Got this question on the “Ask About The Movie” thread:
Now that shooting is complete (congratulations, by the way) when do you find a distributor? Are you currently looking for a distribution company, or are you waiting to shop a finished product, after the editing process?
DISCLAIMER: Before I answer any questions about distribution, let me first say that I have never gotten distribution for a movie (because this is my first movie), and so everything I “know” about the subject is what I have been told by people like Sean McKittrick and Aaron Ray, or what I have read in various books or articles on the subject by experts. In a year, I will know a lot more, but right now, take everything I say as coming from someone inexperienced in the subject who is currently going through the process. Some percentage of what I tell you is wrong in some way, which parts and by how much, I have no idea.
Now, to answer the question. Here is basically how getting a film distribution deal works for an independently financed movie (what my movie is; the system is completely different for a studio movie, because distribution is essentially secured once the movie is greenlit):
The vast majority of independent films started with scripts that were rejected by all or most of the major studios, sometimes because they suck (most indies), other times because the material is just so new or unique or outside of the norm that a studio doesn’t know what to do with it (Big Fat Greek Wedding or Passion of the Christ, for example). So the producers have to go out and get money and make the film themselves with the hope of then selling it to a distributor later. If the movie is good, then they usually sell to a distributor. If it sucks…then they are stuck holding a print no one cares about.
Once a film is finished, you don’t (normally) shop it directly to theaters, you first shop it to distributors, who then represent it to theaters. Even though it may seem like there are lots of different distributors, don’t be fooled. They are almost all owned by the same few companies. There are very few true independent distributors left. What this means in effect is that for any given independent movie, there are often only 2 or 3 buyers, and rarely more than that (there can be more depending in certain factors, maybe up to 10 or even 15 for a hot movie).
Making an independent movie is risky because in Hollywood, a studio will pay a lot of money for an unknown property (a book or script) if it is hot and has a lot of buzz. But once you actually make the movie, it is then a known quantity, and Hollywood has a perverse history of punishing known quantities over unknown quantities. The upside is that if you make something that is great, you can drive a much better deal with a distributor than you would get with just a script. Once the film is made, the inherent risk in the filmmaking process is vastly reduced, so the studio can and will generally give you a better deal…but only IF the movie is really good. We decided to roll the dice, and bet not only on our material, but on the ability of the creative team we put together to execute a great movie (which I think we have done in spades).
We also chose this strategy because we have something that most indies don’t: A commercially viable movie based on a very popular existing property. Most indie movies have to worry about even getting distribution at all because of their subject matter. We don’t. This movie is a broad, commercial comedy that is right in the wheelhouse of almost all the major studios. I was offered a lot of money from several production companies and studios for the movie rights to the book. I turned them all down because I wanted to do the material my way. Nils and I wrote the script together, and were offered seven figure sums for the script from several studios, and turned them down because we didn’t trust a studio to do the movie right. We found an independent financier who was willing to give us creative control, did the deal, and made the movie. Darko was actually offered distribution deals from those same studios literally hours after we closed financing, and have been in constant talks with pretty much every major distributor since, so finding one now probably won’t be too hard.
From here, we have several options:
1. Get a rough cut done, put a bunch of distributors in a screening room, show it to all of them at once, and make a deal.
2. Show it to distributors one by one, and see if we can generate escalating deals that way.
3. Show it at AFM or Sundance or some other festival or film market, and sell it there.
4. Go directly to theater chains and try to make our own deal, essentially acting as our own distributor.
Each of these strategies have advantages and disadvantages (outlined in detail here by an entertainment lawyer), and to be honest, I am not sure what we are going to do. The point of strategy is to keep as many paths open as possible for as long as possible to give yourself the most options, and that is what we are doing (and to be perfectly honest, the final call on this decision is not with Nils and I. Darko put up the money for the movie, and even though what Nils and I want to do is important, they have the right to make the final call on distribution).
It’s not getting distribution that will be hard for this movie–it will be getting the deal we want. That’s always the hardest part. There are so many aspects to a distributor deal, it’s like playing three dimensional chess, every move affects all the other positions in ways that are often difficult to visualize. For instance, you have to consider all these aspects of a standard distributor deal, and changing each one materially changes all the rest:
-How much does the distributor pay upfront?
-What percentage cut of domestic box office does the distributor take?
-What kind of deal can the distributor negotiate with the theaters?
-When does backend kick in, and at what definition?
-Does the domestic distributor rep foreign, and if so, at what percentage?
-What intellectual property rights are they getting to the material?
-What sequel distribution rights are they getting?
-Are they doing the DVD distribution also?
-Are they doing TV, cable, airplane, and other distribution deals?
-What kind of P&A (prints and advertising) money are they putting towards the movie?
-How wide of a release are they willing to commit to?
-How quickly do they pay out profits?
And that’s just for a basic distribution deal. It can get much, much more complicated.
So, right now, while Bob Gosse and Jeff Kushner (the editor) are spending 16 hours a day putting the movie together, Sean McKittrick and Aaron Ray and the rest of The Collective (our sales agency) are playing the three dimensional chess game, talking to distributors, film festivals, and other people, weighing options and determining under what conditions which avenue makes the most sense. I am doing my best to learn the process and give input where I can, but this part of the deal is not really where I add value. In fact, I am not sure if this post even does a good job explaining how to get a deal. But as I learn things, I will pass them along, just like I did in the early stages of this blog.
My next post will be about what exactly distributors do, and why you need one, or in what situations it makes sense to just do it yourself.
Comment and discuss