Understanding the Market

‣ First things first.

“What is your plan?”
‣

‣ Understanding the process is vital.

1) Plan
2) Buying Process
3) Distribution
4) Sales/Marketing
5) Recouping
Resources
‣ First things first.
‣ “What is your plan?”
‣

‣ Understanding the process is vital.

‣ 1) Plan
‣ 2) Buying Process
‣ 3) Distribution
‣ 4) Sales/Marketing
‣ 5) Recouping
Understanding the Market
‣ The market is heavily over-saturated.
‣ Serious shift in the studio system to
primarily tentpole film projects.
‣ Fortunately, there are more options than
just theatrical release.
 The Market
‣ Understanding who your
audience is.
‣ KNOW YOUR
DEMOGRAPHIC!
‣ Specify genre.
‣ Specify specific
demographics.
‣ Use internet analytics!
 Minimum Guarantees
‣ A distributor in the truest sense requires
an infrastructure to purchase outright
( meaning they must pay you, the
Producer, a Minimum Guarantee or
“MG”) to promote, account, print, ship,
exhibit, recoup, and scale their strategy.
‣

‣ MG’s run for 3 years.

‣ VERY few films generate MG’s over six
figures.
 Getting a Middleman
‣ Finding a Sales Agent or Producer’s Representative.
‣

‣ Sales Agent: Similar to the practice of real estate. The sales agent has established relationships with buyers,
and can help make valuable connections to a distributor.
‣ Sales agents/agencies have buyers in over 100+ international territories, which offers them the ability to sell
your title multiple times over during your licensing deal.
 Getting a Middleman
‣ Finding a Sales Agent or Producer’s Representative.
‣

‣ Producer’s Rep: Combines the promotional skills of a publicist, the deal making ability of a lawyer, and the
marketing skills of a sales person.
‣

‣ A Sales Agent is similar to a Producer’s rep, but they mostly handle the sales of your film internationally.
 Getting a Middleman
‣

‣ One of the advantages to getting a sales agent or Producer’s rep is that they work on commission, which
means they’ll be more likely to get you a good deal.
‣ The best way to find them is attending larger film festivals and by word of mouth recommendations.
‣ Word of mouth recommendations can also come in the form of internet forums.
‣ Ask for references. If they can’t provide them, probably a good indication that they don’t have experience
selling films.
‣ Look at their film catalogue and make sure your film would fit in.
‣ Meet with them and discuss the various territories your film may fit in to the marketplace.
‣ Bigger doesn’t always mean better. Your film may get lost in the shuffle with larger sales agencies. Yes, they
may have more clout, but it may not mean much for smaller independent films.
Getting a Middleman
‣ Set realistic expectations. Particularly with investors.
‣ Negotiate! Sales Agents will take anywhere from 15-25%. Typically, they
will also tack on an additional $30-50,000 for marketing costs. You can
negotiate a cap on the marketing costs upfront OR you can ask for them to
take a flat 30% distribution fee without any recouping costs. This may mean
you’ll make less, but at least you’ll be earning from the first dollar.
‣ Set up a collection account. This is an independent third party financial
account, so the filmmaker will have access to the financial information. This
is particularly useful for your foreign deals.
 Distribution Channels
‣

‣ One of the advantages to getting a sales agent or Producer’s rep is that they work on commission, which
means they’ll be more likely to get you a good deal.
‣ The best way to find them is attending larger film festivals and by word of mouth recommendations.
‣ Word of mouth recommendations can also come in the form of internet forums.
‣ Ask for references. If they can’t provide them, probably a good indication that they don’t have experience
selling films.
‣ Look at their film catalogue and make sure your film would fit in.
Meet with them and discuss the various territories your film may fit in to the marketplace.
MAJOR STUDIO
‣

‣ Bigger doesn’t always mean better. Your film may get lost in the shuffle with larger sales agencies. Yes, they
may have more clout, but it may not mean much for smaller independent films.
INDIE STUDIO
SUB DISTRIBUTOR
 Distribution Channels
‣

‣ One of the advantages to getting a sales agent or Producer’s rep is that they work on commission, which
means they’ll be more likely to get you a good deal.
‣

‣
MAJOR
The best way to find them is attending larger film festivals and by word of mouth recommendations.
Word of mouth recommendations can also come in the form of internet forums.
‣
STUDIO
Ask for references. If they can’t provide them, probably a good indication that they don’t have experience
selling films.
‣ Look at their film catalogue and make sure your film would fit in.
‣ Warner
Meet with Bros, Paramount,
them and Fox,territories
discuss the various etc. your film may fit in to the marketplace.
‣ Bigger doesn’t always
[Theatrical mean better.
distribution andYour film may get lost in the shuffle with larger sales agencies. Yes, they
below]
may have more clout, but it may not mean much for smaller independent films.

