Producing : Business Models and the New Film Paradigm by Brian Briskey

I have a song for this!! http://www.ddeashion.com

I think Jon Reiss (Think Outside the Box Office) along with the group you mentioed, has a solid handle on this too. Check out my post today on LinkedIn http://www.chicagotribune.com/entertainment/la-et-ct-video-on-demand-201...

The up and coming generation is the one to consider. According to both Advertising Age and Variety, they do not watch TV (or go to the movies) as we know it...tablets and phones, plus interactivity. A consideration for telling your story.

The studios will get stronger.

A while back (in the 80's) I was in the music biz. The cost of professional production - 24 tracks, 2" tape, mixing, mastering, pressing was cost-prohibitve to indies like myself. It was either a record deal or press an EP and pray. Then along came computers and CDs, which changed the indie music scene almost overnight. The studios lost their grip, not entirely, but the music business has never been the same. Talent will always rise and get the support of the big studios in terms of money and distribution. However, the path to obtaining a 'seat at the table' with them became much easier. See the film "Side by Side" produced by Keanu Reaves. A harbinger of what is taking place in the film biz. The Mumblecore movement notwithstanding...you ain't seen nuthin' yet!

I understand wht your saying Joe but film is much different. Special effects and still .....production and distribution cast are so expensive still making "show Biz" a major major expense that will seperate the studios from Indies. World Wide Advertising costs millions. yes there will be special films that break the rule .001 per cent.but mostly the biz will ne controlled by the big boys...we'll see

Mark, this is where I may disagree with your perspective. Indeed, distribution is a huge factor...as is the associated marketing of a major release. But if the advertising world has taught me anything the distribution channels are now open to all. Print and broadcast once reigned. Now it's on-line and Social and if you can get enough followers to "buy in" the majors will find you. Witness Freddie Wong. And yes, the Freddies of the filmmaking world may, at present, be the one-percenters but so were early indie music producers Steve Albini, Don Fleming and Jim O'Roarke. I'm not saying the Majors are unnecessary, I just think they will face a changing landscape like the music business (and GM/FORD/CHrysler) did .

I do see your point. The future is so hard to read. I do know and maybe the same happened to you in music that's it's harder and harder to make a buck in straight movie production.

Joe, Your foresight as an advantage of witnessing music's transition from that of a sales driven model to a merchandise model bodes great opportunity for those who seek it. It should be no surprise to business thriving online how film will have to embrace the preferred platforms (pad, smart phone, computer, game console). What is perhaps the biggest challenge is not discovering new models but choosing what to carve out or abandon. All the relationships formed over long careers have less significance when gatekeepers are now the form of ubiquitous internet noise. To put it bluntly, if your film investors are too loss averse in risking investment on a different (not new) business model than is typical of film you had best seek a new pool of funding... I'm finding success is in the world of e-commerce.

The next step has always interested me, production tools have make up a tremendous amount of ground between what studios have always done and what indies can now do. The next logical step in the ongoing natural evolution of the business is how will indies make the same strides in controlling distribution of their high quality products to the marketplace as they have in production capability. I think the model that creates control of distribution by the indies themselves will be the one that completes the current evolution cycle to break the bottleneck restricting access to wider markets for indy produced films without major studio involvement. Digital exhibition and distribution will feed this process in my opinion, once relieved from the cost of film distribution to theater locations indies will have a chance to market their films to larger markets. The clock is ticking and as the number of exhibitors transition to digital projection the more opportunities for independent films to bypass traditional distribution arrangements become possible. Of course online purchasing/ viewing and mobile device viewing and purchasing are going to push the envelope but the "Holy Grail" will still remain butts in theater seats, and when a significant number of theaters can accept and project digital products a major transition balancing in favor of indies will take place in my opinion driven by the younger consumer who is more likely to get knowledge about films from digital sources such as internet and mobile devices in my opinion. It's going to be interesting, and full of opportunities.

