Sundance Infographic 2016: Ample Distribution, Paltry Deals, and the Cost of Piracy

Originally published in Cultural Weekly on January 20, 2016.

For the myriad filmmakers descending on Park City this week we have good news and bad. The good news: If your film is in Sundance, it will get distribution. The bad news: Your financial return on distribution will probably be minimal and your film is likely to be pirated, further diminishing your income.

Those key findings come from our annual survey of the independent movie landscape, on view below in our Sundance Infographic. Each year, we crunch the numbers on the Sundance Film Festival and use it as a bellwether for indie filmmaking at large. When Sundance’s Transparency Project begins to share data (later this year, we hope), we will all have even more information for analysis.

CLICK HERE TO SEE ANIMATED SUNDANCE 2016 INFOGRAPHIC

Distribution Dynamics

The overall number of distribution deals at Sundance is staggering. Last year, 105 of the 125 films achieved distribution of one kind or another. That’s a twenty percent increase from the year before, and a stark contrast to 2010, when only twelve films got distributed. What changed? Massive penetration by streaming services like Netflix and iTunes and the increased appetite for cable players like CNN and Discovery to take on feature-length documentaries.

Filmmakers at the Slamdance Film Festival, which runs concurrently in Park City, will have the same experience – all will get some distribution opportunities and most will be financially minimal.

When I say minimal, I mean minimal. Based on my conversations with producers and sales agents, many offers from distribution companies have zero minimum guarantees and rely entirely on back-end participation. When a deal is made with a digital-only distribution company, filmmakers will be expected to show up with a marketing plan in hand and will be expected to help sell tickets or streams themselves.

Why are distribution deals so paltry? Two reasons. First, there is too much content in the marketplace. Last year, there were some 700 feature films released theatrically in the US, of which about 150 came from studios and their subsidiaries. Those studio films accounted for 92.1% of the total box office, leaving approximately 550 independent films to fight for less than eight percent of the box office. Then, there are hundreds or thousands of movies that get digital-only deals, via companies like Amazon or Gravitas. In addition, 2015’s audiences had the opportunity to watch 409 scripted television shows – not hours, but actual shows, each of which has four to 22 episodes. Meanwhile, the number of hours of content uploaded to YouTube each minute is approaching 500. This much content is enough to make one’s eyeballs explode, and yet, with all the tonnage, truly excellent work is still rare.

The second reason distribution deals are low is the continuing devaluation of creative content. Increasingly audiences want to pay little or nothing for content in a fixed form – movies, books, music – even as they will pay nearly $1,000 for a three-day pass to Coachella. This is a generational, cultural shift –  and that’s where piracy comes in.

Piracy Costs

We know that piracy is a big issue for studio films, and we wanted to learn how it affects independent movies. For this year’s Sundance analysis, we worked with Excipio – a company that collects forensic evidence against pirates and does analytics. Excipio analyzes data collected from BitTorrent networks and does not extrapolate or estimate.

The results should be troubling to all independent filmmakers. Excipio analyzed illegal downloads of fourteen films that screened at Sundance in 2014 and 2015. All had at least hundreds of thousands of pirate downloads; Whiplash was downloaded illegally more than 12 million times.

What does piracy cost? Some piracy proponents (yes, there actually are such people) say it costs nothing and that it even helps build awareness for films, but that argument is false on its face. There is already a surfeit of content and one more free movie does not make a ripple. Audiences must be targeted carefully with specific marketing campaigns to build awareness and want-to-see; pirated films subvert that process. Piracy directly affects the bottom line, because some percentage of people who download illegally would have paid for the film if there were no illegal no-cost alternative.

How can we estimate the cost? We decided to be conservative. We’re estimating that if the illegal option were not available, five percent of customers would have paid for downloads and that they would have paid only $3 per transaction, which is a low number for digital downloads. Using this formula, we found that the fourteen films we sampled lost between $57,000 and $1.83 million in revenue.

