Question #1 How long are markets, should filmmakers attend, and if so, should we go for whole time? Wow! There’s nothing quite like a three-part question to get us going today, so I’m going to answer it in three parts: a) Most film markets range from three to 10 days, depending on how established and popular they are and how much money they generate in film sales. The more established and popular ones, like The Marche Du Film (a.k.a. the Cannes Film Market) and the EFM in Berlin, coincide with major film festivals like the Cannes Film Festival and the Berlin International Film Festival, so they benefit from having tens of thousands of film professionals in attendance. However, since the world financial crisis arrested the earth’s cash flow in September 2008, film buyers and sellers alike attend film markets for a much shorter period of time. For example, The Cannes Film Market may be listed as a 10-day event, but after day five or six, it becomes a ghost town as far as film sales are concerned. Usually, the only relevant sales that occur in days eight, nine and 10, are those, which were initiated on days one, two and three. Of course, there are the “bottom-feeder” buyers who will show up on days nine and 10, and offer your sales agent $500 for your film when they should be adding a couple of zeroes to the offer, but few take those guys seriously. b) Filmmakers may want to attend film markets for educational purposes, but probably not to sell your own film. If you choose to sell your own product without a sales agent, do so online or through direct sales. This is because most buyers, who will deal with filmmakers directly at film markets, are buyers who lack the best of intentions. Furthermore, you will be offered far less money than established sales agent could wrangle for you. c) If you do attend a film sales market as a filmmaker, and you can’t afford the time or money (or both) to be there for its entirety, choose to be there on the opening weekend as opposed to the closing weekend. All buyers will be there in the market’s first several days, before they scurry away to their next commitment. Question #2 Isn’t this film market thing just a big scam? I’m curious because they’re always in vacation destinations like Cannes and Berlin. First of all, Berlin is a beautiful and cultured city, but it’s certainly not a “destination” in February, because it’s frigid cold and snowy. Having said that, film markets are in amazingly hip cities like Cannes, Berlin, Hong Kong, Tokyo and Santa Monica, because they have to entice buyers to get on a plane and travel to their city. In other words, it’s all about a city’s “global perception.” For example, I grew up in Overland Park, Kansas, and the Kansas City area has more to offer than just great barbeque. But, that’s not their global perception. People think all Kansans live on a farm and love “The Wizard of Oz” (well, the latter is probably true). But, trying to get a film buyer from Europe to spend 10 days in Kansas City for a film market is like me trying to get my beloved Los Angeles Lakers to replace their newly acquired gem Dwight Howard, with me, in their starting five. Simply put, it’s just not going to happen. Question #3 What’s your take on producers’ reps? While I know and respect several producers’ reps, I believe their usefulness has been severely depleted in recent years. Of course, this is not their fault, and most producers’ reps are instilled with an incredible knowledge base. However, indie films are selling to distributors for a lot less money these days, so the “cushion of profit” filmmakers used to have to be able to afford the producers’ reps fees, is gone. Furthermore, since there are now several platforms where filmmakers can display their work, like YouTube, Vimeo, Facebook, and countless others, film festivals are no longer a “make or break career game-changer.” Thus, it no longer makes sense to pay a producers’ rep $10,000 or more to help you get into a major film festival. Question #4 You’ve always said not to pay distributors upfront to represent our film, but so many of you bastards want $5,0000-$10,000 before you’ll lift a finger. Why? I’m proud to say that I am not one of those “bastards,” because my company does not charge one penny to filmmakers, just to be in business with us. The simple rule here is that you should never sign with a distributor who asks for upfront money. Thus, if they won’t lift a finger without cash, they certainly won’t lift a finger after you stuff a roll of cash in their pocket, either. Well, okay, maybe they will do a bit of work, but nowhere near the amount of work they would be charging you for. Just remember, if you pay a distributor to distribute your film, before they actually distribute your film, then they will have absolutely no incentive to do a good job. Question #5 Every now and then in these articles you say how short you are. Are you really that short, or are you like, 6’8” or something? Damn, I wish I were 6’8”. If I were, I’d change my name to Kobe and try out for the Lakers. But, in all seriousness, I’ve been blessed with the fantastic height of 5’4”. I’m not tall enough to grab items on the highest shelves when I’m shopping at Target, but I am tall enough to ride roller coasters, so life’s good! Well, that concludes this 118th edition of “Going Bionic.” Thanks for all of there great questions, and I encourage you to keep them coming! I’d also like to thank you once again for lending me your eyes and I look forward to borrowing them again next Tuesday! I can be followed on Twitter @Lonelyseal.
