ATL-PushPush Distrib/Fundraise 101

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This part of the workshop focused on distribution and fundraising strategies

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  • Digital has been a disruptive innovation.
  • We know what digital has done to music
  • And lately this change, coupled with the decline in advertising, has decimated the print industry.
  • And now this is hitting film
  • what this all comes down to, is whether because of content increasingly being free through ad support, piracy or the fact that consumers show up less, no one is able to make money
  • Let’s analyze the old world model where everyone paid. Now I know there are exceptions, and this will simplify things, but for most producers, I think the following will ring true.
  • After finishing your film - you play a film festival, hopefully a famous one
  • Sorry folks, but this was always a myth.
  • A quick note, btw, but foreign sales have been drying up as well
  • this is nothing new, for most of us, we can just communicate better and share info and learn about the changes.
  • and a quick word about traditional distribution - everyone likes to bemoan distributors and middle-men, but they aren’t always ripping you off. In fact, there are some honest ones out there and you can generally check around a get a sense of who is good and bad. Taking a film to market remains an extraordinarily complicated game, and it’s expensive to do it right and they aren’t in business to further your career, but to make money. (well, good ones like you to have a career, but you get the point). They are also facing a very crowded marketplace and the simple reality that while everyone in this room thinks you are making a great film, most of you are making crap. Or at best, films that aren’t ready for the marketplace. So this isn’t a bash the distributor panel, but rather a - given the fact that you won’t likely get a distributor, and if you do, current realities mean that the MG will be low (if anything) - what are your other options panel.
  • So what are the rights you can split up? Here’s most of them, as well as some terms you should think about when negotiating. These aren’t everything to think about, use a lawyer, but it’s a start. Explain terms
  • Explain Jon Reiss’ book and model
  • Make your own model
  • Keep budgets low 250-500K max; raise enough to distribute and market
  • Importance of quality
  • You are facing a lot of competition
  • Still comes down to the story - the script has to be perfect
  • Peter Dekom - There are four elements - Ride (Hollywood); Moments (that are shared, think youtube); Character (the characters) Story - indies can own the moments and story and possibly character
  • Your script might be great, your idea solid, but if you aren’t presenting it professionally to funders, agents, partners, sponsors and others, you are screwed Tell story of presentation quality (poor) from Atl producers while I was at Rockefeller
  • Usual problem is projects haven’t been properly planned, well in advance
  • Example of Iron Sky, which will come up later - they’ve planned long-term, are building audience early and presenting themselves professionally
  • Biggest trend now in online, and in life generally, is the importance of place. Localism, locavorism, etc. Atlanta not different than NYC. Can build on the sense of real-world community, but need to work together, not in-fighting
  • atl can be just as good as austin
  • Biggest trend now in online, and in life generally, is the importance of place. Localism, locavorism, etc. Atlanta not different than NYC. Can build on the sense of real-world community, but need to work together, not in-fighting
  • ATL-PushPush Distrib/Fundraise 101

    1. 1. Engage 101: Audience Building & Distribution & Distribution & Distribution Part One: The truth about distribution <ul><ul><li>Brian Newman @bnewman01 springboardmedia.blogspot.com </li></ul></ul>
