DIRECT TO DVD FOR THE SMALL FILM BUDGET

 

Before you read this, please be informed that self-distribution Direct to DVD sales should not be your first choice or second.
Numbers will tell you that established distribution companies can make more money for you by distributing your film.
If you have not found a distributor, or just don’t prefer the traditional model, you can find solace in this blog post and you can make up to 800% profit of your film by self distributing and getting the best prices for what is needed to distribute a film.

Before you begin, you will need a UPC number to make your DVD official:

The official way to get a UPC is to become a member of the UCC (Uniform Code Council). However, they are very expensive for this budget and overall. So you can buy a UPC code from a reseller. Buy a Bar Code caters to small-time entrepreneurs, inventors, artists and musicians. You can purchase a UPC for $35 (after a one-time $75 registration fee). This is a great bargain; for your $35 you get emailed a TIFF of the actual bar code, so you can skip Step 2. If you are truly trying to minimize your initial expenses and you are sure you will need only one UPC you can purchase one (with bar code image delivered) for $89 from Rovix.
If you use Discmakers to duplicate your DVD, they’ll give you a free UPC bar code. Their prices for duplication are hard to beat and are the near the prices in this blog post.

The Budget :

You should for a sample small budget to at least sell 5,000 copies at $8 dollars each $40,000 dollars.
Of course in the next post, I will be covering sample numbers from a mid sized budget to a big sized budget.
For DVD sales, you can sell to two major outlets of out your 5,000 copies.
You can sell 1,300 copies to DVD rental places at 8 dollars each – $10,400 profit.
You can sell 3,700 copies to media stores at 8 dollars each – $29,600 profit.

Your costs will be : (excluding production and post production costs except for DVD Authoring)

DVD Authoring – From $1,000 to $3,000
DVD Replication: From $1000 to $3000 (DVD included)
DVD Cover Art from $500 or less and for design and per full color copy, about $1700.

That’s $4,200 in total costs, of course for any marketing effort you can add $800 or more, most of the time a lot more with that goes with a budget. If you check Discmakers – They’ll quote you about $5,000 dollars to streamline the whole effort.

For $5,000 or more you can have profits of 800% or less.
If you decide to do all of this in-house, it probably would cost more because companies specializing in these fields of post production are able to give breaks due to the high volume they do. Still, if your insistent, you would probably lose near half of your profit and time to do it as a one to three man job.

If we look at the price for a single DVD by DIY:

DVD replication – at least $.35 per DVD, DVD case – $.50 per DVD and DVD artwork – $1.00 per DVD

Total cost is :

$1.85 – $8.00 profit price= $6.15 = about 325% – 400% markup profit.
$6.15 x 5,000 copies = $30,750 Net Profit
$8.00 x 5,000 copies= $40,000 Gross Profit

If you create the DVD process yourself or with a few people, you would probably make about 325% – 400%. If you outsource DVD creation, at the very least you could make 600% profit.

Next we’ll cover how to market this small budget DVD to a mass audience using the Internet and Advertising.

For any other questions or comments please leave a response on this post below or contact me at moviedistributionfacts@gmail.com.

 

 

Some Inspiration for Independent Filmmakers

The Box Office is going through it’s summer hurdle and it’s problematic for indie filmmakers.
Don’t worry, innovations in distribution (Netflix, legal downloading, on-demand cable, even releasing films in theaters and on DVD the same day) will save the indie business. Besides, things just look bad right now because we’re in the annual summer slump; indie films will flourish again in the fall, when prestige pictures are released in order to appeal to Oscar voters.

See the rest of the article By Gary Sussman, “Is the Sky Falling on the indie film business?”

Answer to: How to send out my film to a distributor?

Thanks Robert for your question.

There is a few things you must do to prepare your film for a distributor.

Firstly, you can find movie distributor links here and find their addresses from their respective websites. Then, follow their instuctions on how to send your DVD in to them. Most likely they will ask for some or all of the following steps to send them :

Secondly, is burning a DVD. This is elementary with Mac software like DVD Studio Pro. On Mac, if you are doing film editing, you can use Final Cut Pro and when you are finished editing, you will export the movie into .mov format or .avi format and easily bring these into DVD Studio Pro. Other DVD authoring such as menu creation and extras will be important to market your film and are slightly more complicated when creating this DVD, so seek help if your not sure how to do this.

Thirdly, is the cover artwork, your DVD cover. This can be created in Adobe Photoshop and exported into size with DVD Cover Creator. Still shots are also important. Pick your favorite still shots in the film! 5-10 will do. These will advertise your film and can be made into a small booklet with the help of any copy center.

Fourthly is your Press Release. Your Press release will be one to two pages long. It will be advertise the plot and sell their story to the distributor. (this is very important) Write quick and fast statements about the plot and don’t use run- on sentences. The press release will also contain the director, screenwriter and all the crew involved on a business letterhead. Also you should put the duration of the film and the film ratio as well (4:3- fullscreen, 16:9 widescreen). After this is said and done your ready to send.

One more note : Involve another letterhead saying that upon sending your DVD and it meets their approval, you will send a 30 page film distribution memorandum describing in detail every aspect of the film. For a complete step by step breakdown of a film distribution memorandum click here.

