Hey NYC & LA Filmmakers!! Your Personal Invite (& DISCOUNT) To Distribution U!

Today's guest post is letter to YOU from Peter Broderick. Okay, it is to me, but only so I can forward it to you.  This is a can't-miss-event.

Dear Ted,

We would like to invite your colleagues and readers  to Distribution U and offer them a special discount (see end of post).  It is a unique event that will give them the latest information about new distribution models and connect them to many of the people who are pioneering cutting edge strategies. The event is being presented by me,  Peter Broderick, a leading strategist and pioneer of new distribution models, and cutting-edge author and tech analyst Scott Kirsner.

This one-day crash course on the New Rules of Crowd Funding, Audience Building & Distribution is being held Saturday, November 13th in New York at NYU and the following Saturday, November 20th in Los Angeles, where it is co-sponsored by UCLA's School of Film, Theater, and Television.

We are very excited about the stellar roster of resource people who have already committed to participate. They are pioneers who are creating and implementing the latest distribution models and strategies.

Richard Abramowitz (who organized the successful theatrical rollout of "Anvil: the Story of Anvil") and Marc Schiller (the digital marketing expert who heads Electric Artists) will present a case study revealing how they guided the release and marketing of "Exit through the Gift Shop" so effectively, without a director to promote it.

So far our other resource people include:

Caitlin Boyle (semi-theatrical maven and head of Film Sprout)

Jim Browne (theatrical booker and founder of Argot Pictures)

Adam Chapnick (founder of Distribber, the innovative company that works with filmmakers to maximize their digital revenues)

Brian Chirls (the tech guru who developed much of the Internet strategy for "Four Eyed Monsters")

Jonathan Dana (producer and producers rep "Road to Nowhere")

Ira Deutchman (producer and Emerging Pictures CEO)

Sandi DuBowski (producer/director "Trembling Before G-d" and outreach director for The Good Pitch)

Madelyn Hammond (marketing guru and former Chief Marketing Officer at Variety)

Justine Jacob (director of "Ready, Set, Bag!" and an attorney at the law firm Lee & Lawless)

Scott Macaulay (producer and editor of Filmmaker Magazine)

Slava Rubin(CEO and co-founder IndieGoGo)

Jill Sobule(singer/songwriter "California Days" and crowdfunding pioneer)

Anne Thompson (journalist and blogger "Thompson on Hollywood")

Other directors and producers include:

Robert Bahar and Almudena Carracedo ("Made In LA")

Jennifer Dubin and Cora Olson ("Good Dick")

Roberta Grossman ("Blessed Is The Match")

Joel Heller ("Winnebago Man")

Meg McLagan ("Lioness")

Vladan Nikolic ("Zenith")

Ben Niles ("Note by Note")

Jim Tusty ("The Singing Revolution")

Our resource people will lead off-the-record discussion groups in their areas of unique expertise and will be available to participants during networking opportunities throughout the day.

The experience of these resource people will be complemented by that of participants, many of whom have also been working on the frontiers of distribution. Scott and I have designed the event to give everyone a chance to connect and potentially collaborate in the future.

Here are discount links:

Distribution U. New York, November 13th

http://distributionu-nyc.eventbrite.com/?discount=friend

Distribution U. Los Angeles, November 20th

http://distributionu-la.eventbrite.com/?discount=friend

There is also a small group rate if two or more people sign up at the same time. For 2 it is $185 a piece and for 3 or more it is $175 per person.

We hope many of your readers and colleagues will be able to attend.

Onwards and upwards,

Peter

P.S.  From Scott:

Here's what Manohla Dargis wrote about last year's event, at USC: http://www.nytimes.com/2010/01/17/movies/17dargis.html

We're also giving away a pass to one lucky person who tweets the URL (http://distributionu-nyc.eventbrite.com) along with the hashtag #distribu. (We'll pick the winner Wednesday at 5.)