    2. 2. Disruptive Innovation <ul><li>Disruptive technology and disruptive innovation are terms used in business and technology literature to describe innovations that improve a product or service in ways that the market does not expect, typically by being lower priced or designed for a different set of consumers. </li></ul><ul><li>Clayton Christensen via Wikipedia </li></ul>
    3. 6. $
    4. 7. Old World $
    5. 8. Old World $ <ul><li>Play festival </li></ul>
    6. 9. Old World $ <ul><li>Play festival </li></ul><ul><li>Sell to distributor/broadcaster (s) </li></ul>
    7. 10. Old World $ <ul><li>Play festival </li></ul><ul><li>Sell to distributor/broadcaster (s) </li></ul><ul><li>Advance </li></ul><ul><li>Percentage of revenues </li></ul>
    8. 11. Old World $ <ul><li>Play festival </li></ul><ul><li>Sell to distributor/broadcaster (s) </li></ul><ul><li>Advance </li></ul><ul><li>Percentage of revenues </li></ul><ul><li>They sell to audience </li></ul>
    9. 12. Old World $ <ul><li>Play festival </li></ul><ul><li>Sell to distributor/broadcaster (s) </li></ul><ul><li>Advance </li></ul><ul><li>Percentage of revenues </li></ul><ul><li>They sell to audience </li></ul><ul><li>Who pays for the film </li></ul>
    10. 13. Old World $ <ul><li>Play festival </li></ul><ul><li>Sell to distributor/broadcaster </li></ul><ul><li>Advance </li></ul><ul><li>Percentage of revenues </li></ul><ul><li>They sell to audience </li></ul><ul><li>Who pays for the film </li></ul><ul><li>$ to distributor </li></ul><ul><li>$ to filmmakers </li></ul><ul><li>$ to investors </li></ul>
    11. 14. Old World $ <ul><li>Play festival </li></ul><ul><li>Sell to distributor/broadcaster </li></ul><ul><li>Advance </li></ul><ul><li>Percentage of revenues </li></ul><ul><li>They sell to audience </li></ul><ul><li>Who pays for the film </li></ul><ul><li>$ to distributor </li></ul><ul><li>$ to filmmakers </li></ul><ul><li>$ to investors </li></ul><ul><li>Everyone is happy.... </li></ul>
    12. 15. Old World $ MYTH <ul><li>Play festival </li></ul><ul><li>Sell to distributor/broadcaster </li></ul><ul><li>Advance </li></ul><ul><li>Percentage of revenues </li></ul><ul><li>They sell to audience </li></ul><ul><li>Who pays for the film </li></ul><ul><li>$ to distributor </li></ul><ul><li>$ to filmmakers </li></ul><ul><li>$ to investors </li></ul><ul><li>Everyone is happy.... </li></ul>
    13. 16. Old World $ Play festival Maybe
    14. 17. Old World $ Play festival Maybe Sell to distributor/broadcaster(s) Maybe – forever, everywhere
    15. 18. Old World $ Play festival Maybe Sell to distributor/broadcaster(s) Maybe – forever, everywhere Advance $0 - $15,000 avg Percentage of revenues 30% - 60% after expenses
    16. 19. Old World $ Play festival Maybe Sell to distributor/broadcaster(s) Maybe – forever, everywhere Advance $0 - $15,000 avg Percentage of revenues 30% - 60% after expenses They sell to audience Hopefully
    17. 20. Old World $ Play festival Maybe Sell to distributor/broadcaster(s) Maybe – forever, everywhere Advance $0 - $15,000 avg Percentage of revenues 30% - 60% after expenses They sell to audience Hopefully Who pays for the film If theaters book it or buyers buy
    18. 21. Old World $ Play festival Maybe Sell to distributor/broadcaster(s) Maybe – forever, everywhere Advance $0 - $15,000 avg Percentage of revenues 30% - 60% after expenses They sell to audience Hopefully Who pays for the film If theaters book it or buyers buy $ to distributor But, marketing, P&A, staffing, cross-collateralization, fees, delivery
    19. 22. Old World $ Play festival Maybe Sell to distributor/broadcaster(s) Maybe – forever, everywhere Advance $0 - $15,000 avg Percentage of revenues 30% - 60% after expenses They sell to audience Hopefully Who pays for the film If theaters book it or buyers buy $ to distributor But, marketing, P&A, staffing, cross-collateralization, fees, delivery $0 to filmakers $0 to investors No one is happy...and you don’t even own your film anymore
    20. 23. $
    21. 24. Not New
    22. 25. Distributors aren’t (usually) ripping you off.
