Film Distribution - Times are a Changing

http://entertainment.howstuffworks.com/movie-distribution.htm 

In the film industry, the world of the free internet is causing some challenges for filmmakers. I had someone tell me an option to get our film out there was to post it for
free online and then ask for donations. They shared an example of how one film did this and had over 1 million views and raised $10,000. Now that is a lot of money, unless the film cost you much more than that! How is this success? You spend $100,000 to make a film, but it’s all right to only get a $10,000 return? In any other business, including studio-made films, that would be failure!


As consumers we want what we want, when we want it and how we want it. But, filmmaking is a business first. If filmmakers cannot get a return on their film to go back to their investors, it will be a short-lived career. High-quality films are just too expensive to make and involve the livelihood of too many people to be able to sustain doing them at a loss. If you love a product, the worst thing you can do is get it for free. You should support your favorite film, by supporting it with your purchase of a ticket, DVD or a paid
download. It’s your “vote” of confidence that you’d like to see other films like it or by this filmmaker.

The market is now flooded with free content, and most of it looks free. This muddies the water for people trying to make it as a filmmaker, even an indie one. Indie doesn’t mean free, and we should protect it from that.

I actually had a filmmaker tell me I should be willing to sleep in my car, go to the bathroom in a bag and eat what I can just to get my film out there. I have no issue with hard work and sacrifice—and our team has put in its fair share—but it has to be balanced with sanity. What other industry would encourage that as a true, viable business or career option?

But, things are changing. No longer does the filmmaker have to take a deal where they never see a dime from some unknown “distributor.” We’ve been exploring many options, and here are some of the ones we are considering that actually pass some revenue on to you:

www.ATOM.com
www.BABELGUM.com
www.CREATESPACE.com
www.FILMANNEX.com
www.JOINFILMBABY.com
www.HUNGRYFLIX.com
www.INDIEFLIX.com
www.JAMAN.com
www.NETFLIX.com/SUBMITFILM
www.SNAGFILMS.com

Before you go free, check them out. You owe it to yourself, the people who supported you financially and to the indie film industry.

Let us know what others you are aware of. And, for everyone else, get out there and support indie filmmakers!

Express Your Indie ~

Film Funding: How to use Section 181

I know there's been much talk on Section 181, but I wanted to chime in and give my two cents, as I fear not all of the information may be accurate.

Being a former cop, I know there is the "spirit" of the law vs. the "letter" of the law. I know what we all want Section 181 to be, but alas I'm afraid it has not been interpreted that way by the most important entity - the IRS. I know the legislation was written in such a way as to help investors feel better about investing with film in the US, to offer them an immediate tax break.

However, regardless of how we might interpret this, the important interpretation is how the IRS has defined it. Not an attorney or a CPA, just ask Mr. Wesley Snipes.

This is taken directly from the IRS:
Here is the link that explains the IRS regs that are in place for the statute section 181.
http://www.irs.gov/irb/2007-12_IRB/ar10.html

It is clear that there are a few major items that qualify for the deduction,
  -member of the production company
  -ACTIVE producer in the production
  -invested capital in the production

This allows for the amount of capital investment to be deducted from taxes in the year the expenses occured vs having to wait for income from the production before being able to take the deductions. It all evens out in the end.

It still has a cap of $15 million in total deductions, and has been retroactively extended till the end of 2011.

I do know that they are trying to amend the legislation to reflect the spirit of the law, and I know the IRS is trying to be very liberal; but for now - you better be very careful in how you "advise" others on Section 181.

Out of all of our current investors, myself and the two other owners of our company were the only ones able to take advantage of 181.

This is not official advice, just some thoughts - do with it as you may.