Do We Need Distributors? (Movie Distribution, Part 4)

[Note: It has been quite awhile since I started the movie distribution series. Please go back and re-read parts 1-3 to refresh your memory.]

In part 3, I explained why independent filmmakers don't need a distributor. I showed that self-distribution is a valid option. However, this time, I'm going to explain why filmmakers do need a distributor.

Huh?

The Limits of Self-Distribution
As we saw earlier, many options abound for Christian movie distribution. Independent filmmakers can pursue many of these options on their own. You can sell at your own website, sell via download stores, and even connect with a small handful of retailers without the help of a distributor.

But self-distribution only goes so far.

The plain and simple truth is that you can't get into christianbook.com without the help of an established distributor. You can't convince Family Christian Stores to stock your film unless a distributor is involved.

In short, you need a distributor if you want to reach the Christian retail market.

End of story. Case closed.

Why do we still need Christian retailers?
As I said in part 3, the Christian retail market has over 8000 stores and millions of dollars in buying power. It's still a valuable market that should be included in your overall marketing plans.

On the consumer end, there is an increasing demand for more family-friendly, God-honoring films. The Christian DVD industry is growing rapidly. Christian retailers reported DVD sales increases of 15% to 80% in 2007.[1] Christian retailers are asking for more films to meet demand.

Retailers want your films – but they don't want to work with you.

Here's why. Christian retailers have to stock thousands of products. Christianbook.com alone has over 234,000 products! Many of those products are books from established publishers. However, there are many self-published authors, independent filmmakers, and musicians who have their products at Christianbook.com. Perhaps 10,000 or more!

If you were a Christian retailer, would you want to establish and maintain a business relationship with 10,000 + individuals who might have one film, one CD, or one book for you to sell? I sure wouldn't, and neither does CBD. That's why it makes sense for retailers to only sell products from established publishers and distributors. It's much easier to work with a few hundred companies that provide dozens of products each. Doesn't that make sense? (I can assure you that those 10,000 + independent authors and filmmakers didn't get in without help from a distributor.)

So two things should be clear at this point:

1) We want Christian retailers to sell our films.
2) We need a distributor to reach Christian retailers.

It's for the above reasons that I founded SEM Distribution. We're here to meet this need. But by now some may be wondering how we can offer distribution help without falling into the pitfall of exclusive DVD distribution deals.

Good question.

I'll address that issue in part 5. Stay tuned!

[1] Source: Christian Retailing magazine, August 20, 2007 issue, “Family-friendly films welcomed as growth category.”

Distribution in an Age of Independence (Movie Distribution, Part 3)

In Part 2, we looked at the way movie distribution used to work. A filmmaker's only viable option was to sign an exclusive distribution deal with a major corporation. That option certainly still exists, but new options abound.

We all know that the Internet has changed life as it once was. Today, many businesses are built entirely upon the web, and just about every other business is impacted by the Internet in at least some way.

The movie industry is no exception.

The web has opened up a whole new world for filmmakers - especially independent filmmakers. It is now possible for filmmakers to effectively self-distribute without any help from a distributor.

A savvy filmmaker can...

1) Handle his own marketing
2) Sell DVDs at his own website
3) Approach ministries for partnership deals
4) Sell DVDs through a few online retailers that work directly with filmmakers
5) Sell his films through download sites like Glarity and Behemoth.com

Advent Film Group thrives on this model of self-distribution. This model is very lucrative for Christian filmmakers, and it will become even more lucrative in the future, as The Grid becomes more readily available and video downloads become the new standard. I can imagine a day when consumers will no longer buy movies on DVD, but instead opt for downloading Hi-Def videos to a home computer or TV.

Essential Aspects of Filmmaking
Even with all the potential for self-distribution now and in the future, many filmmakers will not jump at the chance to do it alone. Why? Well I'm going to have to go a little off topic at this point to talk about the basic aspects of filmmaking. I can see essentially four basic aspects to filmmaking:

1) Theological (e.g. biblical worldview)
2) Creative (e.g. the story and script)
3) Technical (e.g. lighting, etc.)
4) Business (e.g. marketing and distribution)

Hollywood is so successful because they have mastered #3 and 4. Sometimes they excel in #2, but usually they just take proven story formulas and try to tell the same stories a thousand different ways.