Brain...right on. The studios are caught in a vicious circle. They need the exhibitors support worldwide to generate the 8 figure weekend grosses, which, in turn support George Clooney's hairpiece budget or Julia Robert's Botox sessions - take your pick. Like the auto dealers of yore...that distribution model ain't giving up without fight. The shrinking windows are worse than getting their rugs pissed on. The MPAA's got the boys working extra shifts on this one. But, as the Dude so aptly put it (in the parlance of our time), "new shit has come to light man". Check out this article from Daily Variety 10/16 http://www.variety.com/article/VR1118060791

Oops, I meant to say BRIAN, although for all I know you may, in fact, be a BRAIN (hopefully not like "Mars Attacks")

Major Studios revenue is now driven by the increasing revenues in Brazil, China, India and others where attendance at movie theaters is increasing. Sales at US theaters is decreasing because of HD TVs and watching on computers. This trend has driven the Major Studios to make "Bell and Whistle" movies with short easy to understand dialogue that can be translated easily. That trend will go on for approx. 5 more years or so then peak. What happens after that is a good question to explore. Meanwhile for those of us that like Films and Series with more meaningful substance we have to become nostalgic or go on the web. The bottom line of course on the web will be who can put up the most advertising $ and however you look at it the little independents that we see everywhere now on the net will most likely be bumped or absorbed and compartmentalized by the bigger players.

John Charles...nice observation about the "Bell & Whistle" approach. And yes, getting sponged up may be inevitable. But only if you're sponge-worthy.

Yes John I shared an article a month ago how Hollywood is doing it's openings in Asia now. But I do think that there are good films being made by the majors, mixed bag

Robert that is a well thought out post. The problem is how do I tell my folks that raise money for me and my films that I can sell the film for profit. The business is so up in the air it's hard to get in the game.

Brain I mean Brian you have put your finger on my problem. My investors want a deal, cuz I told them to always do this. before the film is made. Now it's very hard to give hard numbers. Tell me more about e-commerce.

The demise of cinema has been going on for over twenty five years. I remember when i worked in a movie theatre as a kid we played Rain man for over thirteen weeks. The distributor kept all most everything but concession money for the first 5 weeks. That was a 400 seat house. Within five years all the big houses were closed and we were jamming people into tiny multiplexes for two week runs. I remember going from carrying up one print of a film to carrying the cans for six different films. Attendance started to drop off and people started to stay home in their home theatres. So I think this has been going on for a while. There are some positive things though about new technologies. Distributors now can distribute hundreds of tittles at a very low cost and recoup their investment quickly. The more titles the more gravy. This means the little guy has a better chance at distribution. Though I think there needs to be a better marketing model. It's easy to get lost on iTunes or Pay for view if no one has ever heard of you. When more theatres switch over to pure digital projection the cost of prints and distribution will be lower as well. Not sure what that will mean for multiplexes but smaller rep houses will definitely benefit and perhaps a new more boutique cinema style will develop.

Noel...Bravo! With the means of production, now in the hands of the people (a tip o' the hat to Lenin -V.I. 'Lenin. Vladimir Ilyich Ulyanov! Donny'), it's gonna boil down to great stories and even better online marketing. Can the big boys be beat at their own game? Well, uh...yes and no. Things actually do go 'viral', and they do so because they're that good, that compelling where you email 20 of your friends, people you never email with bullshit, and you tell them...."you gotta friggin' see this!". Tell good stories - strive for compelling. Hope for viral.

Joe I just don't see how we small guys make any money with system. Also Hollywood still has the big "red carpet" events. I'm affraid for our future glad your not gives me a little hope

I intend to send Woo to go piss on their carpet.

wow bro you really hate the majors.A middle of the road production company ripped me out of 10 million I was bleeding a long time but I'm healed and always going forward

Mark I think it is possible to make a profit still. If you keep your budgets low and get distribution deals, you can show a return for you and investors. I don't mean just with one distributor. You need to sign distribution deals internationally with as many distributors as you can. If you need to, use a company that already has connections internationally as an intermediary. Distributors need product. Especially now.

Noel my agent says with red that there is so much product she will not except video any more unless it's a middle 5 figure budget with a major-middle star

None of that surprises.

By 2016 theater ticket prices will be $20 per on average. Around 41 billion minutes of video were viewed in a single month, online. Advertising has shifted a dominate amount to chasing the online factor. Simple facts. Simple equation. Independent media is about to have a real voice in a real way. The only question is who will be on the wave to create the format for them? I have already started developing the obvious conclusion. I'm sure there are others doing the same.

good info scott

does that 41 billion include like netflicks etc?

Yes.

