distributors will attend is reason enough for you to target them first. If your ultimate goal is to get traditional distribution for your film, wouldn’t you want to be at festivals where the distributors go? Of course you would!

My advice is to take an honest look at your film and listen to the feedback you get from third parties. If you think your film is up to par for getting into one of these top festivals, by all means apply to them all. Keep in mind, however, that most of these festivals will require a worldwide or North American premiere, which means if you accept an invitation to one of them, you cannot technically premiere your film in any of the others. For this reason, it is imperative to check the rules and regulations of the festivals you are interested in. That is another reason why I say to apply to the big festivals first—because if you happen to accept an offer from a smaller festival prematurely, you automatically disqualify yourself from premiering in one of these top-tier festivals. Wouldn’t you kick yourself if, after accepting an invitation to some small festival, Sundance came calling and you had to decline? (Yes, I’ve had this happen to a client of mine before!)

With Sundance in particular, the other point to keep in mind is that many films are accepted way in advance and already have distribution deals in place; in other words, oftentimes distributors will make a deal with Sundance to premiere a film there without the film having to go through the normal submissions process. This, of course, means even less of a chance that your film will get accepted simply because there are so few spots available for actual independent films.

The good news in all this is that in most big festivals, there are both competitive and noncompetitive categories. Therefore, even if your film is not World Premiere status, it may still be submitted as a noncompete entry. And even if your film gets accepted but not placed in competition, you will still benefit from the exposure of being at one of the big festivals.

After submitting your application to the top-tier festivals, sit tight. I know the wait can get nerve-wracking and you’ll be tempted to go on a festival application spree, but remember that the mere chance of getting into one of these top festivals is worth the wait. It can be the difference between getting distribution and not.

Wherever you decide to premiere your film will be considered your Launch Festival. Just remember to choose it carefully.

If Plan A fails and either you honestly don’t think your film is up to par for one of the top-tier festivals, or you apply to them all and don’t get accepted to any, it’s time to invoke Plan B.

Plan B is to submit your film to the many Tier Two festivals out there. Some Tier Two festivals include Palm Springs, Santa Barbara, Chicago International, Austin, Hamptons, and Raindance. This is by no means an exhaustive list, and actually I recommend checking in with the online festival submitting service Without A Box (www.withoutabox.com) for the definitive list of festivals out there. In general, anything in or near major cities is a good bet because there might be a chance that one or two distributors will be present (especially if the festival is near New York or Los Angeles, where most distributors are located).

When you’re applying to second-tier festivals, it’s okay to cast a wide net because they will most likely not require a world premiere like the first-tier festivals do. Your strategy once you get to any of these festivals should be to get as much press as possible. Even if there aren’t any distributors present to see your film on the big screen, you can at least work on building up your press kit so that when you do start submitting to distributors and reps, you’ll have some favorable press to show them. A good press kit goes a long way in attracting a distributor’s attention.

Some people ask how exactly to go about getting press at a film festival. Whether you’ve been accepted to a first-tier or second-tier festival, I definitely recommend hiring a publicist who specializes in independent films at least one or two months prior to the festival. The more lead time, the better. A publicist will be very adept at writing a press release and getting it in the hands of the right journalists to come and cover your film.

PLATFORM THEATRICAL RELEASE

What many filmmakers are doing these days in lieu of entering festivals is essentially creating their own theatrical premiere by orchestrating a platform theatrical release.

With this approach, you release your film in one or two local theaters, start to generate significant buzz, and then slowly and strategically release it in additional theaters—with the ultimate goal being that one of the big distributors takes notice, buys the film from you, and gives it a wide release.

On a more positive note, I want to share with you my favorite platform theatrical release success story by far in the past few years. The producers of What the Bleep Do We Know!? made a film that appealed to a niche audience, made sure to put aside enough money for marketing to this niche audience, and went on to do a very successful platform theatrical release. They first released the film for one weekend in a theater in their hometown, made sure every screening was sold out, and then platformed the movie like this in city after city until Samuel Goldwyn stepped in, bought the film from the producers, and took it out wide and released it on DVD.