Most of the Christian filmmakers I know are really proficient in #1 and 2 or 1 and 3. Sometimes 1-3. Very few have mastered the business side of filmmaking (#4). This is why many films flop. You may have an excellent, creative, God-honoring film on your hands, but neglect the business aspect and you'll likely end up losing money. (unless, of course, you didn't spend any money)

The Typical Filmmaker
So what's a filmmaker to do? I understand that many filmmakers are "creative types". They are enamored by the moviemaking process. They love to develop new story ideas and write screenplays. They enjoy creating the right mood for each scene in the film. Editing may be the favorite part of the filmmaking process, because that's the part where all the piece of the film "come together" to form that final glorious masterpiece. Other filmmakers are "techies". They excel at the technical aspects of filmmaking and really know how to make a film that looks good.

All this is very well and good. There's nothing wrong with being a creative type or techie. You need those skills to make a good film. However, filmmakers are usually not business types. This means that they don't care much for marketing and distribution. The typical filmmaker would much rather focus on making films and leave that "marketing stuff" to someone else. You can see why this causes a problem for filmmakers. A very creative filmmaker might produce a very good film, but if he doesn't plan a solid marketing strategy, his film may be bound for commercial disaster.

If any of this describes you, you may want to seriously consider finding a distributor to handle marketing and distribution for you.

What if you excel in all four aspects?

The Ideal Filmmaker
While I'm sure that many filmmakers don't fit into this category, there are a select few who excel in all four aspects of filmmaking. I'm thinking mainly of Ken Carpenter and George Escobar.

Filmmakers like them may not see any need for a distributor. At the beginning of this post, I explained how the "ideal filmmaker" can succeed commercially without any help from a distributor. However, there's one important avenue for distribution that filmmakers cannot tap into unless they are assisted by a well-connected distributor.

What is that vital market?

Christian retail.

But wait a minute! Who needs Christian retailers when you have all these self-distribution options? Does Christian retail even matter anymore?

Indeed it does. It's a huge market with over 8000 stores and millions of dollars in buying power. In part 4, I'll explain why smart Christian filmmakers should seek to include Christian retailers in their overall marketing and distribution plans. Also, we'll learn why a well-connected distributor is essential to penetrate this vital market.

There's more to come. Much more!

The Way Things Were (Movie Distribution, Part 2)

Needless to say (but I'll say it anyway), the movie industry has undergone many changes since the early 1900's. As audiences became more refined and expected more realistic drama, filmmaking techniques changed over time. Technology has changed, acting techniques have changed, and – most disturbingly – moral values have changed for the worse in most cases.

Interestingly, with all the filmmaking changes that have taken place over the last one hundred years, movie distribution saw very few changes until the last fifteen years or so. In the early days, movies played in studio-owned theaters, which meant that filmmakers could only find distribution by going through one of the major studios. Yes, filmmakers could turn to smaller distributors, but those distributors still had to go through the studio system.


As one could imagine, movie studios wielded enormous power and influence in those days. If you wanted to succeed in the movie business, you had to go through Hollywood and play by their rules.


This changed somewhat in 1948, when the US Supreme Court ruled that studio-owned theater chains were prohibited by the Sherman Antitrust Act of 1890. I won't go into all the ramifications of that decision, but I will say that this ruling loosened the grip that major studios had in controlling the distribution process. It loosened the grip, yes, but it didn't entirely remove studio control. Major Hollywood studios still to this day wield enormous influence over theatrical movie distribution. It is still very hard to succeed with a theatrical release unless you have Hollywood's blessing. This is changing, and there are some exciting developments on the horizon, but I won't get into that now.