title: “Going Bionic Distributing Independent Films Internationally” ShowToc: true date: “2024-05-20” author: “Bobby Dyke”
Pay-Or-Play deals. Now, I know I’ve discussed pay-or-play deals in previous articles, but the recent rash of them littering indie film packages triggers me to discuss them in further detail, so filmmakers have a clear understanding about how they work. Before I dive into why pay-or-play deals are a really, really, really, really, really bad idea for independent films, let’s discuss exactly what they are first. A pay-or-play deal means once an actor agrees to be in your film, you owe them their full acting fee, whether or not the film actually gets made. Thus, if your financing falls apart minutes before your cameras start lensing, the actor(s) with the pay or play is owed their full fee. That’s right, their full fee. No excuses, ifs ands or buts. Thus, once you’ve agreed to a pay or play deal, you’ve spent the money before the ink dries on the contract. Now that we’ve discussed what they are, here’s why indie filmmakers should never engage in pay-or-play deals. “B” List Actors Do Not Deserve Pay-Or-Play Deals Only “A” list actors have a chance at getting your film financed based on their names, and most “A” listers can’t even do that these days. Since most indie movies don’t have access to “A” list actors, what we are talking about here are those on the “B” list. Additionally, since “B” actors have never had value, and now they have even less since their “A” list counterparts are depleted in value, giving a “B” list actor a pay-or-play deal will shoot your production in the head, not just in the foot. Remember, “B” list actors will never get you financing, unless they themselves write the investment check. Thus, don’t throw your production into a financial abyss over a worthless actor. Harsh words, I know, but these words are not untrue. Anatomy Of A Pay-Or-Play Clause Here’s an example of an actual pay-or-play clause in a recent contract that was sent to me: “The full budget of the Picture is funded and (insert actor’s name here) is made unconditionally pay-or-play with full fixed compensation placed in a mutually approved escrow account prior to commencement of principal photography, but in no event later than the earlier of (i) the time at which any other person rendering services in connection with the picture is deemed pay-or-play, or (ii) the time at which (insert actor’s name here) is requested to travel in connection with the Picture.” Wow. That’s a mouthful. In an effort to simplify, here’s what the two deal points mean: (i) If you want my actor in your film, you’re going to put his or her fee in an escrow account in a bank that we (the actor’s representatives) can verify and have full access to, so if you try to screw us, or if your film dies before it’s born, we can make sure our actor client gets paid. (ii) The second you give someone else a pay-or-play on this film, we get one too. The funny thing is the actor this clause was written about is barely on the “B” list, much less an “A” list name. In fact, the only way this person would ever be considered to be on the “A” list is if they had a box-office smashing, Oscar-winning breakout performance, or if someone opened-fire on the alphabet, and the letter “A” was the only survivor. Short of that, this person deserves to be on the “A” List like I deserve to be a starter on the Lakers (if you knew me, you’d know how ridiculous that analogy is). Don’t shake your head just yet, because here are a few plausible reasons why agents, lawyers and managers are attaching pay-or-play deals to “B” actors: Lack Of Trust For New Filmmakers Agents, managers and lawyers are in the business of making money, and very little of that money comes from independent films. Thus, it’s natural to question whether or not someone is telling the truth about having money, especially in this industry during these economic times. Furthermore, film professionals like working with people they’ve worked with before, so when you’re the “new-payday-on-the-block,” expect to be scrutinized closely until you pay, and your payout doesn’t bounce! Loss Of Income For Actors Who Turn Down Other Work When a representative slaps a pay-or-play deal onto an actor of “lesser value,” they are just trying to make sure their client gets paid, because their client is saying “no” to other offers that are scheduled to shoot during the time your production has them blocked. Hence, having a pay-or-play in place makes total sense for the actor and their representatives, but it doesn’t make sense for the independent filmmaker. Now that you’ve gotten a glimpse of why actors and their representatives will demand a pay-or-play, here is how you can combat such a demand. Get Your Film Financed First! Having money in hand will solve most tenuous situations, especially with actors. If you have money before you approach them, and they still demand a pay-or-play, try this answer: “I’m sorry, but the conditions of our financing don’t allow us to engage in a pay-or-play deal. However, we are prepared to agree to your client’s other terms.” If the actor’s representative still plays hardball, just calmly tell them the money you have allotted for their client will go to another actor who doesn’t require a pay-or-play. When push comes to shove, nine out of ten times you’ll get your actor. Besides, even if you don’t wind up getting your man or woman, you’ll wind up with someone just as good or better, and you won’t have to stress about going bankrupt and getting sued. Don’t get me wrong. There is nothing wrong with pay-or-play deals, and they absolutely do serve an important purpose for “A” list actors. I’m just saying that such deals should be reserved for tent pole studio films that can absorb the financial loss, and should never come into play on comparatively tiny independent films whose entire budgets are smaller than the catering budget of a studio film. Okay, people. That’s what I’ve got for you this week. Thanks again for lending me your eyes, and I look forward to borrowing them again next Tuesday!
