Filmmakers: Is A Theatrical Release Still Essential, Or Will VOD/Digital Distribution Suffice?

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by Tambay A. Obenson
October 9, 2012 2:19 PM
10 Comments
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That's the dream for most filmmakers isn't it? Your film on the proverbial big screen, in front of hundreds, thousands, millions of anxious eyeballs, looking forward to whatever it is you have in store for them.

Or maybe I should say that it WAS once THE dream for filmmakers, because, with more distribution/exhibition platforms available, and accessible to even the poorest among us, some filmmakers are no longer married to the idea that their film must be seen in a theatrical setting - especially those who've grown up to be filmmakers in the last 15 to 20 years, and who have embraced the so-called new frontier known as digital distribution, which allows you to reach your target audience via a variety of platforms, and thus places.

Where do you stand? Are you old school, new school, or a combo of both.

Some facts worth considering before you rush to make that decision for yourself - facts that come courtesy of a recent LA Times report; facts that really shouldn't be all that surprising, if you've been paying attention to trends - shorter windows between the time a film is released in theaters and when it's released on home video, plummeting DVD sales as more audiences make the move to consuming their content digitally, and more.

As Hollywood saturates theaters with mega-budgeted superhero movies, sequels, prequels, comic book, video game, novel, stage play/musical, boardgame adaptations, it becomes increasingly more difficult for the independent movie producer to hang on, let alone attempt to compete. So, they're looking to alternatives, and VOD seems to be it; yes, you likely won't see the same kind of returns, compared to some big-budget studio hit, BUT, the important thing is that you're more likely to actually SEE a return; as the LA Times report notes, your odds of turning a profit are higher. 

- The number of Hollywood-released films distributed in theaters and video on demand at the same time nearly doubled from 2009 to 2011 and is projected to jump about 30% this year. 

Indie films are increasingly finding a lucrative niche in video on demand distribution. For example, this year, the dark comedy Bachelorette has grossed about $5.5 million from video-on-demand (or VOD) rentals since premiering in August, compared with a paltry $418,000 earned in theaters.

- And late last year the simultaneous VOD/theatrical release Margin Call, an independently financed picture about the financial crisis, was a critical and commercial success and earned an Academy Award nomination for original screenplay.

There's more; however, you may not be entirely sold on a primarily VOD release of your film; it was once commonly believed that films that went directly to home video were somehow inferior, and didn't deserve to be shown on the big screen. That opinion is clearly changing, as more content creators are creating their projects with the home video market (specifically VOD) in mind, and in some cases, planning to release only, or primarily to that platform.

Dennis Dortch is one example; in my recent interview with him, as he embarks on adapting his web series The Couple, to a feature film, he's set on digital distribution for the eventual completed work. An audience has been cultivated via the web series (about 18,000 subscribers thus far, and growing), and so when the film is done, he'll market it directly to that audience, which will probably be even higher in numbers by then.

Granted, not every single one of them will purchase the finished product, but considering the relatively low upfront costs (sub-$30,000 budget), they wouldn't need every single subscriber to turn a profit. As said before, it may not be a huge profit, but it could be a healthy one, and along with that comes even more credibility, more awareness, and the wherewithall to continue down the same path with future projects.

I suppose, in the end, it depends on what your goal is, and if you're choosy about how you want your film to be seen.

"There are definitely still people who resist and say the only kind of deal they will do is a traditional release... We hope more people will become open-minded and realize the potential,says Jason Janego, co-president of the Weinstein Co. unit Radius-TWC, which specializes in multi-platform releases.

Further... Tom Quinn, Janego's Radius-TWC partner, adds: "The statistics are extremely sobering... The traditional model only makes sense anymore if you believe in your heart of hearts that your movie will gross more than $20 million."

Some might say this kind of talk is really a scare tactic used by those in Hollywood to dissuade *outsiders* (as in indies) from infringing on a space they've long dominated.

And nowadays, you do have theatrical chains like AMC and their AMCi initiative, which makes it easier for the indie filmmaker/producer to afford their films limited theatrical releases. There are upfront costs (although primarily marketing), and a question (among many) that you'd have to answer is whether the amount of money you invest on that theatrical run, may have been better used for a VOD launch, which gives you access to a much larger, potentially global audience, and also higher profit margins.

While it doesn't have to be an either/or question, all signs seem to suggest that VOD/digital distribution is probably the smart play for indie filmmakers/producers. So, back to the initial question: all you filmmakers reading this, where do you stand? Are you married to traditional methods of distribution - ie, a theatrical is an absolute must, and if so, how long are you willing to wait to see that happen, and how far are you willing to go to see that happen?

Or... has that ship long sailed for you, and you've planted you feet firmly in VOD/digital distribution, and aren't looking back? 

Discuss...

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10 Comments

  • James Nelson | October 15, 2012 4:01 PMReply

    The VoD movement sounds interesting, but at present I don't see it being much use for true independents, by which I mean filmmakers who have absolutely no ties to Hollywood i.e. no "name" talent. The mainstream movie goer has become very accustomed to Hollywood schlock, and even they don't want just anything anymore. Some of the most innovative stuff out there is on the web, and it's free. You can take the most watched web series out there, and I doubt it would have garnered 75% of it's viewers if they'd had to pay anything to watch it. It's worth a gamble, but to see how effective it truly a true independent filmmaker is going to have to go all out and take the plunge.

