Does Length Matter? ... Distribution Strategy for 'Lovely by Surprise' ... A First Film for Cinetic Film Buff

- This piece from yesterday's NY Times suggests that attention spans on the Web are getting longer (though the average video is still just 3.4 minutes in duration). Microsoft blogger Don Dodge offers more on length, based on a recent chat with MTV executive David Gale. Dodge writes:

Building the story from the ground up with a couple scenes in an 8 minute sequence works well for the web, and easily transitions to the 30 minute TV format. However, trying to work backwards from a 30 minute show and break it into web length clips doesn’t work so well, for obvious reasons.

- I wonder what the turn-out was like today at the 88 movie theaters that offered a live simulcast of the Michael Jackson memorial service.

- Jake Abraham has a nifty piece on Filmmaker Magazine's Web site. (Abraham was part of the founding team at InDigEnt Entertainment.) He writes:

We decided on a “day-and-date” release for two reasons. One, we’re a tiny group and can only sustain this level of attention for so long. Two, as momentum has grown over the past few months of promotion, we think its time to get the film out there while awareness is still high and let people consume the film in any way they want. Unfortunately, this meant that we’ve had to pass on some deals that required exclusivity.

For example, the IFC FestivalDirect VOD deal requires that the DVD release be held back ninety days from the VOD release date due to deals with the cable operators (they don’t want to compete with Netflix). With the lengthy backlog to get on the service, we were looking at a DVD release as late June 2010. While I love IFC and was excited that they liked the film, there was no way we wanted to suspend our entire operation just so the film could be carried on a consignment basis through cable monopolies starting sometime next year.

- Anne Thompson reports that 'New Orleans Mon Amour' will be the first film distributed by Cinetic Film Buff, a new cable VOD service. No info about Film Buff on Cinetic Media's 1997-era Web site, but there is a Twitter feed.

The Reality of DVD/Digital Revenues Today: 90-10

I took just a few notes while I was moderating yesterday's SXSW Film Fest panel on 'The Future of DVDs and Digital Distribution.' It was populated with execs from New Video (one of the biggest funnels that gets indie films onto iTunes), Cinetic Rights Management, and SnagFilms, but the folks who really made the panel, I thought, were filmmakers Gary Hustwit and Morgan Spurlock. Unlike most of these panels, where people talk in generalities, this time we got some specifics about where we are today.

Hustwit and Spurlock and the other panelists seemed to agree that even if you can get your film placed on a few of the big digital marketplaces, such as iTunes, Hulu, Snag, and Netflix's streaming service, you'll do well today to earn about one-tenth the revenue that you earn from DVD. They seemed to agree that there's about a 90/10 breakdown today, in terms of the ratio of DVD revenues to digital.

Hustwit said that 'Helvetica' has earned about $60K in digital revenues so far... and it's among the top ten documentary rentals and downloads on iTunes.

Spurlock's film 'Super Size Me' is among the most popular films on SnagFilms, the site that sells advertising around documentaries and shares a slice of the money with filmmakers. Yet he said that 'Super Size Me' and 19 other films he'd supplied to the site earned just $1,200 from Snag over a two-month period. 'Super Size Me' alone sold almost 70,000 DVDs in the last quarter of 2008, he said.

"If you’re looking to pay your rent [with digital distribution], not so much," Spurlock said. "But if you’re looking to pay your phone bill, you have a great chance."

Steve Savage from New Video and Matt Dentler from Cinetic Rights Management also shared a bit about the fees they charge filmmakers when they assist with digital distribution on various platforms. After the platform takes its cut (iTunes takes 30 percent of revenues, for instance), New Video takes about 15 percent more... and Cinetic takes a 25 percent fee.

Hustwit was quite vocal about urging filmmakers to take the DIY approach whenever possible." Why are we building other people’s businesses when we could be building our own," he asked. But even he relies on New Video to get films onto iTunes.

I asked Savage what the #2 digital marketplace is, after iTunes. He said it's Microsoft's Xbox gaming platform.

I asked Rick Allen, CEO of SnagFilms, whether he could share with us the percentage of people who watch streaming films on Snag and later go on to buy the DVD. He said there isn't a good average, but that less-well-known films tend to have a higher "conversion rate" for DVD sales than some of the bigger name docs on the site.

