December 2023
THE DISTRIBUTION BULLETIN ISSUE #50
14/Dec/2023
HOW TO AVOID DISASTER - Part 1
By Peter Broderick
The writing is on the wall. Countless independent films will continue to be abandoned by failing distributors.
There are key things you should do to protect your film and yourself.
Recent Disasters
The body count has been high in the past few years.
Hundreds of filmmakers were devastated by the collapse of Passion River Films in 2022:
https://www.thefilmcollaborative.org/blog/2023/10/the-implosion-of-distributor-passion-river-and-what-it-means-for-you/
https://distributionadvocates.substack.com/p/passion-river-leaves-filmmakers-up
Hundreds were seriously harmed by the failure of TUGG in 2020.
Hundreds were badly damaged by the bankruptcy of Distribber in 2019.
These were multi-dimensional disasters for the filmmakers:
Due Diligence
How can you minimize the chance of this happening to you?
Your essential first step is “due diligence." In the case of a distribution deal, this means thoroughly researching the potential distributor. Many filmmakers fail to do this and soon regret it.
Due diligence should be done before you enter into negotiations. If you learn that the company is not one you want to be in business with, you will not need to waste time, energy, and money negotiating a deal with them.
Key Questions
These are the essential questions to ask:
If one source loves the distributor and another source loathes them, you should speak with more sources. Often where there's smoke, there's fire. Don't rely on filmmakers who have just started working with a company; they are likely to still be in the honeymoon period.
Information Is Power
After you have spoken with four or five filmmakers, you will be able to avoid bad distributors who have not reported and paid properly or failed filmmakers in other critical ways.
Due diligence will enable you to choose good distributors with great track records. The information you have gained on these companies will make it easier to negotiate fair deals with them that are genuinely win-win.
The bottom line is that due diligence is a vitally important tool that every filmmaker should use while searching for the best distribution partner or partners. It can make the difference between great distribution with an excellent partner and disastrous distribution with a failed distributor who keeps your revenues, becomes unreachable, and ultimately abandons your film.
By Peter Broderick
The writing is on the wall. Countless independent films will continue to be abandoned by failing distributors.
There are key things you should do to protect your film and yourself.
Recent Disasters
The body count has been high in the past few years.
Hundreds of filmmakers were devastated by the collapse of Passion River Films in 2022:
https://www.thefilmcollaborative.org/blog/2023/10/the-implosion-of-distributor-passion-river-and-what-it-means-for-you/
https://distributionadvocates.substack.com/p/passion-river-leaves-filmmakers-up
Hundreds were seriously harmed by the failure of TUGG in 2020.
Hundreds were badly damaged by the bankruptcy of Distribber in 2019.
These were multi-dimensional disasters for the filmmakers:
- they lost much needed revenues
- they lost some or all of the deals their distributor had made for their films
- they no longer had a distributor
- they are now back at square one with a film other distributors considered old
Due Diligence
How can you minimize the chance of this happening to you?
Your essential first step is “due diligence." In the case of a distribution deal, this means thoroughly researching the potential distributor. Many filmmakers fail to do this and soon regret it.
Due diligence should be done before you enter into negotiations. If you learn that the company is not one you want to be in business with, you will not need to waste time, energy, and money negotiating a deal with them.
- Begin by reviewing the potential distributor’s website. Do they have a solid track record distributing films like yours? If your film is a social issue documentary and the company has mainly distributed genre features and only a few celebrity docs, they are probably not the right fit.
- If they do have significant experience handling films like yours, look for the ones closest to your film in content and core audiences. Films the company has been distributing for 12-18 months will give you the most relevant information. NOTE: Don't ask the distributor for references because they will never recommend filmmakers who are unhappy with them.
- Reach out to the producers or directors of four or five of the films you've targeted. It will take some time and effort to connect with them, but most filmmakers will be willing to have an off-the-record conversation.
Key Questions
These are the essential questions to ask:
- Did the distributor do what they said they would do?
- Have they reported and paid on time?
- Do the numbers seem accurate?
- Has it ever been necessary to chase them for reports or revenues?
- Have the revenues been consistent with the company's projections? (NOTE: Some filmmakers will be willing to share revenue numbers or at least say what range the revenues have been in (e.g. 5 or 6 figures), but this is not essential.)
- Has the company been diligent in marketing your film?
- Are they easy to reach and responsive?
- Are they collaborative?
If one source loves the distributor and another source loathes them, you should speak with more sources. Often where there's smoke, there's fire. Don't rely on filmmakers who have just started working with a company; they are likely to still be in the honeymoon period.
Information Is Power
After you have spoken with four or five filmmakers, you will be able to avoid bad distributors who have not reported and paid properly or failed filmmakers in other critical ways.
Due diligence will enable you to choose good distributors with great track records. The information you have gained on these companies will make it easier to negotiate fair deals with them that are genuinely win-win.
The bottom line is that due diligence is a vitally important tool that every filmmaker should use while searching for the best distribution partner or partners. It can make the difference between great distribution with an excellent partner and disastrous distribution with a failed distributor who keeps your revenues, becomes unreachable, and ultimately abandons your film.
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Stay tuned for my upcoming Bulletin on the other steps you need to take to avoid disaster. Due diligence is an essential way to identify good distributors, but you also need protection from good distributors that encounter financial setbacks and fail.
- Peter Broderick
© 2023 Peter Broderick