On Ramp: VHS Distribution

Mark Bosko
December 1995

One of the greatest joys of videomaking is the thought that, eventually, other people may actually see the production you've been slaving on for months. And for those financially-inclined readers, this scheme sets up a monetary reward as well. As long as an audience exists that wants to view your videos, this same audience may be willing to pay to view those very same videos. That's correct, you can actually make money with this hobby-turned obsession. Now I've got your interest!

Getting your tapes viewed, purchased or rented should be a top priority for any serious videomaker. All of these functions fall under the umbrella of distribution--that magic word that makes producers salivate. Distribution is what makes the film and video world turn. While distribution is obviously responsible for placing films in your local multi-plex, it also allows you to go down to the local video shop and rent a copy of Tombstone, purchase The Lion King at McDonalds or order the latest Faces of Death installment from the back of a magazine.

And it's distribution that brings special interest videos, documentaries, instructional tapes and other small and low-budget productions to audiences worldwide. Imagine this kind of distribution making your tapes available to the masses.

Even though traditional video distribution is a multi-billion dollar business that moves hundreds of thousands of VHS tapes and titles around the globe yearly, the reality is that distributors are tough to find.

If that seems confusing, let me explain. Basically, there are three level of distributors. At the top of the heap are, of course, the big guys--Warner Home Video, Columbia and the like. These huge companies pick up major movies to distribute on an international basis. Usually video deals are made when the film is going into production. This means that the producers of these films don't have to concern themselves with selling their production to a distributor; the deed is done before one foot of film has run through the camera. The companies involved at this level, known as the majors, only deal with big, multi- million dollar budgeted films. They won't be on your call list when you finish that "Tone Your Thighs While You Sleep" exercise tape.

Next in the pecking order are distributors referred to as mini-majors. Prism, Hemdale and HBO Pictures qualify. Many companies at this level actually produce product for a direct-to-video release. Their productions move immediately into the crowded video pipeline, the same route you'll eventually want your video traveling. Again, most of these firms handle only mega-buck projects, so unless you've got the next El Mariachi or Clerks, trying to work with these companies is a waste of time.

At the bottom of the traditional video distribution heap are the independents. With a wide range of low-to-mid-budget releases, Hemdale, Interscope and Full Moon operate here. Direct-to-video and limited theatrical release films as well as special interest videos fill these companies' release rosters. Unfortunately, like the above, even this bottom-of-the-ladder group is still too sophisticated for the independent videomaker. Is the "distributors are tough to find" statement making more sense?

If you're fearing that your special interest video on Bonzai tree collections will miss what you're sure is a large, interested audience--don't. Even though you may not land distribution with a nationally- recognized player, there's hope.

What I didn't tell you is that there are hundreds of smaller distributors that exist below the independents. These distributors handle projects produced on a thousand bucks, or less. These companies actively seek special interest productions, low-budget movies and other independent shot-and-produced- on-prosumer-video-gear projects. These national businesses may be your first, best hope for finding an audience.

Firms at this level make their money by handling a large number of small projects. They may not sell as many copies per title as the big guys, but they carry so many different titles, it doesn't matter. Sometimes referred to as sub-distributors, companies operating in this manner will handle just about anything that they think they can profit from. Whether it be a unique exercise tape, some exploitative documentary, or even kid-vid, a sub-distributor will probably pick it up if there appears to be a market for the product.

Now the obvious question is, "Where do I find these companies?" Well a good place is your local video store or mass merchandiser. Check out the company names on some low-budget productions. Scan the special interest aisles, specifically trying to locate something that resembles your own video. Record the company names you find on the boxes for future reference.

Big retailers like K-Mart, Wal-Mart and Target have huge video bins for what the industry calls "sell-through." Sell-through is the other side of the retail video market. The first class of sale is for rental purposes. All of the distributors, from the top of the ladder down, try to place tapes in stores for this purpose. Traditionally, movies have dominated this business. Now, many specialty tapes--exercise and documentary in particular--are finding their way onto your local video outlet's shelves.

This business actually started with special interest tapes. Distributors believed these productions were things that customers would rather own than rent. And it made sense. It's hard to use an exercise tape if you only have it overnight. Why not, they asked, just lower the price and make it available directly to the consumer? Over time, distributors got wise and realized people like to own movies as well. Thus the phenomenon of big hit movies selling at under $20. The sell-through arena is a perfect market for low- budget specialty productions.

Scanning boxes at your local Rent-A-Hit may not seem like a very scientific way to gather data, but it's a very good start. For a more efficient method, you may want to try checking out some of the many books available on video distribution. These texts list hundreds of video distributors' names and addresses for contact.

Guess what? Sub-distributors aren't really the last level of distribution lurking out there. Below them is a complicated jumble of buyers and sellers. And today it seems that anyone who can place a classified ad in the back of a magazine can qualify as a video distributor. But more on that later. Who are some of the other buyers, and what are they looking for?

• Rental stores, operating on a national level, may buy direct from the producer. They'll want features, children's and some instructional.
• Local rental stores will buy features, children's, some how-to, documentaries as well as local interest and locally-produced material.
• Chain stores will seek features, children's and instructional tapes, though they rarely work directly with a producer.
• Cable television is always after new features, children's shows or documentaries.
• Local television, including public access, leased access and low-power TV may buy features, children's, documentary and local-interest productions from independent videomakers.
• Satellite systems, which are fairly new but gaining ground, act as suppliers to many independent television stations around the country. Movies, documentaries and special interest tapes are all possible sale items.
• Public television is not a big buyer, but they will occasionally pick up a documentary and some local interest productions.
• Theaters--hey, why not? An independent producer booking his project in a theater is a rare event, but it happens.
• Foreign markets are open to lots of stuff. Again, it's tough for the independent to enter this market without some assistance from a distributor.
• Other markets include educational (colleges, public schools), libraries, industrial (airplanes, hotels), catalogs and even the military.

Getting the attention of any of the above markets requires you to prepare a professional and organized sales effort. And you must make it your best effort, because usually it's your only shot.

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