Unfortunately Jim is right…especially in today’s market which is tougher than ever. Here are a few more things which may help protect your film property:
PITFALLS OF FILM MARKETING & DISTRIBUTION
Which Type Of Company Is Representing Your Project?
PRODUCER’S REP: Typically this person serves as a middle-man between the producer and distributors/broadcasters and receives a small commission (in the range of 10%) for making the introduction. Generally a Producer’s Rep does not get involved in contract negotiations and servicing a deal. There is a big difference between a producer’s rep and a full service distribution company.
FULL-SERVICE DISTRIBUTION COMPANY: Typically a distribution company spends money to market and advertize a program, attends and exhibits at film/television markets, provides and negotiates license agreements, provides all required materials to service a deal including but not limited to clone master tape, dialogue script, music cues, slides/promotional materials etc. and last but not least is responsible for invoicing and collections. Typically distributors work on a commission basis ranging from 25% to 50% for worldwide rights. It should be noted that the commission on features with notable names attached, thus having a US theatrical potential, are sometimes negotiated at lower rates that fall into the range of 15%-20% for “all rights” US deals.
Film Deliverable Essentials
MATERIAL DELIVERABLES: In order for your distributor to properly promote market and license your film, you will have to provide at a minimum, certain deliverables. Make sure that you budget for these types of costs in your production. It is recommended that you never turn over the only copy of any of materials to a distributor or lab. Always keep a protection master set of your film material, i.e. NTSC Digi Beta, DAT Audio tapes, dialogue script, artwork, still slides and photos etc.
SEPARATE M & E TRACKS: If you are producing any project with the intent of making a commercial licensing deal, domestic and/or international, don’t even think about doing it unless separate Music and Effects tracks are provided. Sometimes, even domestic broadcasters will need to edit a program due to time constraints and this cannot be done without separate M & E tracks.
RUNNING TIMES: For one-off’s (non-feature) or series programs, the accepted worldwide standard for a commercial one hour program is 52-55 minutes (with no commercial blacks). The accepted worldwide standard for a commercial half-hour program is 26-27 minutes (with no commercial blacks). Broadcasters will edit for both commercials and running times.
MUSIC CLEARANCES: Some producers may incorporate well-known music in their programs, having cleared the rights for festival use only. These being the case, make sure that you know the cost of clearing such music for both broadcast and video worldwide before you use it. If the clearance fees are prohibitive, you may be forced to replace your music score, expending unnecessary money for re-edits and costing you valuable time in getting your project back into the marketplace. Music Cue sheets are a required deliverable so that the broadcaster can report to ASCAP or BMI, the music title, running time, publisher Etc.
STILL PHOTOGRAPHY: If you can’t promote it, you’ll never get anybody to watch it! Still Imagery needs to capture the intent and the emotion of the story. High quality images are needed to create color one sheets (or “sell sheets”) used in promoting your property, as well as for creating DVD artwork. Slides or CD-roms are the preferable deliverable media for this type of material. Note: The footage that use to end up on the cutting room floor such as bloopers/outtakes etc. now become important bonus material for a DVD release.
Misnomers
IMPORTANCE OF FESTIVALS: Generally it is the producers’ responsibility to enter their films into festivals. Festivals provide an important venue for film-makers to get their projects viewed and reviewed by the public and critics. While winning or receiving festival awards can help the distributor in the marketing of a film, they alone will not ensure theatrical, broadcast or HV/DVD licensing success. Because, there are hundreds of film festivals taking place worldwide, you should research and use discretion as to which festivals may be best for promoting and garnering awards for your particular genre of film.
IMPORTANCE OF NAMES: The entertainment market worldwide is subject to constant change and remains highly competitive. In order to help ensure the commercial success of your project, getting actors with named recognition has become an ever more important marketing tool. Often up and coming TV actors who have not had a great deal of film exposure can provide this needed resource without breaking the bank. The difficulty is getting to an actor, as many times his agent will be looking after their own interest first (money and status). Also look at secondary cameo roles as possibly being filled by experienced and well known actors, or older actors that may not be working full time. In either case, typically their shooting schedules would be shorter and their availability greater.
