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Enter CINEMAflix DISTRIBUTION The New
Kid On A Proven Proof Of Concept Block

Elliott Kanbar - Donald Rabinovitch
 
Building on the success of the QUADflix SELECT program, which helped independent filmmakers get at least a week's distribution at the Quad Cinema, partners Elliott Kanbar and Donald Rabinovitch have launched CINEMAflix DISTRIBUTION – the upgrade to a proven proof of concept system tailored for the independents. The original model was introduced to combat the distribution landscape which since 2007 is changing the dynamics of the business faster than the impact of DVD back in the '80s. A key element to getting some return on a film is a theatrical window. The Business of Film in a one-on-one candid conversation with Donald Rabinovitch explores the improved CINEMAflix concept – how transparent is it for independent filmmakers, and how does CINEMAflix work after that first week theatrical window where the filmmaker keeps all of the revenues.

THE BUSINESS OF FILM: The concept sounds very interesting to independent filmmakers but if Quad Select was so successful, why jettison it to start a new entity?

DONALD RABINOVITCH: Its simple, Elliott Kanbar and his brother were the builders, developers and owners for 43 years of the Quad Cinema. On August 22nd they sold the cinema to a real estate developer, and that was the end of our activities, de facto, at the Quad. We decided to rebrand the business model, add some enhancements and work with a number of cinemas in New York that wanted to work with us. Consequently we have partnered with the Cinema Village, a very respected, independent art-house in New York, and the Laemmle theatres in Los Angeles.

TBOF: One of the aspects of the model that was interesting is there is a level of transparency about what CINEMAflix wants to do. The upfront cost is listed for each of the services that the company says it will deliver. Why go such a transparent route when many others do not?

DR: This route was established because, amongst other things, I'm a filmmaker and producer, I produced four films. My last film, which was my first all-digital film, 2007, I had an epiphany during the production and post-production. Having done three other full length feature films in the traditional way, I saw that there was going to be a huge upheaval in the market for making, distributing and viewing films. I was not the only one, but it affected me deeply and I decided not to makes another film, and took on the challenge to figure out and create some method for independent filmmakers to have a higher degree of control or certainty of what to do with their film after it was completed. And I had known Elliott, he had rejected a film of mine for his theater. I went back with him and we talked, decided that together we could build a model that was appropriate and futuristic for the changing landscape and that evolved into what was known as the QUADflix SELECT program. With CINEMAflix we are taking all that we learned, over a two and a half year proof of concept, where we received well over 1,200 films, full length documentaries and features from around the world. We were able to curate from that 400 acceptable projects that we felt we could work with. After 350 successful theatrical releases, each one having a full week in the theater, every single film was critically reviewed in the major press, including The Village Voice, New York Times, and we realized that this is not only an important service, but it's also a business. I am in Berlin, officially launching CINEMAflix the next iteration of the original program, and it clearly has come at a time when there is much more product and content, from around the world than there are channels, and buyers to marry up films with.

TBOF: Right, that's correct.

DR: At Sundance, I haven't seen the official final numbers but my understanding is there were close to 14,000 submissions worldwide, and they accepted 130 films, and the probability, in my opinion, it will be lucky if 20% of that 130 get picked up for cash money.

TBOF: That's true, but in reality, we both know that there are films that are made that shouldn't be made. People make films for different reasons, some people make it for the passion, some filmmakers because they want to make what they want to make with no regard to the marketplace. Is there a criteria that you put on the films that you select?

DR: Yes, to comment on that observation, I couldn't agree with you more. I used statistics, but I think it's still impressive if we take that thirteen, fourteen thousand unit number, cut it in half, cut it in half again, and cut it in half again, and then cut it in half, and we're still talking about two or three thousand films. Those two or three thousand films, if you cut it in half it's a thousand fifteen hundred that should have been made, and if we can help 20-30% of that number each year, I think it's a necessary partnership. How do we choose at CINEMAflix what films we want to support and partner with? Which films do we think have a potential to go the distance? Your question is valid and I answer it the same way each and every time: we try to curate good quality stories with good executions and we do eliminate, based on our profile at this time, and it could change, but we stay away from horror, from sci-fi, pure blood and guts action. If you remove those genres from the population of good films, we believe that therein lies the niche that we're focusing on, a good story told well and filmed in a professional and quality way. We love good full length documentaries.

TBOF: So potentially maybe 300 films.

DR: That's a high number, I would say that per year, based on films out there, there are some business features in the current model that we need to honor. If it's a week run and there's 52 weeks in a year and there's the time and resources taken to prepare the prerelease and all the work that goes with a theatrical release in New York and possibly California and other cities, I think that at this point in time 150 to 200 is a good goal. Our experience tells that we probably will be seeing close to 1,000 in order for us to wind up with 200 films.

TBOF: To get that yield, will that entail your traveling to all the festivals, or are you looking for filmmakers to send their submissions to you online?