FINDING PRODUCER REPS AND SALES AGENTS

While you’re waiting to hear back from film festivals, it’s a good time to start researching reputable producer representatives and sales agents. Sometimes filmmakers will sign on with producer reps or sales agents prior to going on the festival circuit, and sometimes they will wait to find representation while attending one of the festivals. My suggestion is the following: while meeting with reps and agents during the film festival application process, you might come across one who is crazy about your film and who wants to work with you on launching your film at a festival and on coming up with a distribution strategy. If the relationship really clicks for you, then go ahead and sign on with this person. Alternatively, if all the reps and agents you are meeting during this period seem not quite up to par with what you had in mind, with no real strategy for your film to speak of, then it’s best to wait until you’re actually at the film festivals themselves, because you may get approached by more reputable ones there—ones who can appreciate your film more now that it is showing at a festival.

Many filmmakers ask what the actual difference is between a producer rep and a sales agent. Technically, they are the same thing, but the argument can be made that a producer rep takes a greater interest in a filmmaker’s long-term career goals. For example, whereas a sales agent is solely responsible for getting distribution deals for your film, a producer rep will guide you to choosing the right launch festival for your film and making sure all the right people attend your screening. Producer reps generally do not specialize in foreign sales, however, so they will often help the filmmaker find a reputable foreign sales agent to take over those duties.

Historically, most distributors have said that films represented by a producer rep or sales agent have a certain cachet over unrepresented films. However, with technology the way it is today, and self-distribution more of a real option than ever before, the general attitude of distributors is starting to change. Granted, there will always be a certain cachet to films represented by the most high-end sales agencies and producer reps, but only a few of these top-tier companies have that kind of sway. So for 90 percent of the independent films out there, it doesn’t make that much of a difference to distributors whether or not you are represented.

One benefit of working with reps or sales agents is that because they work on commission, it is always in their best interest to get the highest price for your film per territory. Furthermore, reps may be able to squeeze more revenue out of a film by splitting up rights. For example, splitting up cable, DVD, and theatrical rights rather than doing an “all media” deal can mean more money down the line for the producer. A producer may unknowingly sign away all rights—cable, DVD, and theatrical in an all media package—for far less money than he could get by selling the rights separately.

In some cases, distributors may prefer to deal with experienced salespeople rather than producers themselves. Think about it: filmmakers may not always know the nitty-gritty details of negotiating distribution contracts. Distributors know this about filmmakers and are often more willing to play ball with agents or reps rather than going through the hassle of having to educate unrepresented producers regarding how to negotiate their own distribution contract. This is also why some producers can get taken to the cleaners by distributors; they just may not know the intricate details of distribution contracts and therefore not get the best deal they could if they had someone on their side whose business it was to know these things.

In my experience, producer reps and sales reps charge fees of anywhere between 10 and 25 percent per distribution deal, depending on whether or not they have big company overhead. If they do, they will charge closer to 25 percent. If you can find good independent producer reps or sales agents, they will charge closer to the 10 percent fee because they don’t have the huge overhead and operating costs of bigger sales companies. Instead, you will most likely be responsible for making all your own dubs, shipping out screening cassettes to buyers on your dime, and covering all the costs of printing up flyers and other marketing materials (these materials are all called deliverables).

Reputable sales agents should not charge you any fees up front; rather, it is customary that they will take their distribution fee off the top of every sale they make. Furthermore, if you are dealing with a big agency, keep in mind that it bears the cost of marketing your film to distributors and therefore shares in the financial risk. In this way, the sales company is motivated to sell your film and recoup its initial investment. Agents and reps have long-term established relationships with various buyers that can make a difference in securing a sale.

Selling films is a specialized business that requires comprehensive knowledge of distribution and market trends. Producers who try to make their own sales (particularly international sales) could find they’ve bitten off more than they can chew.

The best way to find producer reps and sales agents is to attend film festivals and get word-of-mouth recommendations. Producer reps and sales agents will be representing their films and actively recruiting new clients at film festivals, so this environment may give you a chance to get an introduction and see them in action right then and there. Another great word-of-mouth resource for getting recommendations on agents and reps is Internet message boards (we have a lot of this on the FilmSpecific.com message boards, for example).

Tips for Searching for Reputable Reps and Foreign Sales Agents

You should do the following when searching for reputable representatives and foreign sales agents:

1.  Ask around to see what their reputation is. Ask the reps for references from other producers, and be sure to call and check their references. If reps refuse to give you references or give you the runaround, this is generally a red flag that their reputation may be less than stellar or they may have something to hide. I then advise you to move on and find reps who will gladly stand by the work they’ve done and their track record.