For any other questions, please reply to this post or send an email to me, at filmdistributionfacts@gmail.com.

Answer to : What is the difference between Independent and Hollywood Movie Marketing

Thanks jerry for your question.

You asked : what is the difference between Independent and Hollywood Marketing?

I wanted to show a most current example, so I used internet marketing to illustrate the answer.

Internet Marketing is on the rise, and many companies take new ideas from the web and apply it to conventional non-internet marketing. Studies have shown that there is a difference between the ways Independent filmmakers market their film to the way Hollywood does. In the conference papers of the International Communication annual meeting in 2007, they discussed Charles Hoffader’s ideals, a popular scholar in general web marketing activity and they applied it to the film industry.

According to Hoffader, there is four levels of interaction in websites. They are Communication, Sales, Content and Networking. “ We can say that the first two, Communication and Sales reflect promotional goals through sales from different movie distribution outlets of the Independent/Hollywood filmmaker. The second two interactions are content and networking, that reflect goals of maximizing and audience interaction to develop demand and profit for the films themselves.” (Intl’ Communication Association meeting, pp.2)

Consider websites from popular movies such as “Fun with Dick and Jane”, “Saw 2”, and “Chronicles of Narnia” vs. an Independent film such as “Man From Earth” and reflect on the Sales and Communication to the Content and Networking of each other.

Man From Earth encourages an audience member to participate in networking by creating links in their home page, which you can rate or write a review for the movie on Blockbuster, Yahoo or Amazon etc. With “Fun with Dick and Jane” all that is on the website is to buy the DVD and it’s based on a film critic you don’t know and doesn’t say much to convince you.

A Filmmaker can tell a lot from a website about if you want to Independently distribute or Hollywood distribute. Your success will depend a lot on the fan devotion and effective audience creating based on history and your idealism of Independent Film.

You can market yourself towards a “moviegoer audience” based on monetary merchandising, i.e. Harry Potter, or you can market your film through viral marketing and simplified networking, which includes individual interaction or rating and reviewing your movie.

Sample Copyright License Agreement (For Text and Written Works)

Below is a sample copyright license agreement for text and written work. if you are the author, you representative agent or publishing company will send this to the filmmaker/licensee if the license is available for use in a movie in adaptation or for a print run of so many books to sell.

Conversely, if you are looking for the rights to works, you may find the licensor of the work and call or email if the rights are available and they agree on terms, they will send you a copyright license agreement like this below. Please reply for any questions to the post or at moviedistributionfacts@gmail.com

Sample Text Permission and Copyright Agreement

___________________ (“Licensor”) is the owner of rights for certain textual material defined below (the “Selection”). _____________________(“Licensee”) wants to acquire the right to use the Selection as specified in this agreement (the “Agreement”).

Licensor Information
Title of Text (the “Selection”): ________________________
Author: ____________________________
Source publication (or product from which it came): _____________________________
If from a periodical, the ISSN, volume, issue and date. If from a book, the ISBN: __________________________
If from the Internet, the entire URL: __________________________
Number of pages or actual page numbers to be used: _____________________________

Licensee Publication Information
The Selection will appear in the following publication(s) (the “Work”): _____________
(check if applicable and fill in blanks)
[ ] book– title: ______________________________
[ ] periodical– title: _____________________________________
[ ] event handout– title of event: _________________________________________
[ ] website– URL: ___________________________________
[ ] diskette– title: ___________________________________
Name of publisher or sponsor: ___________________________________
Author(s): _____________________________________
Estimated date(s) of publication or posting: ________________________________
Estimated number of copies to be printed or produced (if a book, the estimated first print run): __________________
If for sale, the price: $_____________________
If copies are free to attendees of a program, cost of program: ______________________
If a Website, indicate the average number of visitors per month: ____________________

Grant of Rights
Licensor grants to Licensee and Licensee’s successors and assigns, the:
(select one)
[ ] nonexclusive
[ ] exclusive
right to reproduce and distribute the Selection in:
(select all that apply)
[ ] the current edition of the Work.
[ ] all editions of the Work.
[ ] all foreign language versions of the Work.
[ ] all derivative versions of the Work.
[ ] in all media now known or later devised.
[ ] in promotional materials published and distributed in conjunction with the Work.
[ ] other rights __________________________________

Territory
The rights granted under this Agreement shall be for __________________ (the “Territory”).

Fees
Licensee shall pay Licensor as follows:
(select one and fill in appropriate blanks)
[ ] Flat Fee. Licensee shall pay Licensor a flat fee of $__________ as full payment for all rights granted. Payment shall be made:
[ ] upon execution of this Agreement
[ ] upon publication
[ ] Royalties and Advance. Licensee agrees to pay Licensor a royalty of _____% of Net Sales. Net Sales are defined as gross sales (the gross invoice amount billed customers) less quantity discounts and returns actually credited. Licensee agrees to pay Licensor an advance against royalties of $____________ upon execution of this Agreement. Licensee shall pay Licensor within 30 days after the end of each quarter. Licensee shall furnish an accurate statement of sales during that quarter. Licensor shall have the right to inspect Licensee’s books upon reasonable notice.