title: “Going Bionic Distributing Independent Films Internationally” ShowToc: true date: “2024-05-04” author: “Sheree Jones”
Before we begin today, I’d like to say “Happy Birthday” to my dad, who turns 75 today. I love you dad, and thank you for everything you’ve done for me, and I beg you to stay healthy for at least 20 more years, in order to give me enough time to create at least one massive motion picture hit that you can brag to your friends about! Okay, then, without further ado, here are the answers to a handful of your recent questions. What kind of return on investment should I offer potential investors who invest in my film? The standard split between filmmakers and investors is 120/50/50. What this means is investors will earn 120% of their investment first, and then they’ll split the remaining profits 50/50 with the filmmakers. Example: Investors who fund a $1 million dollar film, will recoup the first $1.2 million, before remaining earnings are split 50/50 with the film’s “producers unit.” Side Note 1: The 120/50/50 investment is not calculated on a film’s gross sales, but rather the amount returned back to the “Producers Unit”. Thus, distribution fees, exhibition costs, P&A Costs, Deferred Payments, Gross and Adjusted Gross Payments, and other off-the-top expenses, are usually paid out before investors will recoup through payments to the “Producers Unit.” Side Note 2: The “Producer’s Unit,” is generally referred to the producers of the film, as well as other above-the-line participants (i.e. director, writers, actors), who are entitled to a cut of the producer’s profit pool. I’ve been offered a loan to make my film. Are there any loan conditions I should look for, or look out for? First and foremost, taking out a loan to fund your film is a really bad idea. The only exception would be if your film has already sold to major distributor, or has been pre-sold to multiple territories. Even then, taking a loan is risky because you’ll be paying it until you get paid on your sales, which could take years. However, if you’re intent on taking a loan to make your film, make sure that a) the interest rate is competitive with reputable banks, b) you have at least four to five years to pay back, and c) all additional penalties, fees and related charges are clearly described up front, before you sign. A Regional film festival has invited my film to premiere. Should I say “yes,” or should I hold out for a bigger festival? Great question. The answer here lies in how your project is valued by distributors, buyers and ultimately, the masses. In explanation, if your film is being courted by one of the top film festivals on the planet, then hold out until you find out if they’re taking your gem or not. However, if one of the top five or six festivals don’t come knocking on your door, then it may make sense to premiere at a small festival that’s excited to screen your film. Remember, these days, film festivals are social media launch pads as much as they are sales markets. I’m about to list my film on IMDB. Do you have any advice on what to say, or what not to say on my film’s IMDB listing? Yes, I do. If your film was a micro-budget, do not make any mention of how cost-effective your film was to make. Trust me on this one. Doing so will only lower the value of your film. A post-production house is offering to have all of my film’s post work done on a deferred pay situation. Are there any hidden costs or dangerous situations I should know about? As a general rule of thumb, if something seems to be too good to be true, then it probably is. In the event a post-production house is offering to defer 100% of your post work, find out exactly what they are covering. More importantly, find out what costs, if any, they are not including in a deferred situation. You may also want to find out the time frame in which the post-production house can complete their work for you. This is an important step to take, because the post house may have a projected completion date that’s far after the date you may need the work to be completed. Remember though, if you’re asking to have your post work done on a deferred payment basis, then that post-production house is going to give priority to their paying clients, before they work on your film. That concludes this 179th edition. As always, I thank you for lending me your eyes, and I look forward to borrowing them again next Tuesday. Until then, I wish you a productive week. I can be followed on Twitter @Lonelyseal.