Jonathan Sehring, president of IFC Films and Sundance Selects, and a producer of Boyhood told me: “Obviously piracy hurts every film company and any owner of intellectual property, regardless of size and scope. It is painful to look at those numbers and try to rationalize why people do this, especially to indie films.” Boyhood has had 10,383,141 pirate downloads. By our estimates, that cost the film $1.56 million. Life and death money for an indie filmmaker.

$3 Billion Invested

Each year, we estimate the budget of all the films submitted to Sundance to get a ballpark on how much is being invested in independent movies. Based on my conversations with producers, distributors, financiers, and people familiar with the festival circuit, this year we are estimating an average budget of $1 million per dramatic feature and $400,000 per feature documentary. The aggregate total tops $3 billion.

Does investment in indie films pay off? Clearly not, in most cases. But it is difficult to calculate on a case-by-case basis. For example, our infographic shows the sales price and the US box office gross, but most often films are bought for many territories – not just for the US. With Netflix now available in 190 countries, they often buy the world. Further, digital revenues are not transparent and are closely guarded. Unlike theatrical box office figures, which are publicly available, the amount of total views and income from all aggregated digital sources is not possible to track. Even insiders who run streaming companies tell me there is no way to get a clear figure beyond what they see from their own services. That lack of transparency has to change for independent filmmakers to get a fair understanding of today’s distribution economics and be able to strike deals that are fair all around.

Given the state of things, film distribution is ripe for continuing disruption. Increasingly, independents are exploring alternatives and finding entrepreneurial ways to do it themselves. Filmmaker James Kaelan, whose virtual reality experience The Visitor is in Slamdance, and who produced Hard World for Small Things in Sundance’s New Frontier section, told me, “With the advent of crowdfunding, with the efflorescing of free range distribution platforms, you don’t need to wait to get picked anymore. You can make your film on your own terms, and exhibit it directly to your audience without signing away your most-cherished rights. That’s a monumental shift.”

That shift is a trend likely to be even more prominent when we survey the independent film landscape a year from now.

SEE ANIMATED AND INTERACTIVE SUNDANCE 2016 INFOGRAPHIC

Sundance Infographic 2016

Sundance Infographic 2016

Sundance Infographic 2016 | Produced by Cultural Weekly and Entertainment Media Partners | Sponsored by Macmillan Learning

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Infographic sponsored by Macmillan Learning. Produced by Entertainment Media Partners for Cultural Weekly. Tod Hardin, special features editor; Ahmad Zaeem, designer.

Top image: Sky Ladder: The Art of Cai Guo-Qiang directed by Kevin Macdonald in World Documentary section at Sundance Film Festival. Photo courtesy Sundance Institute.

Filmmakers: Get Ready for Film Festivals

On December 9, 2015, I did a seminar for the filmmakers whose movies have been accepted to Slamdance 2016. This seminar will be useful for all filmmakers getting ready for film festivals anywhere and hoping to take maximum advantage of the opportunity.

Adam Leipzig

Adam Leipzig talks with Slamdance filmmakers. Photo by Peter Baxter

Slamdance founder Peter Baxter joined us (you’ll hear his voice in the intro). We did the seminar in the CreativeFuture offices where I serve as COO.

In this 75-minute seminar, you will learn the answers to these questions:

  • Do I need marketing materials, and if so, what would they be?
  • Should I hire a publicist?
  • How do I pick the right sales agent?
  • How to pick a sales agent?
  • Should I stay for the whole festival?
  • What kind of deals are being make for independent films?
  • What can I do with my short film?
  • How do I answer the question I will be asked most often?
  • What about other film festivals?
  • How can the festival leverage my career?

Congratulations to all the filmmakers, and I hope you find this useful.

We did an audio recording of the seminar. Listen or download here:

Top photo: Adam Leipzig (l) and Slamdance founder Peter Baxter discuss indie film strategies in a film noir-ish parking lot. Photo by Deron Williams.

The Distribution Equation

Originally published in Cultural Weekly on April 22, 2015.

