Producing : Ask Me Anything (AMA) 12/1 to 12/2 by David Zannoni

Thank you for making yourself available for questions!

From many stories I've heard over the years, I've developed the impression that there is very little chance of an indie filmmaker to see real "profit", even on a successful movie, due to distributors claiming high marketing expenses and other costs. Am I mistaken? Are there distributors who are transparent with reporting income and costs or is it usually a matter of trust?

Thanks for doing an AMA, David Zannoni. What's your best advice on networking?

Thanks Rodriquez, for bringing this up! it depends on the short of deal you close with a distributor. If you do a straight distribution deal, there is indeed the issue that it is hard to impossible to verify the flow of revenues and the accuracy of costs and expenses. This is especially a scenario for a (US) domestic deal or a worldwide straight distribution deal. However, in international distribution, most distribution deals are done for so called minimum guarantees, which are fixed amount and therefore, verifiable. If the distribution deals are done through a sales agent, the sales agent has the obligation to report to you all deals made and revenues received. A solution to make sure you are fully aware of all distribution deals and revenues generated, is to set up a collection account. It is by the way true that it is very difficult for indie films making actual profit, which has to do with the way films are financed and the actual market value of most indie films.

Hi Maurice! My best advice for networking is to show real interest in what people do and are passionate about, and to engage in genuine conversations. Give people something (advice, referral, for example) that helps them further with whatever they are working on or what keeps them busy. Create real value for the relationship.

Take advantage of this, Creative Army. David is a fountain of knowledge!

Thanks for doing this David. We are grateful to have you as a thought leader in the Stage 32 community. My question is for streamer deals like Netflix, Hulu, etc. does the CAMA still exist?

Terrific advice, David Zannoni. I agree. Networking is about relationships.

It’s so great to have you here today, David Zannoni - thank you for sharing your time and expertise. My question is for independent filmmakers with a completed movie - is a distribution deal with a streamer who buys the film out for their own library more advantageous to the filmmaker then retaining rights and selling territory by territory in a more traditional model?

Hi David, appreciate you taking time out of your day to answer our questions! I'm curious to know where you see the business, specifically when it comes to distribution and collection account management, heading 5 years from now? Will it look the same or evolved in some way?

Thanks folks. All great questions. Amanda, as for streamer deal, it depends on the nature of the involvement of the streamer. If they commission and the producer effectively does work for hire, then the streamer is in full control of the production and distribution, pays for the whole project, and there is no back-end. Then there is indeed no need for a CAMA. If, however, the project is independently produced and financed and then picked up by a streamer, then there are still multiple beneficiaries (investors, financiers, maybe a sales agent, talent, etc) to be paid from the revenues. Then a CAMA is needed, despite of the fact that the source of revenues is just one: the streamer.

Hi Sam S! Closing a deal with a streamer for distribution has many advantages. There is just one source of revenues, usually for a good purchase price. Besides, the streamers are generally consider very stable and the purchase price even bankable. Downside is that the streamer pays installments over a period of a couple years, whereby in the typical independent model, films generally generate 80-90% of income in the first two year of distribution. Downside for independent distribution with multiple distributors is that there is more negotiations, more time-spent, higher risk of payment default, and typically, lower minimum guarantees. The things is that for the majority of the projects, there may in practice not be a choice and independent distribution is still the only option.

Hi Sam M - five years from now is difficult to predict, but streaming will continue to dominate. The streamer market will consolidate though, and local streaming services will start to break through. Indie production will also continue, be it that it will become more challenging. On the other hand, consumption is massive and virtually possible 24/7 on multiple devices. So the market is huge and there is room for everyone. Budgets of independent films will continue to go down (on average) and the definition of "content" will also change (film, series, animation, combination?). As long as there is independent production, there will be a need for collection account management, a need for a third party to manage money on behalf of multiple beneficiaries. Technology-wise there will also be changes, especially with the opportunities that blockchain offers. Question is if within the next five years, the industry is ready for the potentially massive impact that may have.

Thanks for all of the great answers, David Zannoni. I'm learning a lot about the business side of the industry today! :D

Hi David,

When contracts come into the picture for a spec script written by an unrepped writer, do you have any advice for where to start with finding an entertainment lawyer to make sure you are getting a fair deal?