Brian the Brain summed it up for me, "if your film investors are too loss averse in risking investment on a different (not new) business model than is typical of film you had best seek a new pool of funding". And, if your potential investors, business partners, PMD or distributors don't know who Freddie Wong is, or cannot apply a business model (at a dollar per view) to what this kid has accomplished, then I'd say "it's back to the flour mill Pappy", cuz they ain't 'bona fide'. Oh yes, and Scott C. - right on. With 60" flat-screen, plasma, hi-def's dipping below the $1000 mark AND Digital Video Glasses beginning to get market traction, methinks the screen-talkin'-back-o-my-chair-kicking-texting-crazed gun man $20 per ticket (plus popcorn & parking) experience is facing some real challenges. Here in Chicago, I live one block from a 6-screen Landmark Cinema. I've been to the theatre ONCE in one year....and I'm in the business ! I much prefer to see these same films on VOD. Hmmm.

scott whats your email?

I think it may also be a case of the viewer wanting what they want when they want it. So we need to fit that into the whole scheme of things as well. Even TV programing will eventually change to that format.

Ok, without standing on a soapbox too long, I'd like to support each of your comments in succinct order Joe, Mark, Noel, and Scott. Kudos, Joe, on highlighting the "Bell & Whistle" content. To put it against product pricing model look at it like a pyramid where at the base is Free, then moving up is Mainstream, Exclusive, and Affinity. Most of the mainstream is difficult to achieve without WIDE audience appeal. That is the studio approach and it demands a studio infrastructure with studio spending. There are only so many places at that table so "Go Fish". The successes of YouTube Partners is because they went for the freemeium but notice they sell the exclusive level products (fan content) on their website and through the Kickstarter campaign. Also notice that they are chasing the long tail of the consumer chart so their target audience is niche. Mark, to answer your question about ecommerce, YES, ecommerce is awesome. There is a simple sales funnel with any product and it is especially true for online sales. In fact, we apply industry standard coefficients to estimated target audiences online to determine ROI. It's very straight forward. For example, one of our clients is shooting a feature length thriller with appeal to Atheist, Gay, Libertarian, and Artisan audiences... we use Google Keywords and Social Media research tools (the free and expensive kinds) to validate the online audience and the key influencers in a single report. From that you can project your engagement strategy and prognosticate your online ROI over time. Investors love it, Marketers respect it. Noel, you bring up a good point when "partnering" with larger companies or packaging with a producer who has connections. That is ideal for getting into distribution for foreign release. But please, please, pretty please do not give up your digital rights! $20-$100K return for a single territory at 50% of territories sold (sadly the typical stall point for many) is not enough to pay off your film, even with a micro budget. Consider getting your film on every online platform imaginable and have your own website with some merchandise to up-sell. There is a reason George Lucas took merch rights over film rights. Scott, I feel your pain but won't wait for iTunes to change their pricing from gouging filmmakers. Damn Netflix for a no-royalty deal. You will make money fastest on PPV Cable but the entry is fickle while you have control of sales from your own website. Consider yourself the ax-man of your band... you make films like awesome tunes. Want and example? See Direct 2 Fan Marketing on platforms like Topspin. Maroon 5 gets it. Conclusions. I am eager to hear people's experience with internet marketing, pay per click campaigns, and email campaigns. Have you found investors that understand how ecommerce works? If you need help, get a PMD. If you want education, look into internet marketing. But remember, while some things you can learn to do (like the basic 20% of SEO) it is best to pay a flat-fee and get it done right the first time by someone who is proficient. Love online and love thy email list. An Internet Marketer friend of mine said it best with, "eyeballs are the currency of today, personal information the currency of tomorrow." I would happily purchase the email list of a filmmaker whose film the previous year is like my new release. Thoughts? Comments? Let'em rip!

After reading all this I can't get over the fact that Brian now has a new nickname. :)

I have been somewhat successful with pay per click campaigns. Granted I have a VERY small budget, about a dollar a day. BUT I started a couple pages on facebook and have adds with them. If I had a big budget where I could spend enough to get 1000 clicks a day I would be famous lol. That being said I have about a .01% success rate as far as people who have seen my adds and bought my product. That seems to be around the norm for me. (I hope I just don't suck THAT bad lol). At that rate I imagine if 3,000,000 people see my add at .01% 300 people will buy something. Now to get enough money to buy advertising......I hear Walmart is hiring, I just might get a second job to support my first....lol

you guys amaze me

Enjoy your video job at the church. We're going to make some movies.

