Expanding the industry

The Distribution ProcessJ412/51210/31/13

Nature of film and the cinema experience as products. Peculiarities of Hwd films as cultural goods are:Ticket price for all films are set at same level, not variable across films (with some exceptions)Films are product-differentiated in more complex ways than other categories of productsFilm revenues are streamed across lengthy time periodConsumption of product does not exhaust it; not used upAdmission might buy social experience of cinemagoing rather than to see particular film??

1Hearts of DarknessHow might this production be different today?

What might be the same?

Major Questions:Where is Distribution Headed?Is theatrical distribution dying/dead?Pros and cons?

Is DVD dying/dead?

Will other models catch on?**is dvd dying/dead? Write response to this questionWhat should we consider?How do you get your movies?Where do you watch movies?3What is Distribution?Assignment of rights for any/all retail markets

What are retail markets? (Where do you access movies?)

Licenses film from production companyArranges for films exhibition in theatersDecides on release scheduleResponsible for shipping prints, overseeing inspection, accounting, collection of receiptsMarketing duties:Conducts market researchDevelops marketing strategyArranges advertisingWhat does a Distributor Do?Process of distribution:Producer licenses film to a distributor for specific length of time, and the distributor arranges for its exhibition in theaters and decides on the release scheduleFilms release schedule is determined by the perceived potential success of the film and value in various markets == If the film is perceived to be a bomb, the distributor may arrange a large opening weekend with the film disappearing quickly from theaters Distributor is responsible for storing/shipping prints, overseeing inspection, acctg, and collection of receipts from exhibitorsConducts market research, develops mktg strategy for film; arranges advertisingProducers make deal with distribution company (usually division of major studio) to book film in cinemasInvolves run of 2-6 weeks with sliding scale of payment to distributor and exhibitor and minimum guaranteed to distributor (the floor)Exhibitors deduct nut from weekly gross to pay for cinemas weekly overheadsDistributors of film collect rental receipts and collect distribution fees for releasing filmMajor distributors receive substantial percentage of grossDistributor deducts marketing costs and overhead charges5Distribution of in-house studio productionsFirst look arrangementsNegative pick-upsPresalesDirect-to-DVDOnline / Video on DemandHybrid distributionSelf-distribution

Some Types of Distribution DealsTypes of distribution deals:In-house studio picturesNegative pick-ups with independent producers = attractive risk-sharing alternative to in-house productionsPre-production development arrangements with distributors (first look deal)Presales = sale of film to a particular territory before the film is madeIf have actors attached to key roles, distributor in UK, for example, may assess your film as potentially sell-able and offer to pre-by distribution rights for their territory.Intl co-productions = form of presale where distributor makes larger stake in movie = where distributor will essentially become a co-producer of filmHybrid distribution= licensing film to particular venue/distributor but retaining copyright and control

Assignment of rights for all potential retail markets (theatrical, home video, cable, broadcast TV, online, etc.)

**maximize revenues with a minimum of cannibalization from one market to the next (movie business book p. 334)6In-House Studio Distribution

Money still exchanges hands == well talk more about this on Thursday (but the money stays in the family)

1. In-House Production/Distribution--The selected studio/distributor to which the project has been pitched or submitted, provides the acquisition/development financing, develops the project at the studio under some level of supervision of studio creative executives, gives a "green-light" to studio production funding and distributes the completed film with the studio-affiliated distributor using the distributor's funds to cover P&A expenses. An independent producer (or screenwriter, director, actor or actress) may have originally submitted the idea, concept, underlying property, outline, synopsis, treatment or screenplay to the studio, but rights to produce as a motion picture were then acquired by the studio. If the producer or others remain attached, they do so as employees of the studio or project.