2.  Look at their catalogue and the other films they’re selling to see if yours fits in.

3.  Remember that producer reps are adept at getting you a U.S. deal, so you still need to get a foreign sales agent.

4.  Look at what their success rate has been in selling films.

5.  Really sit down with potential reps and ask questions about what territories they think they can sell your film in. Try to take several meetings and choose wisely. Decide who will work best for you and your film.

And remember, bigger isn’t always better. For some, a larger sales agency is a good fit, especially if you’ve been doing this for a while and have an established reputation. Larger agencies have big catalogues and can leverage their might. They can also wrap several films around one really sought-after property. This means if agents or reps are representing a film that distributors are clamoring for, they can often make the sale contingent on a distributor also buying several other films in their catalogue. It’s basically selling several films as a package deal. Smaller reps can’t wield this card, but for many filmmakers, especially those just starting out, smaller reps may be the better option. Since the larger agencies have such extensive catalogues, this is a blessing as much as a curse because filmmakers can often get lost in the shuffle. Smaller reps often have the same contacts as bigger reps and will most likely give your film more individualized attention than those with a huge slate. It is also in the best interest of the smaller reps not to let your film fall by the wayside because their livelihood depends on the film selling for as much as possible. Sometimes young and hungry is the best and most effective way to go.

Additional Tips to Keep in Mind

1.  Have measured expectations. Don’t expect to make back your investors’ money through foreign sales alone. Count on recouping your money through a U.S. deal, and let the foreign sales be icing on the cake.

Nine times out of ten, filmmakers will not see any money from foreign sales because the sales agencies typically have to recoup their marketing costs FIRST before they pay out to filmmakers. And with international prices at an all-time low, sales agencies rarely recoup the marketing expenses for independent films and therefore rarely pay out to filmmakers.

2.  Negotiate distribution fee and marketing expenses. As I stated previously, most sales agencies charge a 25 percent off-the-top distribution fee for sales they make on your film. In addition to that, they will want to keep the first $30,00–$50,000 in sales of your film and claim it as “marketing expenses.” In all fairness, I will say that a lot of money is expended in marketing films through artwork, flyers, shipping, dubbing, and the international markets and trade shows.

My suggestion is to try to negotiate these marketing caps in advance, and either ask for a lower cap (say $10,000) or try for a straight 30 percent distribution fee with no recoupment of expenses. This would mean that for every sale the agency makes, it takes its 30 percent distribution fee and sends you the balance. In other words, you would start getting paid from dollar one, instead of after marketing expenses are recouped. This approach means a little less money for you in the short run, but at least you’ll be getting paid something.

3.  Use a collection account. You can always make a part of your contract with the foreign sales agency that when sales of your film are made, proceeds will go to a collection account. A collection account is an independent third party that provides filmmakers full insight into the financial status of a project and protection against default and fraudulent behavior (that is, the foreign sales agency’s failure to disclose actual sales made and/or failure in paying out proceeds from sales). Ask your local bank about setting up a collection account. You will better learn the details and ins-and-outs by hearing about this type of account directly from a financial institution.

NAVIGATING INTERNATIONAL FILM MARKETS

Producer reps and sales agents take their slate of films to international film markets to sell to distributors. Film markets differ from film festivals in that film markets are essentially big trade shows for buyers and sellers of films, whereas festivals are more of a showcase and competition. Also, whereas U.S. distributors attend the big film festivals I outlined previously, international distributors in general do not attend film festivals. They wait for the film markets to buy rights to the films they want. Film markets are essential for independent films because unlike studio films that have output deals in every foreign territory, independent films must be sold territory-by-territory.

A film market is set up as follows: sales agencies and production companies will purchase space to set up their “booths,” that is, their little piece of real estate at the market. The booth contains posters and other sales tools for the films they are representing. Sellers make appointments with buyers in advance and carry on meetings at the booth every hour on the hour for the duration of the market (usually five to ten days).