There's also some MP3 audio of one of the case study sessions last year, featuring the director of "Anvil" and the producer of "Good Dick," both of which were at Sundance 2008.

http://scottkirsner.com/DistributionU2009-casestudies.mp3

Filmmakers vs. Aggregators: Distribber speaks of Win, Win!

Today's guest post is from Distribber founder Adam Chapnick responding to the question of just what IS Distribber and how can it make the world safer for filmmakers. Distribber was recently acquired by IndieGoGo, and in the wake of the publicity surrounding the announcement, we received a tremendous outpouring of enthusiasm and interest in Distribber's service.  As is inevitable, there's been some confusion around what Distribber does and doesn't do.  

Distribber was created to help rights holders maximize the payback from their work and investment.

More specifically, Distribber was conceived as a solution to several persistent complaints from filmmakers and other creative rights holders about distributors in general and aggregators in particular.  ("Aggregator" is the term used for a company that acts as a gatekeeper between a rights holder and a retail platform, such as iTunes, Netflix, Hulu or Cable VOD operators like Comcast, Time Warner, etc.)  

The complaints surrounded 3 specific pain points: 

Complaint #1.  Eternal revenue-share for finite service
Aggregators (other than Distribber) work on a revenue-share basis, meaning that they make money by keeping between 15% and 50% of your revenue that they collect from the retail platforms on your behalf.  They take this portion of revenue for the entire term of your deal with them.  The complaint from filmmakers was that while aggregators take this money "forever," they didn't seem to be working forever.  To many, it seemed that aggregators placed their film on the platforms and then moved on. 

This situation was even more frustrating for larger rights holders -- production companies, sales reps, etc. -- who controlled the rights to several (often dozens) of titles, and who engaged in significant marketing and grassroots outreach but lacked access to iTunes, except through revenue share entities.  The shared-revenue structure has continued to frustrate these larger companies as they have been the core demand-drivers.

Now, in defense of aggregators, encoding a film, ushering it through Quality Control "QC" and having the access to place it on iTunes or Netflix or Hulu or Cable VOD or anywhere else is indeed a valuable service -- and often a time-consuming one.  

However, it seemed that one could put a fair price on that service that accounted for the work and value of relationships, and offer it to filmmakers cleanly, without the burden of a revenue-share.  This would enable a filmmaker, production company or other rights holder to know their cash outflow in advance, and enjoy 100% of the benefit of their film's success.  So, Distribber adopted a flat-fee-for-service model.

Complaint #2.  Large deducted expenses, often including fees for marketing services that seemed unhelpful or nonexistent
Filmmakers complained that distributors and aggregators deducted expenses that seemed unreasonable, like $1500 for encoding, or an array of costs for marketing services that the filmmaker wasn't sure had actually been done.  

Here, the opportunity was again to charge a fair price, once.  So, Distribber adopted a fair price.  The $1295 one-time fee for iTunes placement was less than some rev-share companies charged for the encoding alone, and after only 185 sales at $9.99 on iTunes, rights holders have been entirely in profit.

Without putting too fine a point on it, it bears emphasizing:  after 185 iTunes sales at $9.99, a rights holder is in profit for the rest of the film's life on iTunes. Going forward, Distribber charges $79 per year for account access, collection and sales stats.  

The best evidence that we were on the right track came when the Age of Stupid production team chose to use Distribber -- they have been incredibly successful trailblazers in the hybrid distribution movement, and their endorsement told us that our service is providing its intended benefits for its ideal users.

To compare Distribber's model with revenue-share models, consider the illustration below.  At 1000 iTunes sales (retail price $9.99), rights holders give up 174% more money under a 15% rev-share than they pay to Distribber ($3,550 compared to $1295).  Under a 25% rev-share, rights holders pay 228% more ($4,250).  At 10,000 sales, Distribber's one-time fee doesn't change, but a 15% rev-share deal now costs ten times the Distribber fee ($13,000), while a 25% rev-share deal costs over fifteen times more ($20,000).  Obviously, at 20,000 sales, the disparity only increases.

