The Changing Face of Revenue Streams for Independent Movies

Revenue streams have changed for independent filmmakers over the last ten years. With less money at the grassroots level of the industry, people are finding alternate solutions. The text below discusses these unique circumstances.

The age of streaming is upon us. It has been both a blessing and a curse for the makers of independent movies. On one hand, the constant search for content has provided many opportunities. Yet with more streaming services comes a smaller chunk of the pie, and many are tightening their purse strings. Yet there are unexpected places where movies can still get revenue.

How Many Independent Movies Break Even?

When it comes to independent movies, the numbers do not look good. A recent study by Filmmaker Magazine showed that 60% of movies with a budget under $50,000 did not break even. When that number increased to $200,000, around 81.8% of projects lost money. This margin got smaller until the $1.5 million mark was reached, and movies began to make their money back.

Making Revenue for Independent Films

There is a fine line between the funding of the movie and making revenue. Funding is the money needed to get the film made in the first place. Making revenue is how that money is then paid back or profit is generated.

Generally, films are funded from a variety of sources. It could be from film funding bodies, private investment, or other methods. Some films even get buyers from initial screenings at festivals which can help them make the much-coveted break-even mark early in the project.

There are other alternate ways to get a movie funded. Crowdfunding is one way to cover the initial costs. This generates advanced donations from fans who want to see the movie made. Other ways included debt financing on the production costs.

Making Money Once the Movie Is Made

The best way to make money in the digital era is by selling the movie for licensing and distribution. This is generally done via agents, who will then contact the major platforms. Many indie movies are often bundled into deals. A platform may want a major release, and part of the deal will be that it takes a certain number of indie movies with it.  

Selling rights are slightly different. This is when the movie is sold to DVD or network television channels. In the latter, the price is usually based on an estimated viewership.

Unexpected Revenue Streams for Indie Movies

Merchandising is the way most movies make unexpected revenue streams. You would be surprised how many odd items related to movies are created and sold. From hats to keychains, to card games and beyond, there are few consumer items that have not had a movie tie-in at some point.   However, selling merchandise rights can be harder to get with indie movies.

One unexpected revenue stream is that of the online casino industry, particularly the games it produces. There has recently been a spate of successful slot games and even live casinos that have used the licenses of movies. Granted, these are generally for successful blockbusters, such as Transformer and Jurassic Park. Yet there are also many movies that you may be surprised to find out have themed slots. Ted, Bridesmaids, and Caddyshack are a few more obscure ones that may surprise you.  

These games are also easily found at many casinos, increasing visibility for the movie. Stardust Casino is a good example of an online operator that has movie-themed slots. At the same time, it has attractive welcome bonuses to entice new players. With the right audience, this can see the studio getting money from a popular slot while gaining new viewers from the gambling sector. If an indie film manages to crack the mainstream, licensing a slot game is not out of the question.

Concerns About the Indie Film Sector

There have been many voices raising concerns about the state of revenue and funding for the independent film sector. In the United Kingdom, spokespeople for Film4 and BBC Film have been concerned with inward investment in the UK channelling towards the big-budget Hollywood movies. With funding being poor at the other end of the spectrum, there is a worry that talented British filmmakers will go elsewhere.  

This lack of funding from markets at home has been echoed across the continent, particularly in Berlin. With its own strong history of filmmaking, the pullback in independent content from streaming services is causing issues. In recent years, license fees have also been reduced by streaming networks meaning less revenue for the indies.  

There have been some notable exceptions. Netflix recently purchased It’s What’s Inside, an indie horror thriller, for $17 million. However, this is the exception and not the rule. With fewer opportunities and less money when they do occur, indie filmmaking could be in serious trouble.  

This may mean that more filmmakers are pushed to niche methods of revenue and film funding. Be it crowdfunding to get the film made, and niche licenses like gaming and merchandise after release. Art will always thrive in the worst of circumstances and though things look bad, we could be entering a golden era, albeit an underfunded one.

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