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I received a few requests over the past couple weeks to explore what I think has happened to the dvd business, and by direct affect, independent film distribution. Before getting into that it’s neccessary to remember just how important dvd revenue is for a profitable independent film distribution model. TV sales were always a crap shoot for most independent and arthouse theatrical releases, especially those in a foreign language. Even if a film did secure one, the license fees were welcome but insubstantial. This left dvd sales. And for about ten years, which not so coincidentally parallels the rise of independent film in the marketplace, dvd successfully underwrote most independent theatrical releases. Now that this revenue stream is reduced, it is compromising every area of independent distribution, which of course will quickly affect independent film production–investors stop spending money on losing ventures (its how they keep their money).
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