Looking at revenue, with Distribber's flat fee, at 1000 iTunes sales, rights holders are paid 65% more than they would be with a 15% rev-share deal ($5,705 vs. $3,450), and they're paid more than twice what they'd get from a 25% deal ($5,626 vs. $2,750).  At 10,000 sales, Distribber clients keep $11,705 more than they would under a 15% rev-share, and  $18,705 more than they would under a 25% rev-share.  And again, at 20,000 sales, a rights holder does even better.


What A Filmmaker Is Charged, With:                     What A Filmmaker Keeps, With:

Distribber 15% Rev-Share 25% Rev-Share Distribber 15% Rev-Share 25% Rev-Share
At 1000 iTunes sales -$1,295 -$3,550 -$4,250 $5,705 $3,450 $2,750
At 10000 iTunes sales -$1,295 -$13,000 -$20,000 $68,705 $57,000 $50,000
At 20000 iTunes sales -$1,295 -$23,500 -$37,500 $138,705 $116,500 $102,500

(The chart assumes Rev-share companies deduct from filmmaker's revenue $2500 for encoding and/or marketing.)

And now, with Distribber's addition of Amazon VOD and Netflix's streaming service, we decided that as a limited-time promotion, for the same $1295, Distribber clients could have our Amazon and Netflix service for free. This of course only makes the above comparison even more lopsided in Distribber clients' favor, since it adds revenue without adding any expense.

Complaint #3.  Late payments, and sometimes no payment

Filmmakers complained that even after resigning themselves to a rev-share deal, and agreeing to the small payout left after expenses and revenue share deductions, they had to chase distributors and aggregators for reports and checks, and sometimes with none being sent at all.

So, Distribber has decided to do away with reports and checks, and instead employ a user account system, whereby clients login with a username and password.  Here they gain access to collection stats by platform, and see their collected funds balance.  Clients withdraw their own money on demand, with the click of a button.  Having all sales stats and collection in one account removed a major, time-consuming headache from our clients lives for $79 a year.

Next: More Pain, More Answers

Even a casual follower of the distribution business knows that there are plenty of areas it can be improved, and in plenty of ways.  Distribber is continuing to actively developing new methods and models to serve rights holders across a variety of platforms, from internet to cable to mobile. 

With the proliferation of tools like Wordpress, Facebook, Twitter and all the plugins and apps that support those services, it's more possible than ever for innovative companies, teams -- or even individuals -- to disrupt old marketing models and connect with audiences.  Filmmaker/marketers like Gary Hustwit, Lance Weiler, Tiffany Shlain and others have shown the way to create demand via their own efforts and investment. Peter Broderick is shepherding rights holders through a hybrid strategy that teaches careful allocation of specific rights to companies that are highly specialized, with the goal of maximizing the revenue a filmmaker keeps.

The key thing to understand about Distribber is that it's a powerful tool to help enterprising rights holders keep the most of their own money.  The more skilled you are at connecting with audience, the more buzz that you've built, the better Distribber's deal works for you.  

ADAM CHAPNICK is CEO of Distribber.com, an IndieGoGo company that places film and TV content on digital sales platforms such as iTunes, Netflix and Amazon for a flat fee while allowing filmmakers to keep 100% of their revenue. Adam can be reached at adam@distribber.com .

The 21 Brave Thinkers Of Truly Free Film 2009

Earlier this year, while looking at Atlantic Magazine's list of Brave Thinkers across various industries, I started to wonder who are of this ilk in our sector of so-called Independent Film.