CASH ADVANCES: Some producers think that if they get an advance, a distributor may work more diligently to license their film. Be aware that no one can guarantee that a buyer will license a particular film. In some cases, if you are getting an advance it may be the last money you see- and you need to make sure that you have a tight agreement and can retrieve your materials.
WHAT’S HOT& WHAT’S NOT: Films of the horror, action, and thriller genre, as well as “family” films with notable names and good production values, have greater longevity in the market. Dramas and comedies are typically a more difficult sell, in both the domestic and international markets.
Distribution/License Agreement Essentials
NET vs GROSS: Do not enter into any licensing deals where royalties owed to you are based upon “Net Revenues”, unless the expenses are fully defined and have appropriate “caps”. Further, make sure that expenses cannot be cross-collateralized with other rights or titles.
SUB-LICENSE CLAUSE: Ensure that you or your distributor does not enter into any agreements that authorize sub-licensing of your property to a third party without receiving a complete copy of the sub-license agreement and your written approval of the deal.
BREACH CLAUSE: Any agreement that you or your distributor enters into should include the following clause: “Failure to pay or rectify other breaches within thirty (30) days of written notice results in immediate termination of this agreement, and all rights shall revert back to the producer. However, this does not relieve the distributor of its obligations to rectify the breach and pay any monies outstanding.”
BANKRUPTCY: Make sure all agreements have language such as “In the event that DISTRIBUTOR/AGENT is adjudicated, a bankrupt or a receiver or a trustee shall be appointed for all or substantially all of DISTRIBUTOR/AGENT's property, or if the DISTRIBUTOR/AGENT shall seek to take advantage of any so-called insolvency law, all rights hereby granted to DISTRIBUTOR/AGENT shall immediately and automatically revert to PRODUCER and this Agreement shall be terminated.”
MEDIATION/ARBITRATION: Make sure that any distribution agreement you enter into has a mediation/arbitration clause. For the entertainment industry worldwide, Arbitration is usually covered under the rules and regulations of the Independent Film & Television Alliance (formerly the American Film Marketing Association (AFMA). For more information contact AFMA at (310) 446-1055. Also, make sure that the clause stipulates the location (state/city) of where the proceedings are to take place. Typically you want the location to be where the company you are entering in business with has its headquarters and bank assets.
Protecting Your Materials
COPYRIGHT: Make sure that your film is copyright protected through application with the Library of Congress. Otherwise, another company or individual can lay claim to the property or get it designated as “public domain”. Note, buyers are very sensitive to the year-of-production, so always make your application using the latest date possible. Application forms from the Library of Congress are available by going on-line.
LAB ACCESS LETTER: At some point you will turn your masters materials over to a distributor, who will in turn place your elements at a film lab. You will need to create a paper trail inventory
(which should have an acceptance signature and date of receipt on it) of any and all materials that you deliver to a distributor or lab. You will need to provide the lab with an “Access Letter” that has specific language to protect your materials in the case of breach or bankruptcy in order to prevent miss-use or as a source of collateral for collection or debt.
P
prepared by: Zia Film Distribution LLC
www.ziafilm.com
Kind regards,
Douglas M. Heller
Executive Vice President
ZIA FILM DISTRIBUTION LLC
Now Celebrating 17 Years!
369 Montezuma Ave. #320
Santa Fe, NM 87501
T: (505) 438-9299
F: (505) 438-6137
www.ziafilm.com
From: NM Media Discussion List [mailto:MISP-L@unm.edu] On Behalf Of Jim Terr
Sent: Thursday, April 22, 2010 11:16 AM
To: MISP-L@LIST.UNM.EDU
Subject: Re: [MISP] info needed
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Cliff - Here’s the info I think you wanted.
Just kidding, but just a useful reminder I came across in a filmmaking book a few minutes ago.
From: NM Media Discussion List [mailto:MISP-L@unm.edu] On Behalf Of Cliff Gravel
Sent: Thursday, April 22, 2010 9:35 AM
To: MISP-L@LIST.UNM.EDU
Subject: [MISP] info needed
Hi all,
I accidentally deleted an email about a film accounting workshop. Need that info. Anybody got it? Please send it to me at cliff@cliffgravel.com. Thanks.
Cliff.
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