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Even If You're On The Right Track...

6/28/2014

4 Comments

 
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Will Rogers said, “Even if you're on the right track, you'll get run over if you just sit there.”

No film or television distribution company can afford to just keep putting one foot in front of the other and hope to survive this chaotic business.  You need to move.  Which direction to jump is another question.

It seems that most film distributors and sales agents are moving in one of four directions.  Some that I know are moving ‘upstream’, that means that they are helping to finance films earlier than ever before.  Some at the script stage.  They are doing this to secure the long term distribution rights to films by producers that they know and trust.  Also, many distributors were once (and still are) movie producers in their own right, and this is a comfortable path for their companies to take.  By supplying production, or finishing funds for films, the distributor secures the distribution rights, gets executive producer credit and often back end participation (if any).  It is a smart move if you can afford it, but it takes deep pockets to do this.

Another large group of distributors are moving ‘downstream’, that is, they are developing channels of distribution to sell films directly to the consumer, be it via Hulu, YouTube, etc. or their own internet portals. These film distributors see the benefit of bypassing the traditional markets to go directly to the end user.  They still attend all the major film markets, mostly to acquire product and cement international relationships, but they are not there to necessarily sell films to the foreign buyers.   Most of these distributors have deep catalogs in specific genres; perhaps horror, sci fi, Christian/family, classic movies/TV, or documentaries.  The problem with the move ‘downstream’ is that revenues have not yet caught up with the costs.  You need to have staying power to build a brand and hold out until the consumers finds your channel(s) and are willing to pay for the convenience.

The third way that I see distributors jumping is (in keeping with the stream theme) to the left or right bank of this business.  On the left bank (Rive Gauche) is the vertical integration model.  In this model the sales agent, turned full service distributor, acquires all rights to the films they sell, both foreign and domestic… or they simply buy some films outright.  The distributor handles everything, including television, HBO/Showtime/Cinemax, RedBox, Amazon, Netflix, foreign sales at the markets, and even DVD.  This is what I call soup to nuts distribution.  All markets, all mediums, all world.  In the vertical integration model the distributor also handles the theatrical release of the movie (if any).  Many distributors have found the financial rewards of doing day and date releases for their films. It is a way to get better exposure for their movies to foreign buyers, and to potentially hit a home run in North America. 

The fourth jump out of the typical sales channel is to the right (Rive Droite). In this move the foreign sales agent or distributor chooses to partner up with other compatible film and television distributors, sales agents, producers, or even their biggest customers, into something of a coalition. In some cases they simply merge.  Many of these companies have downsized as much as they possibly can and some have even given up their fine offices in favor of working out of their homes.  Gone are the big staff and acquisition team, in favor of a more streamlined operation.  These companies have been living off of market fees and meager commissions (sometimes for years) but have now seen the wisdom of creating a partnership with other companies that provide a synergistic service to the industry.  This is taking advantage of the power of long term relationships and segmenting the channels of distribution.  We see this most often in the digital distribution space, where a US company will partner with a European company, or perhaps a Chinese company, to gain market access and create a supply chain that both companies need.  There is often strength in numbers and no independent sales company can be all things to all people.  But, by partnering up with companies of common interest, you can complete a loop that benefits the producers, the buyers and the consumers. 

Will Rogers was right. You can’t just sit down on the tracks and wait for the money train to run you over.  Every company in this industry has to be on the move.  Some are moving upstream, some are moving downstream, some are jumping to the right and some are jumping to the left… and unfortunately, some will be road kill. 

Which way are you moving?   


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The Search for Relevance

6/6/2014

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rel·e·vance
noun: The condition of being relevant, or connected with the matter at hand. Meaningful.   from Medieval Latin relevans , from Latin relevāre  to lighten, from re-  + levāre  to raise, relieve


It does not matter whether you entertain the masses with major motion pictures; pump oil out of the ground to fuel our economy; or save people’s lives on the operating table; we are all searching for relevance in this world.  The best and the brightest of us, most of all.

For 26 years I have worked with some of the smartest, most talented and very, very accomplished human beings on the planet.  My firm buys and sells media companies and I have had the fortune to know the men and women who started them, grew them and made them such a success that others wished to own them.  I have been fortunate indeed.

That is why I wanted to write this blog, it is about how each of us is searching for relevance. 

It does not matter if you have a fine home in the hills, drive the latest model luxury car, and have a ski chalet in the mountains… if you are unsure of your relevancy on this planet, you will be discontent.  Accumulating nice things does not give you the satisfaction of feeling accomplished.  More often than not our possessions just make us feel trapped.

Angelina Jolie, a woman who gives away more than one third of her enormous income to the poor, was being interviewed on television recently, and she said; “I am paid a ridiculous amount of money for what I do. Why shouldn’t I give it those less fortunate than me.”  She, the highest paid actress on the planet, is still searching for relevancy in this life. 

Like myself, many of my client’s have never made millions of dollars, but they have built good and stable companies that employ talented, hard working people.  They help creative people reach their potential by bringing their artistic talents to an audience – whether it be on the stage, on film, on the internet/ television, or even between the pages of a book.  These people are the backbone of the communications industry.  They develop, nurture and promote the most talented writers, directors, artists, filmmakers, singers and actors that they can find and risk their money and time so that the world can know their art.

It is an old and noble profession.  We are the impresarios of our age.

Why is it then that so many of my friends and clients, especially those in their late 50’s and 60’s, seem so discontent with their accomplishments?  They have what many would deem “interesting lives”.  They lunch with actors and writers; they strut their stuff on La Croisette in Cannes; they have interesting conversations about creating books, films, music, art and stage plays with people who know how? 

So, what is the source of their malaise?

It all comes back to feeling relevant. Most publishers, record producers, movie makers, playhouse owners and even television executives that I know want, more than anything, to make something important that will last beyond their lifetime.  A lot of that entertainment is basically 'pop culture'.  It is created for a purpose, consumed and quickly forgotten.  Most entertainment companies create pop culture.  Sometimes, if we do it right, even inexpensive pop culture movies, music and literature becomes art.  Think Berry Gordy’s Motown music of the ‘60s, Saturday Night Live, John Carpenter’s Christine or anything from the pen of Stan Lee.  Pop culture can become iconic culture.   

It is that search for relevance that drives even successful pop culture purveyors to strive to make and disseminate better quality, artistic entertainment… they don’t just want to make a buck, they actually want to make a difference.  Touch people’s lives.  Move the world. 

I once asked a real estate developer of storage garages and industrial buildings why his home was so finely ornate, and he answered, “Stephen, I just wanted to build something of quality, not something for the lowest cost per square foot.”  I understood completely.

The search for relevance is the search for meaning in this life.  Our own little corner of immortality.  We are fortunate to have the opportunity to create and promote art, literature, films, music, games and other artistic endeavors.  We actually do get a chance to touch lives and move the world. 

If we do it right.

1 Comment

    Author

    Stephen Kerr is president of BMC (Business Marketing Consultants), a subsidiary of Bel Age Medias. 

    He has 30 years experience in the media and entertainment industry. 

    ​See more on his LinkedIn profile.

    View my profile on LinkedIn

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