What is it to be "brave"? To me, bravery requires risk, going against the status quo, being willing to do or say what few others have done. Bravery is not a one time act but a consistent practice. Most importantly, bravery is not about self interest; bravery involves the individual acting for the community. It is both the step forward and the hand that is extended.
Frankly though, I think anyone that commits to creating film, particularly independent film, and specifically artist driven truly free film, is truly brave... or at least, insane. It is a hard road out there and growing more difficult by the day. All filmmakers getting their work made, screened and distributed deserve recognition, support, and something more significant than a good pat on the back from the rest of us. As great their work is both creatively and in terms of the infrastructure, it's easy to lose sight of how fragile all this is. Our ability to create and screen innovative and diverse work is consistently under threat.
It is a truly great thing that this list of BRAVE THINKERS is growing rapidly; I first thought it would be ten, then twenty. I expect we will see some new folks joining this list in the months ahead. I know there are those whom I've forgotten that deserve to be included here. This list, although it includes many artists, is about those who are working and striving to carve a new paradigm, to make the future safe for innovative and diverse work, to build an artist-centric content economy. The TFF Brave Thinkers lead equally with their ideas, actions, and generosity. They set examples for all of us and raise the bar. These are indie films true new leaders, and for those that think they are in power, those that are just starting out, or those that want to find a new angle on industry you work in, you should make sure you meet these folks in the coming year, because they are redefining the way we fund, develop, create, define, discover, promote, participate, curate, and appreciate that thing we still call cinema.
  • Franny Armstong - After making THE AGE OF STUPID via crowdsourcing funds, Franny also looked to the audience to help distribute her film, creating IndieScreenings.net and offering it up to other filmmakers (see The Yes Men below). By relying fulling on her audience from finance to distribution, Franny was able to get the film she wanted not just made, but seen, and show the rest of us to stop thinking the old way, and instead of putting faith in the gatekeepers, put your trust in the fans.
  • Steven Beers - "A Decade Of Filmmaker Empowerment Is Coming" Steven has always been on the tip of digital rights question, aiding many, including myself, on what really should be the artist's perspective. Yet it remains exceedingly rare that individuals, let alone attorneys, take a public stand towards artist rights -- as the money is often on the other side.
  • Biracy & David Geertz - Biracy, helmed by Geertz, has the potential to transform film financing and promotion. Utilizing a referral system to reward a film's champions, they might have found a model that could generate new audiences and new revenue.
  • Peter Broderick- Peter was the first person to articulate the hybrid distribution plan. He coined the term I believe. He has been tireless in his pursuit of the new model and generous with his time and vision. His distribution newsletter is a must have for all truly free filmmakers and his oldway/newway chart a true thing of beauty.
  • Tze Chun & Mynette Louie - Last year, the director and producer of Children Of Inventiondecided that they weren't going to wait around for some distributor to sweep them off their feet. They left Sundance with plans to adopt a hybrid plan and started selling their DVD off their website. They have earned more money embracing this new practice than what they could have hoped from an old way deal. As much as I had hoped that others would recognize the days of golden riches were long gone, Tze & Mynette were the only Sundance filmmakers brave enough to adopt this strategy from the start.
  • Arin Crumley - Having raised the bar together with Susan Buice in terms of extending the reach of creative work into symbiotic marketing with Four Eyed Monsters, along with helping in the design of new tech tools for filmmakers (FEM was encouraging fans to "Demand It" long before Paranormal Activity), co-founding From Here To Awesome, Arin launched OpenIndie together with Kieran Masterton this year to help empower filmmakers in the coming months.
  • IndieGoGo & Slava Rubin - There are many web 2.0 sites that build communities, many that promote indie films, many that crowd source funds, but Slava & IndieGoGo are doing it all, with an infectious and boundless enthusiasm, championing work and individuals, giving their all to find a new paradigm, and they might just do it.
  • Jamie King - The experience of giving away his film "Steal This Film" lead Jamie to help build VODO an online mechanism initially built to help artists retrieve VOluntary DOnations for their work, but has since evolved to a service that helps filmakers distrubute free-to-share films through P2P sites & services, building on this with various experimental business models. Such practices aren't for everyone, but they are definitely for some -- VODO has had over 250,000 viewers for each of its first three releases in 2009 -- and the road is being paved by Jamie's efforts.
  • Scott Kirsner - Scott's book Friends, Fans, & Followers covered the work of 15 artists of different disciplines and how each have utilized their audience to gain greater independence and freedom. Through his website CinemaTech, Scott has been covering and questioning the industry as it evolves from a limited supply impulse buy leisure buy economy to an ubiquitous supply artistcentric choice-based infrastructure like nobody else. His "Conversation" forum brought together the tech, entertainment, & social media fields in an unprecedented way.
  • Pericles Lewnes - As a filmmaker with a prize winning but underscreened film (LOOP), Peri recoginized the struggle of indie filmmaking in this day and age. But instead of just complaining about it like most of us, Peri did something about it. He built bridges and alliances and made a makeshift screening circuit in his hometown of Annapolis, MD, founding The Pretentious Film Society. Taking indie film to the bars with a traveling projector and sound system, Peri has started pulling in the crowds and getting money back to the filmmakers. A new exhibition circuit is getting built brick by brick, the web is expanding into a net, from a hub spokes emmenate until we have wheels within wheels within wheels. Peri's certainly not the only one doing it, but he brings an energy and passion we all need.
