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Independent Film Distribution LAUNCHPAD LEARNING art ONLINE export MAKE IT TO MARKET: INDEPENDENT FILM DISTRIBUTION presented by Sean Farnel Resident Expert What We’ll Sean Farnel Learn 04 / The Big Idea 06 / Producer-Driven Rights Management 07 / Film Labs, Aggregators and Service Deals 08 / Opportunities and Approaches for Independent Canadian Filmmakers in Canada and Abroad 09 / Revenue Streams in Films 10 / Q+A with Sean Farnel 12 / Recommended Resources Sean Farnel provides creative, marketing, and distribution services to documentary producers, companies, and institutions. He was the first Director of Programming for Hot Docs, which tripled its audience during his six-year tenure. Prior to joining Hot Docs, Sean created the popular national screening series Doc Soup and founded the documentary program at the Toronto International Film Festival. Make it to Market: Independent Film Distribution 3 All that goes into making a Distribution film, from the initialSPARK of INSPIRATION to the final stages isn’t of post-production can take years. something The making of a film is the first major step in the process. The second step is getting it in front of audiences. Distributing it can be as much work as making it. This is especially true for independent filmmakers in the context of the attention economy you GET, it’s and an aspirational culture. While obstacles are substantial, there are models and approaches such as producer-driven rights management that can empower filmmakers with supports that are tailored to individual projects. something you DO. Producer-Driven Film Labs, Aggregators and Rights Management Service Deals Your approach to distribution is based on a producer- What is your advice to a One of the benefits of a In Canada, right now, I “We work with driven rights management model. Can you talk more filmmaker looking to take distribution deal is that they think Apple only has two about that model? this approach? take care of two key steps approved labs - so you’ve an aggregator to having your film available got to work with those labs. In the model I work with, you split your rights up. You don’t I would say get a producer digitally: access to a lab and But the labs won’t work with on a service deal do an all-rights deal if you’re doing an indie work that’s not who’s interested in working the cost associated with an an independent producer, where we pay the going to fit into that traditional distribution model. You’re on the back end. If you just aggregator. they only work with Apple- going to carve out every right, so then the question is, ‘what want to be a filmmaker, then approved aggregators. service cost.” is the best way to exploit every one of these rights?’ You’re get a producer working in “Labs won’t going to be talking about splitting the rights and finding the some form within the split So you’ve got to get an For producers that don’t want specialists. For example, you can get someone to handle rights distribution model that work with an aggregator and there are to take that risk of managing international broadcast sales and work with the European I outlined here. But work with independent only a few Apple-approved it themselves and also don’t TV buyers, if the film has that potential. For instance, you can the producer is really the aggregators that aren’t want to spend $2500 on work with someone who has all of those networks, because short answer. producer.” distributors. Apple TV and Amazon, then that’s another market and not too many indie producers have what the distributor does is, access to all of those broadcast buyers. So you get someone The bottom line with this is There is a way around they pay for that out of their that has their client list of broadcast buyers. you can’t go directly to the distributors however. There recoupables. lab if you’re an independent, are several aggregators that you have to work with an do service or commission The problem is that’s where aggregator. deals in the US and a couple in they essentially make a profit Canada. by doubling or tripling what “If you find the right partners, you can “Platforms like those actual costs are. We work with an aggregator find little sweet spots in the market and Apple TV and on a service deal where Amazon only work we pay the service costs manage those rights yourselves without ourselves. We pay that up kind of giving them away to a distributor with so-called front and I give them a small commission. who may not exploit them as effectively as approved labs.” a producer may be able to. Make it to Market: Independent Film Distribution 7 Opportunities and Approaches What are the Revenue for Independent Canadian Streams for Films? Filmmakers in Canada and Abroad Broadcast Sales / Licenses Revenue from licenses issued to broadcast companies or other licensees who purchase rights to ARTS COUNCILS, But those are small budgets: CANADIAN 11 use your film. This is rare for independent filmmakers. FINANCING AND you’re usually talking about CO-PRODUCTION WORKING OUTSIDE THE media production under two Pre-License CANADIAN MARKET hundred thousand in the Arts Films that are exclusively Revenue that is earned by selling rights to a film before Council model and not even financed in the Canadian production starts and/or is completed. This is ideal in You have to take a big risk fully financed. market as a co-production Canada. when you work outside of by funders like the National 22 the Canadian broadcasting I think if you want to make Film Board’s and CBC are feature film financing model, films in the model of the under a mandate that is very Education Market because we have a pretty American independent film Canadian facing. Generally You can earn revenue in exchange for your film’s use for producer friendly, risk-free system and have one of these speaking, the cultural remit is educational purposes via schools and other academic model in Canada for this kind breakout indies, you’ve got to to make work for Canadians 3 institutions. This is one of the most consistent forms of revenue. It 3 can be done via a speciality educational distributor or by offering of production. be privately financed, which and for Canadian broadcast. is a risky endeavor. It’s not licensing directly from your website. Within the tax credit system a great investment model Get a broadcast deal in and the broadcast license - you got like two percent Canada that triggers a tax Theatrical Live Event system, the work can be of independent films that credit, and don’t worry about Any kind of live event such as movie theatres and festivals which are financed, except there’s recoup and are profitable - the international market. selling tickets where you can monetize in one way or another. a whole bunch of strings so it’s pretty hard to attract Your profit margin - your 44 You’d need to work with a theatrical broker for this. attached there in terms of investment in Canada. sustainability - is in the 15 what kind of stories you can percent margin you get from Screening Fee at Festivals tell and what kind of forms the tax credit and that’s how These are the fees that festivals pay out in exchange you can work with. In that you make your living. But then for using your film. Usually negotiated if your film is in sense, the Arts Council your work will probably not 55 demand. funding is a little better for be seen outside of Canada filmmakers that really want to too much. < / > work with complete freedom Video on Demand of control and expression in Revenue is earned via the transactional ‘pay to rent’ model or via the their work. subscription model where you pay a monthly or annual subscription to 66 have unlimited access to the library of films on any given VOD platform. This is the ultimate landing place for all of these docs. Make it to Market: Independent Film Distribution 9 Q+A with Sean Farnel THE From the perspective of You do work with Canada, it is pretty hard as an independent filmmaking, distributors in certain independent. You don’t know what are the areas of situations. What is your who to call and it’s hard to get distribution that are best approach to identifying their attention. You might want CRACKS IN handled independently, when it makes sense to go to work with an independent rather than by a distribution with a distributor? theatrical broker in a case company? where they don’t take your It’s not that we won’t work rights. They provide a booking I’d rather spend $10,000 on with distributors. For example, service for a share of the digital marketing ourselves with educational distributors revenue and some of them for DISTRIBUTION right out of the producer’s it’s that I don’t have the a flat service fee. pocket than have some email list of all the libraries amorphous $10,000 in the United States. So, in For people out there marketing fee be recoupable. I that case, I’m happy to have that are reading this and think to myself, ‘what was that found a credible educational saying, “I just want to be a $10,000? Where was that distributor and I’m happy to filmmaker” what is the one ARE spent? I didn’t see any digital give them 20% on that deal thing you would say that ads’.
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