Congratulations! You just finished your movie, which puts you at the edge of the winner’s circle—lots of people start movies and are never able to bring them out of post-production to the light of day. You finished yours.

You made it micro-budget, for $400,000, and it’s awesome, or so your friends tell you. Your investors are happy, but also nervous: Will they get their money back?

Let’s say your friends are right, and your movie is awesome. You even manage to go further, and get your film into a festival, maybe Tribeca. Grateful festival audiences will see it, and distributors, too. Because that’s what you need, distribution.

Distribution is the fulcrum of the financial equation, because without distribution audiences cannot see your movie and investors have no hope of financial return. This is where most independent films fall down: they do not have a distribution plan before they start production. Hence they are vulnerable. Of all the feature-length films that are completed each year in the US, fewer than 10% actually get any form of distribution. Ninety percent or more repose uselessly on hard drives, gathering dust in someone’s garage.

You don’t want your film to be among the 90%. Your investors certainly don’t want that. How do you solve the problem?

In the first place, you need to make a good movie, and I mean really good—a film that works for its genre, delivers for its audience, is excellent in its execution and boasts a brilliant cast. Whether you cast known or unknown actors, they’ve got to be great.

Let’s go to the next step and assume your movie really is good, but you enter the festival with no distribution set. At this point, there are two possible outcomes: either a distributor will want your movie and offer you a deal, or not.

If it does happen, you may feel as though you have won the lottery. In one sense you have, in terms of an opportunity to be distributed by a legit company. But your investors likely will not be pleased. Unless your film sparks massive attention, which in turn attracts the interest of more than one distributor, hence fueling a bidding war, you will be offered pennies on the dollar.

As evidence of this, you can look at the films that played this January at the 2015 Sundance Film Festival. Even now, deals are still being discussed, and most of the films in the festival will be picked up for distribution. But very few will have had the chance to raise their sales price with a bidding war; most will sell for $100,000 or far less.

That is not a good financial outcome. However, if you did not pre-plan your distribution strategy, pre-plan it even before you started shooting, this is the situation you will be faced with.

Is there another possible outcome, a way to improve your side of the distribution equation?

There is. Today, wise filmmakers and their investors are planning and budgeting for a distribution strategy from the moment of their first fund-raise. For a low-budget movie, they raise an additional $300,000-$500,000 and keep it in the bank, so they can cause distribution to happen if the perfect distribution company does not make the right offer.

Let’s take a look at two scenarios to see how this might play out.

Scenario 1: Traditional Distribution

You made your movie and also have a $500,000 war chest for marketing and distribution. If distributors see your movie, love it, and offer you a fair price, you can take it.

At that moment, though, you have terrific bargaining leverage. You don’t need the distribution deal because you have the resources to do it yourself. Of course you want the deal, because a legit distribution company is in the distribution business and will do a far better job of distribution in most cases than you will—it is their métier, after all.

But now you have leverage. Either you can take that $500,000 marketing war-chest and give it back to your investors; your investors will be happy. Or you can strike a more aggressive deal with the distribution company, offering to co-finance the marketing spend. Some distribution companies won’t let you do that—they will want to keep full control over marketing and the opacity of its accounting. On the other hand, some will let you co-venture P&A, and they’ll admire your foresight. Depending on how much marketing money you actually have to co-invest with the distributor, you can potentially drive the standard distribution fee of 30% down to about 15%. That will make your investors delighted.

Let’s run some numbers.

When distribution companies offer to buy your movie, what they are really doing is giving you cash as an advance against potential future earnings. Let’s say you get an offer of $1 million for your $1 million movie. Of course you will take it, because now your investors will come close to breaking even. You’ll also be offered 50% of the proceeds after distribution fees and expenses are recouped by the distribution company; the company will keep the other 50%. Will you ever see more money than your initial advance? Not likely.