  • Cory McAbee - It's not enough to be a talented or innovative filmmaker these days. You must use the tools for entrepreneuarial activity that are available and you have to do it with flair. We can all learn from Corey. His films, his music, his live shows, his web stuff -- it all rocks and deserves our following and adoption.
  • Scott Macauley - some producers (like yours truly) write to spread the gospel, happy just to get the word out, not being the most graceful of pen. Scott however has been doing it with verve, invention, wit, and style for so long now, most people take his way wit words as a given. Not only is it a pleasure to read, the FilmmakerMagazineBlog is the center of true indie thought and appreciation. It's up to the minute, devoid of gossip, deep into ideas, and is generally a total blast. And the magazine is no slouch either. And nor are his films. Can we clone the man?
  • Brian Newman - After leaving Tribeca this year, Brian has showed no signs of slowing down, popping up at various conferences like PttP and the Flyaway Film Fest to issue missives & lectures helping to articulate both the problems facing indies these days along with starting to define how we will find our way out. Look to Brian to be doing something smart & exciting in the media world in 2010; somewhere someone smart should find a way to put this man to work shortly, but here's hoping he does it on his own so we can all benefit from his innovative ideas.
  • Nina Paley - In addition to successively adopting an "audience distribution" model for her film Sita Sings The Blues, Nina has been incredibly vocal about her experiences in the world of "free", helping to forge a path & greater understanding for other filmmakers. And now her film is getting traditional distribution at the IFC Center in NYC (and our whole family, including the 9 year old spawn, dug it!)
  • Jon Reiss - After adopting the DIY approach for his film Bomb It, Jon chose to share the lessons he's learned in ever increasing ways, from his blog (and this one), to articles for Filmmaker Mag, to finally to the must-have artist-centric distribution book THINK OUTSIDE THE BOX OFFICE. Anyone considering creating a truly free film, this book is mandatory reading first. Full disclosure: I penned an intro to Jon's book.
  • Mark Rosenberg - What does it take to create a new institution these days? Evidently quite a bit, because I can only think of one in the film space and that's Rooftop Films. Mark curates and organizes with a great team of folks, who together have brought new audiences new films in new venues. NY is incredibly fortunate to be the recipient of Rooftop's work, but here's hoping that Mark's vision spreads to other cities this coming year.
  • Liz Rosenthal - There is no better place to get the skinny on what the future for film, indie film, truly free film, artist-centric film, and any other form of media creation than London's Power To The Pixel. Liz founded it and has catapulted what might once have been fringe truly into the mainstream. Expanding beyond a simple conference into a year round forum for future forward media thought, PttP brainstorms, curates, and leads the way in transmedia creation, curation, & distribution. Full disclosure: I was PttP keynote speaker this year.
  • Lance Weiler - In addition to being a major force in both Transmedia thought, DIY distribution, and informative curatorial,with his role in Power To The Pixel, From Here To Awesome, DIY Days, & Radar web show but his generous "Open Source" attitude is captured by The Workbook Project, perhaps the most indispensable website for the TFFilmmaker. He (along with Scott Kirsner) provides a great overview of the year in tech & entertainment on TWP podcast here. It's going to be in exciting 2010 when we get to see him apply his knowledge to his next project (winner of Rotterdam Cinemart 2009 prize and now a participant in the 2010 Sundance screenwriters' lab). Full disclosure: This is that has signed on to produce Lance's transmedia feature H.I.M.
  • Thomas Woodrow - As a producer, Thomas has embraced the reality of the marketplace and is not letting it stand in his way. There is perhaps no other producer out there who has so fully accepted the call that indie film producing nowadays also means indie film distribution. He's laying out his plan to distribute BASS ACKWARDS immediately after its Sundance premiere through a series of videos online. Full disclosure: I am mentoring Thomas vis the Sundance Creative Producing Lab.
  • TopSpin Media - As their website explains: "Topspin is a technology platform for direct-to-fan maketing, management and distribution." They are also the tech behind Corey McAbee's activities and hopefully a whole lot of other filmmakers in the years behind. Founded by ProTools' creator, Peter Gotcher, and Shamal Raasinghe, TopSpin is a "white label" set up thathas the potential to usher in the Age Of Empowerment for the artist/creator class. Today it is primarily a tool for musicians, but expect it to migrate into filmdom fully pretty damn soon.
  • The Yes Men - The Emma Goldman ("If I can't dance, I don't want to be part of your revolution") TFF 2009 Award winners for keeping both politics and film marketing fun, these pranksters hit all the fests, winning awards, and using it to launch their own distribution of THE YES MEN FIX THE WORLD. Bravery's always been their middle name, but they are among the first of rising tide of filmmakers willing to take for full responsibility for their film.
Who did I forget? I know this list is very US-centric, but I look forward to learning more of what is going on elsewhere in the days to come. Who will be our Brave Thinkers for next year (if I can muster the energy to do this for another year, that is)? What can you learn from these folks? May I humbly suggest that at the very least, you do whatever you can to find, follow, and converse with these folks in 2010. The more we learn from them, the better off this film industry will be, and, hey: it may turn out to be a good new year after all.