2. Production-Financing/Distribution Agreement--The independent producer provides the acquisition/development financing (or raises such funds from investors) and takes the deal to a studio/distributor with a fairly complete package (i.e., significant elements are attached). The studio/distributor's money is then used to produce and distribute the picture. The distribution agreement is entered into (theoretically) prior to the start of production, or at least before the end of production. The distributor will deduct its fee, recoup distributor expenses, collect interest on the production money loan and then reduce the negative cost with remaining gross receipts, if any.http://www.filmfinanceattorney.com/page/4232015707Scott Rudin (producer) Deal with studio giving studio right of first refusal on projectsStudio may pay overhead costs

~145 first-look deals with major studiosHalf of number in 2002First Look Arrangements

http://variety.com/2013/film/news/actors_pacts_sony_dreamworks_disney-1200324389/The first-look deal is not yet an endangered species; studios still find it worthwhile to pay overhead in exchange for first crack at coming on to projects.Still, deals at the six Hollywood majors have remained stable in recent years, with the total number of first-looks in the 140-150 range, according to Variety s Facts on Pacts compilation. The current number is 145, a 3% drop from the 150 in Variety s October survey.Still, thats half what was on the books in 2002. And its a longterm trend that will probably continue, with studios betting more and more of their resources on tentpoles and franchises.I think the thinking is that the corporations need fewer producers, notes Marshall Herskovitz, who served as president of the Producers Guild of America between 2006 and 2010.

Sony Pictures and producer Scott Rudin will turn the groundbreaking 70s sitcom Good Times into a feature film. (March 2013; http://www.deadline.com/2013/03/sony-pictures-scott-rudin-plot-feature-ilm-adaptation-of-70s-tv-series-good-times/)

Producer Scott Rudin signs first-look deal with Sony Pictures (2011)http://latimesblogs.latimes.com/entertainmentnewsbuzz/2011/06/producer-scott-rudin-signs-first-look-deal-with-sony-pictures.htmlOscar-winning producer Scott Rudin has signed a three-year deal with Sony Pictures that gives the studio right of first refusal on all of his projects in exchange for funding overhead costs for the producer and his staff.First-lookagreements have become less common in Hollywood as studios, includingSony, have looked tocut costs and have shed or scaled back many producer deals. Rudin is the only producer to sign a new deal at Sony so far this year.Producer of: Girl with the Dragon Tattoo, Social Network, Fantastic Mr. Fox, Revolutionary Road, etc.

Sony's first-look deals: Company has pacts with the following entities (2007):http://www.variety.com/article/VR1117971470

Universal Makes First-Look Film Deal With De Passe Jones Entertainment (2011)http://www.deadline.com/2011/10/universal-makes-first-look-film-deal-with-de-passe-jones-entertainment/Universal Pictures announced today that the studio has forged a significant three-year, first-look production agreement with Suzanne de Passe and Madison Jones de Passe Jones Entertainment One of de Passe Jones priority projects is the definitive film on the life of Dr. Martin Luther King, Jr., which they are developing with Steven Spielberg at DreamWorks. Suzanne de Passe is widely recognized for successful television and film titles and served as the executive producer of the iconic mini-series Lonesome Dove.

Ferrell, McKay Sign First-Look Deal:http://blog.moviefone.com/2006/06/27/ferrell-mckay-sign-first-look-deal/

This American Life negotiates 'first-look' deal with Warner Bros. (2002):http://www.current.org/people/peop0216glass.html8

First Look Pacts (March 2013)Variety, March 18-23, 2013https://docs.google.com/file/d/0B5m2BSsqAoP2NF9DSFZOMnk1LWM/edit?pli=19Theatrical Distributor Arranges:Creation of ad campaignPublicity effortPress junketBooking theatersPlacing adsTest screeningsDelivery of printsStriking prints from negativeWeekly decision to support film in adsCoordinate commercial tie-ins

Blume, p. 336Theatrical distributor arranges:Creation of ad campaignPublicity effortPress junketBooking theatersPlacing adsTest screeningsDelivery of printsStriking prints from negativeWeekly decision to support film in adsCoordinate commercial tie-ins10Film FestivalsNot just American: Cannes, Sundance, Toronto, SXSW, New York, Venice, Berlin, Rotterdam, Telluride, Seattle, Chicago, Florida, Hong Kong, Karlovy Vary, Locarno, etc.

