Introduction
There are currently a variety of alternative revenue streams in the film distribution industry that go much beyond traditional theatrical and television distribution. These include combinations of streaming, direct sales, merchandise, and licensing. Filmmakers utilize multiple channels in order to increase their income and decrease their risk.
- Streaming platforms (SVOD/AVOD): Netflix, Amazon Prime, Disney+, and other services offer different ways to make money through film licensing or direct deals. These can be subscription-based (SVOD) or ad-supported (AVOD).
- Video-on-Demand (VOD): Transactional (pay-per-view, TVOD), rental, or buy through providers such as Google Play, iTunes, and third-party aggregators.
- Direct-to-Consumer Sales: This means selling digital downloads, DVDs/Blu-rays, or special versions called “director’s cuts” from a website or at events.
- Merchandising and selling: branded items like posters, clothes, and action figures, as well as selling to schools, airlines, and other related markets.
- Film festivals and special event screenings: Making money from admission fees, ticket sales, and deals to distribute the films afterward. Niche crowds are also drawn to hybrid event releases.
- Self-Distribution Through Aggregators: Sites like Uscreen.tv, Vimeo On Demand, and YouTube Rentals let you sell your own content without going through a standard distributor.
- Crowdfunding and Patreon: Fans who offer support in exchange for access to special content, behind-the-scenes footage, or early releases can give you recurring income.
- International and Territorial Sales: This is when you sell the rights to different countries or regions, usually on TV or online.
- Ancillary/Subsidiary Markets: Deals with airlines, hotels, educational licensing, or other places outside of the usual exhibition circuit are examples of ancillary markets.
Key Alternative Revenue Streams
Hybrid Revenue Models
Hybrid models blend multiple channels (theatrical, streaming, VOD, merchandise, and licensing) to maximize profits and extend a film’s lifespan. For example, “The Babadook” mixed a limited theatrical run with VOD and merchandise; “Avengers: Endgame” leveraged every possible channel, from theaters to merchandise lines.
Digital Marketing and Technology
Promotion via social media, working with digital platforms for optimization, and using AI to analyze market data and target audiences also enhance alternate revenue potential. Blockchain is emerging to increase transparency and trust in revenue sharing and digital contracts.
By diversifying with hybrid models, filmmakers and distributors gain broader reach, more stable income streams, and a longer window for profitability in a rapidly evolving market.
