Passion River Films: Follow Me On Twitter @allenchou For Info On Our Future Events, Visit

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Passion River Films

Film Distribution & Marketing Seminar


8/31/09 - Latitude Bar, New York, NY

Allen Chou, President


732-321-0711
Allen@PassionRiver.com

Follow me on Twitter @AllenChou


For info on our future events, visit:
www.MarketMyMovie.com
Who is Passion River Films?

• DVD distributor (retail, on-line, & library)


• Non-Theatrical licensing
• Educational sales
• Digital delivery
• Broadcast licensing
• Non-Exclusive distributor
• Netflix partner company
What Do Distributors Want?
• Big distributors depend on what stores will
stock on the shelf.
• Specialty distributors depend on a title’s
word-of-mouth potential.
• No B&W
• No comedies with unknown talent
• No shorts
• No problems (some “problems” are ok)
What Do Stores Want?
• Products with strong consumer interest
• Product that doesn’t sit on the shelf for long
• Affordable pricing for the store and customer
• Appropriate product for the store’s
demographic & needs
• Product that sells so that won’t file
Bankruptcy!
So Who’s My
“Buyer”?
Are These My Buyers?
Maybe She’s My “Buyer”?
He’s a Buyer?
They’re All Buyers!
• Retail store buyers
purchase titles that are
best for THEIR store
• Consumers buy what
interest them (selfish)
• Consumers are the real
clients– not stores!
How does my film get into the
DVD retail marketplace?

Home Video
Traditional
US DVD Distribution

• Exclusive deal
• Feature length products (>50min)
• Distributor responsible for keyart,
marketing, promotion, & DVD replication
• Retail sales
• Fulfillment
DVD Release Workflow
Distributor
3-6 Month Release Window

Create KeyArt & Sell-Sheet DVD replication

Promotion Marketing

Wholesalers Retail Store Buyers Internet Store Buyers Press Public Performance
Consumer & Trade Schools & Institutions

Promote To Retail Buyers Stock Title on Shelf Upload title onto site Coverage Increases Awarness Generate Revenue & Exposure
Stock Minimum Inventory Store Promotions Stock Minimum or No Inventory
DVD Release Points
• 1 month between Order date & Street Date
• 3-6 month lead time required for release
• Traditionally, a title generates it’s bulk sales
1-4 months after initial release (“street date
driven sales”)
• Now, sales can INCREASE and remain
steady after 3 months (power of internet)
Retail Store Blues
• Major stores close
• Sam Goody, Music Land,
Tower Records, Circuit
City & more…
• Blockbuster has 4585 US
stores left (7/09)
• Less shelf space
• Highly competitive
• Returns likely
Distributor Blues
• Major distributors close or
change plans (8/09)
• New Yorker Video
• Paramount Vantage
• Picturehouse
• Warner Independent Pics
• ThinkFilm
• More?
• What’s happening?
On-Line Renting
Changes Everything!
• Over 10 million subscribers On Netflix
• Over 3 million subscribers on Blockbuster

• Consumer getting used to renting


special interest titles on-line

• Retail stores less interested in carrying indie titles


DVD Kiosks
• DVD kiosks placed in
retail locations
• No retail shelf space
• Some kiosks offer burn-
on-demand service
• Redbox offers $1 p/n
new release rentals with
over 17,000 units
placed. Expects over
22,000 by end of 2009!
Foreign Sales
• How does it work?
• What does a foreign buyer want?
• How do you find or meet the buyers?
• Is the market soft now?
• Can you sell finished DVD products?
Foreign Film Markets
Strategies for
Foreign Film Markets
• Research - Research - Research
• Attend markets, even if you do not have a
completed film
• Get last year’s “buyer’s list” before going
• Get “market issue” trades (HWR, Variety,& Screen International)
• When at a market get “buyer’s list” and collect
related sales materials
Key Considerations For
Foreign Film Markets
• Foreign buyers discover new titles at
markets
• Sales agents negotiate & license deals
• Markets can be very expensive
• Timing can be critical
DIY Foreign Sales
• Co-op booth space at markets
• Get your own booth (expensive)
• Can be non-exclusive
• Solicit buyers BEFORE the market & set up
appointments at “meeting locations”
• Bring your own “standard deal memo”
• Research Foreign Sales Companies
• Consider making direct deals with buyers
when attending
Strategies for selecting
foreign sales company
• Research integrity of sales agent
• Appropriate catalog
• Producer friendly contract
• Minimal “market expenses”
• Reasonable commissions
• Realistic sales figures
Digital Delivery & Sales

