Independent film funding and film distribution are reminiscent of what it would feel like to dance naked on stage (a lot of respect for the exotic dancers at Larry Flynt’s Hustler Club!). You show up to present your film project and you need to be able to dance to the music of a film investor. It is their setting and not yours as an independent filmmaker seeking film funding. They want you to make a salable movie that attracts movie distributors so the production can make money.
Most of the investors that I have met are not interested in investing a lot of money in independent art films because they are difficult to sell for film distributors and foreign film buyers are not usually interested in see them. Dialogues and scenes in certain art house movies don’t translate well to foreign buyers and viewers. Action, horror and skin does not need subtitles for people to follow the story is what the distributors have told me. Movies that speak of the head may not make sense to viewers who do not understand the subtle lines spoken in a foreign language.
Independent film financing continues to change as independent film distribution becomes more financially unstable. The place where it is affecting independent film producers the most is at the source: the financing of the films. Film investors at the moment are not enthusiastic about investing money in films that do not have profitable name actors. This is not like so-called indie movies that have A-list actors or are produced for millions of dollars. Those kinds of independent filmmaking passion projects that you can do once you’ve made it into the entertainment business at the studio level.
Independent film investors and movie distributors won’t expect you to have an A-list actor, but they do want producers to have actors (B-list or C-list or D-list) with some name or celebrity recognition. The first question investors and film distributors are asking is who the cast is. This is where most independent film producers come out of the water because they have an unknown cast of actors. Also, many independent films are being made because technology has made it more affordable to make films.
The silver lining is that entertaining indie films are being made that might never have seen the light of day before. The downside is that significant movie distribution (getting paid) for independently produced films continues to decline as independent films increase (supply and demand 101). I spoke to a movie distributor who is dedicated to releasing independent movies and they told me they get new movie submissions every day.
They were honest in saying that they get very salable films and others that are less attractive, but with so many films on the market, they no longer offer most producers cash advances against film royalties or pay a cash “purchase”. to ensure distribution rights. His business point of view is that most independent filmmakers are happy to see their movie released. The term they used was “glorified showreel” for an independent filmmaker to show that he can make a feature film. So they buy many of their movie releases without paying a down payment or offering a “buy-in” agreement.
Not making a profit on a movie doesn’t make financial sense for movie investors hoping to make money. When people put money into producing a movie, they want a return on their investment. Otherwise, it will no longer be a movie investment. It becomes a movie donation of money that they are giving away without expectations. I have been to the “dog and pony show” circuit meeting with potential film investors and have learned invaluable lessons.
Now I’m in the habit of talking to independent film distributors before writing a script to see what types of movies are selling and what actors or celebrity names attached to a potential project appeal to them. This isn’t like chasing trends, but it does give producers a sharper picture of the independent film sales climate. Sometimes distributors give me a short list of actors or celebrities to consider fits into an independent film budget. Movie sales outside of the US are where most of the money is made for independent filmmakers.
Movie distributors and movie sales agents can tell you which actors and celebrity talents translate to freelance overseas movie sales. These won’t be A-list names, but having someone by some sort of name is a great selling point to help your movie stand out from the crowd. Short cameos from well-known actors or celebrities used to be a good way to lower the cost of talent and add a profitable name to your cast.
That has changed lately from my conversations with the distribution companies. Movie distributors now expect any associated talent to have a meaningful role in the movie rather than a few minutes in a cameo. Cameo scenes can still work if there’s a visual hook that grabs viewers’ attention in some way. But having a renowned talent says that a couple of lines without a special hook will no longer fly.
Another way to make an independent film in need of funding more attractive to investors is to incorporate talent that has appeared in a featured movie or television show. Your name as an actor may not be as well known yet, but rising stars who have appeared in a popular movie or television show can give your film a broader appeal. If you’re hiring them in a supporting role, keep workdays on set to a minimum to save your budget. Try to write your scenes so they can be shot in a day or two.
When targeting serious film investors, they will want to be provided with a detailed budget for the film and a distribution plan on how you plan to make money from the release of the film. The catch-22 that often happens is that most movie distributors that deal with releasing indie movies don’t commit to any deal until they’ve screened the movie.
There is no built-in distribution like with studio budget movies. Film investors who are not traditionally part of the entertainment business can become discouraged when a producer does not already have a distribution agreement. They don’t understand the Catch-22 of independent film and distribution. This is where a movie producer really needs to have a solid pitch explaining the financial dynamics of independent movie distribution.
Most film investors will overlook a financing argument from an independent film producer that mentions self-distribution. From a film investor’s business perspective, an independent film takes too long to make money by going the self-distribution route. It’s like the old-school way of selling your movie from the trunk of your car in some places, but now it’s done online using digital distribution and direct selling through a blog. That’s a long routine that most investors won’t be interested in waiting for. Moving one unit of a movie at a time is too slow for investors.
One possible way to avoid Catch-22 is to communicate with film distributors while targeting film investors. With a firm budget number and a possible cast attached, you can assess whether there is any significant distribution interest in the film. It is always possible that a dealer will tell you that they would offer an advance or a “buy-in” agreement. They usually won’t give you an exact number, but even a ballpark figure of what they might offer can let you know if your budget makes financial sense for approaching movie investors.
I know a smart independent film producer who makes 4-6 movies a year on very reasonable budgets and knows that he is already making a profit on just the money upfront. Movie royalty payments are a bonus. The producer maintains extremely affordable and optimized budgets at every stage of production. Once you have a history with a distribution company, you will know what you can expect to get paid. Then you can offer film investors a percentage of their money invested in the production that makes sense.
Social media with other independent filmmakers allows you to hear what’s happening with movie distribution from other people’s real-life experiences. Something interesting that I have heard about is that there are film investors who will not put money to make a film that will distribute itself, but will roll the dice in a function that will go to specific film festivals. . Not the art house film festivals. The ones that are very genre specific, like horror or action movies. Like the Screamfest Horror Film Festival or Action on Film (AOF). Movie buyers attend these events and major distribution deals are made.
Independent film financing and distribution are areas of the entertainment business that all filmmakers will have to deal with and learn from every experience. Today I was in a bind pitching to a movie investor. I’ve simplified the budget as much as I could without losing the plot.
The problem that I find myself in as a producer is that there are hard costs that cannot be avoided, which include a lot of gun sets, including two rig shots where the bad guys get shot and fly backwards. Rough action movies need seasoned and experienced film crews to make clean and safe hardcore action shots. The cast I want to hire has the perfect appeal and name recognition for this indie action movie for rock viewers. There is nothing to be missed in translating this movie for foreign movie buyers and viewers.
What I think got lost in translation with today’s potential film investor is that if I keep pulling gear from below the line to save money, I will have to rewrite the script to remove the action scenes. These are selling points that will hurt sales if written. But my job as an independent filmmaker is to balance a budget that appeals to film investors. We’ll see how this goes. This is indie filmmaker Sid Kali writing Fade.