Cory, Your comment here truly sums it up - PERSPECTIVE. We're all storytellers. Our goal is to tell our stories and hopefully make a profit in doing so. However, the hype, the 'copy' and the myths surrounding people very much like us who are in this discussion perpetuate what the industry needs and wants to survive in its present state. The "Brain" put it succinctly earlier about finding investors who "get it". Looking at this week's numbers, #of weeks/# of theaters/$theater avg. I feel that James Holzrichter may have experienced what we all know - working with an experienced PMD, and truly developing your audience online could have a larger reach & penetration and a more tangible ROI than the current HWood distribution model. So to NATO I say this, "Ask not for whom the bell tolls......"

Jie-Ming, read your blogs. Excellent. I recommend them to all here on this discussion. Especially the piece about knowing what kind of return your investor should expect. Missed your round-table at Cannes.

jie ming where have you been all my life !!!!

Jie -Ming I was reading through your blog this morning as well. I like that you're not simply talking about the challenges but that you offer perspectives to negotiate solutions. I also like the bit on Caine's arcade. I really like the Caine story. This kid who created and built for days and days never having anyone stop by to actually play. It's the story of so many creative people. The need to create seems to outweigh reason.

Chris I so agree. I don't like watching material on a laptop It jumps The younger generation does not seem to mind but give me a big screen.

Nice blog Jie-Ming Chung, I concur that the challenges to profitability are numerous, however the new dynamic of a more involved producer from concept to delivery is full of opportunities, for those up to the task.

Exellent comments everyone, ...professional and insightful. Part of "building a better mouse-trap" as Producer (and Thought Leader) Ted Hope describes is crowdsourcing solutions. I am very much an opponent of DIY (El Mariachi style) and a PROPONENT of "doing it with others". As a tip of the hat to Cory, it is worth knowing the shooting budget of that film was $8K but post-production and printing was another $400K because the sound and other aspects of footage were total crap. I have to applaud the ingenuity of the director but credit really goes to his producer, Elizabeth Avellan, who is known as "film's Wizard of Oz" in Austin. She had Robert write the book, she was there with experience from her father's TV empire in Venezuela, and she is the one making the deals for Sin City. So if you want to point fingers at that camp, point at her and say, "That is a brave and ingenious independent filmmaker right there; someone to learn from." I want to include the work by Jie-Ming Chung. Excellent articles, worth the read, and I have passed the site links on to other producers who might benefit. I encourage you (Jie) to find others like you who are working progressively so you may guest blog their sites and vise versa. James you brought up a fantastic point about conversion ratios. Try to keep your "Cost Per Click" below 0.80 cents and be prepared that with all the available impressions you may only get a ratio of 10% for joining an email list and 2% for sale of a DVD. I'm in the middle of negotiating PPC campaigns for a client whose ~$10M film may not have much of a foreign audience and therefore be in dire need of online distribution (my favorite!). One of our vendors told us the keywords were not cost effective because searches similar to the movie title were only over 1K each day domestically. (Direct Search as described by SEO industry). We understand that trending topics tend to follow the news but social or entertainment content is more contextual. For example a film that is "steam punk" related (niche audiences are best) can run ads around terms like "mechanical" or "top hats". You will have a great number of impressions but few conversions out of a large group. SO the strategy is to run a hot campaign, get emails, and theeeeeeeeeeeen transfer your email list of core fans into recruiting their friends... a la social media. I want to introduce to this group the priority of driving traffic. If you have questions post them here so others can see and learn too. Best channels for online traffic in order of volume: Email (free is opt in, paid is by buying a list) Search (free is organic SEO, paid is a PPC Campaign) Social Media (free is posting content, paid is sponsored stories/sweepstakes/ads) Affiliate Marketing (free is your friendly blogger, paid is an Affiliate Marketer network - many exist for P90-X Press (low on the list because it is not targeted well, can be free or you pay by taking out an ad) Grass Roots ( the Jon Reiss Special - street teams and tours through colleges/film festivals) BUT, it never starts out that way. You have start with number four and working your way up. You can make the biggest splash with money near the bottom (#4) and over time re-prioritize your marketing top down from 1-4 where the "bang for the buck" really happens. Has anyone here spoken with an Email Marketer before to establish your expectations?

I'm just a dumb film-maker you guys are soooooo bright

Hey Mark. I've never met a dumb filmmaker. You guys make it all happen.

Daaaaaa thanks Joe yo