What are Film Apps
Traditional Film Distribution
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). 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. The truth is good Distributors are also being squeezed by the current online film distribution model. FilmsOnPhone provides a new channel for Distributors with many new features to help them.
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 filed 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.
Distribute with Film Apps
Option 4 – Distribute via Film Apps – Now there is a new distribution model for Films and it’s a cell phone solution! Customers download an App which contains the film along with any other digital assets the filmmaker wants to sell. Filmmakers get up to 75% from each sale, which is paid monthly and they also get access to an audience of 5 Billion people.
A Film App contains a 4K film, a trailer, photos, synopsis, cast details, film story boards, the script and lots more all packaged in a small phone App.
This new distribution model enables Filmmakers to do the following;
- Reach an audience of more than 5 Billion mobile phone customers across the world.
- Sell films, TV episodes, scripts or other Digital Assets with In-App-Purchase.
- Get up to 75% of the proceeds paid directly into their bank account.
- Have their films and assets streamed from a secure Content Delivery Network (CDN).
- Get a monthly report with Apple and Google sales and mobile analytics.
- Interact with their audience using App reviews and comments.
- Directors can chat directly with their audience and use mobile notifications for important announcements.
- Have their films watched on TVs, PCs & Game consoles via Chromecast, Miracast & AirPlay.
Compare Audience to Break Even
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||$0.85|
|Break-even $50K film||No MG $0||6.25M x0.008 =$50K||5M x0.01 =$50K||666K/10 x0.75 =$500K|
|Break-even $500K film||Many years||62M x0.008 =$500K||50M x0.01 =$500K||6.66M/10 x0.75 =$500K|
Assumes a typical Distributor would give a $500K budget film a $100K MG.
An Aggregator would require a combined audience of 62.5 Million to breakeven a $500K film using Amazon Prime, Netflix, Hulu and others.
Amazon Prime would require an audience of 50 Million to breakeven a 500K film.
FilmsOnPhone would require an audience of 5.89 Million if just 1 in 10 resulted in a purchase of a Digital Asset. The purchase cost of the Digital Asset is $1 and Filmmaker gets up to $0.75.