The amount that cinemas keep, versus the amount that goes back to the distribution company, is called the “settlement rate.” The settlement rate averages 42%, which means that the cinema keeps 58% of every ticket sold, and the distributor gets 42%. But that is the average across all movies, including studio movies. In the indie world, the settlement rate is far less, sometimes dropping as low at 20% for documentaries.

Let’s say your settlement rate is 40%. After the distributor gets its share (40% of the tickets sold), the distributor will charge its fee (typically 30%) and then subtract the cost of advertising, marketing and publicity, a number that can be surprisingly high, even in the independent landscape. If the box office is good, the distributor will keep spending marketing money to chase a higher box office return, and the net result will be that theatrical run will lose money.

Enter home entertainment sales, the big basket that includes cable, VOD, SVOD, Amazon, iTunes and the like. The average settlement rate here is higher—70% will go back to the distributor, then the distributor will still charge its 30% fee off the top, plus subtract additional expenses.

As you’re about to discover, it is good to be in the distribution business, and not so good to be in the movie making or movie financing business. Here’s the math:

Let’s assume your movie will make $1 million at the theatrical box office, and an additional $1 million in home entertainment. 215 movies made at least this much money in 2014.

If you are working with a traditional distributor, the $1 million box office revenue will bring back $400,000 to the distributor, because of the 40% settlement rate. The distributor will take its 30% distribution fee, leaving $280,000. Marketing expenses will probably have been $750,000, so that means the film is at a net loss of $470,000.

Home entertainment could begin after, during, or before the theatrical run. Assuming an additional $1 million in home entertainment revenue, and a 70% settlement rate, $700,000 will come back to the distributor. The distributor will take its 30% fee, leaving $490,000. The distributor probably spent an additional $100,000 in home entertainment marketing, so the film is now at a net loss of $80,000.

You and your investors will not get anything more than the initial advance, whatever that was. Note that although the film is showing a loss, the distributor will still have made $330,000 in its distribution fees.

If you had access to your marketing investment war-chest, you could have co-ventured the P&A spend with your distributor, with each of you paying for half of the total $850,000 marketing spend (or $425,000 apiece). Now, in addition to getting that money back, you could have been able to shave the distribution fee to 15%, which means your investors would have been able to get back an additional $165,000.

Will your investors make a profit? It all depends on the advance you got from the distributor in the first place. If the advance was only $100,000, and your movie cost $400,000, your investors will be in a losing position.

Scenario 2: Free Range Distribution

However, let’s say you choose to be responsible for distribution yourself. Now you will work harder, because you will have executive responsibility for keeping everything on track, even though you will hire top-caliber people to handle distribution for you. But you will spend less. The settlement rate will be the same, but the distribution fee will be less (distribution professionals work for a percentage) and you will keep far more money.

You would play out this scenario if you don’t get a distribution offer or you don’t get one that’s financially exciting. Now you can take your marketing war-chest of $500,000 and guarantee distribution by hiring one of the stronger companies that can book theatres, handle marketing and publicity, and make VOD, SVOD and cable deals. In this case, because you are the “client,” you will have full transparency into costs and spends, and distribution expenses will be far lower.

This financial scenario can be even better. Given the same financials, your P&A cost will be less— likely $500,000 all-in, for home entertainment and theatrical marketing, and also including the for-hire distribution professional’s upfront fee.

Why will your marketing expense be less? Because free range distributors do things more grassroots, and have cleverer ways of using their resources.

The total revenue will be the same, $1.1 million ($400,000 from theatrical and $700,000 from home entertainment). Assuming you now pay the professionals you hired 10% of the generated revenue, you will spend $110,000 in additional distribution fees, leaving you with $990,000. Now let’s subtract the marketing expenses of $500,000: you’ll end up with $490,000.

As you can see, that is a far better financial outcome. Your movie would be in profits.

