recap - Diversifying Distribution

Most filmmakers have one vision when it comes to showing their film: Seeing it on the big screen. It’s a lofty aspiration, considering the expense the filmmaker / a third-party distributor would encounter to make that happen. Still, it’s a great goal to shoot for. However, for those filmmakers whose aspirations include generating revenue in hopes of profiting from the movie, distribution dreams should not stop with the big screen. In actuality, movie theatre screening, if you choose to distribute in theatres, should only be part of your overall distribution plan.

PART I: Channel

In today’s environment, there are five major paths for movie distribution: third-party DVD sales, Internet / Cable VOD, Television, Consumer Direct and theatre. Therefore, there are plenty of combinations that you can use to diversify your distribution…and you should diversify. Why? Like the old saying goes: You should never put all your eggs in one basket. If you only choose to distribute via theatres or to only focus on securing television distribution opportunities, what happens if your sales are low / fall through? Sales overall suffer! That’s what happens! However, if you set up a distribution strategy that involves multiple channelsundefinedsay you’ve chosen to distribute your movie via third-party DVD sales, Cable VOD and Televisionundefinedyou decrease your risk of sour overall sales if there’s a dip in sales in one of you’re the three areas.

PART II: Rights

While the channel of distribution is one way to diversify, it’s not the only way. Another is by how you manage your rights. Several companies have the ability to provide distribution across multiple mediums, which can be appealing at first glance. However, think before you sign over rights to insure it’s fiscally responsible. What happens if you hand over rights to one company for all five major channels and that company looses distribution partners or fails to market your film appropriately? Yep. You guessed it. So, when it comes to diversifying, go ahead and entertain offers from “one-stop” firms but do pursue opportunities from firms that specialize in just one or two channels too.

PART III: Territory

A final way to diversify your distribution strategy is by where you allow a distributor to distribute your movie. As with rights and channels, giving the whole kaboodle away in one deal isn’t necessarily the way to go. Instead, consider selling rights by continent, country or a combination of countries. This, as with the other diversification strategies will allow you to keep revenues coming even if a distribution deal in a certain region doesn’t pan out as projected.

The takeaway: The more you diversifyundefinedby channel, rights, territory or all of the aboveundefinedthe more reliable your distribution revenue stream will be.