Variety on Independent Film Distribution

Variety has an interesting article about how independent filmmakers are using direct digital distribution, Independent Films Going Online.

"We knew we didn't have the quality to stand up to a theatrical release," Nelson says. "But we got five offers from DVD distributors." Nelson, however, was shocked by the deal terms, which were typical: No advance without a star or a decent budget. No piece of the backend. The distributor hangs on to its rights for seven to 10 years. And when they sell the DVD on the Internet via Amazon or Netflix, the distrib takes 25% of the gross and subtracts all expenses, including replicating and supplying DVDs and marketing. (Netflix won't take any films without a distributor.)

Nelson was amazed, too, by the distributors' lack of accountability. "They send quarterly reports by country," she says, "But they don't tell you how many units they sold. They don't keep track by film. They don't have systems or bookkeeping capabilities. There's no such thing as making money. What you get upfront is what you are going to see."

via Cinematech.