Hi, Rachel! :D Hope you're doing great.

Hi Rachel, my advice is always to involve an entertainment lawyer early on in the process. I know there is a cost involved, but you can at least make the connection and once it becomes relevant - when a contract is being negotiated - you have the legal support you need. There are law firms specialized in talent deals, happy to shoot some names via messages.

David thanks very much for your time and wisdom.

I was wondering how entertainment lawyers come into play within the agent / manager equation? Is there always a need for a writer to have an entertainment lawyer or are there situations where the agent / management typically handles that side of things? Or is it your advice that a wrtier, particularly a writer just breaking in, should have their own personal entertainment lawyer looking out for them to keep a kind of birds eye view on things involving all parties?

Thanks in advance!

Hi David! Thanks for answering everyone's questions! You mentioned in your blog that independent filmmaking is essentially a chain of working with independent small businesses and freelancers. Of the steps in the production chain, what is the first connection up-and-filmmakers should be making to help get their project off the ground?

Hi David,

Thanks so much for getting back to me! We would extremely appreciate those names!

Hi Clarence, I would say that the agent / manager is more business representation, whereby the lawyer handles the legal side of the business. I am aware that there can be some overlap - it remains a people business after all where relationships are key - but it is important to make the distinction. As soon as there are deal and contract negotiations involved, I would involve an entertainment lawyer.

Hi Emily, I believe making connections should be an organic process. First of all, connect with fellow filmmakers and exchange experiences and perhaps contacts. And go on online platforms (like Stage 32) to network. If you have a chance, go to markets and festivals. Bit by bit you will know more people and learn more about the process, and you will see the value in the relationships. To get projects off the ground, many different elements will need to come together so it is very recommendable to know people with different backgrounds and capacities (production, financial, legal, etc).

David thank you for sharing your knowledge. Which international shows do you attend and think are the most important ones?

David Zannoni My name is Josiah and I’m trying to make it in the business but haven’t had luck. I am a screenwriter, also having experiences participating in numerous film and theater projects over the years. I try networking with other writers but need help. What do you think I should do?

Great to be part of this AMA, David Zannoni! One of my endeavors is to inspire "concepts", through film. You mentioned the subject of "content", interesting in context, which also deals with "concepts". Can you further comment on the optimistism and expectation levels in filmmaking and of course general talents, concerning both subjects "content" and "concepts", particularly new and inspiring material, influencing relevant profits for the future? Thanks!

David Zannoni Thanks for the guidance and for giving your time!

Hi Rosemond! There are many types of international events, and it depends a bit what you are working on and looking for. I go to Cannes, TIFF and AFM, and a couple of typical Spanish languages markets like Iberseries Platino Industria and MIP Cancun. For TV there is MIPCOM as well. SXSW is also worth considering.

Thank you David! Appreciate your thoughtful answer!

Hi Josiah, thanks for sharing your experiences. It can be a long and tough road to find your way in the film business. What help would you exactly need? Also happy to follow up with you separately to see how I can be of help.

David Zannoni specifically, I need help networking with people. I network with people here, but I want to network with directors, producers, etc. so I could take my works to the next level. I know I need help editing my works and making them better, but I want to be taken seriously as a writer.

Hi Eon! Well, to success in the film business an optimistic mindset is extremely helpful! Managing expectations is on the other hand also important, which including avoiding tunnel vision. Also, for many people it is difficult to get a grip on real numbers in terms of what a project will eventually actually cost, and thereafter generate in sales and revenues. In terms of inspiring concepts, that can be very personal. I find content inspiring if it shows success, compassion, humanity as it is, beauty of simplicity sometimes (and in the Riviera Maya, you start appreciating simple things like the Sun, nature, and the ocean!), or very niche topics which would other be forgotten. I hope I answered your question properly, but by all means, please further elaborate if necessary!

Hi Josiah, that makes sense. I saw your message, let's connect separately and happy to give you some more detailed advice.

Got that David! I'ts a reminder generally to expect "great things", but basically maintain a calm and powerful mindset! Thanks for the reply, enjoyed the AMA!

Thanks Eon, for your input and thoughts!