Pulp Thought for The Midnight Eye

Adriano Barone - a friend of the blog from Italy - sent me a link this morning regarding the Japanese V-Cinema industry that I thought I'd share with all of you. In particular, one passage in a review of ZEBRAMAN 2 caught both Adriano's and my eyes:

"This industry has become increasingly polarised, with more higher-budgeted productions that rely on formula and commercially viable concepts on the one hand, and more very under-funded struggling independents on the other. Today, the middle ground that spawned a film like Dead or Alive simply no longer exists. The yakuza genre has essentially become dormant once again - it certainly will never again be what it was during the 1990s. Production and distribution companies from that middle tier are going bankrupt at an alarming rate."

 We are seeing this market condition since last year - something Bill Martell and I discussed over the phone on my bus ride back from the American Film Market.

It's not pretty and it's certainly convoluted, but it points a way toward a possible future for media.  Part of the problem of the middle ground markets for indie films falling away is the belief on the part of the companies that there would always be a middle ground. 

Hollywood and its indie offshoots has always been notorious in its ability to run something into the ground, wring every last penny out of it and discard the dried husk (One too many cliche's this morning guys, sorry).  Then they move on to the next big thing.  They don't develop new markets until a gun is absolutely, positively pointed at their temple and the hammer is pulled back. 

But life doesn't work like that does it? 

I am bullish on new technologies and platforms to get movies into the hands of consumers.  I don't think that's going to include theatrical exhibition unless you've made a movie for over $5M. I just don't see the return on investment being equal or greater than cost.

(Of course I'm the guy who, if given $10M would make 10 movies for $1M each instead of one movie for that $10M). 

So, the key is to move onto other platforms and systems and develop them yourself before you are forced to do so by market condition and you're trying to save your job.  The old saying applies here:

The time to look for a new job is before you need one.

How Not to Worry and Make Money with Web Video

That's the big question isn't it?

I know I get asked "How do I make money at a web series (or book, or whatever)?" and I just have to say that being patient is helpful...

Making a great product is helpful...

And keeping an eye on those people who have done it and are experimenting with you is helpful.

From Video Business:

Next month at Comic-Con, Walt Disney Studios Home Entertainment will launch its first original Web series, Time Jumper, a graphic novel series produced with legend Stan Lee. But unlike many other original Web series, which up to now have been streamed with ads online, WDSHE will sell Time Jumper as a download on iTunes and in 2010 on DVD.

The studio is one of a number of companies testing new release strategies for original Web series that don’t rely on falling online advertising revenue as they try to make Web shows profitable.

And of particular note (emphasis mine)

Big Fantastic, producer of 2007 Web hit Prom Queen, has been in the business probably the longest and has tried every type of business model, but Chris Hampel, one of the four guys who run the company, said producers are still trying to figure out the best monetization model.

Big Fantastic made its first two series, Sam Has 7 Friends and Prom Queen, for $50,000 each. They got picked up for distribution by Michael Eisner’s Vuguru, which re-packaged Prom Queen and sold it to foreign markets, helping to finance a second season of the show. The show also got a DVD release, but Hampel said residuals are minimal.

In Japan, the series took off as a mobile series and has even been remade. In the U.S., Prom Queen plays on the Verizon Vcast network, but mobile hasn’t taken off, he said.

Their deal with Eisner has pushed budgets on their latest shows up to the $500,000 to $1 million range, though profits are still small, “nothing that would upgrade our cars and girlfriends,” Hampel said.

and here:

“Fiction is expensive; it’s hard to do well,” Revision3 CEO Jim Louderback said of Revision3’s reality strategy. “You can never make your money back online.”

But you can develop an audience, which is why many bigger companies say they’re moving into the space.

Starz Digital Media is using the Web series as pilots for TV shows.

“There’s reduced risk in developing new content online versus the traditional model,” DeBevoise said.

Now Starz is developing a seven-part action series that could be turned into a TV series and looking to develop and acquire others.

Producers say to be successful online, shows need to involve the audience.

Williams said in the future, T180 might re-release its shows on DVD or package them for foreign distribution. They also could serve as a launch pad for a movie, building an audience before a theatrical release.

There is much to ponder here, but as people bemoan the fact that they "seemingly" can't use ads alone for online content I go to YouTube, click on a video and see pop up advertisements brought to me by Visa. One company is sponsoring ads of another company popping up on a web video.

It's that kind of entrepreneurship that tells me that ad-only on web video is going to continue to morph, but it's going to turn out just fine.

And while large companies can't make money with ad-only web video, that's not to say that some entrepreneurial sort can't do it on his own. With the budget levels some of these guys are working at ($50,000) , you can make an attractive movie serial or series that can be sold overseas.

From Nikki Finke: Indie Filmmakers Speak Out

From Nikki Finke's DHD blog come these quotes from a variety of people involved in the indie film industry. I would debate that industry category with them because I think in many cases these people work with or for the studios and not independently. That said, there's some stuff here that's worth it. I'll comment (rant, kvetch) as appropriate.