Credit & Samples
(check if applicable and fill in blanks)
[ ] Credit. All versions of the Work that include the Selection shall contain the following statement: _________________________________________________
[ ] Samples. Upon publication, Licensee shall furnish ____________ copies of the Work to Licensor.

Warranty
Licensor warrants that it has the right to grant permission for the uses of the Selection as specified above and that the Selection does not infringe the rights of any third parties.

Miscellaneous
This Agreement may not be amended except in a written document signed by both parties. If a court finds any provision of this Agreement invalid or unenforceable, the remainder of this Agreement shall be interpreted so as best to effect the intent of the parties. This Agreement shall be governed by and interpreted in accordance with the laws of the State of _______________. This Agreement expresses the complete understanding of the parties with respect to the subject matter and supersedes all prior representations and understandings.

Licensor
By: ______________________
Name: _____________________
Title: _____________________
Address: _____________________
Date: ________________

Licensee
By: ______________________
Name: _____________________
Title: _____________________
Address: _____________________
Date: ___________________
Tax ID # ________________________

How to Request and Secure Permission to Use Copyrighted Text in Your Book or Film

Copyright owners have the exclusive right to reproduce, distribute, perform, display, and create derivatives of their works. Most others, like filmmakers and distributors and publishers must obtain permission from the copyright owner to lawfully engage in any of these activities. In this post, I will highlight basic ideas on how I and you can secure permission for copyrighted text for your film or book.

Before you decide to use the copyrighted written idea for use in your film or book ask yourself –

Is the material protected under copyright law? Knowing when a work was published or if legal requirements were met is helpful in determining if a work can be used without permission.

General Notes about Securing Permission for Copyrighted Text:

• Usually for text, it is common for Authors/ Agents to charge $150 for a regular permission to license text.

• Copyright Law usually protects text works after 1922.
• If copyright law does not protect it, the owner did not renew the copyright or the work did not minimal standards for copyright protection.

• The Fair Use Law permits you to copy small portions of work for certain purposes such as scholarship or commentary; commentary is usually another writer’s opinion on something.

Exclusive and Non Exclusive Rights:

• A Permissions Agreement that is exclusive is if you are the only person who has the right to use the work as described in the agreement.
• Most permission agreements are nonexclusive and others can use the material in the same way.

For Terms of Use for Permission Agreements:

• Usually, it is a general period of time between 2-6 years, while some agreements prohibit the copyright owner from revoking rights by granting permission irrevocably.

For Territory that a Licensee can Use Text:

• May be limited to a certain geographical area but it is subjective, ask for terms first through the author or agency.

More Notes about Securing Permission for Copyrighted Text:

• Permissions should be obtained before you complete or budget for the work
and start the completion of the work for obvious reasons.

• Sometimes the owner of the work will not require payments, because some artists eager for exposure may agree to suspend payments unless the work becomes profitable or on other factors.

• If you hire someone to create a work, the business will retain the rights only if they are the employee of your company and not just a freelancer. Basically, the company pays them for the job or gives weekly or monthly payments.

• A right of publicity is when a persons name or image is used on for example a cereal box. Have to contact the owner for this, if you are displaying owners name on advertising material.

• If the text is written by two authors- you need permission from both of them.

• Permission to photocopy and distribute materials is online at http://www.copyright.com, CCC clears millions of works through their representatives international and national – it costs 120 membership yearly fee and additional charges for use, they may waive the fee for one time users.

• Unpublished works created after 1978, are protected for the life of the authors plus 70 years.

• Publication does not occur when copies are made and not distributed, only when the text is publicly performed or displayed.

Locating Publishers:

• International Literary Marketplace- http://www.bowker.com/main/home/index.html – searchable online for a fee – books currently available for sale- call them first
• The University of Texas – http://www.lib.utexas.edu/libs/HRC/WATCH/ – has addresses for authors, artists and their copyright holders in US and UK libraries

Paraphrasing and Infringement:

• You have to radically paraphrase work to be so disguised as to be unrecognizable is not copying. It is kind of impossible..

Using Facts:

• You don’t need to ask for permission if you are using facts or fact based theories.
• But you can’t copy more than the facts, which is the expression of them or the arrangement.

• If you don’t have an exclusive agreement your license or permission doesn’t have to be written or valid.

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Recommended Books on Film Distribution for Filmmakers

When learning about film distribution, these books below are recommended reading to learn more about the film distribution business. I quote these books quite frequently on my blog posts. Check them out!

The Insider’s Guide to Independent Film Distribution
Independent Film Distribution: How to Make a Successful End Run Around the Big Guys
Film Finance & Distribution: A Dictionary of Terms
The Feature Film Distribution Deal: A Critical Analysis of the Single Most Important Film Industry Agreement
Independent Feature Film Production: A Complete Guide from Concept Through Distribution
Selling Your Film: A Guide to the Contemporary Marketplace
The Independent Filmmaker’s Law and Business Guide: Financing, Shooting, and Distributing Independent and Digital Films

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