Lets get serious about distribution

OK. When you think about film making long enough you realise that distribution is the key to the whole business. Without a paying audience film making is just an expensive hobby.

I've noticed that of all the topics that get discussed, distribution is the one that perhaps we talk about least. I think this is because although we all know that we can get a camera, write a script, shoot and edit a film, finding a paying audience is the one part of the equation that alludes most indie film makers worldwide.

I'd like us to change that. Seriously.

As a group we are spread all over the world and each of us is part of a larger, local film making community or even just part of a larger community with an interest in films.

I guess I'm wondering whether that is something that we can make work for ourselves.

Could we, for instance, set up our own international distribution circuit, showing indie films from around the world in local venues using video projection and PA's for the sound?

Just to put a perspective on this, most cinemas in the UK are charged $140-$200 a week to rent a film print, plus a percentage of the box office. This is the same whether it's the local mulit-plex or the local arthouse cinema. The problem with getting cinema distribution for indie films is that the film prints are so expensive, that print runs are kept low and this decreases the chances of the distributor making their money back.

So, lets imagine that between us, right now, we can set up ten UK based indie-cinemas (referred to from now on as i-cinema), maybe a couple in Europe, four in Oz and fifty across the US.

Let's say that an i-cinema is a video projector based cinema, in a non-traditional venue that has a showing once a month and that each night shows four shorts and a feature, charging $5 a head.

Providing that you can cut a deal with the venue in that they get to keep the bar receipts and therfore they give you the venue for free (a pretty easy deal to cut), if $100 dollars goes to the films ($80 to the feature, $5 to each of the shorts), therefore if you can get 50 people a month to the event, the organiser has $150 to cover any other expenses/profit.

This would mean that if a feature was shown across the entire network it would bring in $5000.

Now I know that this is small money, but the actual value of this is that you can build the credibilty of the film by opening it up to a global audience. This could be used either to lever a mainstream distribution deal or to drive direct DVD sales from a website.

The goal, of course is to set up a network of several thousand venues worldwide. With several thousand venues the maths gets to the point where distribution by this network alone becomes commercially viable for lo budget films.

Of course, there are issues. Of which the most important is, are there enough films of a high enough quality to build both audience and the reputation of i-cinema? The whole thing will die a death if people aren't stunned by the quality of the films.

So, talk to me. I'm not suggesting we set this up this week. All I'm doing is suggesting that we may have the power to do something about distribution, other than pretent that it isn't an issue. I'm open to ideas, but more importantly let's talk seriously about this subject and what strenghts we have as an international community.

Just to give a clear idea of where this could go, in the US alone, with just ten i-cinema per state, the takings for a feature from one showing across the whole network would be $400,000.
 
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Citizen Critic is cool

What about just one word: Critics'

Although if it was called Critics Corner, people could just call it Critics for short.

American Critic? If you're "Idol"izing it.

Serve American food.

But now you're talking about someone needing to get a space, food service permits, Chefs kitchen, and all of that jazz.
You're looking at $100,000 start up capital at least.

All that just to show indie films.

How does the Indie make money?
 
$100k, no, I think it would be closer to $75k, depending upon the space. But this is in line with what the typical franchise costs - for instance, a Subway or other franchise usually goes for around $125k. Lot of money for an indie filmmaker. Not a lot of money for someone to hook up with a franchise. Usually franchisees will finance it through a bank or other lending institution.

The Indie makes money through ticket sales, DVD sales, etc. The only difference being that there is a spot dedicated specifically to their work. No needing name actors and whatnot. The head office then becomes an evangelizer for the indie filmmaker.

Granted, the concept is not really for indie filmmakers to pursue. Then again, I never thought that indie filmmakers are the ones to actually buy into a franchise. Nevertheless I think the concept has fiscal merit for the indie filmmaker, because approaching the head office then becomes a simple and easy method for them to get their films out there, without having to go through an ardous process.

In a sense, a branded, ongoing, world-wide festival is created to rival the geographically centristic festivals. While those festivals are all well and good, they happen once a year and they are usually formed to assist the local city or state's tourism industry. Not really focused on the filmmaker.

As for the name, I think I'm still going to stick to Critic's Corner... targets the right age and income levels, I think.
 
It's true that this business franchise isn't for the indie filmmaker. Many of us barely have money to make our films! lol

I like the idea of all places showing the same film on the same night and the audience getting a chance to vote.

Are you talking about a 5 star method or a 1 to 10 method? If there's only one film per night, then they wouldn't have anything to compare it to.

I know that you're developing a business plan, and I'd love to help out with it. Some questions to think about answering too.

Who will decide which submitted Indie Film will get viewed in all the locations?

How many locations will be part of the start up?


Are you stating that you're charging $75k as a franchise fee?
 
CootDog said:
Are you talking about a 5 star method or a 1 to 10 method? If there's only one film per night, then they wouldn't have anything to compare it to.

I was thinking you'd do one or two short films then a feature. Depends upon what's available. And then maybe do a 1-10 "thumbs up" or something. That way the audience feels like "the critic."

CootDog said:
Who will decide which submitted Indie Film will get viewed in all the locations?

I don't know. I suppose the corporate office for the franchise. Might be a way to involve the customer with the choices, I'll have to mull that over as I write it.

CootDog said:
How many locations will be part of the start up?

That depends upon how many franchisees will step up to the plate. Part of the idea of franchises is that you open the doors as quickly as possible in as many locations as possible. Takes a lot of strategic and logistic planning. Ideally you'd have one location in every major U.S. territory within a year of two's time.


CootDog said:
Are you stating that you're charging $75k as a franchise fee?
I don't know exactly what the fee would be yet. Will have to crunch some serious numbers.

Usually, the way a franchise works is that you pay around $10-$15k to the company, then royalties after the fact. The rest of the money is usually a baseline budget that the potential franchiser has to have in order to sign up. All depends on the system that's worked out. Usually the potential franchiser has to qualify, in a similar method to how an investor has to be fully qualified in a private placement memorandum.

You basically have to demonstrate to the franchise corporate office that you can afford to do X, Y, and Z. Usually the up-front fee to the corporate office is for various franchise deliverables (signs, training, manuals, market studies, assistance picking location, etc.). Some franchises are there the whole way, holding hands; others remain fairly distant. All depends upon the business and how difficult it is to get it started.

I think this is interesting in a whole host of areas. Having software there at the get-go for accounting purposes would be crucial to making it fly, not just for ticket sales but for concessions. Most franchises don't do very well in that regards, and you're on your own in regards to accounting and calculating royalty fees.
 
I think that the "critics" could actually become members (possible revenue source) and login to a critic machine, in the Critics' Corner, and vote and write a review. The one that the local place decides is the best, gets sent to Corporate and they vote on the best of the best and they get an award. Like free lunch, coffee, whatever... That will keep them comming back and become part of a community.
 
I'm still not convinced, the indie films will always be the weak link in the concept.

However, if you want a franchise film/restaurant concept I'll give you one for free.

Ditch the indie film element, except as a one a month specialist evening -- instead use your projection gear to combine fast food, booze and videoke --- buy a burger and a few beers and then you and your mates can ADR the voices to famous scenes from classic films which are projected onto the wall.

Who wouldn't enjoy going out and doing a scene from Cassablanca ...

High concept -- Karoke for film freaks in a fun film restaurant.

Feel free to get rich off this one, just remember that you need to write in a clause that I can eat in any franchise branch for free, worldwide and perpetuity. :lol:
 
Ha! You may be right. I'd actually do retro festivals in the place - Citizen Kane, that kind of thing.

Still, it might be fun. I'm going to crunch the numbers to see.
 
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