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