| The Falling Value of Film EntertainmentForty | | | | content when they go under. Work with |
| years ago, people who wanted to see a movie | | | | distributors who deliver cost-effective, |
| on a Friday night had just a few options. | | | | fast-launch, flexible multi-national |
| They could watch what was on TV, they could | | | | multimedia distribution and marketing |
| go to the local drive-in, or they could go to | | | | solutions for their customers. Make sure |
| the local movie theater. The advent of video | | | | there's an escape clause if they go into |
| stores that sold hundreds or thousands of | | | | bankruptcy or fail to provide timely payments |
| movies on video tape/DVD gave people new | | | | or accounting.Work directly with community |
| alternatives. They could watch this week's | | | | theaters, activist groups and social networks |
| new movie at the movie theater, or take in | | | | to have your films shown. "Four-walling" |
| last winter's box office smash in their own | | | | which used to be considered an amateur |
| home. The technology required to burn tapes | | | | filmmaker's trick was demonstrated to be a |
| and DVDs subsequently turned every home in to | | | | sound business strategy by Mel Gibson's block |
| a lending library for film and video. The | | | | buster The Passion of the Christ. That movie |
| rise of two-hundred-channel cable companies | | | | was premiered to Christian communities across |
| gave us two-hundred channels with something | | | | the United States and their word of mouth |
| on. Now the best selling studio and | | | | drove it to be one of the most successful |
| independent films are available for download | | | | independent films ever made.Work with your |
| from from sites like video.google.com, and | | | | screenwriters to focus on less expensive, |
| the rise in movie viewing options has | | | | more character-driven films that target |
| increased, the average box office value of | | | | under-served market segments. There are tens |
| new films has fallen. That's hard to believe | | | | of thousands of writers trying to write a |
| isn't it.Block busters like Lord of the Rings | | | | great tent-pole film. The competition is |
| or Harry Potter mask the truth that more | | | | fierce, the number of producers/studios who |
| movies are being made by more people than | | | | can fund that film is small. There's are far |
| ever before and yet the estimated revenue for | | | | fewer writers/producers focusing on writing |
| each film is actually falling. Tens of | | | | Christian science fiction or Christian |
| thousands of feature films and documentaries | | | | mysteries although the Left Behind books and |
| are now available for sale through a variety | | | | the DiVinci code indicate those markets exist |
| of venues. A growing number of producers are | | | | and spend money.Find funding through angel |
| making their movies available for free online | | | | investors rather than through more |
| in the hopes that they will develop a | | | | traditional lending and investment |
| following that will result in "sell-able | | | | mechanisms. Movies are a risky business, and |
| films" later on.The falling value of the | | | | they are growing more risky all the time. |
| average movie has dramatic implications on | | | | Fortunately the cost of making them is also |
| the lives of people who make movies for a | | | | falling fast. Angel investors will often pay |
| living.Five Survival StrategiesConsider | | | | to have a movie made as part of an artistic |
| selling your products directly to viewers | | | | statement or act of community involvement |
| without going through standard distribution | | | | while other investors will be driven more |
| channels. A producer investing tens or | | | | directly for a desire for profit. Producers |
| hundreds of thousands of dollars on film for | | | | will assemble groups of angel investors who |
| distribution on DVD should set aside a | | | | fund projects, and those investors may elect |
| quarter or more of that budget for a media | | | | to make their money available as grants |
| campaign that targets the market for the | | | | rather than as loans or stock ownership. |
| film. If they spend that budget wisely, | | | | "Rich Patrons" may well be on their way back |
| customers will be looking for the film. | | | | and they are certainly worth |
| Producers who find a solid, reliable | | | | cultivating.Evolve to SurviveSome trends are |
| international storefront for their films keep | | | | irreversible. Horses gave way to cars. |
| the percentage usually allocated to a | | | | Silent movies gave way to talking pictures. |
| traditional film distributor. For example, | | | | The movie industry is changing |
| if you post your film on your customers will | | | | radically.Those who want to make and sell |
| be able to buy your DVD through Amazon (and | | | | movies for a living must revise their methods |
| soon download it through You receive 60%-70% | | | | accordingly. They must make more films for |
| of product sales every month and retain | | | | less money, and the films they make must be |
| complete control over your content, rather | | | | better targeted so they are more |
| than waiting months or years for distributors | | | | cost-effective to sell. The good news is, |
| to send checks.Be very careful when choosing | | | | great scripts, exceptional acting talent, |
| more traditional film distributors. Many | | | | strong technical skills and good business |
| distributors will evaporate in the months and | | | | sense will be enough to give many producers |
| years to come due to competition from | | | | the great careers they deserve and many |
| turn-key distribution solutions offered by | | | | viewers will end up with "new classics" to |
| large, well funded competitors. You do not | | | | watch. |
| want distributors to have control over your | | | | |