Here's some coverage of the panel from Web TV Wire... IndieWire (owned by SnagFilms, incidentally)... Scott Macaulay at Filmmaker Magazine.

Talking Indie Distribution, Next Sunday at Sundance

I'm thrilled to be moderating a panel next Sunday at Sundance, called "What's Next? Models and Experiments in Indie Distribution." If you're in Park City, it's at the New Frontier at noon on January 18th. If not, I'll try to blog/podcast, and Sundance eventually posts audio and video on their site.

Panelists are:

- Lance Hammer ('Ballast')

- Matt Dentler, Cinetic Rights Management

- Connie White, Balcony Releasing/member of the Sundance Arthouse Project

- Christian Gaines, Director of Festivals, Withoutabox, a division of IMDb

- MJ Peckos, Mitropoulos Films

- Cora Olson ('Good Dick')

- Steven Raphael, Required Viewing

The panel description is below. If there are any questions you think I should ask, post them here...

In today’s brutal marketplace, filmmakers and distributors are forced to think outside the box. From DIY theatrical to multiplatform releases and viral marketing, there are as many new strategies today as there are successful films. Join us as we showcase films capitalizing on the newest opportunities, as well as the distribution companies articulating the clearest visions.

NY Times Talks to Sloss & Cinetic

The NY Times runs a feature today about John Sloss and Cinetic Rights Management.

Brooks Barnes writes:

John Sloss is one of the top sales agents for independent films. Mr. Sloss, 52, has handled the sale of such diamonds in the rough as “Little Miss Sunshine,” the perky 2006 film about a family traveling to a children’s beauty pageant. He sold the $8 million project to Fox Searchlight for $10.5 million, setting a festival price record that still holds.

Now Mr. Sloss and his New York company, Cinetic Media, are rolling out a new business called Cinetic Rights Management. The executive and his team — he just hired Matt Dentler, the highly regarded director of the South by Southwest film festival — will act as sales agents for filmmakers who have been left on the sidelines. And here is the twist: The goal is not exhibition in theaters but rather distribution via the Internet and other growing delivery routes like cable on-demand services.

The idea is to create value for that other 90 percent of independent movies [which don't get picked up by distributors], or at least for a good chunk of them.

Article doesn't get deep into the specifics of deal terms, which I've covered here and here.

A Conversation with Cinetic: Today's Market for Digital Rights

I spent some time on the phone today with three of the folks involved in building Cinetic Media’s new digital rights group, called Cinetic Rights Management. They wanted to supply a bit more background on the group, which seeks to help indie filmmakers wring the most possible value from their work by selling it to satellite companies, Internet portals, mobile phone operators, etc. (I’d posted last week about Cinetic’s hiring of Matt Dentler and some of the deal terms they’d been dangling before filmmakers.)

First thing: they didn’t dispute the deal terms I’d seen them offering to filmmakers last year (a 50-50 split of revenues after some expenses are taken off the top, like digitally encoding the film, and a 10-year exclusive contract to be represented by Cinetic.) But Cinetic’s Christopher Horton did say that terms are negotiated “on a case-by-case basis.” Horton said they’ve signed up “about 100 films” so far.

Janet Brown, the chief operating officer of CRM, said that the long-term arrangement is important to Cinetic because of the “unproven revenue model in this space”; the resources CRM will commit to marketing a film; and the logistics of encoding films and collecting info about how well they’ve performed in each distribution channel.

But what happens, I asked, if a filmmaker signs up with Cinetic and something goes awry? Cinetic might not find any buyers for the film, or might get out of the digital business in five years. Horton quipped, “This could be our only business in five years.”

Still, when Cinetic reps a film at Sundance or another festival, a filmmaker might sign a year-long exclusive with the firm, or even shorter. There’s a big difference between that and a decade. But the CRM team contend that they’ll be able to do a lot with a film’s rights over that period of exclusivity, as digital markets develop. “Having a sales agent for your digital rights is going to be even more important than a conventional sales agent” handling theatrical and home video distribution, Horton predicted.

Brown explains that CRM will market films to Internet portals like iTunes, Joost, and Jaman; satellite companies; cable companies; telcos; and wireless operators. They’re interested in repping not just new films, but high-quality older films where the rights have reverted to the filmmaker.

