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