Is There a Future For Indie Film? Filmmakers and Festivals Will Decide...

Can we all concur that the business model for making and distributing independent films is in flux?

(Mark Gill certainly thinks so … and this article from the Wall Street Journal adds more detail to the picture.)

I’d like to humbly suggest that film festivals need to play a different, more muscular role in helping filmmakers earn money from their creative endeavors.

The model today, for filmmakers lucky enough to win a slot at high-profile festivals like Toronto, where acquisitions execs are prowling, is to hustle and hope for a distribution deal –- before, during, or after their festival run.

And yet we know that the majority of films – even those that win entrance to Toronto, Tribeca, or Sundance -- don’t ever get that deal.

So months later, the filmmaker is stuck trying to figure out a self-distribution strategy, or working with shady sales agents who may sell the broadcast rights to Bolivia for a few grand. (I know you’ll never believe this, but sometimes the filmmaker never actually gets that money.)

For most movies, playing at a festival (or two or three) is the most attention their film will ever get from the media, movie lovers, agents, and yes, potential distributors.

I acknowledge that some filmmakers will choose to continue playing “festival roulette”: spin the wheel and hope for a deal.

But I think smart filmmakers ought to consider using the highest-profile festival they can get into as the platform for launching their movie. During the festival, or on the day it ends, they should make their movie available through their own Web site, perhaps using DVD-on-demand services like NeoFlix, Film Baby, or CreateSpace/Amazon. Same thing for making downloads available: get that movie onto Amazon Unbox, B-Side, or iArthouse.

And I think festivals ought to do more to create opportunities for their filmmakers: a deal with iTunes, for instance, which puts movies into that popular marketplace (iTunes is notoriously difficult for individual filmmakers to work with), or a broadcast deal with a cable channel or pay-per-view service to put the movies on TV, plastered with festival branding, which would serve as a “Good Housekeeping Seal of Approval” for movies that might not have stars or high production values.

From a filmmaker's perspective, it’d be good to have a movie available during the festival. If I read a glowing review of something playing at Toronto this weekend, I’m going to want to download it or buy the DVD right then –- and I may not feel the same way a week later, after the festival ends (I may not remember the movie at all by that point.)

From a festival perspective, I understand the fear that allowing movies to be sold online during the run of the festival might diminish that “I saw it first” feeling that festival audiences enjoy. They might prefer for distribution to begin only at the end of the festival. But if the DVD or download featured the festival logo as part of the opening credits, that could also serve as additional marketing for the fest.

So...wouldn’t distributing a movie during, or just after, it plays a festival totally torpedo any chance for distribution?

For some old-school distributors, yes. But the more forward-thinking distributors might look at strong sales of downloads or DVDs in the weeks following a festival as an indication of viewers’ interest in the movie. They might appreciate a filmmaker who has been collecting e-mails and ZIP codes of everyone who has purchased her film, since that data can be used to pick the perfect cities for a theatrical run, and to promote that run.

And distributors, if they want to work with a filmmaker, can always ask that she pull down the DVD or downloadable version of her film. (It’s important to ask DVD or download services whether you can do this; some require that you give them the movie for a specified period of time.)

I spoke earlier this week to a Sundance spokesperson, who said that nothing prohibits a filmmaker from selling his movie online during the festival, “although we wouldn’t recommend it.” She said no filmmaker had yet tried it, to her knowledge.

Toronto’s rules say that films can’t be available on the Internet prior to the last day of the festival. (It’s hard to tell if that refers just to downloads, or to DVDs sold through a Web site like Amazon, too. Even if that’s the case, the rules would seem to allow you to sell DVDs during the festival through Wal-Mart or Best Buy or another retail outlet, if you could cut that kind of deal.)

“We know certain festivals where it’s clear they discourage distribution during the festival, but I think that even those festivals aren’t going to discourage it for long,” says David Straus, CEO of Withoutabox, which helps festivals run their submission processes, and is increasingly getting into the distribution business. “I think festivals see that it’s important that filmmakers really have the ability to start monetizing their film at the festival, and they can be the catalyst to help them do that,” Straus adds.

