Comments for FilmProfit http://filmprofit.com The Business of Successful Films Mon, 28 Dec 2009 17:58:00 +0000 http://wordpress.org/?v=2.9.1 hourly 1 Comment on Devaluing The Movie Proposition by Jeff http://filmprofit.com/?p=817&cpage=1#comment-54 Jeff Mon, 28 Dec 2009 17:58:00 +0000 http://filmprofit.com/?p=817#comment-54 Sheri, Thanks for re-posting. Less that I believe that a lot of these indie films need to make themselves exclusive, and more that there are films, by their very nature, that are for a more limited audience, by nature of style, subject matter, and so on, and those films face a significant business problem if they cannot reap sufficient rewards from their target clientele. This, then, means that they are subsidizing this constituency with investment capital that will not be returned. So, to manage this equation, the budget and the price of delivery need to meet somewhere reasonable. There was an easier equation under the pricing models of VHS. A tape was shared among rental clients, or mass-market priced. DVD pricing does not offer us these optional paths, and that is painful for worthy films. That is the core of my thesis. Thanks again, Jeffrey Hardy Sheri,
Thanks for re-posting. Less that I believe that a lot of these indie films need to make themselves exclusive, and more that there are films, by their very nature, that are for a more limited audience, by nature of style, subject matter, and so on, and those films face a significant business problem if they cannot reap sufficient rewards from their target clientele. This, then, means that they are subsidizing this constituency with investment capital that will not be returned. So, to manage this equation, the budget and the price of delivery need to meet somewhere reasonable. There was an easier equation under the pricing models of VHS. A tape was shared among rental clients, or mass-market priced. DVD pricing does not offer us these optional paths, and that is painful for worthy films. That is the core of my thesis.

Thanks again,
Jeffrey Hardy

]]> Comment on Devaluing The Movie Proposition by Sheri Candler http://filmprofit.com/?p=817&cpage=1#comment-53 Sheri Candler Sun, 27 Dec 2009 23:36:46 +0000 http://filmprofit.com/?p=817#comment-53 I've posted this article around. Will let you know the feedback. You might find differing arguments to this here, with regard to treating films like classical music, only for the informed and enlightened. http://springboardmedia.blogspot.com/2009/12/future-of-film-punk-rock-or-classical.html I’ve posted this article around. Will let you know the feedback. You might find differing arguments to this here,
with regard to treating films like classical music, only for the informed and enlightened.
http://springboardmedia.blogspot.com/2009/12/future-of-film-punk-rock-or-classical.html

]]> Comment on Devaluing The Movie Proposition by Tweets that mention Devaluing The Movie Proposition | FilmProfit -- Topsy.com http://filmprofit.com/?p=817&cpage=1#comment-52 Tweets that mention Devaluing The Movie Proposition | FilmProfit -- Topsy.com Sun, 27 Dec 2009 23:36:09 +0000 http://filmprofit.com/?p=817#comment-52 [...] This post was mentioned on Twitter by Sheri Candler, Tyler Weaver. Tyler Weaver said: I like wine. RT @shericand: maybe indie films should be marketed as fine wine, artisan bread, spring water? http://bit.ly/563utf [...] [...] This post was mentioned on Twitter by Sheri Candler, Tyler Weaver. Tyler Weaver said: I like wine. RT @shericand: maybe indie films should be marketed as fine wine, artisan bread, spring water? http://bit.ly/563utf [...]

]]> Comment on Our Thinking Lately by Devaluing The Movie Proposition | FilmDependent http://filmprofit.com/?page_id=16&cpage=1#comment-51 Devaluing The Movie Proposition | FilmDependent Wed, 09 Dec 2009 18:02:40 +0000 http://filmprofit.com/wordpress/?page_id=16#comment-51 [...] you would like to read more of this post, and our other posts, please go to: http://filmprofit.com/?page_id=16 Share and [...] [...] you would like to read more of this post, and our other posts, please go to: http://filmprofit.com/?page_id=16 Share and [...]