    23. 26. New World/Hybrid $ “ New World or Hybrid Distribution combines direct sales by filmmakers with distribution by third parties (e.g. DVD distributors, TV channels, VOD companies, educational distributors)” Peter Broderick
    24. 27. New World/Hybrid $ You own rights Split rights Partner for exploitation You keep more $
    25. 28. New World/Hybrid $ You own rights Split rights Partner for exploitation You keep more $ ......(in theory)
    26. 29. Rights & Terms Theatrical Non-theatrical Educational Ancillary Home Video Broadcast Online VOD (rental), EST (purchase) Piracy/Peer to Peer Foreign Mobile Event/alternatives MG Minimum Guarantee/Advance Exclusivity/Non Term Territories/markets Cross-collateralization Marketing/ P&A Commitments Windows Day and Date
    27. 30. Audience Development From Jon Reiss: Think Outside the Box Office Your film Your needs New Rights Scheme: Your audience Live event/Theatrical Your resources Merchandise Create a strategy Digital Build your team - PMD Start before finished - the new 50/50 Build core audience Social Media Transmedia
    28. 31. Make Your Own Model - evaluate your Plan A vs. other Plan B(s)
    29. 32. Engage 101: Audience Building & Distribution & Distribution & Distribution Part Two: Fundraising, Quality & Localism and Other Truths
    30. 33. Fundraising 101
    31. 34. Fundraising 101 Foundations
    32. 35. Fundraising 101 Foundations Examples: An ever decreasing source of support Ford Mainly for social issue documentary MacArthur Foundation Center - to research Fledgling Look for common interest, not film funding Impact Partners <ul><li>3 I’s - Impact, Influence, Innovation </li></ul>Creative Capital Outreach & distribution now important Artadia Never apply without speaking first.... Sloan ...Unless they say otherwise Tribeca All Access Gucci Tribeca Documentary Fund ....Credit Trolling
    33. 36. Fundraising 101 Foundations Nonprofit Partnerships
    34. 37. Fundraising 101 Foundations Nonprofit Partnerships Production for nonprofits Fiscal sponsorship Fiscal sponsorship - through crowd-funding Production as a nonprofit - Need other components/activities Must form board, etc.
    35. 38. Fundraising 101 Foundations Nonprofit Partnerships Corporate
    36. 39. Fundraising 101 Foundations Nonprofit Partnerships Corporate Sponsorships Branding Corporate foundations (see Foundations) Product Placement Niche marketing Co-Op and Marketing Support Product
    37. 40. Fundraising 101 Foundations Nonprofit Partnerships Corporate Individual Donors
    38. 41. Fundraising 101 Foundations Nonprofit Partnerships Corporate Individual Donors Friends & Family House Party Crowd-Funding Micro-Donations Read: Morrie Warshawski
    39. 42. Fundraising 101 Foundations Nonprofit Partnerships Corporate Individual Donors Investment
    40. 43. Fundraising 101 Foundations Nonprofit Partnerships Corporate Individual Donors Investment <ul><li>Again , Friends & Family </li></ul>Taking a stake in project, expect return SEC rules on investments - use an attorney
    41. 44. Fundraising 101 Foundations Nonprofit Partnerships Corporate Individual Donors Investment Tax Incentives/Rebates/Credits
    42. 45. Fundraising 101 Foundations Nonprofit Partnerships Corporate Individual Donors Investment Tax Incentives/Rebates/Credits Rebates vs Credits Tricky - use lawyer or exp. producer
    43. 46. Fundraising 101 Foundations Nonprofit Partnerships Corporate Individual Donors Investment Tax Incentives/Rebates/Credits Sales
    44. 47. Fundraising 101 Foundations Nonprofit Partnerships Corporate Individual Donors Investment Tax Incentives/Rebates/Credits Sales Reality of US Marketplace (as discussed) Foreign sales (esp. pre-sales) have dried up Aggregators To Consumers Importance of pre-sales What else can be sold (merchandise, events, etc.)
    45. 48. Fundraising 101 Foundations Nonprofit Partnerships Corporate Individual Donors Investment Tax Incentives/Rebates/Credits Sales Keep Budgets Low Raise Enough to Distribute and Market Your Project
    46. 49. Quality
    47. 50. <ul><li>3,500+ Films Submitted to Sundance </li></ul><ul><li>15-50,000 unique records annually on Withoutabox and B-Side </li></ul>
    48. 52. Ride Moments Character Story Story Story Story Story Story Story Peter Dekom
    49. 53. Professional Presentation Presentation
    50. 54. Proper, Long-Term Planning Long-Term Planning
    51. 55. www.ironsky.net
    52. 56. Localism
    53. 58. Localism = Build Community Together Build Community Together Build Community Together
    54. 59. Engage 101: Audience Building & Distribution & Distribution & Distribution Part Three: Audience Engagement
    55. 60. Blog: www.springboardmedia.blogspot.com Email: bnewman001@gmail.com Twitter: @bnewman01

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