You make a feature film and run up a lot of debt. So now you have to sell it!
Option 1 - Find a Distributor - For low budget films under $250K most Distributors will offer you a 7 year contract but will not offer an advance payment known as a Minimum Guarantee (MG). Additionally the contract will ensure the Distributor gets their expenses paid before the Filmmaker gets paid. While higher film budgets may receive an MG and ongoing royalties, for the majority of Filmmakers the MG is the only payment they will ever receive.
Option 2 - Self Distribute - To get your film onto platforms like Netflix & Hulu you will be forced to use an intermediary called an Aggregator. The Aggregator will own your film distribution rights, collect your revenue from Netflix and then pay you. Some of these Aggregators have already filled for bankruptcy and it can take years before you get paid or get your film rights back.
Option 3 - Sell on Amazon Prime - Amazon enabled filmmakers to upload their films directly onto Amazon Prime without going through an Aggregator, which was great. However, Prime has dropped its payments to $0.01 an hour so if your film was budgeted at $500,000 you would need an audience of 50,000,000 to repay your investors. Just to put that in perspective, that’s approximately 50% of all Amazon Prime members across the world.
The online film distribution model is financially broken.
Option 4 - Distribute via Apps - Now there is a new distribution model for Films and it's a FREE, open source, cell phone solution! Customers download an App which contains the film along with any other digital assets the filmmaker wants to sell. Filmmakers get 70% of each sale, which is paid immediately and they also get access to an audience of 5 Billion people.
Filmmaker creates a film, additional footage, photos and assets to use with our free template
Filmmaker hires a programmer to update the content and upload the App to the App Stores
Filmmakers use Apple & Google's free consoles to send notifications, promote & collect revenue
Audience can download Apps, purchase, make comments and receive promotional notifications
This new distribution model enables Filmmakers to do the following;
Comparison of distribution methods to recoup a $50K and a $500K film
|Example Co||Any||Any||Prime||Apple Google|
|Revenue per customer||No MG $0||$0.008||$0.01||$0.70|
|Audience $50K film*||NA||6.25M||5M||714K**|
|Break-even $50K film*||No MG $0||6.25M x0.008 =$50K||5M x0.01 =$50K||714K/10 x0.70 =$50K|
|Break-even $500K film*||MG $100K||62M x0.008 =$500K||50M x0.01 =$500K||7.14M/10 x0.70 =$500K|
* The number of audience required to ensure the film breaks even
** Assumes only 1 in 10 who watch the free film then purchase the alternative ending. Cost is $1:00 and the Filmmaker gets $0:70
Social Media is entwined within our Apps so you can use it to build up an audience
FilmOnPhone is an open source project sponsored by Shooting Film and UI UX Design. Shooting Film contributed the feature film Glia and UI UX Design have contributed the Open Source iOS and Android Apps. Here is how the feature film Glia used this new mobile distribution model;
This is how Glia used mobile film distribution, there may be other models you wish to try.
Download the FREE app and watch Glia FREE - 90mins no ads.
Then play the Quiz! Get 22 out of 30 correct and watch an alternative ending for FREE.
If you can't get 22 correct, just pay a small fee to watch it.
View App Screenshots
Get Glia (Original Motion Picture Soundtrack).
Click on a link below
We decided to make the Glia App Templates a free and open source project on GitHub so that other filmmakers can benefit from this new distribution model.
Download the free open source code https://github.com/UIUXDesignLtd
If you have any questions about FilmsOnPhone or if you need help creating your App or hosting your film, please complete the form below and we will contact you.