Give Me My Movie Deal

Maverick-mogul-moviemaker Steven Soderbergh is at the crest of a great wave of filmmakers seeking new and better film distribution that would give more people more access to more films at less expense.

Last January Soderbergh released Bubble, his engagingly quirky, little indie murder-mystery, simultaneously in movie theaters nationwide and on cable television's HDNet Movies. The following Tuesday, the Bubble DVD, wearing the Magnolia Home Entertainment label, hit retail outlets.

It's the first of six films slated for production and for similar simultaneous release by Soderbergh and his project partners, Todd Wagner and Dallas Mavericks owner Mark Cuban. Wagner and Cuban co-own two production companies (2929 Productions and HDNet Films) and two television channels (HDNet and HDNet Movies), plus Landmark Theatres (the largest US art-house chain), Magnolia Pictures and Magnolia Home Entertainment.

"I approached them with the multifaceted release idea because they control all forms of distribution for their own products, and that makes them completely capable of testing the plan and pulling it off," Soderbergh explains.

"Releasing simultaneously in theaters and on television, and shortening the time between theatrical and premium TV showings and DVD is an idea whose time has come. It gives audiences across America a bigger selection of films, allows them to see films sooner-especially films that might never screen in smaller cities," Soderbergh continues. "If it proves viable, it'll open opportunities for filmmakers and provide audiences with interesting movies that might otherwise not get made, or might not be seen."

Even though Soderbergh isn't applying (not yet, anyway) his new distribution formula to his upcoming Ocean's 13, or other big-budget blockbuster releases, movie studio heads and cinema theater owners are in meltdown mode. Judging by their first reactions, you'd think they saw Soderbergh's daringly experimental trifecta distribution as the undercurrent of a tsunami that may eventually wash away the business of showing movies in mega, multi-screen cineplexes.

The current distribution paradigm is that studios maximize profits by carefully controlling and orchestrating motion picture releases, first showing films wide or in limited numbers of strategically selected movie theaters, then on TV's pay-per-view, home video and DVD, pay cable networks (such as HBO) and, finally, on broadcast TV.

Under this traditional system, movies typically garner some 25 percent of their revenue from theater ticket sales, while earning 50 percent from home video/DVD and the remaining 25 percent from TV.

Over the past decade, the length of time between theatrical and DVD release has shrunk from about six months (in 1994) to four months (2004) or less, and cinema owners claim increasingly severe revenue losses, saying audiences are staying away from theaters while waiting to buy or rent DVDs.

Predicting that Soderbergh's simultaneous theatrical and DVD release would seriously cut into income that it might cause cinemas to go bankrupt, many theater owners refused to screen Bubble.

Even so, the controversial release of the film, which cost $1.6 million and took 13 days to shoot, has already earned more than $5 million from tickets, pay-per-view and DVDs (priced at approximately $30).

In moviemaking, these are small amounts, but profit's profit. Perhaps because Bubble is in the black, studio heads-while not wishing to alienate influential theater owners-have softened their stand and taken initiatives in cutting the time in which a DVD is released.

For example, Walt Disney Co. offers episodes from Desperate Housewives, Lost and other TV shows for downloading through Apple's iTunes Internet service the day after they air on ABC, and could also do the same with movies. Rainbow Media plans to release independent films-American Gun, Sorry, Haters and CSA: The Confederate States of America, among them-through video-on-demand while the films are playing at NY's IFC Center. Twentieth Century Fox has indicated it's investigating the possibility of presenting one-time-only paid cable TV showings of films in current theatrical release.

To movie theater owners and other detractors warning that watching movies at home undoes the important communal experience of theater-going, Soderbergh says, "I don't think we should control how people experience art. They can see it on a screen or a T-shirt. If it's interesting, it doesn't really matter how they're seeing it. Maybe it's true that people staying home for movies are disconnecting, but as long as it's legal, I don't know how, nor do I have any desire to stop it."

Other filmmakers who're challenging standard studio distribution include An American Haunting's director Courtney Solomon and his producing partner, Allan Zeman. They formed After Dark Films to make their film, but wound up distributing it, too.

"We planned to distribute and market through the studios, but weren't happy with the deals they offered for the U.S. release. They didn't seem to understand the film, and we were concerned they'd market it to the wrong audiences, and it wouldn't get the attention it deserves," says Solomon. "Finally, I got so pissed off, I convinced Allan that we should put up our own money to distribute and market it ourselves."

An American Haunting still debuted in movie theaters-2,000 big screens, at summer season's start-but After Dark Films also entered a key marketing partnership with MySpace.com, where audiences have online access to the film.

"MySpace.com is a great place for grassroots marketing An American Haunting to the right audiences," says Solomon, pointing out that this popular website is where music groups who couldn't get labels to sign them were initially noticed before becoming huge on iTunes.

Solomon has effectively created his own truly indie "studio" to produce and distribute his own films, and he's also looking to take on other people's projects as well.

Other filmmakers say they're seeking their own individualized distribution channels, too. Some even plan to completely bypass theatrical release and go directly to DVD.

"These ideas have been in the air for the past five years, at least, and it'll be interesting to see how they play out," says Jonathan Gray, attorney and indie film producer. "Distribution is a real stumbling block for many independent filmmakers, and the standard model doesn't work well. It's costly and cumbersome and keeps audiences from access to many worthy films. So, in my opinion, avoiding the traditional model is a win."

"In many ways, multifaceted release makes sense from an economic standpoint," continues Gray. "For one thing, advertising budgets have more bang for the buck when theatrical release campaigns lead directly into DVD release. Under the old model, filmmakers are never quite sure how distributors are treating their baby, and it's critically difficult to accurately monitor earnings. Of course, it's going to take time to see just how well the new distribution models really work. Meanwhile, I-as someone involved in the business and as an audience member who just loves movies-am a believer." ¦