I think it’d be great to see more filmmakers and festivals experimenting with these kinds of new strategies. (I wrote a bit about how the relationship between festivals and their filmmakers ought to evolve back in December, during the International Film Festival Summit.)

Of course, I could be totally wrong, and this could be a dead end. Some people believe that films that don’t get picked up for distribution at festivals are completely worthless, and that nobody wants to see them. (I don’t.) Some people believe that things never change, and that distributors will forever give the cold shoulder to filmmakers that pursue the kind of self-distribution strategy I’m proposing, to make the most of their festival buzz. Some people may feel that it isn’t part of a film festival’s mission to help filmmakers make a living.

And some people –- the real pessimists –- may believe that there will never be a new business model for independent film.

I’m curious what you think.

How to Get Your Indie Film on iTunes (...It's Not Easy)

If you are a filmmaker who wants to self-distribute your work in digital form, there’s probably nothing more frustrating to you than Apple’s indifference to helping you do that.

You may own a Mac. You may use Final Cut Pro for editing. You may carry an iPhone or iPod in your pocket. You may have a MobileMe or .Mac account.

But Apple doesn’t seem to want to help you do business online.

I’ve harped on this issue since 2005, the year that Apple first started selling movies and TV shows on iTunes. Since then, iTunes has become the dominant marketplace for legal movie sales and rentals; in June, Apple said iTunes users were renting or purchasing 50,000 movies a day. (Apple’s rivals, like Amazon Unbox, Movielink, and CinemaNow, have never disclosed how many movies they sell and rent – but my belief is that they’re bit players.)

So how do you get your movie sold on iTunes?

It’s not easy, and Apple doesn’t make things any easier by supplying absolutely no official information to filmmakers who’d like to sell their work on iTunes. (By contrast, here’s CreateSpace’s crystal clear explanation of how to sell your work on Amazon Unbox – the best non-iTunes option that exists today.)

Here’s the scoop: Apple’s strategy thus far has been to only work with aggregators, or services that will collect a number of indie films and then deliver them to iTunes. They don’t want to work directly with filmmakers. But there is no aggregator yet that will take just any finished film and deliver it to iTunes, in the same way CreateSpace (which is owned by Amazon) will take any finished film and sell it on Amazon Unbox.

So, who (aside from indie-majors like Lionsgate and The Weinstein Company) is working with iTunes today? Here's my list. (If you know of others that would be interesting to indie filmmakers, mention them in the comments below.)

- New Video seems to be getting a lot of full-length features onto iTunes, including “King Corn” and “Bomb It,” both recently-released docs, and Henry Jaglom’s “Eating,” from 2004. They also connected Ed Burns with iTunes for his latest film, "Purple Violets." One filmmaker who got his doc onto iTunes via New Video told me the split is 70/30, with 70 percent going to the filmmaker; he’d initially contacted Apple about selling his movie on iTunes (he has been self-distributing DVDs, and selling tens of thousands), and was told to get in touch with New Video. Here’s their contact info. And here's a recent story from Video Business about their relationship with iTunes.

- Shorts International in the UK has distributed a few dozen short films through iTunes, including the recent Oscar-winner “West Bank Story.” Here’s the page that explains how to submit your film.

- The Independent Film Channel (IFC) has a handful of features on iTunes, including “Four Eyed Monsters,” “Does Your Soul Have a Cold?” and “Before the Music Dies.” Oddly, all of them are priced at $3.99 instead of the usual feature film price of $9.99. Contact info here, here, and here.

- Mediastile is the company that offered Sundance short films earlier this year on iTunes. One of these films, “Sick Sex,” is currently #2 on iTunes’ list of best-selling shorts, sandwiched in between two Pixar shorts. Mediastile also handled “The Tribe,” a short film that played at Sundance in 2006, and was briefly an iTunes best-seller last year. I’m not aware of any feature-length films that the company has handled, and no one at the company’s Lake Tahoe headquarters answers the phones, returns messages, or answers e-mail. (I happened to have the e-mail address of their president, and he did e-mai me to insist that the company is still in business, but didn’t return my phone calls.) I wonder what would happen if you wanted to call them to ask about getting paid? Their Web site, for the bold and courageous, is here.

