DISTRIBUTORS FACT SHEET: 2021 Edition
By Liz Manashil
In 2019, I collaborated with Rebecca Green to publish the Distributors Fact Sheet, a project that aimed to tackle the dearth of resources available to filmmakers when it comes to navigating distribution. When I wrote the Distributors Fact Sheet in 2019, I was working for the Sundance Institute’s Creative Distribution Initiative, which has since dissolved. I am not aware of any distribution specific artist support programs that are currently in existence at any of the major arts organizations, which seems counterintuitive. Dozens of films go through lab programs every year, yet filmmakers are left with little to no education or support when it comes to getting their film in front of audiences. Because of this, Rebecca commissioned me to do an updated version, looking at how the pandemic has impacted distribution and provide to a glimpse into what the future will look like.
As I’ve been consulting with filmmakers on their release strategies, and tracking industry trends, the term “content drought” (a dip in produced content due to COVID-19) has come up over and over again. Creators have looked to the “content drought” concept with a lot of hope, believing that less content will result in more lucrative distribution deals, or more acquisition opportunities would trickle down to the nimble microbudget creators who managed to get projects off the ground during the pandemic. However, 2020 saw the restructuring of the theatrical window, which the entire distribution system is built upon. If your film performs well in theaters, that opens up more revenue streams through international markets, home video, SVOD and ancillary markets such airlines and cruise ships. However, due to the pandemic these ancillary revenue sources have also suffered, leaving less opportunity for recoupment or profit for filmmakers. And, yes, people are stuck at home and want new movies to watch, but streaming platforms have cornered the market with A-list driven content, squeezing out independent filmmakers. For example, Netflix announced that in 2021 they will be releasing 71 new titles across all genres. Without the theatrical window, the lucrative deals can only be found with the big streamers and if you do not have a film with A-list talent, prestige festival backing or strong genre ties, you’re likely to be left out in the cold.
If we can find one silver lining from 2020, it has been that the moratorium on production has allowed us to take a good look at how content is produced and distributed and to ponder ways to redesign the process to be more inclusive and equitable. For example, Naomi McDougall Jones and I are working on Constellation Incubator which will work to apply design-thinking to problem-solve and innovate the entire process – from financing all the way through marketing and distribution.
In the meantime, for better or worse, teaming up with a distributor is the most common way to get your film in front of an audience and who you partner with is one of the most important decisions you will make for your film. While the top priority is almost always to receive a MG (minimum guarantee) sizable enough for your investors to recoup, there are many other aspects to consider when looking for a distributor — Will this distributor deliver on their promises? Do they clearly communicate? Is their fee too high for the services they are providing? Is their delivery list stuck in the 1990s? Considering all these questions and the elusiveness that exists around distributors, Rebecca and I devised a 16 point questionnaire and approached 79 companies to complete it (41 declined and are listed at the end of this article). Their responses in full are listed below per company.
Here are some key takeaways from the distributor responses:
Distributors are suffering and as a result, are taking less risks.
As much as distributors have been villainized over the ages, it’s important to remember that distribution companies are made up of people who love movies and the pandemic has put their jobs in jeopardy along with the rest of us. One distributor told us, “our small firm had to do one lay-off and the rest of the staff, including leadership, has taken cuts in pay and hours, or declined pay outright. This is the case across the industry (including at many film-related non-profits). Filmmakers should be aware that things are really hard if you’re a distributor or exhibitor supporting independent right now. So if you’re a filmmaker reaching out to a for-profit, there’s going to be focus happening on work that can — for whatever reason — more readily sell.”
Anticipate more nos this year and consider a distributor’s bottom line as you navigate offers and submissions. Don’t take every rejection personally — it may not have anything to do with the quality of your film, rather it may be entirely about the bottom line.
Term lengths are still too long.
Exceptionally long term lengths (described in our 2019 report as “astronomical”) of up to 25 years still exist! In 2019, we did not anticipate the world to be upside down in 2020. And because of the pandemic, distribution has been impacted dramatically. As you move forward with a distributor, consider the fact that distribution moves and shifts constantly. Filmmakers should not be handcuffed into term lengths that keep control of their titles over such a long period of time. As the economy changes, and different rights become more important, filmmakers shouldn’t be waiting out the length of a generation in order to adapt with the times.
Festivals still matter.