Many genre-specific:Hot Springs Documentary, Los Angeles Childrens, Outfest, San Francisco Short, Slamdance, Annency Intl Animated, etc.

AcquisitionsPart of distribution plans for many films to get exposure, to get reviews, to start buzz, to get buyers for distribution, etc.

Negative pickup deal has been perceived as the fairy godmother of independent filmmaking, as some filmmakers have signed highly visible and wildly lucrative deals at film festivals like Sundance and Toronto. For example, Sony Pictures Classics acquired Little Miss Sunshine at the 2006 Sundance Film Festival for over $10 millionbreaking a previously held record for Miramaxs purchase of Happy Texas in 1999 (Thompson, 2006). However, it should be noted that only 24% of films (or 28 of the 118 feature films) screened at the 2009 Sundance Film Festival walked away with a distribution deal from either a domestic or international distribution company (Longworth, 2009)This percentage becomes negligible when we consider the number of feature films submitted to Sundance. In 2009, there were 3,661 feature film submissions; thus, only 0.7% of those submissions acquired distribution deals at the Sundance Festival (Sundance Film Festival, 2008).

3. Negative Pickups (and other forms of lender production-money financing)--The independent producer provides acquisition/development financing (or raises such funds from investors) and obtains one or more distributor commitments and guarantees to purchase the completed picture (for the worldwide, domestic or international markets, or individual territories) if the finished film meets specified delivery requirements (as set forth in detail in the distribution agreement). The producer takes this or these distributor commitment(s) to an entertainment lender to secure production funds using the distributor's contract(s) as effective collateral. In this instance, the only part of the financing provided by the distributor relates to distribution expenses (i.e., the so-called P&A monies). The negative pickup and other forms of these distribution/finance agreements associated with lender financing are typically entered into prior to the production of the film. Other variations on lender production financing include foreign pre-sales, gap financing, so-called "super-gap" financing and partly- or wholly-insured sales estimates.http://www.filmfinanceattorney.com/page/423201570

11Acquisitions (and Financing): Film MarketsAmerican Film MarketNovember, Santa MonicaEuropean Film MarketFebruary, BerlinCannes Film MarketMay

