The Old Paradigm: And Why We're DIY

10 years ago, how did a cash-strapped filmmaker draw attention to their independently financed film?

Stars?
In the old paradigm, independent filmmakers could make inexpensive films with name actors and hope for a sale to an established distributor. Back in those days, a star's image on the poster was enough of a marketing hook to guarantee at least a small advance from one of the companies that "acquired" finished films for distribution (e.g., a company like Miramax might pay the filmmaker an "advance" for the right to distribute an independently financed film with a big star).

Festival Success?
In the old paradigm, filmmakers could take their films to a festival where all the potential distributors would then see the film for the first time and bid to acquire it. If the film had commercial potential (for example, won an award voted on by the audience), a cagey filmmaker might spend long late hours negotiating for an advance from Miramax or Fine Line in a heated auction atmosphere.

In the old paradigm, stars or success at a festival (or both) could start a bidding war. The producer (or his representative) would play distributors off against each other aiming for an advance that was large enough to pay back the film's investors.

Of course, an auction was not a sure thing. It required several elements:
1) a star who had agreed to work in your film for very little money and/or
2) a film that played well in the festival setting and
3) more than one buyer willing to bite.

If those elements were in place, established distributors were prepared to bid up the "acquisition" price of a film, sometimes paying advances which paid back investors and even left the filmmaker with a little profit. Those days are gone.

Today, even if you're lucky enough to get the attention of two established distributors, the advances offered for a 20 year all-media deal rarely top $50,000. The companies with enough money and experience to market your film have learned that:
1) stars don't guarantee profitability and
2) festival success doesn't translate into box office and
3) getting into a bidding war can lead to overpaying for a film and
4) it's a buyer's market.

In a world where almost 10,000 films are submitted to Sundance each year, filmmakers know there are probably a dozen other films just like theirs looking for distribution. And the distributors have learned there is no need to pay more than $50,000 in advance for the rights to distribute a film.

When a distributor is offering to spend millions marketing your film, a filmmaker these days is inclined to jump at a distribution deal, even if it means telling the investors "I couldn't get your money back."

This state of affairs (where most filmmakers don't get distribution offers, and those that do are being asked to settle for far less than what their movie cost to make) has led to an explosion of DIY (do it yourself) distribution. Today, most independent filmmakers are realizing that the Internet (with low costs and enormous reach) is the marketing tool and distribution method that provides their best chance of recouping their investor's money. And, for now, the best way to use the Internet is to DIY.