So this is the best that Apple can offer indie filmmakers? Apparently so.

I’ve been told for the past year that other aggregators will soon, any day now, begin working with iTunes. Some of them may be more open to submissions than the four I’ve listed above. (By open, what I’d like to see is an aggregator accepting any finished film where the filmmaker can guarantee that there are no rights issues that will result in lawsuits… or at the very least any finished film that has played at least one festival.)

Here’s who else could soon be delivering films to iTunes:

- The Independent Online Digital Alliance. Already distributes music to iTunes. Their online application is here. IODA chief Kevin Arnold says via e-mail that they are "working on initial deliveries and ingestion now. No solid ETA yet though."

- Film Baby. Film Baby’s sister company, CD Baby, already distributes music to iTunes.

- IndieFlix. Co-founder Scilla Andreen told me this week that she expects a few IndieFlix titles to show up on iTunes in the fourth quarter of 2008, at the earliest.

- The guys at Cinetic Rights Management say they're close to a deal to work directly with iTunes.

Again, Amazon.com's CreateSpace is the best option today for selling your film in digital form, in my opinion. But you'll have to drive customers to your work -- unlike iTunes, where the customers are already buying movies in big numbers.

And if you know of other routes to getting onto iTunes, or have opinions about the ones I've listed, post them here!

In Variety: "Studios' Digital Dilemma"

I have a piece in Variety this week that is basically a state-of-the-market report on digital downloading of movies. It argues that Apple is becoming the Wal-Mart of this new medium -- and that that has big implications for studios and independents. From the opening:

Like Wal-Mart, Apple seems to be flexing its muscle to dictate terms to studios and indie producers. iTunes is a digital "big box" store to be reckoned with, and the choices Steve Jobs' company makes and the conflicts it faces will likely shape the way movies are consumed over the next decade.

Updated: Sites that Pay Filmmakers and Video Producers

In advance of the IFP Filmmaker Conference this week, I've updated my list of sites that help filmmakers and video producers get paid for their work. I removed a number of sites that don't seem to be attracting very many users, deleted Google Video (which never really allowed indies to charge for content, and now has announced plans to close its video store entirely), and also added two services that help filmmakers sell DVDs they've already produced (Film Baby and NeoFlix.)

I'm always interested in hearing whether there are other sites that ought to be on this list. My criteria is that they aren't just a place to post content, but can actually help creators earn a return.

A few tidbits about iTunes and indie content creators, from SXSW

At one of my panels at SXSW last weekend, I asked the panelists who the new power players are, when it comes to distributing movies on the Internet. The consensus: iTunes, definitely. Movielink could be a contender, depending on how much money Blockbuster will put into enhancing and marketing the site. And I think CustomFlix, owned by Amazon, is an interesting dark horse candidate.

But iTunes has sold 50 million TV shows, and 1.3 million feature-length films. That ain't bad.

The problem is, it's just about impossible right now for an independent content producer to get their stuff sold on iTunes.

In some conversations at SXSW, though, one DVD distributor I talked to said that one of his movies, a documentary with a Net-oriented theme, could show up soon, and he said that IODA, the Independent Online Distribution Alliance, is in the midst of doing a deal with iTunes. (IODA already helps indie musicians get their stuff sold on iTunes, so that makes sense.)

I also had a chat with a senior exec at Film Baby, which distributes indie movies on DVD. He said that iTunes was more focused on getting more big studios signed up than working with indie distributors, but that things could change as soon as this summer. He said the revenue split would likely be the same as it is on the music side, 70/30 in favor of the producer, but that producers would likely have to pay a third-party digitizing firm to have their content digitized to iTunes' specs. That could cost about $150. This person also said that anything under 60 minutes would be priced like a TV show ($1.99), and anything longer than 60 minutes would be considered a movie (with a price of $9.99 or up.)