]]> Comment on Devaluing The Movie Proposition by Jeff http://filmprofit.com/?p=817&cpage=1#comment-50 Jeff Wed, 09 Dec 2009 17:46:20 +0000 http://filmprofit.com/?p=817#comment-50 Hi, Michal, and all, I totally agree with you, but with the retail, the beginning is the SRP, and I have had conversations with my distributor clients and producer-controlled release clients, and maintenance of SRP is the front line of this battle against erosion. And, until the conversation/conversion begins, there is no progress. You are right, there are many moving parts, and there is a significant devaluation already set in folks minds. As with many other products, there can be differentiations identified in the sale of the product, and those can aid the perceptions of value. 3D, by the way, in theaters, is the studio way of creating this differentiation in value at the theatrical level, but that is for a small set of product. But, I was less focused on the theatrical, and more on the aftermarkets. DVD in particular. The retailer makes the decision to devalue the film, but the producer/distributor should not go quietly. This is a long road, but I see it as an important possible road to embark on. Just my thoughts, and yours are very much appreciated, Michal. Hi, Michal, and all,
I totally agree with you, but with the retail, the beginning is the SRP, and I have had conversations with my distributor clients and producer-controlled release clients, and maintenance of SRP is the front line of this battle against erosion. And, until the conversation/conversion begins, there is no progress. You are right, there are many moving parts, and there is a significant devaluation already set in folks minds. As with many other products, there can be differentiations identified in the sale of the product, and those can aid the perceptions of value.

3D, by the way, in theaters, is the studio way of creating this differentiation in value at the theatrical level, but that is for a small set of product. But, I was less focused on the theatrical, and more on the aftermarkets. DVD in particular. The retailer makes the decision to devalue the film, but the producer/distributor should not go quietly. This is a long road, but I see it as an important possible road to embark on. Just my thoughts, and yours are very much appreciated, Michal.

]]> Comment on Devaluing The Movie Proposition by Michal Chick http://filmprofit.com/?p=817&cpage=1#comment-49 Michal Chick Tue, 08 Dec 2009 18:29:50 +0000 http://filmprofit.com/?p=817#comment-49 I understand your proposition but this is an idea that would be extremely difficult to implement. One of the biggest impediments to it are movie theaters. If your logic would hold true (that consumers would be willing to pay more for more rare or niche films) then shouldn't that also apply to ticket prices in the theater? Unfortunately, movies have been priced as indentical commodities almost since their inception at the box office (other than 3D or IMAX versions). I pay $9.00 to see "Star Wars" or "War/Dance". So how can a DVD distributor justify charging double or triple for a film that cost me the same as a general audience film to see in a theater? Using your calculations you would only need to sell about half as many units (37,475) if you sold the DVD for $29.98 (a 100% premium). But consumers vote with their pocket books and my bet is that if DVD (or owned-download) companies started to test price points that they would find that the price/elasticity curve bottoms out dramatically as the price increases more than 30% over the low price. So, at double the price you may only sell 15-20 percent of the units, resulting in a major loss of profits. But it would be interesting if you could convince a distributor to play with the pricing and risking the shortfall. Who knows, maybe most people would still buy the DVD's at a significant markup. I understand your proposition but this is an idea that would be extremely difficult to implement. One of the biggest impediments to it are movie theaters. If your logic would hold true (that consumers would be willing to pay more for more rare or niche films) then shouldn’t that also apply to ticket prices in the theater? Unfortunately, movies have been priced as indentical commodities almost since their inception at the box office (other than 3D or IMAX versions). I pay $9.00 to see “Star Wars” or “War/Dance”. So how can a DVD distributor justify charging double or triple for a film that cost me the same as a general audience film to see in a theater?

Using your calculations you would only need to sell about half as many units (37,475) if you sold the DVD for $29.98 (a 100% premium). But consumers vote with their pocket books and my bet is that if DVD (or owned-download) companies started to test price points that they would find that the price/elasticity curve bottoms out dramatically as the price increases more than 30% over the low price. So, at double the price you may only sell 15-20 percent of the units, resulting in a major loss of profits.

But it would be interesting if you could convince a distributor to play with the pricing and risking the shortfall. Who knows, maybe most people would still buy the DVD’s at a significant markup.