Purpose of film market = get financing and/or distribution for film presales often happen hereIndustry conference with screenings, booths, etc.About 75% of all movies released in U.S. theaters last year were independently financed, up from less than half of all such movies just six years ago,http://articles.latimes.com/2011/nov/02/entertainment/la-et-american-film-market-20111102Who attends? acquisition and development executives, agents, attorneys, directors, distributors, festival directors, financiers, film commissioners, producers, writers, the worlds press American film marketThe business of independent motion picture production and distribution - a truly collaborative process - reaches its peak every year at the American Film Market. Over 8,000 industry leaders converge in Santa Monica for eight days of deal-making, screenings, seminars, networking and parties. Participants come from over 70 countries and include acquisition and development executives, agents, attorneys, directors, distributors, festival directors, financiers, film commissioners, producers, writers, the worlds press all those who provide services to the motion picture industry.Founded in 1981, the American Film Market (AFM) quickly became the premiere global marketplace where Hollywoods decision-makers and trendsetters all gather under one roof. Unlike a film festival, the AFM is a marketplace where production and distribution deals are closed. In just eight days, more than $800 million in deals will be sealed on both completed films and those in every stage of development and production making AFM the must-attend industry event.Participants may view more than 700 screenings of approximately 400 films - 28 new films every two hours - the majority of them world or U.S. premieres. Titles range from big budget blockbusters that will be released by the major studios in the U.S., to lower budget art and genre films recognized at international film festivals, all destined for theaters and television around the world. With 8,000 attendees, 700 screenings, and the industry's largest Conference Series, the American Film Market continues to be the pivotal destination for independent filmmakers and business people from all over the world.The heaviest proposition on the table is said to be Cloud Atlas, a massive, multiple-story film, based on the David Mitchell novel, with Tom Twyker, Andy Wachowski and Lana Wachowski as directors. In keeping with the multiplicity theme, more than $100 million is reported to be at stake on the project, which has been shooting in Europe with a bundle of cash from German incentive programs. Multiple companies are behind it, including Warner Brothers, which is expected to distribute the movie in the United States, and Focus Features, which has been selling foreign rights in a quiet, eighth floor corner of this multi-floored Babel. http://mediadecoder.blogs.nytimes.com/2011/11/04/at-the-film-market-where-deals-are-made/European Film Market in Berlin455 exhibitors, 8,098 professionals from 94 countries, including 1,691 international buyers and 1,166 screenings of 816 films: The European Film Market (EFM) is one of the most important international film industry gatherings. Film buyers and sellers, producers, distributors and financiers as well as representatives of the global TV, Home Entertainment and New Media market get up-to-date on the latest productions and developments in the global film scene, negotiate film rights and make or foster business network.Under the umbrella American Independents in Berlin, organised by the Independent Filmmaker Project (IFP) and the Sundance Institute, about 50 US Indies have been showcased in the sections IFP Selects and Sundance at EFM to the almost 1,700 buyers at the first international film market of the year.With this partnership the EFM sets forth a long tradition with the American independents. The new meeting point and numerous additional screenings have been received well. Through the long-standing collaboration with the Sundance Institute a selection of strong US Indies in Berlin has been presented, which was combined with the American Indies selected by IFP in the new created Market initiative, an important expansion of the offering for EFM exhibitors, buyers and participants.Cannes MarketThat is how the first March du Film came to be in 1959 with a few dozen participants and one screening room made out of fabric stretched across the top of the old Palais Croisette. This tiny market became the international event it is today: conceived, organized, and planned around one goal: the successful production of all films. 50 years later, the March attracts 10,000 participants who use this unique environment to debut and discover almost 4,000 films and projects in 34 screening rooms.

12Direct-to-DVDStudios: more frequently sequels (pre-existing property, fan base)Many designed for DVD premiereLower budgets than 5 yrs ago (now $5-$10 million)Others are busted theatricalsChosen for expansion potential (video + other platforms)Turning into Direct-to-VOD

http://www.youtube.com/watch?v=C6gCuu8XNGI

While studios are still making money with direct-to-DVD releases, there is still an overall decline in demand for those films, as there is a general decline in DVD demand, a change that's really affecting the indie film market.- Direct-to-DVD films that tend to be profitable are those that are already parts of a franchise, like maybe sequels to films that were released in theaters, but subsequent films like sequels or prequels, were released straight to DVD. Like the BRING IT ON franchise.- And no surprise that budgets for direct-to-DVD films have fallen. They were as high as $10 million to $15 million a few years ago, but have dropped down to $5 million to $10 million today. It did surprise me to learn that studios are spending as much as $15 million on average for films that they already know are heading straight to DVD. That should indicate just how profitable some of these films have been for them if they are willingly dropping that much money to produce them. I mean many films are released in theaters with those kinds of budgets. And that doesn't include marketing, which the Variety piece says can be substantial, especially if it's a franchise release. I should probably say that these figures are significantly less than the industry average budget which I think is around $50 million to $60 million right now and maybe higher.http://blogs.indiewire.com/shadowandact/direct-to-dvd-market-sales-in-decline