1. Change the title of your indie film to begin with an “A” or a number to get higher placement on iTunes.

A little togue-in-cheek but interesting.

2. “Experiment and try new ways of getting your indie film out there.”

Well, duh...

3. Clark Hallren, Managing Director of the Entertainment Industries Group for JP Morgan Securities warned, “Guys it’s tough. Phenomenal events that statistically cannot happen did happen: we’re at an interesting point in the business.”

4. Lisa Nitti of Greenberg Traurig offered a financing checklist and the necessary groundwork that indie producers must complete to have a shot at getting money: a preliminary financing plan, a solid budget and schedule, and an understanding of Hollywood guild requirements.

Again, duh! This is like saying, "Nazis are bad."

5. Foreign pre-sales are not as readily available as in years past.

Foreign pre-sales haven't been readily available for quite awhile - like 5 years... and yet smart, high-concept, financially responsible genre movies work.

6. Established indie producers with a successful track record have a somewhat easier time than newcomers in getting attention from international sales companies.

Duh - fest.

7. Genre always makes a difference. Forget costume dramas and spoofs.

Yes, because when taken together the horror, scifi, thriller and action-adventure genres account for about 60% of all the genres produced.

8. “Indie producers must have names that mean something to TV worldwide; [before pre-sales can be made] international distributors need time to talk to TV folks who are covering 60%-70% of minimum guarantees,” said Edward Noeltner, President of Cinema Management Group.

This is financially responsible and practical because it elevates the profile of the picture in its most financially viable arena - television. The actor fees are lower and yet more people recognize the star because they invite him or her into their home every week.

9. The number of banks involved in indie film financing has constricted and greatly impacted funds available. Previous to the financial market meltdown, there were 30 to 35 players. That number has been cut by 2/3s.

10. Financiers basically want a return on their investment. “I encourage indie producers to understand their film’s audience as much as they can. Understand what you mean when you pitch project. I want to support a film, but I care about capital and return on that capital. I just want to get my money back,” explained banker Hallren.

Find the audience that will support the film. Then, make the film. Don't make a movie then figure out there's no audience for it.

11. Risk tolerance by investors is at an all-time low. "We’re all in a back-to-basics environment,” advised Danny Mandel, Managing Director of Newbridge Film Capital. “We won't return to where we were; now investors are all about preservation of capital.”

Pulp movies sell. That's as basic as it gets.

12. Mandel predicted that by 2010 indieprods could see more capital available.

And then they won't need distributors because they'll be distributing via server themselves.

13. In indie producers favor: distributors will always need new product to fill pipelines.

See #12 above.

14. At the Cannes Festival, Mandel met five international distributors who wanted a movie with "Wedding" in the title.

Zombie Wedding? Blood Wedding? My Wedding to a Monster?

15. New financing models are having some success, says Danae Ringelmann, Co-Founder of IndieGoGo. She cited documentary producer Robert Greenwald as an example of a new paradigm: Greenwald needed $200,000 to finance his Iraq For Sale. He turned to his substantial email distribution list. Nine days and four emails later, he had raised $276,000. Think of it as “raising money Obama-style,” suggested Ringelmann.

Pay attention to this. It's a subscription model by any other name and the money is sweet.

16. Build a fan base for an indie film before it’s even made.

Yes. Yes. Yes. Lay the groundwork for the content - then deliver.

17. The disappearance of a number of local and regional film critics is a major concern because it makes it tough to launch an indie movie, noted Lawrence Bender, the Oscar-winning indie producer of Pulp Fiction, An Inconvenient Truth, and the upcoming Quentin Tarantino film Inglourious Basterds. So Bender said indie filmmakers must now be content with “tweets and the craziest things,” but not the critical insights of years past.

Blogs have risen to take this place on a regional level.

18. Roger Corman, the quintessential indie producer (Death Race 2000, Grand Theft Auto, Rock N' Roll High School) sees the Internet as a “ray of hope” for indie producers.

Pay attention. The man has powers.

19. Corman envisions a day when distributors and theaters are gone and an ASCAP-type organization collects revenues for indie producers.

I can see that.

20. Concensus advice on how to get an indie film made: never give up.

21. Finding a documentary subject that’s worth a two to four year commitment comes down to “you know it when you see it,” related Marina Zenovich, Director/Producer/Co-Writer of Roman Polanski: Wanted And Desired, Director/Producer of Who Is Bernard Tapie?, Director/Producer of Independents Day Zenovich.

22. “Always good to get an idea from a financier,” quipped Davis Guggenheim, Director/Producer of It Might Get Loud, Gracie, and Director/Executive Producer of An Inconvenient Truth. Guggenheim was lucky enough to be pitched by financier Thomas Tull who asked, “Do you like the electric guitar?"

