With DVD sales down, the traditional utilization of middle-men like sales agents and distribution companies is changing. The ripple effect of this is less traditional distribution deals for filmmakers. Take a look at the music industry, and you’ll soon see that it is a matter of time until all movies will be available for download or viewing at the push of a button.
In the past, filmmakers made a movie, got lucky and ended up with a BIG paycheck with incremental increases on the back end. These days filmmakers need to think about their movies in ways akin to how traditional investors think about dividends from bonds – once you make the investment, it’s a long term game!