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What are the main challenges and opportunities of producing a film for video on demand vs theatrical release?

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The film industry has undergone a major shift in recent years, with the rise of video on demand (VOD) platforms such as Netflix, Amazon Prime, and Disney+. These platforms offer filmmakers new opportunities to reach a global audience, but also pose significant challenges in terms of financing, distribution, and marketing. In this article, we will explore some of the main pros and cons of producing a film for VOD vs theatrical release, and what factors you should consider before making your decision.

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1 Budget and Funding

One of the first challenges of producing a film for VOD is securing enough budget and funding. VOD platforms typically pay a flat fee or a percentage of the revenue to acquire the rights to stream a film, which may not cover the production costs or provide a profit margin. Additionally, VOD platforms may have less incentive to invest in original content, as they rely on their existing catalog and subscriber base to generate income. On the other hand, theatrical release can offer higher returns, as the box office performance depends on the number of tickets sold, and the film can also benefit from ancillary markets such as DVD, TV, and merchandising. However, theatrical release also requires more upfront costs, such as marketing, distribution, and exhibition fees, and faces more competition and uncertainty in the market.

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Jack Binder

Producer 'First Reformed' Oscar? Nominated Best Screenplay, W-D Paul Schrader Ethan Hawke FilmBudget.com Worldwide
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Making a film independently is the available option for most filmmakers. Streamers are reluctant to acquire films that they don't develop in-house or trophy buys at prestige film festivals. Once a film (and more so recently indie tv) is in production, the streamers will tend to take more notice. Get into production. https://FilmBudget.com Worldwide

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2 Creative Control and Quality

Another aspect of producing a film for VOD is the level of creative control and quality that you can achieve. VOD platforms may offer more artistic freedom and flexibility, as they have fewer restrictions on the genre, length, rating, and style of the film. They may also allow you to experiment with different formats, such as episodic, interactive, or documentary. Furthermore, VOD platforms may have lower quality standards, as they do not need to meet the technical specifications of cinema screens, sound systems, or projection equipment. On the contrary, theatrical release may impose more limitations and expectations on the film's content and quality. The film may have to conform to the norms and preferences of the mainstream audience, the ratings board, and the exhibitors. The film may also have to meet higher quality standards, as it will be shown on large screens with surround sound and digital effects.

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3 Audience and Reach

A third factor of producing a film for VOD is the potential audience and reach that you can attain. VOD platforms can offer a wider and more diverse audience, as they can access millions of subscribers across different countries and regions. They can also target specific niches and demographics, based on the data and algorithms that they use to recommend and promote content. Moreover, VOD platforms can provide more convenience and choice for the viewers, as they can watch the film anytime, anywhere, and on any device. Conversely, theatrical release can offer a more limited and homogeneous audience, as it depends on the availability and accessibility of cinemas in different locations. It can also face more barriers and challenges, such as language, culture, censorship, and piracy. However, theatrical release can also offer a more immersive and communal experience for the viewers, as they can enjoy the film on a big screen with high-quality sound and visuals, and share their reactions and emotions with other people.

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Soubin Nath

Creative Media Professional | Digital Content - Marketing & Communications | MA Film & Television
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My understanding is that the introduction of streaming services to Indian movies was a revolutionary step. Since there are many different languages and cultures in India, it was difficult for movie enthusiasts to watch the appropriate films that come out in other film industries. However, after the OTT era, spectators consistently had fair opportunities to watch films from all of India's film industries. The concept of regional cinema achieved momentum to become the national cinema of the country. Because streaming platforms did not have censorship restrictions, filmmakers from all socio-cultural and political backgrounds had the chance to make films without feeling morally constrained.

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4 Marketing and Promotion

A final consideration of producing a film for VOD is the marketing and promotion strategy that you need to employ. VOD platforms may have more resources and tools to market and promote your film, as they can use their own platforms, social media, newsletters, and influencers to create buzz and awareness. They may also have more data and insights to optimize your film's visibility and appeal, based on the viewing habits and preferences of their subscribers. However, VOD platforms may also have more control and influence over your film's marketing and promotion, as they may decide when, where, and how to release your film, and how much to invest in its publicity. In contrast, theatrical release may require more effort and creativity to market and promote your film, as you may have to rely on external partners, such as distributors, agents, festivals, and critics, to generate interest and exposure. You may also have to compete with other films and events for the attention and attendance of the audience. However, theatrical release may also offer more opportunities and benefits for your film's marketing and promotion, such as word-of-mouth, reviews, awards, and screenings.

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5 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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Shani Heckman, MFA

Award-winning films & events
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I think turn around times, and longer work contracts are pluses to VOD. I think it also has increased access to LGBTQ creators. I am concerned about low pay and absent residuals. Also this post arriving during the writer's strike WTA, on VOD contracts, seems unfair time-wise.

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What are the main challenges and opportunities of producing a film for video on demand vs theatrical release?

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2

3

4

5

1 Budget and Funding

2 Creative Control and Quality

3 Audience and Reach

4 Marketing and Promotion

5 Here’s what else to consider

Film Production

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What are the main challenges and opportunities of producing a film for video on demand vs theatrical release?

1

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3

4

5

1 Budget and Funding

2 Creative Control and Quality

3 Audience and Reach

4 Marketing and Promotion

5 Here’s what else to consider

Film Production

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