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