During a buyer’s appointment at a seller’s booth, the seller will screen several trailers of appropriate films, depending on what type of buyer it is. For example, if the seller is meeting with a Thai DVD buyer, the seller will be sure to screen all the action and horror film trailers that it has in its slate. If the seller is meeting with a broadcast buyer who is interested in nonfiction programming, the seller will screen its documentary trailers.

Oftentimes, distributors will commit to buying a film on the spot, especially if they don’t want their competitors to have it. In this case, the buyer and seller negotiate prices and terms on the spot, and sign a deal memo to confirm all the deal terms. When the market is over, it is the seller’s responsibility to take all the deal memos signed at the market, draft formal contracts for the deals, and then follow up with the buyers for signature and payment.

Filmmakers often ask me if it is in their best interest to attend film markets themselves. My answer is twofold:

One, if your film is currently being represented at the market by an agent or rep, then no, it does not make sense for you to attend. Why? Because most likely the sales agent will want to stay focused on selling your film and will not want you in the way. Plus, if your film is being represented there anyway, it will only make you nervous to be there wondering whether any sales are being made on your film and knowing there’s nothing you can do about it one way or another. In fact, it is best to wait until a couple weeks after the market to get an update from your rep.

Two, if your film is NOT currently being represented at the market by an agent or rep, then it could be advantageous for you to attend the market simply as an observer. It can be beneficial to walk around to the different booths and take notes on which companies are selling which types of films. You can then approach these companies after the market about possibly representing your film. Do NOT approach these companies to represent your film at the actual market. Companies are there for one reason only—to sell films. And they spend an enormous amount of money to be there. Therefore, they will not take kindly to being approached by filmmakers for representation.

The key film markets to keep in mind are

•  Cannes, Le Marché du Film: Held simultaneously with the Cannes Film Festival

•  American Film Market (AFM): Held simultaneously with the AFI Fest in Los Angeles

•  MIPCOM/MIPTV: In Cannes and geared toward DVD and broadcast buyers

•  European Film Market: Held simultaneously with the Berlin Film Festival

You will notice that some of the film markets are actually held in conjunction with film festivals. The reason is that if a film is accepted into a film festival such as Cannes, distributors from all over the world are able not only to view the film at a proper screening, but also to bid on it right then and there.

SOME DO’S AND DON’TS WHEN ATTENDING A FILM MARKET

DO:	Make appointments to meet with sales agencies in advance for the second half of the market.
DON’T:	Just walk up to a booth or suite during the first few days of the market and start pitching your film. Remember, sales agencies are there to sell and that is their first priority.
DO:	Come to the market prepared with one sheets/flyers of your film and a copy of your trailer.
DON’T:	Be surprised if the people you’re meeting request that you send materials after the market when they have more time to look them over.
DO:	Make sure to get your hands on a buyers’ list for the market so you can target distributors directly after the market.
DON’T:	Corner distributors in the corridors while they’re in between meetings. It’s their worst pet peeve ever!

SHOULD I HAVE A DISTRIBUTOR SCREENING FOR MY FILM?

A very common question I am asked is whether to have a distributor screening, and I understand it makes sense to want to screen your newly finished masterpiece for distributors. You want them to see your work on the big screen and not with all hurriedness of a film festival. You want distributors to see your film the way it was meant to be seen.

But how do distributors feel about going to distributor screenings? Quite honestly, they would rather watch your movie from the comfort of their desks. After being in the office all day screening movie after movie, the LAST thing an acquisitions executive wants to do after work is go to a distributor screening of someone’s film.

There are exceptions to this advice, of course, and I have heard of filmmakers having a couple of distributors show up for their screenings. However, I wouldn’t recommend allocating resources to such a screening because your money can be spent so much more productively elsewhere. Whether or not anyone shows up for your screening, you’ll still be stuck paying for the theater, invitations, and mailout.

ADDITIONAL RESOURCES

Virtual Seminar recording: “Using Film Festivals as a Platform for Release”: www.FilmSpecific.com/Festivals

Case Study/Interview with Allen Green on “Using Film Markets to Find the Right Sales Agents”: www.FilmSpecific.com/Allen

Case Study/Interview with Rahul Gandotra on “First Timer’s Experience at a Film Market”: www.FilmSpecific.com/Rahul

Case Study/Interview with Mary Mazzio: “When the Filmmaker Takes On the Role of Theatrical Distributor”: www.FilmSpecific.com/Mary