http://variety.com/2012/digital/news/direct-to-dvd-films-decline-1118050065/Predictably, the majors are hurting the least. About a dozen large distributors continue to churn out titles like Disneys animated Tinker Bell, Foxs Wrong Turn franchise and Universals Bring It On video sequels, which skip the theatrical window and rake in tidy profits. Some productions are designed from day one to premiere on DVD (in this story DVD is used to encompass both traditional DVD and Blu-ray). For other titles so-called busted theatricals direct-to-video is a fallback when they fail to secure theatrical release. Production budgets of movies conceived as video premieres by the majors have undergone commensurate declines. They peaked at $10 million to $15 million at the high end a few years ago and have dropped to the $5 million-$10 million range today. Leaders in direct-to-video include Walt Disney with its animated Tinker Bell and live-action dog adventure Buddies properties, 20th Century Fox with the Wrong Turn franchise, and Universal with its American Pie and Bring It On video sequels. Glenn Ross, executive VP and general manager of Universal 1440 Entertainment, the unit of Universal Studios Home Entertainment that generates lower-budget films distributed in all media, plucks properties from the Universal film library in what he calls brand development. Teen drama Bring It On, which began with the 2000 theatrical starring Kirsten Dunst, recently spawned a live stage national touring musical comedy after four direct-to-video sequels. Very rarely are we looking at this as just making one-offs, Ross said. We are careful about the properties we pick and (make sure) we have the resources to market them properly. With its family brand, Disney takes an even a broader multimedia tack. For example its Tinker Bell direct-to-videos mesh with its huge-selling Disney Fairies consumer products property, which together helped to drive a really healthy toy business, says Lori MacPherson, exec VP of global product management at Walt Disney Studios.

But the film has already spawned a franchise, spanning four direct-to-DVD sequels: 2004's Bring It On Again, 2006's Bring It On: All or Nothing, 2007's Bring It On: In It To Win It, and Bring It On: Fight to the Finish, which came out last fall and has recently been airing on ABC Family. http://www.slate.com/articles/arts/dvdextras/2010/01/bring_it_on_and_on_and_on.html13Little Respect for Direct-to-DVD?But theres a business strategy here

http://blogs.indiewire.com/shadowandact/3f2f7a90-ae6d-11e1-bcc4-123138165f92Play clip = 0:00-2:25http://blogs.indiewire.com/shadowandact/3f2f7a90-ae6d-11e1-bcc4-123138165f92

He may not win any awards for his performances, nor might any of these films attract critical acclaim (although anything is possible), but he's gradually building a body of work, proving his onscreen worth, which may later provide him with added leverage in negotiating future production/distribution deals.

crime drama Freelancers, with Robert De Niro and Forest Whitaker, which is going straight-to-dvd.

One of those straight-to-DVD titles titled Caught In The Crossfire, will be released on DVD next week Tuesday, the 13th. In that film, 50 Cent stars as a gang member with a big problem, when he is forced to turn informant for a pair of homicide detectives investigating a gang-related murder.

TRAILER: https://www.youtube.com/watch?v=pHo5YgkpSpU Lionsgate VOD14

Digital Distribution

Brick & Mortar

http://www.mercurynews.com/business/ci_22146699/netflix-disney-deal-has-hollywood-studios-salivating-silicon

Some independent filmmakers make deals with online distributors like Amazon.com, Netflix, iTunes, and brick-and-mortar video stores to sell or rent their films, receiving a percentage of the profits. Most of these companies offer non-exclusive distribution contracts, so that if a filmmaker is unhappy with the companys performance, he or she can opt out of the contract.

The major Hollywood studios have distribution deals with Redbox and Netflix, although some are more restrictive than others. Paramount Pictures allows both retailers to offer its films for rental on the same day DVDs of the films go on sale. Sony Pictures generally allows same-day release except for films that gross over $50 million at the domestic box office; for these films, Sony requires a 28-day window before Netflix and Redbox can offer them. Disney also allows same-day release, but began charging Redbox and Netflix higher wholesale purchase prices in early 2011 (Chmielewski and Fritz, 2011). The other three major studios, Warner Brothers, Universal, and 20th Century Fox, have complained that Redbox, Netflix, and similar services damage DVD sales, and therefore have instituted a minimum 28-day window between when DVDs are available in stores and when Redbox and Netflix can carry those films. These studios implement similar release strategies for video-on-demand (VOD) releases via iTunes and Amazon (Fritz, 2010) Acland (2008) notes that the rise of digital projection and other digital technologies has facilitated convergence between various media technologies. This has given rise to new opportunities for Hollywood film studios, including partnerships with Netflix, Redbox, Hulu, YouTube, iTunes, Amazon, and others to offer digital downloads or digital rentals of both new and old releases

Amazon working on subscription Web video service to take on Netflix (Feb 2011):http://latimesblogs.latimes.com/technology/2011/02/amazon-looking-to-take-on-netflix-with-a-subscription-movie-service.htmlAmazon.com is said to be in talks with movie studios about getting the rights to libraries of movies so it can offer a streaming video subscription service to combat Netflix.

