IndieFlix In The Media

Of the ten thousand plus films produced annually in the U.S., most are independent films. Some are “edgy” films made by independent arms of Hollywood studios and marketed as “independent.” However, roughly eight thousand are truly independent, made below the Hollywood radar without studio money and the associated casting and marketing demands.

Only a few truly independent films gain Hollywood distribution. How are the Internet and digital distribution changing the game for these filmmakers?

Old School Distribution

There are 2500 independent film festivals in the U.S. and millions of people attend them. These audiences are looking for something they have never seen before and won’t see again. They like the sense of discovery, finding an original film that goes on to succeed.

In the old paradigm—still the status quo today—truly independent films need to connect to Hollywood distribution to reach large audiences. The festivals have become the gatekeepers. Hollywood buyers attend key festivals such as Sundance and Toronto and acquire a handful of films. Typically, the rest are not seen outside the festival circuit. It costs up to $40 million to open a film in theaters. A few independent Films have succeeded organically through word of mouth, My Big Fat Greek Wedding for example. For most, Hollywood distribution through the theatrical-DVD-TV windows is a requirement for financial success.

Only Hollywood can open a film in 1200+ theaters simultaneously. For most truly independent films, given the type of movie and audience spread, the old paradigm doesn’t work. The long tail needs time and word of mouth. Most theatrical releases show for a couple of weeks.

Some independent producers go to video distribution companies. Marketing costs are still high and producers are paid on net revenue. DVD sales average $9; $4 goes to the distributor, less marketing expenses. Producers only make money if their film is a huge hit, and they have no control over marketing and distribution.

The New Paradigm

On the Internet, independent producers can list a movie title for little to no money. They can start with their core group of family, friends, cast, and crew and take months to build word of mouth.

Audiences look to the Internet for information about films. IndieFlix and others are changing the approach; we’re saying to audiences, here’s where you can find the unusual, the unfindable.

The Internet means opportunity for these types of films. Viral marketing and online social networking have tremendous power, as do sites like MySpace.com and Withoutabox.com. Celebrities, musicians and authors tour and do talk shows to promote their latest project. Independent producers can do the same thing, on-line.

Companies like IndieFlix sell DVDs and generate word-of-mouth for producers on a non-exclusive basis, generating revenue for their films while leaving other forms of revenue open for cultivation and harvest. On-line success may translate into a Hollywood theatrical or DVD release.

Has Digital Distribution Arrived?

Large-scale broadband download of movies is inevitable. However, streaming and download are still expensive, relative to shipping DVDs. While peer-to-peer is helping to change that, DVDs will be around for some time.

The key to future technology is ease of use. It must be able to harness and focus a huge sea of content without intimidating users. The technology must have an open format that enables people to perform automatic searches and be their own programmers.

The film business, whether it’s over the Internet, on DVD, or in theaters, is still about content. Internet communities are becoming the determining factor in defining content.

The Internet gives filmmakers a window into what people want and offers true audience-driven film distribution.

Will distributing independent films over the Internet make money? The jury is still out. For independent producers, the returns are higher; they can self distribute their films and replicate online successes to build audiences. At IndieFlix, we are very hopeful about the future of our business.

Seattle and Independent Film

There is a strong and independent creative community in Seattle: film, art, and music. The Seattle International Film Festival has the largest audience attendance of any festival in North America. People here are passionate about independent film. Seattle must celebrate this community and work together.

It’s important to us at IndieFlix to be from Seattle, using Seattle resources. Hollywood isn’t the only one determining what you can and can’t watch.

Carlo Scandiuzzi and Scilla Andreen are the principals of Seattle-based IndieFlix (www.indieflix.com). Their mission is to give a voice to the independent filmmaker.