Yes, ask people what they are financing. Don't try to convince a beer drinker to drink wine. Convince him to try your brand of beer.

23. RJ Cutler, Filmmaker and President of Actual Reality Pictures (The September Issue, The War Room) noted that marketing and outreach for every documentary film is something of a riddle, but advised producers to investigate ancillary revenues. He pointed to Morgan Spurlock who had significant returns in the educational marketplace for his feature Super Size Me, which he cut down to an hour and created an accompanying curriculum and guide.

Movies aren't just movies. They are properties that can be re-purposed for a variety of functions and audiences.

24. Before an indie film gets to the marketplace, producers must know who the audience is for the film, counseled Dennis Rice, Founder of Visio' Entertainment. “If you can’t market your film, you shouldn’t make it. If there’s no audience, you can’t get a return on investment.”

Now where have I heard that before?

25. Once an indie producer knows who the film’s audience is, reaching them cost effectively is the next hurdle.

It's called the internet.

26. There’s no longer a one size fits all model for indie distribution; patterns and windows are changing as are the means of distribution. New strategies include video-on-demand, checkerboard release patterns, digital downloads via iTunes.

Be small. Be nimble. Be quick.

27. “There are at least 10 distribution structures out there, and new companies popping up,” offered Liesl Copland of William Morris Endeavor Entertainment's Global Finance and Distribution Group. Among the new companies she cited: Big Beach, End Game, and Zip Line. All have been smart about marketing spends, she says.

Yes, be smart about where to get the most bang for the buck.

28. Indie producers need to move past the old distribution model and learn from experimentation.

Yes. yes. yes.

29. Copland advised indie producers to think about own their own consumer habits when making movies in this kind of market “though clarity hasn’t surfaced in new revenue streams”.

How do you and your friends spend money? If that's where you spend money, don't you think it's a good possibility that you can find your audience there too? Again, find the audience then fulfill their needs with entertainment they will enjoy.

30. Ted Mundorff, CEO of Landmark Theatres, sees video on demand pre-release and then theatrical release is working for some indie titles like Steven Soderbergh’s The Girlfriend Experience. (Bubble ignited the trend. But Mundroff worries about cable companies saturating the market with titles.)

Again, experiment and report on what the results were. The scientific method.

31. David Straus, Co-Founder and CEO of Withoutabox (a division of IMDb.com), implored indie producers to find ways to connect directly to audiences. “You don’t have to throw a ton of money to push a film to an audience; in an ideal world, the audience pulls film to them.”

32. Aggregating an audience is the lynchpin of this new world order. But is it something that impresses banks enough to lend money? Doubtful.

So leverage the audience in other ways that makes getting money from banks unnecessary.

33. It’s not all doom and gloom despite the disappearance of studio-backed indie film divisions like Warner Independent.

Good riddance.

34. There is opportunity for indie producers as long as they don’t get hung up on a 35mm theatrical film release. Ira Deutchman, CEO of Emerging Pictures, explained: “With digital, we can begin to play around with release patterns.”

Be wise with your money. Besides who shoots on film anymore?

35. Deutchman also recommended that indie producers “aggregate your communities.” He finds that his network of theaters does well with Jewish, gay-themed and French films as well as those that are spiritual and have "Wedding" in the title.

Nuff said.

Pulp Legionnaires: Alert!

As I told you in the first Electrogram. Build your network of web portals through one interface and track all stats not only from those portals, but all of the embedded players around the web.

(It has a few bugs, but this is a significant step forward in putting sophisticated marketing tools in your hands so you can make money with your media)

Track who's watching. When they are watching. Where they are watching.

If you know your audience and where they hang out you can tailor your content to them. You can maximize your particular audience, and minimize waste.

Oh and FYI - this is the sort of thing we go over in the Electrogram. This, free links (when I find them) and behind-the-scenes stuff of what's happening with New Pulp Media. There's more, but you have to sign up to find out.

The Old Rules Still Apply, They've Just Been Digitized

In a follow up to this post regarding the discussion over at Truly Free Film Angelo Bell commented:

"Indie filmmaking was about saying we didn't need Hollywood to make our movies. We've proven that. Now let's take it one step forward and say we don't need Hollywood to distribute our movies."

True.
But we (and when I say "we" I mean the indie film community) are still hung up on the idea of acceptance and validation by the mainstream - "Going to the show," "Hitting the big time," "You're going to Broadway, kid. Your name up in lights."

So what's needed is a business model that means just about anyone can do it. Just add hard work and stir.

It's being done by musicians all the time. Are we going to let them get one up on us?

I'm At AFM...

Which is why I have been quiet. Too enmeshed in the "Giant Used-Car Lot of Movies."

Saw Bill Martell yesterday and we are hatching plans.

Will post more after they unlock the doors of the Loews, and I emerge bloody and triumphant.
(Beats chest and gnashes teeth)

Because yes, that's what it takes, kids.

This is indie film.
Pussies need not apply.