NYC DIY Days Dinner

A whole bunch of us got together for food, drink, and lots of blab about the way this world of film is changing -- and now you can join us!  

The good folks at The Workbook Project made this happen with a little help from their friends of course.  Come join Lance Weiler, Arin Crumley, Susan Buice, Lance Hammer, Faye Dunaway, Paul Rachman, Stephen Rapael, Slava Rubin, Joseph Marin, Jennifer Kushell, and of course myself.  This is just the intro segment.  Two more to come.  
I was mentioning this dinner to my friend Christine Vachon, telling her how I thought it was a good idea it was, a lot of fun, quite informative, and how well it was shot.  Christine's response was "Did anyone get a word in edge-wise?".  In this episode I don't start to rant until the 27:27 mark, so you be the judge.   

It's An OPEN SOURCE Culture

You may have noticed a new addition to our Truly Free Film Heroes column.  You may have also noticed some guest posting as of late by filmmaker Jon Reiss.  These are not unrelated.  As a veteran of the DIY experience (or as Slava Rubin has dubbed it more accurately: DIWO "Do It With Others"), Jon has taken the next crucial step towards bringing forth a Truly Free Film Culture: sharing his experience and knowledge.  

We need to build a new infrastructure.  It will only come from all of our hard work and general openness.  Please follow Jon's example, and share.
We are all going to make some mistakes, but we will learn much faster if we don't keep these mistakes to ourself. We will all make some great discoveries, of places and people and tools and techniques, but we all benefit much faster if we don't keep these successes to ourselves.
Take a minute.  Think about what you thinks works in DIY marketing; is it novel?  Please let us know.  Do you know of a theater that will book Truly Free Film?  Will your college pay to bring a filmmaker to lecture and show their film?  Do you know of a great TFFilm website?  Any advice on how to network true film lovers together?  You get the idea.  Please let us know what you know.  Join in.