Yes, there are many changes coming in theatrical distribution, but even today, if your film is distributed by a Hollywood studio, you have to give up all the distribution rights to the studio – just like the old days.

Distributors demand exclusive rights. This means that the distributor will handle the theatrical release, TV broadcasting, and the home video release.

DVD Distribution
I realize that most of my readers are not ready to produce theatrical feature films. Most of us have to be content with a direct-to-DVD release for the time being. So why spend so much time talking about theatrical distribution? For this reason – until recently, DVD distribution worked essentially the same way as theatrical distribution. If you wanted widespread distribution for your DVD, you had to work with mega-corporations who wielded enormous control over your movie release.

Even if you didn't work with Hollywood, your DVD release would still have been controlled by mega-corporations who demanded exclusive rights. Suppose you produced a movie that you wanted to release in Christian retail stores. If you wanted to reach a mass audience, your only viable option was to sign an exclusive deal with a major distributor. Usually, this distributor would have been a major Christian publisher like Tyndale or Thomas Nelson.

"What's so bad about exclusive deals?" you might ask. There are advantages to be sure, but many filmmakers will find that the disadvantages outweigh the advantages.

The Advantages of exclusive DVD distribution deals:
The distributor pays for DVD replication and marketing.
Your film will potentially reach an audience of millions of Christians.

The Disadvantages of exclusive DVD distribution deals:
The distributor has control over how and where your DVD is distributed.
The distributor takes a large percentage of all revenue.
If you want to sell your own DVD, you have to buy DVDs from your distributor.

I think most filmmakers would agree that the "exclusive deal" doesn't look very inviting. Take special note that the distributor would take a percentage of all DVD sales. So even if you had the ability to sell hundreds of DVDs on your own, your distributor would still get a portion of that sales revenue!

Now, I understand that some filmmakers are so engrossed in making movies that they would be glad to hand over all marketing and distribution to a distributor. They love making movies, not marketing them. If that describes you, then an exclusive distribution deal might be right for your film.

However, if you know you can generate significant sales on your own (without a distributor), then to sign an exclusive deal would mean you are giving up a large percentage of your hard-earned sales to a distributor who doesn’t have to lift a finger.

Are there any other options?

Fifteen or twenty years ago, I might have said no. You may notice that the title of this post is "The Way Things Were." Very perceptive of you. You're quite right.

An “exclusive deal” used to be your only viable option, but DVD distribution has changed drastically in the last fifteen years or so.

There are many more options today to reach a mass audience without the help of a distributor.

Interested? Stay tuned for part 3!

Big Filmmaking Mistake to Avoid, Part 1

Every Christian filmmaker has a multitude of mistakes to avoid. Several years ago, Geoff Botkin recorded a helpful lecture titled, “The Twelve Most Common Mistakes of Beginning Directors”. Some mistakes to avoid include bad theology, poor story structure, and sloppy production values. Bottom line – if you’re a filmmaker, get the CD. Period.

By God’s grace, there are many resources to help filmmakers excel in actually producing actual movies. Just to start, I will highly recommend The Christian Filmmaker’s Academy, Outside Hollywood, and ChristianFilmmakers.org. If you want to make movies, you can learn just about everything you need to know about the production process by drawing from those resources.

But there’s one problem that hasn’t been adequately addressed.

There’s one problem that makes my top ten list of mistakes to avoid. And most filmmakers neglect to think about this one problem until it’s too late. What am I talking about?

One word. Distribution.

Why do so many Christian filmmakers never breakeven, much less turn a profit? Why do most Christian filmmakers wait until the movie is finished before they try to set up distribution connections? Do we still need traditional movie distributors? Is it true that independent filmmakers can market their movies without any help from a distributor?

Over the next few weeks (or perhaps many weeks), I’ll be tackling these questions head-on and dispelling some myths. Let’s dig deep into the nitty gritty of independent film distribution and clear up the mystery of the process. Find out how the system worked in the past, why it’s not working now, and what we intend to do about it.

Stick around. This could be fun!