Hollywood Studios Renew Cable VOD Marketing Push (April 2011):http://itvt.com/story/7951/hollywood-studios-renew-cable-vod-marketing-push

The Battle Over Movie Rentals is Intensifying (March 2010)http://www.videonuze.com/blogs/?2010-03-17/The-Battle-Over-Movie-Rentals-is-Intensifying/&id=2475

15What Types of Distributors?Many specialize in certain genres, markets, formats, foreign

Arab Film Distribution (based in Seattle) = Arab films (foreign)Troma = schlocky horrorFacets = Facets Multi-Media's mission is to preserve, to present and to distribute independent, world and classic film, and to educate adults and children in the art and legacy of film. Facets Multi-Media, founded in 1975, is a non-profit, 501(C)3 organization, and a leading national media arts organization. Facets serves audiences of over 300,000 each year. Substantive numbers participate at reduced or no cost, with targeted outreach by Facets to economically disadvantaged or underserved areas. Facets Childrens Media = kidsCanyon Cinema = Canyon Cinemas unrivaled collection of more than 3500 films traces the history of the experimental and avant-garde filmmaking movement from the 1930s to the present.Canyons primary activity is the rental distribution of Super 8mm,16mm, and 35mm films by independent film artists. We also lease these films and their DVD transfers.Independent filmmakers, unlike commercial filmmakers or studio artists, rarely receive financial compensation for their work. The money that Canyon Cinema returns to the artists helps them continue making their films. We are the only distribution organization that has been consistent in the equitable return of artist revenues; more than 40% of Canyons gross income is returned directly to the filmmakers.Kino, based in New York City, specializes in art house films, such as low-budget current films, classic films from earlier periods in the history of cinema, and world cinema. Relativity Media, LLC is a media and entertainment company that focuses on creating, financing and distributing first class, studio-quality entertainment content and intellectual property across multiple platforms, as well as making strategic partnerships with, and opportunistic investments in, media and entertainment-related companies and assets. Relativity owns and operates Rogue, a company that specializes in the production and distribution of lower-budget genre films, which has had particular success within the horror genre with films including The Unborn and The Strangers. Building upon its foundation of financing and producing films, Relativity has grown to include music, sports and television divisions and the next-generation social network iamrogue.com. Rogue was the independent horror arm Universal that distributed films like Shaun of the Dead, Seed of Chucky, Unleashed, Fearless, The Hitcher, Hot Fuzz, Balls of Fury, Doomsday, and The Strangers16Self-Distribution

Kevin Smith to self-distribute film in 2011; filmmakers respond: http://www.youtube.com/watch?v=lbjwh_U_kvsSelf-distribution and four-wallingWasser (1995) relates accounts of some filmmakers in the 1970s who employed the technique of four-walling, or the practice of renting a theater for a number of screenings; the filmmaker or distributor retains the box office receipts while the theater owner retains revenue from concessions sales. These filmmakers, according to Wasser, four-walled mostly second-run theaters in regional markets and secured impressive box office receipts over a long period of time: Through a patient and methodical approach [the filmmakers] took the profits from one weekend in one market and rolled it over into the next market to build the film slowly across the country (p. 52). Many filmmakers started their own distribution outfits to facilitate the four-walling self-distribution model. Oregon-based filmmaker Arthur Dubs distributed his film, American Wilderness (1969), through his company Pacific International Enterprises. After Warner Bros. released Tom Laughlins film, Billy Jack, in mediocre fashion, Laughlin rereleased the film using a four-walling strategy and grossed $32 million (Casuso, 1999). The Life and Times of Grizzly Adams (Richard Friedenberg, 1974), produced for $300,000, grossed $22 million in a four-walling strategy (Wasser, 1995, p. 57). In the self-distribution model, a filmmaker handles all aspects of marketing, rentals and sales of a film. Kelley Baker, a Portland-based filmmaker, tours around the U.S. and Europe semi-annually with his films, arranging screenings, coordinating with local press outlets, and selling DVDs. As well, he sells his films on his website, and encourages traffic to his website and to his screenings and lectures through social networking sites like Facebook. Film festivals have long been considered an essential stop for any independent films distribution and exhibition plan, with most independent filmmakers submitting their films to top-tier festivals like Sundance, Toronto, and Telluride, among others, before turning to regional festivals, genre-based festivals or online festivals. hybrid distribution, or combining some elements of self-distribution with elements of more traditional distribution plans. . Most of these companies have non-exclusive distribution contracts for filmmakersOther distribution options include partnering with a more conventional distribution companyKelley Baker on Finding your Audience: http://www.angryfilmmaker.com/