Once the pandemic hit, people started to question the value of virtual film festivals given that in-person meetings at festivals and markets were traditionally where deal-making happened. Could industry buzz be created out of a virtual festival and would big sales happen without the Sundance late night condo negotiations? Despite all the challenges, sales agents, distributors and filmmakers all made the virtual pivot proving that they still rely heavily on the curatorial powers of festivals. Festivals still matter, and I’d argue they matter more now if you want to work within the traditional distribution ecosystem.
Many distributors still acquire “all rights” (at least for North America).
As a distribution consultant, I often run into filmmakers who are offered “all rights” deals, but the company making the offer doesn’t even have an educational arm, or they don’t have any interest in the theatrical window or have no plans to exploit these rights. Most distribution contracts are boilerplate and not customized to the individual needs of your film’s release. If a distributor does not plan to exploit certain rights, make sure you exclude those rights from the deal so that you can exploit them yourself if you so choose.
More distributors are opening their doors to submissions.
In 2019, very few distributors provided information about how filmmakers can approach them with their content. However, with the decrease of in-person networking at festivals, the doors are opening to more cold inquiries and direct submissions. Take advantage of this and the contact addresses they shared in our questionnaire.
Virtual theatrical is the pivot of the year.
This point is so obvious that I considered excluding it, but I would be remiss to not highlight that the major takeaway from 2020 is the exploitation of virtual events and screening platforms. From Eventive to Story Spaces to Kino Marquee, filmmakers and distributors are utilizing and organizing their own virtual convenings in an attempt to safeguard the community aspect of movie-watching. And you don’t need a traditional distributor to have a virtual release. Here is a document that Picture Motion created which lists some virtual screening platforms that filmmakers can approach independent of a distributor.
Most Distributors (but not all, as you will see from the list of distributors who declined to participate in this piece) have a sincere desire to communicate, educate and support filmmakers.
We asked, “what do you wish filmmakers better understood about distribution” and there was a true energy around the way distributors answered this question. Due to bandwidth and major communication blockades between filmmakers and distributors (complicated legalese, outdated delivery schedules, lack of transparency regarding contract terminology, as well as an unhealthy expectation from filmmakers that the distributor is supposed to make magic happen) distributors and filmmakers rarely connect. We hope that what the distributors shared here will help filmmakers better understand distributors, allowing for a more aligned partnership.
There are more distributors than you think.
In just about every lab application and pitch, filmmakers say that their goal is to premiere at Sundance and have their film bought by A24. While that dream is understandable, only a few filmmakers win that lottery ticket. It is vital that you set your film up for success by educating yourself and your financier(s) about the plethora of distributors available, how they all differ and who will truly be best suited for your film. Just because you love A24 movies, doesn’t mean it’s the best home for your film.
A good number of distributors declined to participate in this survey.
While more companies participated in this survey than in 2019, we received a good amount of radio silence or direct passes from the most sought after distributors. “No” responses ran the gamut with replies such as, “(Name Redacted) is extremely private about data, and it’s against company policy to share this kind of info” to the simple “will decline participation this time” response. While we respect everyone’s privacy, our questions were not overly intrusive. For example, we really wanted to ask each distributor how much of a minimum guarantee they pay on average when acquiring a film, but knew no one would answer that question. Lack of transparency from distributors is a perpetual issue filmmakers face. If distributors truly want to see themselves as collaborators, transparency is virtual and should be expected, and would benefit the ecosystem.
Now to get to the questions, here is what we asked of everyone:
Please provide a short description of your company. BIO
What is the size of your company? SIZE
How many films did you acquire in 2019? FILMS ACQUIRED 2019
How many films did you acquire in 2020? FILMS ACQUIRED 2020
How many films do anticipate acquiring in 2021? FILMS ANTICIPATED 2021
What type of content do you primarily acquire? TYPE OF CONTENT
What rights do you typically acquire? RIGHTS
What is your average license term length? TERM
Do you feel it is important for a filmmaker to have established a social media presence for a film before it is acquired? SOCIAL MEDIA
What festivals do you attend and feel are most meaningful when it comes to looking for films to acquire? FESTIVALS
List a few of your company’s most recent releases or acquisitions. RECENT TITLES
What is the best way for a filmmaker to submit their film to you for consideration? SUBMISSIONS
What changes has your company made to adjust to the impact of the pandemic? PANDEMIC PIVOT
Do you feel optimistic about the state of independent film 2021? OPTIMISTIC ABOUT 2021?
Is there anything else you’d like us to know about your company? ANYTHING ELSE?
What do you wish filmmakers better understood about distribution? ON DISTRIBUTION
Click HERE for the full answers from distributors...
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