• Pay flat fee based on 3


year deal

• Pay per view

• Pay per view


Digital Sale Points
• Must digitize to each site’s specs
• May not be able to deal direct - may
need to go through distributor
• Streaming & Downloads help sell DVDs
• Many “views” are not feature length
Showing your film
on the internet
Pro’s
• Great exposure - find new customers
• Revenue
• Piracy
Cons
• Contract review costs time and money
• Currently - low revenue
• Possible propagation to other sites
• Piracy
Think about your film’s
release strategy
• How will you create buzz?
• Who’s your marketing team?
• Do you need film festivals?
• What distributors could be interested?
• Where can I sell my “product”?
• Where do I start?
• Day - Date?
How do you
find the
right
distributor?
Develop a Distributor HOT List

• Find companies that have similar films


• Use trade books & magazines
• Film Market & Festival guides
• Specialty websites (Mandy, IMDB,
Amazon, Film Forum, etc…)
• Retail Stores & Netflix
• Home Entertainment Expo (VSDA)
Submitting Your Film
• Follow their procedures
• Be patient
• Follow up kindly
• Don’t instantly reject their request for
screeners
• If no response, don’t take it personally,
just move on
Meet & Greet a Distributor
• Go to film festivals & markets
• Attend trade show or industry events
• Set up “industry screening” for higher
profile films
• Network with colleagues
• Hire a producer’s rep
Top 7 mistakes to avoid when
making a deal
• Choosing a company that doesn’t understand
your film (consumer marketing strategy)
• Contract that retains all rights
• Excessive recoupable expenses
• No exit out clause
• Inability to sell DVD off your website
• Choosing a company with a bad history of
non-payment to producers
• Low back end fees
Selecting a Distributor
• What’s their marketing plan?
• Is their contract producer friendly?
• Do they understand your film?
• How do YOU fit into their
marketing & distribution plan?
• Do they have an output deal?
• When do you get paid?
• Most titles under-perform, so be fair
• Are they really a distributor?
Producer’s Rep
type 1
Producer’s Rep
type 1
• May charge $5k-$10k retainer fee
• They’ll solicit your title to “their” buyers
contact list
• Frequents major film festivals and
markets
• Maybe it’s worth it?
Producer’s Rep
type 2
• Works mostly on commission
• Often has strong industry contacts
• Attends same events as type 1
• May work harder because of
commission only deal structure
• May give up quicker if no immediate
results
Producer’s Rep
key points

• Find through referral or at Film Festivals


• Pay retainer fee if you feel you’re
getting valuable service
• Be careful of BIG promises
• They may help you get a better deal
• Negotiate a good contract- agree on
reasonable goals & time frames
Self Distribution
Where do you
sell your DVD?
• Website
• Groups, organizations, & institutions
• Internet sites (Amazon, Ebay, etc…)
• Independent Retail Stores
• Local Barnes & Noble program
Keys To Successful Sales
• Create consumer awareness
• Internet Marketing
• Social Media Optimization
• Viral Marketing
• Word of Mouth
• Easy access for purchases
Pro’s To Self Distribution
• You keep all the money!
• Get payment fast
• Rights retention
• Your way - Your style
• Get your film seen
• Build customer list
• Cross-sell other items
Con’s To Self Distribution
• Time consuming
• Must understand movie marketing
• Requires extensive resources (time & $)
• Often requires hiring specialists
(publicist, key art designer, web
designer, & marketing consultant)
• DVD replication, storage, & fulfillment
• Can’t sell direct into big retail accounts

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