• Direct contact (imdbpro)

• Film Festivals/Film Markets
 Distribution Channels
‣

‣ One of the advantages to getting a sales agent or Producer’s rep is that they work on commission, which
means they’ll be more likely to get you a good deal.
‣
INDIE
The best way to find them is attending larger film festivals and by word of mouth recommendations.
Word of mouth recommendations can also come in the form of internet forums.
STUDIO
‣

‣ Ask for references. If they can’t provide them, probably a good indication that they don’t have experience
selling films.
‣ Look at their film catalogue and make sure your film would fit in.
‣ Magnolia, Lionsgate,
Meet with them and discuss Blumhouse, IFC,your
the various territories etc.film may fit in to the marketplace.
‣ Biggerand
[Full doesn’t always mean
Limited better. Your
theatrical film may getand
distribution lost in the shuffle with larger sales agencies. Yes, they
may have more clout, but it may not mean much for smaller independent films.
below]

• Direct contact (imdbpro)

• Film Festivals/Film Markets
 Distribution Channels
‣

‣ One of the advantages to getting a sales agent or Producer’s rep is that they work on commission, which
means they’ll be more likely to get you a good deal.
‣
SUB DISTRIBUTOR
The best way to find them is attending larger film festivals and by word of mouth recommendations.
‣ Word of mouth recommendations can also come in the form of internet forums.
‣ Ask for references. If they can’t provide them, probably a good indication that they don’t have experience
selling films.
‣ Look at their film catalogue and make sure your film would fit in.
‣ Warner
Meet withPremiere, Barnholtz,
them and discuss etc.
the various territories your film may fit in to the marketplace.
‣ Bigger doesn’t
[Digital, VOD always
andmean better. Your film may get lost in the shuffle with larger sales agencies. Yes, they
below]
may have more clout, but it may not mean much for smaller independent films.

• Direct contact (imdbpro)

• Direct submission via website
•
 Distribution Channels
‣

‣ One of the advantages to getting a sales agent or Producer’s rep is that they work on commission, which
means they’ll be more likely to get you a good deal.
‣
SUB OUTLET / SUB-SUB
The best way to find them is attending larger film festivals and by word of mouth recommendations.
Word of mouth recommendations can also come in the form of internet forums.
DISTRIBUTOR
‣

‣ Ask for references. If they can’t provide them, probably a good indication that they don’t have experience
selling films.
‣ Look at their film catalogue and make sure your film would fit in.
‣ Meet with them and discuss the various territories your film may fit in to the marketplace.
‣ Bigger doesn’t always
Indieflix, meanRiver,
Passion better. Your
etc.film may get lost in the shuffle with larger sales agencies. Yes, they
may have more clout, but it may not mean much for smaller independent films.
[Digital, VOD, Online Sales, Disc
Rentals and below]

Direct submission
 Distribution Channels
‣

‣ One of the advantages to getting a sales agent or Producer’s rep is that they work on commission, which
means they’ll be more likely to get you a good deal.
‣
SEL
The best way to find them is attending larger film festivals and by word of mouth recommendations.
Word of mouth recommendations can also come in the form of internet forums.
F
‣

‣ Ask for references. If they can’t provide them, probably a good indication that they don’t have experience
selling films.
‣ Look at their film catalogue and make sure your film would fit in.
‣ Meet with them and discuss the various territories your film may fit in to the marketplace.
Bigger doesn’t always mean better. Your film may get lost in the shuffle with larger sales agencies. Yes, they
Always a last resort!
‣

may have more clout, but it may not mean much for smaller independent films.
Online Sales (Amazon Advantage/PayPal), Personal Site,
Festivals, Conventions, Vimeo, YouTube

