Digital Distribution: Pro’s and Con’s
Will digital distribution be the savior of the independent film market? Steve Zeitchik sets out to explore this question, using indie producer Seth Caplan as a case study. Caplan has produced numerous award-winning, festival screened features, but his only real financial success barely left the internet. “Flatland – The Movie,” a thirty minute animated featurette sold mainly via web streams, generated more profit than any of his other films due principally to a well-placed Google Ad.
With the advent of YouTube, distribution was democratized to the average Joe, but now its success is “trickling up.” Industry professionals, the big fish and the small, are increasingly taking advantage of all-access digital mediums. But it’s those with limited resources, the indie players, who stand to gain the most. Where else but online could they reach so many people at so little cost?
Of course, this supposed Promised Land comes with a catch or two. Many fear that, like in the digital music space, an “increased dependence on digital will mean similarly small profits and expectations.” This has been the case so far for most films released digitally. However, theatrical avenues are drying up, and films are coming out of festivals without theatrical distribution, leaving filmmakers little choice but to turn to online.
Still, there are promising signs for those that take a strategic approach to digital. Major portals, including Amazon, Hulu, iTunes, and YouTube, now have their own indie businesses. Though the sites have yet to garner much revenue for filmmakers, they can cut out the middle-man, like they did for Seth Caplan. IndiePix president Bob Alexander elaborates:
“The problem with streaming is you need millions of views for what’s essentially a niche product…what streaming can do, however, is provide the visibility and platform to lead to transaction-based sales [i.e., dvd’s].”
[Disclaimer: Filmmakers Beware! To turn a profit this way, you can’t let your budget get away from you. It’s more essential than ever to contain costs when margins are so low.]
As the way we consume media continues to evolve, streams and other online viewing have the potential to capture greater market share, so early adopters are well-positioned to benefit. But for now, caution is advised.
*Source: The Hollywood Reporter, “Clicking and Screaming”, pp 10-11, March 20, 2009, by Steven Zeitchik
To read the entire article, click here. (available only in plain text for non-subscribers)
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