This easy money model that was based on investments rather than revenue started the profitability model off on the wrong foot for online businesses. To this day, I regularly hear people say that 'it'll work itself out' in reference to making money online in the film business. Online commerce will not work itself out. People will work it out and people will make it a profitable venture - not the system itself but rather the people behind the system and those creating what happens within it.
If it doesn't seem right or you don't understand it then maybe there is a reason for it and maybe you should think twice about what you are hearing. It is easy for someone who got several million dollars for a start up to say 'don't worry about the money'. Why? Because they don't need to worry about the money. They already have it. But what does that have to do with you? Nothing! You still need to worry about the money. So, if they are saying to give your film away for free maybe they are talking about their own best interest (needing product for their site) not your best interest.
Another thing to consider is that a lot of the time people act out of desperation, not sensible business strategies. If someone doesn't need money but has an idea for a site they might be willing to give everything on the site away for free. If you have a product they want they might try to convince you that you should give away your product (your film!). The reasoning might be that they aren't making money on it either but 'the money will work itself out later' or perhaps 'the exposure the films gets is the most important thing'. Keep in mind, they may not need the money. They may have been given the money already. They may need the film to fill their site. They may not have any idea how they can bring profitability to the filmmaker or the site... but, they already have the money from the backers so they can survive just fine until the money aspect works itself out. But where does that leave the filmmaker?
How does that benefit the filmmaker? It doesn't. Instead, it begins to change the public mentality that 'spending money to rent or purchase films is okay' into a mentality that films should be given away for free. This is a very dangerous mentality to instill in an audience that has always been willing to pay to watch films.
Films should not be given away for free. There is no money in it. There is money in making films available at a cost. Don't be fooled by those who are being foolish with your film. If you are a filmmaker then you need to make money from it if you wish to live off it. This is not a complicated idea or equation. It is terribly simple - to make money there must be an avenue for income. People think it's complicated because they can't make sense of it but everyone is buying into it. The reality is that it doesn't make sense to give your films away for free. So stop doing it!
How does that benefit the filmmaker? It doesn't. Instead, it begins to change the public mentality that 'spending money to rent or purchase films is okay' into a mentality that films should be given away for free. This is a very dangerous mentality to instill in an audience that has always been willing to pay to watch films.
Films should not be given away for free. There is no money in it. There is money in making films available at a cost. Don't be fooled by those who are being foolish with your film. If you are a filmmaker then you need to make money from it if you wish to live off it. This is not a complicated idea or equation. It is terribly simple - to make money there must be an avenue for income. People think it's complicated because they can't make sense of it but everyone is buying into it. The reality is that it doesn't make sense to give your films away for free. So stop doing it!
Ticket prices for online movies do not need to be as high as for cinemas because the same cost for marketing and distribution do not exist. Therefore, ticket prices can become attractive and realistic for the movie going audience. There needs to be balance. Ticket prices should not be so low that filmmakers cannot make a living off their work, or so high that it makes more sense for the audience to pirate the films for free.
Another idea to consider is paying cast and crew. Many low budget films defer payment. Online companies can create systems that guarantee payment to those that work on the projects. A lot of people have spent their valuable time working to beef up a resume or learn a skill know that the money rarely, if ever, comes via deferment. The inception of an idea is the time to secure people's rights. Online film exhibitors can help promote and protect the rights of all those involved in the filmmaking process, rather than just those of the filmmaker. It is best to ensure the rights of all from the beginning so that a working model is in place to protect the rights everyone involved.
In the last couple of years contracts for actors have been changing toward one where major actors are not paid upfront so much anymore but rather they have to wait until a film is profitable to see their money. It can be hard to claim money on the back end. Each creative team member of a film is a vital entity of the film's success and each deserves to sustain their livelihood from their contributions to the films they work on. Online exhibitors can help to ensure that the profits are distributed as agreed upon by the filmmakers, cast and crew.
When we talk about online exhibition or distribution let's look at the whole picture. Let's think about everyone's needs. Let's think inclusively about all those we included in the filmmaking process and know that the more profitable it is for everyone as a whole the more the industry will thrive and the better films the audience will have at their disposal. Think through the eyes of abundance rather than limitation, fear and greed.
Money matters because people and creativity matters, because money is needed to pay bills and sustain livelihoods, because people deserve to be paid their worth, because we want good films as audience members and because the best way to watch great movies is to make sure those making them can afford to continue to make them and can afford to survive and thrive off their craft, skills and creativity.
Support the artists and value their work. It is a model that will allow the independent film industry to flourish!