17Kevin Smith & Red StateSModcast = theatrical distribution rightsLionsgate = VOD, SVOD, EST, TV

http://www.youtube.com/watch?v=lbjwh_U_kvs

http://www.youtube.com/watch?v=uJ1v6oFHefcUnder the terms of the arrangement, Lionsgate obtains the rights to distribute the title on all packaged media, Video-On-Demand (VOD), Subscription Video-On-Demand (SVOD), Electronic Sell-Through (EST) and Television in the United States, while SModcast has retained the theatrical distribution rights throughout the US. Under the guidance of marketing and distribution executive David Dinerstein, Kevin Smith 's self-distribution label SModcast Pictures and Lionsgate Films have devised a multi-tier release strategy unlike any independent film to date. The film is scheduled to release on multiple platforms this September followed by packaged media before the end of the year.

The film debuted at this year's Sundance Film Festival to much notoriety when Kevin Smith ended studio bidding by buying his own film for $20 and declaring he would be self-distributing the film theatrically. Kevin Smith has since toured the film around the country to enthusiastic audiences, grossing close to $1 million to date at the US box office from only 15 single show engagements. SModcast spent less than $500 in paid advertising to support the tour, which kicked off at Radio City Music Hall on March 5th and grossed $162,000 during one show. It quietly topped the per screen average charts for three weekends, becoming the 10th best per screen average film of all time.http://www.movieweb.com/news/kevin-smith-gets-innovative-red-state-distribution-through-lionsgateTrailer: http://www.youtube.com/watch?v=uJ1v6oFHefc

Electronic Sell-Through (EST) describes a method of media distribution whereby consumers pay a one-time fee to download a media file for storage on a hard drive.[1] Although EST is often described as a transaction that grants content "ownership" to the consumer, the content may become unusable after a certain period and may not be viewable using competing platforms.[2] EST is a key revenue stream for a wide array of digital media products, including film/television/video content, music, gaming, and mobile applications. The term is sometimes used interchangeably with the similarly-defined terms Download To Own (DTO). (wikipedia)18Other Models

http://www.npr.org/2013/01/27/170408129/online-venture-takes-on-film-distribution-heavyweights

http://www.indiegogo.com/projects/redistribute-the-bell-ringers-the-galleon-gold-philanthropic-film-projectCrowd sourced distribution = Tugg.comNPR story = http://www.npr.org/2013/01/27/170408129/online-venture-takes-on-film-distribution-heavyweights (2:47)http://www.thewrap.com/movies/article/tuggs-crowdsourcing-model-has-helped-bring-180-films-theaters-80416

Via partnerships with exhibitors including Alamo Drafthouse Cinema, AMC Theatres and Regal Cinemas, Tugg facilitated screenings for 180 different films in more than 300 cities in the past year.