I must end with a bunch of disclaimers. There is no regular ratio anymore for theatrical-to-home entertainment revenue in the indie sector, so any film’s specific performance will vary widely. I’ve simplified a complex process for this article, and there are other factors to take into account, such as international revenue, but it is probably safe not to include it, as American independent films don’t traditionally make that much money overseas. Finally, of the 693 films released last year, only 215 of them made more than $1 million at the theatrical box office, so the movie business is as risky as ever and financial success is no sure thing. Which means, again, your movie needs to be exceptional, with a clearly-defined and big enough audience before you start making it.

All the more reason, therefore, to build distribution costs into your business model from the beginning. Without them, you and your investors stand even less of a chance of being in the winner’s circle.

My thanks to Glen Reynolds and Sebastian Twardosz at Circus Road Films for their expertise and checking my numbers and formulas.

Top image from the self-distributed film ‘Particle Fever.’

Free Range Distribution It’s Viable for Sundance and Slamdance Films

Originally published in Cultural Weekly on January 21, 2015

Inside Track for Independent Filmmakers, my new book that gives step-by-step instructions for filmmakers to get their movies made and seen, shares important tips on the newest distribution frontier. Call it Free Range Distribution, which captures the energy and Wild West experience you’ll find here. (It’s a term I learned from my friends at Seed & Spark, an organization that supports and facilitates independent filmmaking.)

If you’re a filmmaker with a film at Sundance or Slamdance, or if you want to be, you may find that Free Range Distribution is a viable option for getting your work in front of your audience. If you’re in the audience, and you want to see films that aren’t “big” enough for traditional distribution, you may find that Free Range Distribution is the best hope you’ll have of encountering movies that fit your taste.

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What is Free Range Distribution?

Free Range Distribution platforms are websites that make it possible for filmmakers to sell or rent their movies. In a digital setting, a “sale” can be defined as a download that the customer can keep forever, and a “rental” is a streaming or viewing opportunity that expires within a certain period of time, usually 24 to 72 hours. Sale prices are typically higher than rental prices.

These distribution platforms go well beyond the monetization strategies of more basic sites like YouTube, where interaction is limited to advertising or requesting a donation. Instead, these platforms allow you to have a direct, transactional relationship with individual audience members.

Some Free Range Distribution sites are open to everyone, such as Vimeo, which allows you to upload and sell your movie as long as you subscribe to its Pro service. Other ones are more selective and require a submissions and acceptance process. I prefer these selective platforms because there are fewer movies on them, and their curation procedure establishes a certain level of quality. At the same time, they charge more for their services, through either a setup fee or a share of revenue.

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If you’re a filmmaker interested in exploring the Free Range Distribution option, you need to do your homework. There are many Free Range Distribution platforms available (some are listed in the Essential Resources section of my book), and because this is an emerging and fluid marketplace, their terms and offerings change frequently. Look for a platform that has been successful for films similar to yours and that has the features most important to you.

If you select a platform that has a submissions procedure, study it carefully and make sure you have all your materials in order. Often, staff members are available by email or phone to help guide you through the process, and to answer questions as you determine if this is the right platform for you.

It’s a good idea to be in touch with your potential Free Range distributors early on in your filmmaking journey, even before your movie is finished. You’ll learn what is possible and what is not, and it will be just one more step in planning your release strategy well before you premiere your film—which is exactly what the big studios do.

A frame from the Indiegogo campaign for 'Across the Sea,' a first feature directed by Esra Saydam and Nisan Dag. screening at Slamdance 2015

A frame from the Indiegogo campaign for ‘Across the Sea,’ a first feature directed by Esra Saydam and Nisan Dag. screening at Slamdance 2015

However, no matter which Free Range Distribution platform you choose, be prepared: you must be your own marketing department. For any creative entrepreneur, in any field, this job requirement is the most important and the most uncomfortable.

Let’s look at discomfort and importance.

For creative people, those of us who work primarily alone in coffee shops or studios, it is truly difficult to step into the public sphere and trumpet their own stuff. This is true for filmmakers as well, even though there’s a lot of social activity involved in on-set camaraderie. When your movie’s done, you’ll probably feel the film will speak for itself.