]]> Comment on Producer-Controlled Release by Jeff http://filmprofit.com/?p=775&cpage=1#comment-44 Jeff Wed, 14 Oct 2009 05:54:17 +0000 http://filmprofit.com/?p=775#comment-44 Hi, Jason, People do seem to use the terms somewhat interchangeably, however, four-walling is a more distinct term, which usually means that a filmmaker hires a theater on a theater by theater basis, and keeps the ticket proceeds, or a negotiated portion of them while, typically, the theater keeps the concessions. This differs in that the release is "walked" through a series of theaters. A Service Deal or Rent A System is one in which a conventional distributor or one that is set up to specifically service indie films takes a fee and a much smaller cut of a film's box office while booking and tracking and managing the film, and also may be servicing the advertising portion. But, there are differences available according to the distribution entity, the pocketbook of the filmmaker, and so on. I pretty much look at this set of conditions or contracts as a Producer-Controlled Release, which describes the rights, the onus, and the outcome a little more clearly, while acknowledging the impetus. Thanks for writing. Jeffrey Hardy Hi, Jason,
People do seem to use the terms somewhat interchangeably, however, four-walling is a more distinct term, which usually means that a filmmaker hires a theater on a theater by theater basis, and keeps the ticket proceeds, or a negotiated portion of them while, typically, the theater keeps the concessions. This differs in that the release is “walked” through a series of theaters. A Service Deal or Rent A System is one in which a conventional distributor or one that is set up to specifically service indie films takes a fee and a much smaller cut of a film’s box office while booking and tracking and managing the film, and also may be servicing the advertising portion. But, there are differences available according to the distribution entity, the pocketbook of the filmmaker, and so on. I pretty much look at this set of conditions or contracts as a Producer-Controlled Release, which describes the rights, the onus, and the outcome a little more clearly, while acknowledging the impetus.
Thanks for writing.
Jeffrey Hardy

]]> Comment on Producer-Controlled Release by Jason Tompkins http://filmprofit.com/?p=775&cpage=1#comment-43 Jason Tompkins Wed, 14 Oct 2009 02:38:23 +0000 http://filmprofit.com/?p=775#comment-43 Thanks for the post, Jeff (and company?) One quick question: is there a technical difference between a "Four-Walling/Service Deal" and a "Rent-a-Distributor" or "Rent-a-System" deal? I've heard the terms used interchangeably in some instances, but I've also heard that collection process and revenue split is more intricate in a Rent-A-Distributor arrangement...? Btw, I enjoyed your recent taping of "Inside Urban Hollywood with Tanya Kersey," thanks for the insights. I hope you don't take the recent direct message I sent to your LinkedIn inbox as disrespectful... Greatly Appreciated, Jason Thanks for the post, Jeff (and company?)

One quick question: is there a technical difference between a “Four-Walling/Service Deal” and a “Rent-a-Distributor” or “Rent-a-System” deal? I’ve heard the terms used interchangeably in some instances, but I’ve also heard that collection process and revenue split is more intricate in a Rent-A-Distributor arrangement…?

Btw, I enjoyed your recent taping of “Inside Urban Hollywood with Tanya Kersey,” thanks for the insights. I hope you don’t take the recent direct message I sent to your LinkedIn inbox as disrespectful…

Greatly Appreciated,

Jason

]]> Comment on Producer-Controlled Release by Zach Elwood http://filmprofit.com/?p=775&cpage=1#comment-31 Zach Elwood Sun, 20 Sep 2009 16:59:10 +0000 http://filmprofit.com/?p=775#comment-31 Great post. Very insightful. Great post. Very insightful.

]]> Comment on Our Thinking Lately by Producer-Controlled Release « FilmDependent http://filmprofit.com/?page_id=16&cpage=1#comment-27 Producer-Controlled Release « FilmDependent Tue, 15 Sep 2009 19:09:43 +0000 http://filmprofit.com/wordpress/?page_id=16#comment-27 [...] New Post at FilmProfit’s “Our Thinking Lately“ [...] [...] New Post at FilmProfit’s “Our Thinking Lately“ [...]

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