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INDUSTRY UPDATE – IS IT TIME TO CHANGE COURSE?

10/23/2018

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A Short Essay on How Film and Television Distributors 
Can Survive Rough Waters Now, 
and Rougher Waters Ahead

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Written by
​Stephen J. Kerr & Sarah Nean Bruce

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Picture
IMAGE-Sunset Sailing Boat-675847_1280_CC0 – CC0
PREAMBLE:
​This past month our firm polled about a dozen mid-sized film and television distributors to get their take on the current state of the industry.  We have been doing these periodic state of the industry reports for more than 20 years. Here is what we recently found: while independent film distribution has rarely been an easy business, never has the path ahead looked so difficult.

➜Shifting Gears. ​
The continued decline (or complete absence) of DVD/Blu-Ray revenue, coupled with falling foreign sales income, has hit film and television distributors hard.  The rise of OTT channel revenue has not begun to replace that lost income.  Many veteran foreign sales agents informed us they have started domestic (USA) film marketing divisions to offset lower offshore film sales.  Others tell us they have created strategic alliances with would-be competitors, and increased the number of films they executive produce – all this to help rebuild their bottom lines.

The prognosis for 2019 is much the same.  

One of the bright spots continues to be Asia, where the gargantuan China market is just opening up to more Western IP.  Any foreign sales company without an Asia sales specialist on staff is missing out. 

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    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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