Newsflash: it won’t. It’s your job to speak up for it. You must demonstrate to the world how important your film is, and you do this by talking about it, in every medium, at every chance you get.

If you choose Free Range Distribution, marketing is 100% a requirement, and you must build out and execute your own marketing plan. Movie tickets—or downloads—are not going to sell themselves. You must bring the audience to your film, hold their hands, entice and encourage them, and, finally, get their money.

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How do you prepare yourself? Fortunately, marketing is not magic; it simply requires that you plan for it, and that you have a clear understanding of your film. You need to:

  • Know what your film is about.
  • Know who your audience is with great specificity. Your film is not “for everybody.” By definition, each independent movie has a clear-cut, distinct niche audience, not a general demographic.
  • Know the size and duration of your social media following (and the social media following of your actors and creative team). You need to build it up over the year you are making your movie, so they are waiting for you on the day you release.
  • If you did a crowdfunding campaign, which is a good idea as an audience-engagement tool, maintain a strong relationship with the contributors (and the people who peeked but did not contribute), so you are ready to turn them into your core advocates.

If you and your team take these steps, you’ll be well on your way.

In case you didn’t notice, you have just become the Chief Marketing Officer of your very own film company! That, along with persistence, talent, passion and big ideas, is one of the essential attributes of successful independent filmmakers today.

Buy Inside Track for Independent Filmmakers here.

This article is adapted from Inside Track for Independent Filmmakers by Adam Leipzig. Copyright © 2015 by Bedford/St. Martin’s. Used with permission of the publisher.

Top image: ‘Western’ / U.S.A., Mexico (Directors: Bill Ross, Turner Ross), screens in the Sundance 2015 U.S. Documentary Competition. Photo courtesy Sundance Institute.

Sundance 2015 Infographic: Dollars and Distribution

$4.6 Billion Invested in Indies; Nearly All Festival Films Get Distribution

Congratulations Sundance filmmakers! You have a 4 in 5 chance of getting a distribution deal.

That’s one key finding from our data-crunching preparation for the 2015 Sundance Film Festival. As recently as 2010, getting distribution at Sundance was rare. In that year, as in years prior, only about 10 percent of the movies got deals. But then came the Great Digital Shift, with the explosion of Netflix, Hulu, Amazon Prime, iTunes and other opportunities for video on demand. We may now predict that more than 100 of the 124 feature films at Sundance this year will get some form of distribution opportunity.

Our key economic finding is equally staggering. We estimate that the amount of financial investment in all the feature-length films submitted to Sundance is $4.65 billion. To put that in perspective, the motion picture studios and Netflix each spend about $3 billion annually producing and acquiring content. The total investment in independent filmmaking significantly tops that number; once again we may call Indies the Eighth Studio.

SEE ANIMATED AND INTERACTIVE SUNDANCE 2015 INFOGRAPHIC (please allow a moment for it to load)

'Advantageous,' directed by Jennifer Phang, screens in the US Dramatic Competition. Photo courtesy Sundance Institute.

‘Advantageous,’ directed by Jennifer Phang, screens in the US Dramatic Competition. Photo courtesy Sundance Institute.

However, unlike the movie studios, which have the MPAA as a trade association, there is no such thing for independent film. No official organization compiles data on independent filmmaking. To address this need, last year we published our first Sundance infographic, and we continue our work with better data this year. Because Sundance is the premiere independent film festival in the world, we use information from Sundance as a proxy for quantifying indie movies overall.

Follow the Money

With the help of the Sundance Institute, we are now able to break out the number of dramatic (or narrative) features submitted each year, and the number of documentary features submitted each year. For the 2015 festival, there were 2,309 dramatic features submitted, and 1,796 documentary features submitted.

Then we went a step further and canvassed our colleagues in an effort to estimate the average budgets of these indie dramatic and documentary features. I spoke with independent producers (both domestic and international), sales agents, distributors, and the heads of the independent divisions of some of the largest talent agencies. I asked each of them to estimate the average dramatic and documentary feature budget, and I averaged their responses. The collective results? Estimated average budget for indie dramatic features: $1.7 million. Estimated average budget for documentary features: $400,000.