Digiboo = http://www.huffingtonpost.com/schuyler-m-moore/the-future-of-film-distri_b_3179599.htmlDownload film files digitally at kiosks (instead of hard copies of DVDs like Redbox)

**Do these work? Will they catch on? Have you used these models at all?19Ink (dir. Jamin Winans)DVD released in Nov. 2009Uploaded through Pirate BayDownloaded 400,000 timesOne of top 10 most pirated moviesRanked 16th most popular film on IMDBPiracy as Distribution

http://www.youtube.com/watch?v=ZBGeErufQdYAnother mode of distribution is one that has confounded major studios. Digital film piracy is one of the biggest problems for studio film distribution one of the MPAAs toughest and most active fights is against international film piracy, a practice that allegedly costs MPAA member companies at least $6.1 billion in lost revenue in 2005 But many independent filmmakers are open to sharing their material this way. Film piracy can often build what Nitin Govil (2005) calls cultures of anticipation, or fans who are willing to buy a DVD of a film even after seeing a pirated version online. Studies suggest that this is the case, especially for pirated music downloads; in fact, people who pirate music also purchase the most music The film Ink (Jamin Winans, 2009), made in Colorado for $250,000, is an exemplar of this process. The DVD of the film was released by the filmmakers in November 2009 and, two days later, was uploaded through The Pirate Bay, a peer-to-peer file sharing website based in Sweden. Ink was downloaded 400,000 times and became one of the top 10 most pirated movies, according to TorrentFreak, a blog that covers file sharing. It was also ranked as the 16th most popular film on the Internet Movie Database website

Trailer: http://www.youtube.com/watch?v=ZBGeErufQdY

Released on DVD, Blu-Ray, digitalBudget = $250,000

As previously reported, Ink has been downloaded hundreds of thousands of times, so just how many of those translated into real-world sales? Kiowa says that is really hard to put an exact figure on that they havent sold a DVD or Blu-ray for every download but sales have unquestionably gone up.Money also came in from other routes too. As the movie gained popularity on BitTorrent, many Ink downloaders suggested that there should be a donate button on the movies website so that fans could give money freely.Sure our trailers have been out for over a year and have had plenty of views outside the US, but we think that 70% of the illegal downloads are coming from outside of the US and we do get a good number of international buyers at our online store every day,http://torrentfreak.com/ink-the-movie-that-blew-up-on-bittorrent-100205/20http://www.youtube.com/watch?v=fRHDAaHP3sghttp://www.youtube.com/watch?v=IoKn82nIb9A

Future of distribution: which distribution methods are dying out? Video from Tribeca FF: http://www.youtube.com/watch?v=jiAUSWKaoY0 (1:44)

Magnolia Pictures and Theatrical vs. Alternative Relhttp://www.youtube.com/watch?v=xioo_DLExLE

Tribeca's Future of Film Live: Todd Wagner: Theaters vs. Distributors http://www.youtube.com/watch?v=IoKn82nIb9A

Future of Film Live Series with The Verge: A Conversation with Todd Wagner http://www.youtube.com/watch?v=IoKn82nIb9A

Reason for theatrical distribution?

Conversation with Todd Wagner (Future of Film at Tribeca FF):**Theaters and distributors: https://www.youtube.com/watch?v=IoKn82nIb9A (2:21)

Co-owner of Magnolia Pictures****Magnolia Pictures and Theatrical vs. Alternative (2:58)https://www.youtube.com/watch?v=xioo_DLExLE

Magnolia Pictures:agnolia Pictures (www.magpictures.com) is the theatrical and home entertainment distribution arm of the Wagner/Cuban Companies, a vertically-integrated group of media properties co-owned by Todd Wagner and Mark Cuban that also includes the Landmark Theatres chain, and the high definition cable network HDNet. Magnolia's upcoming releases include Lars Von Trier's Melancholia, Andrew Rossi's New York Times Documentary Page One, Mark Pellington's I Melt With You, Alex Gibney's Ken Kesey documentary Magic Trip, gospel documentary Rejoice and Shout, Blackthorn starring Sam Shepard, French thriller Point Blank, rakontur's Limelight, David Gelb's Jiro Dreams of Sushi, Anne Sewitsky's Happy, Happy, Jo Nesbo's Headhunters, and many more.

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