I noted that the big kahuna in terms of Internet sales (and now, rentals) seems to be Apple's iTunes marketplace. The CRM trio seemed to agree. They noted that, working with New Video, they helped cut the deal with iTunes to premiere Ed Burns’ “Purple Violets” there last year. (No data is yet available, they said, on how well it has performed.) And Brown said they’re “in discussions now to finalize our deal with [iTunes],” adding that CRM has “a very good relationship” with Apple.

Most of the deals CRM is seeing offered are so-called “consignment” deals: give us the movie, and we’ll give you a share of the revenues it produces. But CRM hopes that some films, in some digital outlets, will receive advances – especially when they’re offered to one outlet on an exclusive basis.

It can take a while for these Internet outlets to produce revenues, Horton explained. “We never tell filmmakers, we’re going to make you a heck of a lot of money through Jaman, Joost, and Netflix over the next twelve months. We’re focusing on the long-term,” he said.

A main emphasis in CRM’s dealings with filmmakers, it seems, will be helping them make sense of the growing number of digital distribution options – and freeing filmmakers up to get started on their next project, without spending years marketing their last one.

“Not every filmmaker has the time or inclination to do what Lance Weiler or the Four Eyed Monsters guys have done,” Brown said.

“Most independent filmmakers out there are still unaware of the opportunities,” said Dentler. "They’re so busy being filmmakers, engrossed in their project, that they don’t see the bigger picture, the bigger landscape.”

‘Four Eyed Monsters,’ he observed, came out in 2005, and directors Susan Buice and Arin Crumley “still haven't made another film. Hopefully, with our resources we can help filmmakers focus on continuing their careers.”

Dentler, Cinetic, and Deal Terms

SXSW Film Festival head Matt Dentler is heading to New York to help run the rights management division of Cinetic Media. Here's the Variety coverage and here's IndieWIRE's report. Dentler posted just a short note about the new gig on his blog.

Cinetic Media, founded by attorney John Sloss, is one of the best-known rep firms in the independent film world. They've handled the sales of titles like 'Supersize me,' 'Bowling for Columbine,' 'Little Miss Sunshine,' and 'Napoleon Dynamite.'

Dentler and Cinetic have an interesting challenge ahead of them. Their mission is to find the best indie content and sell it to portals, VOD services, and other aggregators who'll produce revenue through advertising, subscriptions, or paid downloads. (A deal with iTunes, which Cinetic doesn't yet have to my knowledge, would be key.)

But they're also gonna keep 50 percent of the gross receipts from those deals, according to a Cinetic contract given to one filmmaker I know last fall. That isn't a bad deal if Cinetic is creating eye-popping revenues from a film that wouldn't have otherwise had them, but some download sites and DVD-on-demand services will pass along 70 percent or more to a filmmaker, if a filmmaker chooses to go the do-it-yourself route. Through Cinetic, that same take gets split in half. And Cinetic's contract -- at least the one I saw -- appoints Cinetic as the "sole and exclusive agent" for the work for ten years.

From IndieWire's blog report:

Monday's announcement stirred greater interest in Cinetic's new division, which company founder John Sloss said Monday is aimed at working with just the sorts of independent filmmakers for which SXSW has become an important home in recent years. In the words of an announcement, Cinetic noted that CRM will "aggressively exploit content opportunities" in the digital market, ranging from sales negotiation and strategy, organization of digital encoding logistics, marketing support, as well as accounting and reporting. Dentler will work closely with Janet Brown, CRM's chief operating officer, to program titles for various new media platforms (ranging from VOD outlets to online distributors like iTunes, Netlix or Amazon). Core aspects will include marketing and montezing the relationships between the filmmakers and these emerging distributors.

"I've been saying for awhile now, seeing the worlds of new media and film overlap at SXSW, that there is a whole realm of possibility that the industry has yet to define. Young up-and-coming filmmakers are not finding a tradtional distribution deal, and I hope to help service that," explained Dentler, who joined SXSW as an intern more than ten years ago, rising to become head of the film fest back in 2003. "I was tired of watching great films come and go, and I'm excited to be at Cinetic so that I can put my money where my mouth is."