This means that the total estimated financial investment in features submitted to Sundance tops $4.65 billion — $3.93 billion invested in dramatic features, and $718 million in documentaries. Of course, all of those movies didn’t get in. For those accepted to screen at the festival, we estimate that $134.3 million was invested in dramatic features, and $18 million was invested in documentaries.

SEE LAST YEAR’S SUNDANCE INFOGRAPHIC AND ANALYSIS.

Distribution Dynamics

'How to Dance in Ohio,' directed by Alexandra Shiva, screens in the US Documentary Competition. Photo courtesy Sundance Institute.

‘How to Dance in Ohio,’ directed by Alexandra Shiva, screens in the US Documentary Competition. Photo courtesy Sundance Institute.

The vast majority of the films Sundance selected this year will get a distribution deal. Last year, 95 films got distribution, a number that has been rising steadily since 2011, which is why I can predict more than 100 will get distribution deals in 2015.

While Sundance Festival programmers make their selections based on their own artistic criteria and judgments, theoretically blind to the movie acquisition marketplace, inclusion in the festival is an initial stamp of approval for acquisitions executives. Financially, however, what does that really mean? In most cases, indie film financiers won’t get their money back. Only a handful of movies will get deals topping $1 million; last year’s highest sales price was a relatively modest $3.5 million. Getting distribution is easier today because of the digital explosion, but along with that has come a price implosion.

'Mistress America,' directed by Noah Baumbach, screens in the Premieres section. It was purchased pre-emptively by Fox Searchlight last week. Photo courtesy Sundance Institute.

‘Mistress America,’ directed by Noah Baumbach, screens in the Premieres section. It was purchased preemptively by Fox Searchlight last week. Photo courtesy Sundance Institute.

Yes, there were 95 Sundance movies that got distribution last year, but that was spread out across more than 50 distribution companies. Some you have heard of — IFC, Magnolia, Drafthouse, A24, Netflix, Lionsgate, Music Box, Roadside Attractions, The Weinstein Company, Sony Pictures Classics, Fox Searchlight, Focus — and these companies will be active again this year. But many of the companies that distributed last year’s Sundance films barely appear on the radar, and most only distribute a few films a year in microscopically modest ways. As it was last year, most of the distribution deals in 2015 will be digital-only, and most will be for extremely low numbers: $25,000, $10,000, and in some cases zero — literally zero dollars, with the promise of financial participation based on sales.

Despite the robust number of films made, and dollars invested in them, being an indie filmmaker clearly is not a career choice. Very few people pay the rent this way, and even filmmakers whose movies are well-received often have to wait years before being able to get their next movie made. For the indie film investor, it is a precipitously risky business proposition, given the small chance of recouping an investment unless you can control marketing and distribution yourself, in effect behaving like a mini-studio.

It Takes a City

Using a figure of 100 film crew working on an average indie production — from writers, to actors, to costumers, to post-production — we calculated that more than 410,000 people worked on all of the films submitted to Sundance this year, a number that rivals the population of Atlanta. At least 45,000 people will attend the festival this year, six times the population of Park City, and, if last year is a guide, the festival will bring more than $86 million in economic impact to the state of Utah.

SEE ANIMATED AND INTERACTIVE SUNDANCE 2015 INFOGRAPHIC (please allow a moment for it to load)

Sundance 2015 Infographic Produced by Entertainment Media Partners for Cultural Weekly. Sponsored by 'Inside Track for Independent Filmmakers,' available now.

Sundance 2015 Infographic Produced by Entertainment Media Partners for Cultural Weekly.
Sponsored by ‘Inside Track for Independent Filmmakers,’ available now.

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Infographic produced by Entertainment Media Partners for Cultural Weekly. Tod Hardin, special features editor; Ahmad Zaeem, designer.