  • James Nelson | October 15, 2012 3:26 PMReply

    I firmly embrace the digital distribution movement. You can't deny it puts power back into the hands of independents (and being a Black filmmaker who can argue with that?). The only problem is that filmmaking is still not the cheapest of professions to get into, even with truly professional quality equipment priced at consumer levels. The main problems with the digital generation is that they want everything for free. You can't really have a lot of output if you're coming out of your own pocket to fund every project you do with no hope of return on investment. At least with theatrical distribution you can see the potential of some of your cash coming back to start work on the next project, but there again an independent and especially an Black independent can't count on a large advertising budget, or to have even a regional release. Even though I live in a fairly large city I can't see the majority of most ethnic independent films I hear about. I have to wait till they come out on video and then hope the artist is selling it through their website.

  • Adam Scott Thompson | October 10, 2012 7:41 PMReply

    VOD/digital is the New World.

  • TrulyGolden | October 9, 2012 11:28 PMReply

    I love Gina's model and it makes good business sense. Those that are still caught up in the "need that big opening weekend to be a hit" mentality are limiting the potential of their film. VOD is but one option and as technology continues to morph and as Leon mentions the need for the safety of our own homes, more opportunities for more filmmakers to have their work seen will come. For HAMAFilms Antigua we simply make movies that we would want to see and use various avenues to get them screened. Film festival, movie theatres, Caribbean communities in the Diaspora, university social evenings and community fundraisers lead to DVD sales.

  • Dylan M. | October 9, 2012 11:24 PMReply

    I'm not a filmmaker, but I spend a lot of time thinking about this. It evolves, but right now the answer is the difficult one- it all depends on the film. There's no question VOD has to be part of your strategy/plan. But it's not a magic elixir for the biggest problem facing an indie film- how do you build your audience past the friends that helped you shoot it? Go home and turn on your TV, look at what's available to you on VOD. I'm in the film industry, basically tracking films for a living, and there are always a chunk of films in the VOD new release section that I've simply never heard of. That doesn't bode well for those filmmakers a lot of the time.

    If someone's never heard of your film, what's going to make them take the 2 1/2 minutes to click and watch your trailer? Much less rent/buy your film? You have know what the "hook" is, because EVERY other film is available online, many of them at no charge. It's basically a multiplex theater with one million screens and everything starting in five minutes.

    I fully admit I'm biased, but I think that "hook" is often the marketing and exposure that comes from a well-executed theatrical release. It doesn't have to be 100-2000 screens, or budgeted at hundreds of thousands of dollars. But it does have to be done right, and in the end, the film does have to be a film that is up to par with the other offerings in theaters. Not to say it's the only way- if you have a fantastic cast, or a subject with great appeal/interest, or have managed to tap into a giant core audience, then maybe it's unnecessary. But truth is for 99% of films, that's not the case.

    The only thing constant about this business is that it's always evolving. VOD is a big part of the indie film landscape, and that's not going to change. But as home video before it, it's one piece of a bigger puzzle.

  • Gina | October 9, 2012 4:59 PMReply

    This is a false choice. Who says that theatrical release has to be 2000 theaters? Or even 100 screens on the same opening weekend. Why can't you travel with your film or use a limited theatrical release to turn your movie into an "event"? And yes, there is something about an audience getting dressed getting in the car and traveling to a dark room to watch your movie with others. But yes, VOD should be a part of your strategy, but I still think a theatrical run is a great infomercial for people to purchase your film. So think of it as advertising and audience building. What's wrong with a hybrid approach for a smaller budget film?

  • James Nelson | October 15, 2012 3:37 PM

    @Gina
    The chitlin circuit approach of travelling around with your film is a valid option, but it's definitely a time consuming one. You could spend up to a year or more getting one film seen around the country a theater at a time (and that's just the major venues). It can work, Tyler Perry did just that for several years before he became noticed. If filmmaking is not your primary source of income, add a few more years to that because you're going to be doing it on weekends. I don't think enough people utilize the internet to get the fires started, but even now, the internet is becoming just as competitive as the established markets. There's so much content out there people are flocking to the tried and true, and the professionals who are now getting into the act.

    Now being pessimistic, but rather stating the reality that either route you take, as an independent and especially as an independent of color, you're really facing an uphill climb.

  • ksmoothe | October 11, 2012 10:22 PM

    As a filmmaker, you need to screen and charge for your movie. A theater presents the biggest and most accessible venue to screen your movie. Independent filmmkers can make their money back, and a profit in theaters if they did not spend too much in production. VOD and the internet is the absolute last step, after direct sales.

  • urbanauteur | October 9, 2012 7:40 PM

    @GINA, i agree with your two-pronged approach, its just the 'oscar micheaux' in me..;-)

  • LeonRaymond | October 9, 2012 3:38 PMReply

    If you have a budgeted film of 50-70-80 Million then of course you have funded by a major studio, and of course your heading to Theatrical, but for the rest of us in the below $1Million and way below, it is the clearest possible sense to do or consider doing the VOD platform release. for us Indies theatrical is only a huge way to attract eyeballs to VOD and cut your losses with a theatrical run. There are just too many platforms and too many digital -online-downloadable situations to get your film seen. it will be very very hard to attract A-List actors as they are still caught up in the big lucrative money of theatrical releases. like Kevin Spacey's comments about VOD for Margin Call he stated "Over my dead body" but sooner or later they will all have to realize those days are over. it's done and come on down here with the rest of humans and make films for the love of it and find ways to monetize it also. Like film went and there are still those holding on by their fingernails as digital is like a Black Hole eating everything in it's path. The theatrical common equation will also slowly fade away. The mega screen TV the safety of your home, the rise in run-away crime, all contribute to the ever growing VOD model as huge preference in the industry. And for producers in Hollywood, it's about profits, get a semi strong group of known actors, keep the budget down, film on digital, screen VOD keep it running and build up profits. That model will be for us filmmakers of color the way to prove that we great stories to tell and ways to tell them!!

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