DR: Even though we're in startup mode, we do have almost three years under our belt of cycles, of festivals, markets, and other seminars. For 2015 we plan to be at the markets that make sense:  Cannes, Toronto, AFM, maybe one or two other festivals/markets, six or seven points of geographic contact around the world annually, and the rest by email, Skype, personal relationships and networking. We view AFM as the place where we can have the opportunity to meet people and their films, not necessarily companies. There are also people coming into North America at that time from around the world, a lot from Asia and South America.

TBOF: CINEMAflix has its own publicist. Is this a group of publicists or is this one person? How do you work? Are the publicists an established person or part of your team?

DR: At this time, our business model outsources to a group of three very skilled film publicists, who really understand the business and are up to date with the new impact of social media.

TBOF: Your information states that from as little as US$9.900K to a max of US$11,500, you can cover the exposure off a film through the distribution chain, providing publicity, etc. How can you do it for what appears to be quite a reasonable amount of money?

DR: Everybody asks us that question, so I guess it's a reasonable amount of money. Otherwise people would say, "Why are you charging so much?"

TBOF: It's not so much that you don't want to make money, but you want to genuinely help the filmmakers, at a fair price, because everybody has to charge something for their experience and expertise. I would imagine that you have financial resources backing. It's just basically yourself and Elliott, so you're making choices of films but you are not at risk, in any way, because you get your payment upfront.

DR: Okay. That is a keen observation. Elliott and I are the only two people from our prior platform. Your question deserves a thoughtful response, so I'm going to try to make it upfront and personal. This is about two people – Elliott is 81, I'm 68, and this is not about making money. Both of our backgrounds are public. Both of us love film and – at this chapter, in our life, we are giving back in an almost nonprofit way. Our expectations are that after the film leaves the theater and goes forward on the different digital platforms, cable, etc., etc., DVD included, there will be a menu of features and benefits that we will be able to participate in, from cash flow and income generated by those films, if we did our job right up front. But this is not about our profitability at this level of our present business model, its building the brand.

TBOF: I understood and that is clear from the price point, nobody does anything completely for free and one shouldn't.

DR: Let's go back to the pricing part of your question. If you look at the fee that we're charging upfront, it covers the whole scale of business, based on relationships, based on our mission statement, based on volume, people are working, sharpening their pencils and conducting a quality service almost, as I say, in a nonprofit model, and as long as we're building on our brand getting to better than break even and a little extra for our efforts, we will be comfortable and good on this segment of the platform. We plan on adding other parts to the platform, if you compare it to other online businesses, or business models, where you get a certain entry opportunity for no money or low cost, and then if you continue and you go for a premium or super-premium added value, then there is a fee involved where you can generate more profits.

TBOF: In your literature you cover opportunities for foreign sales. How did QUADflix work in that regard? Will it change with CINEMAflix?

DR: Great question. In our prior business model QUADflix, during the first year and a half, it was not on our radar. We were focusing on global films, foreign and North American, to be distributed in North America, and after the first year and a half, we kept getting more requests from filmmakers of how could we possibly help them with the rest of their journey. It became first word of mouth, favors, networking, and soon we found a niche between marrying a few select sales agents, and ourselves and the filmmaker, so that if the film has been accepted by, for example, CINEMAflix and it has a good run and strong, valuable reviews, good, bad, critical, a sales agent has the right of first refusal to pick up the film with no fees and do the service as they normally do for the filmmaker and we get a small percentage from the sales agent's income down the path.

TBOF: As a filmmaker, as a producer, if I give you my $12,000 which as an independent producer I should put in marketing cost whilst I am making the film, or finding my funding, if you decide to take on the film, and it does obligatory one week exposure in a theater, then it goes on to go down the other distribution channels when you give it to the sales agent, does not mean I will be making money? Because the sales agent has to take his cut first. So for all the things that are transparent and good, from your model – all could come into question at the point of the sales agent.

DR: We will be working very closely, less than arm's length, with a few companies, walking very carefully, monitoring the transactions as they unfold, the integrity and the results. CINEMAflix does not have a long enough runway yet to be able to tell you the good, the bad and the ugly. I'm giving you the idealistic and the mission - the reaction will be swift and furious if we find any kind of abuse with sales agents we engage with. If we talk a year from now, we will be vertically integrated in that we will be able to possibly have sales in-house, as a benefit to filmmakers that work with us.

TBOF: Which actually is the best solution. You have to protect your overhead, but you don't have the need to make money, because money isn't the goal, and you are not dependent on the filmmakers to make money for you. You've already made your money. Earlier with QUADflix you left the filmmaker at the junction where you introduced them to the ongoing distribution chain from the week at the theatre. Do you look back and think that was a little shortsighted at the time, or was your objective somewhere else?

DR: You're very right. Our objectives – and it was shortsighted in retrospect, but at the time it seemed like a good idea. We wanted to build proof of concept, a brand visibility and credibility, so we focused on what we felt were the marketplace, the filmmakers', important issues, and put aside the remuneration and compensation for ourselves.

TBOF: That's fair enough. No problem there. It appears that what you are doing with CINEMAflix's second model, now that you've proven your point, is to take it one step beyond.

DR: Exactly, with a sharing of the future revenues in an appropriate way with success.
 
 


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