Independant Films Should Look to the Internet

"Bright Star," which was critically acclaimed, hasn't yet earned half its budget due to limited exposure

"Bright Star," which was critically acclaimed, hasn't yet earned half its budget due to limited exposure

One of the biggest gripes people have – especially when watching the Academy Awards every year – is that they aren’t able to see many of the limited release films, particularly the ones that get great critical buzz. Even critics get irked about this (as no critic sees every movie that comes out). So how do we go about addressing this issue? My thought is that films that can’t afford widespread distribution to exhibitors (i.e. theaters) might want to start looking at the internet as a solution.

A number of people download movies illegally all the time, which we here at Movie-Thoughts obviously can’t condone, and many people watch streaming movies on Netflix every day; the point being that plenty of people are acclimated to watching movies on their computer, and that number of people continues to grow every day. So, step one of making sure there’s an audience for independent studios on the internet is covered.

Step two is identifying the benefits. What’s in it for these independent studios? Well for starters (and this is huge), exposure. If an independent film like Precious gets Oscar buzz, that goes far towards DVD sales. However for films like Gentlemen Broncos which are of considerable quality for a niche audience, potential viewers who couldn’t see the film in theaters are forced to gamble on spending $20 on the DVD. Often times those potential viewers end up spending that $20 on something else – like another DVD of a movie that they’ve actually seen. But if those potential viewers were able to see the film online by purchasing an instant viewing (a la Netflix), they would be much more likely to buy the DVD (if they liked the movie, that is). If independent studios sold streaming copies of their films on their website (or some other website) they could also sweeten the deal by offering a discount. With no portion of the price tag being allotted to an exhibitioner, all of the money paid would be revenue for the studio. Cheaper movies always draw more viewers.

So what are the negatives? Well, piracy could possibly an issue, if not the biggest detractor period. Independent studios will definitely be afraid of allowing their films to be spread via file sharing without their consent, which would of course cost them lots of money. My thought is, though, that if Netflix can keep piracy to a minimum, studios ought to be able to as well. There is, however, another equally large issue to deal with. If studios are able to sell viewings of their films online at a discounted price, they’ll have a huge advantage over exhibitors (from a commercial standpoint). Theater sales could take a potentially steep dive, if not potentially cripple the exhibition level of the film industry altogether. If this sounds melodramatic, don’t think that if independent studios have success with streaming their films online that the bigger studios won’t follow suit.

Here is my suggestion of a compromise on the idea of online films regarding both independent studios (or studios in general) and exhibitors. 1) Studios would be required to release their films in theaters regardless if they plan to release those same movies online. 2) Studios would not be allowed to provide their films online until their films have been in theaters for at least one week (as a film’s first weekend is financially it’s most critical), if not two. This allows theaters to maintain a commercial advantage during the most fiscally active period of a film’s exhibition period. 3) Studios would not be allowed to sell viewings of their films online to the same person more than once. This would force someone who wanted to see a movie more than once to find a theater nearby and go see it there. So while a person would, after a film’s first week or two, be able to choose between a theater ticket or a cheaper online viewing, theaters would not have to rely solely on a film’s early earnings (at least theoretically).

I believe that if the details mentioned above were seriously considered, independent studios would multiply their revenues by dozens of times. The exposure of their films would go through the roof and even possibly be able to compete with Hollywood. And with more money, independent studios would also be able to spend more on advertising to create more awareness for their films and thus attract bigger audiences, as well as pay for wider theatrical distribution. Some might say that if independent studios enjoy such success that they would only become part of the Hollywood bunch and potentially lose their incentive to create the atypical, niche films that they’re so loved and respected for. However I would suggest that more success for independent studios would force Hollywood to raise its standards. With bigger competition Hollywood’s margin for error would shrink significantly, making them spend their money more wisely and produce more high-quality projects as opposed to primarily high-profile ones. America’s free-market economy wins again!

How do all of you out there feel about all of this? Tell us your thoughts, concerns, and/or your opinion on whether or not this could all be a pipe dream. We’re excited to hear what you have to say, so speak up! Till next time, enjoy the movies – if you’re able to see them.

One Response to “Independant Films Should Look to the Internet”

  • Bob says:

    Cliff–You raise an interesting proposition, one that I’m sure has been considered by both the studios and distributors. The threat of independent studios going straight to the internet might give them some leverage with the distributors to increase the number of screens they can aquire. The main problem the independents have as I understand it is that the major studios like Disney leverage their major titles to gain additional screens for their second tier releases i.e. if you want to show “UP” on 500 screens you’ll reserve 200 for title xxx.

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