• CreateSpace
 Where does your film fit in?
‣ Set a film festival strategy! Film festivals can give your film the start of a pedigree. Your distribution
options will be limited without one.
• Don’t compare the prospects for your film to previous films on its content or tone alone. If your film
doesn’t have prestige, or names, or similar publicity coverage or a verifiable fan-base, it won’t have
the same footprint in the market.
•

• Your distribution strategy may be informed by the size of your email database, the size of the social media
following of the film and its cast/crew, web traffic numbers and visitor locations from your website
analytics, and the active word of mouth & publicity mentions happening around it. These are the elements
that should help gauge your expectations about your film’s impact as well as its profitability.
 Sales Markets
‣Set a film festival strategy! Film festivals can give your film the start of a pedigree. Your distribution
options will be limited without one.
• Don’t compare the prospects for your film to previous films on its content or tone alone. If your film
doesn’t have prestige, or names, or similar publicity coverage or a verifiable fan-base, it won’t have
the same footprint in the market.
• Your distribution strategy may be informed by the size of your email database, the size of the social media
following of the film and its cast/crew, web traffic numbers and visitor locations from your website
analytics, and the active word of mouth & publicity mentions happening around it. These are the elements
American Film
that should help gaugeMarket
your expectations about your film’s impact as well as its profitability.
http://www.americanfilmmarket.com
Cannes Film Festival
http://www.festival-cannes.fr
Toronto International Film Festival
http://www.tiff.net
European Film Market (at the Berlin Int.
The Distributor and the Digital Aggregator

Understanding the difference between a Digital Aggregator and a Distributor?

Distributors take exclusive ownership of your film for an agreed upon time.
Aggregators  have direct relationships with digital platforms and often do not take
an ownership stake.
Sometimes distributors also have direct relationships with digital platforms, and so
they themselves can also serve as an aggregator of sorts.
However, sometimes it is necessary for a distributor to work with outside
 Domestic Outlets
‣ Set a film festival strategy! Film festivals can give your film the start of a pedigree. Your distribution
options will be limited without one.
• Don’t compare the prospects for your film to previous films on its content or tone alone. If your film
doesn’t have prestige, or names, or similar publicity coverage or a verifiable fan-base, it won’t have
the same footprint in the market.
• Your distribution strategy may be informed by the size of your email database, the size of the social media
THEATRICAL
following of the film and its cast/crew, web traffic numbers and visitor locations from your website
analytics, and the active word of mouth & publicity mentions happening around it. These are the elements
CABLE
that should help gauge TELEVISION
your expectations about your film’s impact as well as its profitability.
On Demand
DVD / BLU RAY
DISC RENTALS
Netflix
SLING TV
RedBox
 Domestic Outlets
‣ Set a film festival strategy! Film festivals can give your film the start of a pedigree. Your distribution
options will be limited without one.
• Don’t compare the prospects for your film to previous films on its content or tone alone. If your film
doesn’t have prestige, or names, or similar publicity coverage or a verifiable fan-base, it won’t have
the same footprint in the market.
• Your distribution strategy may be informed by the size of your email database, the size of the social media
following of the film and its cast/crew, web traffic numbers and visitor locations from your website
analytics, and the active word of mouth & publicity mentions happening around it. These are the elements
that should help gauge your expectations about your film’s impact as well as its profitability.

DIGITAL VIDEO ON DEMAND

Amazon & DVD VOD (CreateSpace)
NEW MEDIA SITES
Itunes (http://www.apple.com/itunes/sellcontent)
Hulu (www.hulu.com/partners)
Crackle (does not accept unsolicited material)
YouTube
Distribber (http://www.distribber.com/faqs)
Domestic Outlets
Revenue payout of a few of the most popular retail
platforms:

Amazon VOD pays the

iTunes splits sales 70/30. With
filmmaker 50% of what they
70% going to the filmmaker and
collect.
30% going to iTunes.

Netflix purchases a license for your
film for 1 or 2 years and they can play
your film as many times as they like
during that period of time. Licensing
fees vary on a film by film basis.
Hulu streams films for free
but 50% of the advertising
revenue goes to the
filmmaker.
When Submitting to a Distributor

http://www.indiewire.com/news/acquisitions

Approach “Acquisitions”
Search sites for contact
Create a Screener
ALWAYS TEST!!
Create Box Art
Create Press Kit
Mail package with Delivery Confirmation