Filmmaker Mag on Netflix Independent Acquisitions

The summer 2006 print edition of Filmmaker Magazine (you can find it at Barnes & Noble) has an article about Netflix's acquisition of approximately 100 independent films, Netflix Becomes a Player in the Acquisitions Game.

Most of Netflix's deals are similar to the one offered to Room's filmmakers. Netflix offers a recoupable advance, plus a percentage on every rental as well as royalties off gross sales on other deals outside the rental - such as sublicenses to retail partners like Hart Sharp Video. "After fees and costs are taken off the wholesale revenue," says Besner, "a certain net amount is going to end up with Netflix that's going to be shared with the filmmakers."

Tidbit from the story: Netflix is looking for movies with a budget in the $250,000 range.

Comments

[gir]

Well, that's a darn sight better than the typical music artist gets. I've heard they get nothing - no advance, no percentage of sales - till the label completely recoups costs. And with the outrageously over-inflated costs, that can run into the hundreds of thousands. A small artist can never hope to see even one penny; their CD's sales would have to reach into the 10's of thousands.

Good on NetFlix.

[corey3rd]

most record labels do give advances to acts when they sign. But it is merely a loan to which everything they do is charged. The band pays for the videos and other promo items.The band doesn't get a certain percentage of sales because of "breakage" rates that were determined during the era of fragile 78s. Only a small number of bands ever see a true royalty check because they're always getting shafted by the record company - everything earned is going to pay for the advance. And the accounting at record labels is a black hole of red ink for acts.

This is a pretty good deal for filmmakers. I had a college classmate sell his movie to Criterion for $20K - and that included both VHS and DVD. Criterion made a nice chunk of change when BB put the $40 title in the stores. Sure it didn't move Spider-Man numbers, but it was quite healthy for Criterion. But the movie's backers didn't share in the fat payday.