Independent films are finding their audiences on VOD

Here is a great article by USA TODAY detailing how indie films are finding their audience on Video OnDemand! Check it out after the jump!

Intrigued by the buzz surrounding Escape from Tomorrow, the guerrilla feature shot at Disney parks, which opened earlier this month? Don't fret that the indie by first-time director Randy Moore isn't playing at a theater near you. You can watch it on video on demand (VOD), including streaming the film from your cable or satellite TV provider, or renting or buying a film from a digital store such as iTunes or Amazon.com (prices usually run from $5-$10).

Traditionally, U.S. films have been released in theaters before becoming available in other windows, such as VOD. When a film is released simultaneously in theaters and on VOD, it's called "day-and-date." This marketing strategy has lost any stigma it once had and is now becoming standard for many small films that may have otherwise been overlooked.

VOD provides a potential audience of 100 million in North America alone, estimates Nolan Gallagher, CEO and founder of Gravitas Ventures. "Not every great movie is going to necessarily get to Cleveland," said Gallagher, and "there are quite a few consumers who like to be the first ones to see movies fresh off their festival debut."

Concussion, the Sundance hit from first-time feature director Stacey Passon, is only playing at select theaters, but it's available on iTunes and other VOD platforms. The list of high-profile indies to be released day and date in the past few months alone is long and includes Lovelace, The Canyons, A Teacher, Adore, Drinking Buddies, Don't Stop Believin', Touchy Feely, Ain't Them Bodies Saints, Blue Caprice, Muscle Shoals, Good Ol' Freda and many other films that made the festival circuit.

Then there are films like James Franco's As I Lay Dying, a prestige pic that is forgoing theatrical release entirely and going straight to VOD, iTunes and DVD. With a recognizable title, Cannes credentials, built-in publicity and Franco's star power, the film should fare well on digital platforms, whereas, given the tough material, it would have been a tough title theatrically. Concussion, the Sundance hit from first-time feature director Stacey Passon, is only playing at select theaters, but it's available on iTunes and other VOD platforms. The list of high-profile indies to be released day and date in the past few months alone is long and includes Lovelace, The Canyons, A Teacher, Adore, Drinking Buddies, Don't Stop Believin', Touchy Feely, Ain't Them Bodies Saints, Blue Caprice, Muscle Shoals, Good Ol' Freda and many other films that made the festival circuit.

Then there are films like James Franco's As I Lay Dying, a prestige pic that is forgoing theatrical release entirely and going straight to VOD, iTunes and DVD. With a recognizable title, Cannes credentials, built-in publicity and Franco's star power, the film should fare well on digital platforms, whereas, given the tough material, it would have been a tough title theatrically.

There's also an "ultra" release, where a studio releases a film on VOD before a theatrical as a way to market the film and create buzz. Radius-TWC distributed the Sundance hit, the low-budget R-comedy The Bachelorette via the "ultra" model a month before its theatrical release in September. The film immediately climbed atop the iTunes "top movies" chart.

"I think VOD represents part of the future for indie film," said Oscilloscope Laboratories' David Laub. "Is it the entire future? I don't feel we have enough data yet to know that."

What is clear is that viewing habits are changing and the younger generation wants the convenience and flexibility of watching films whenever and wherever they want-- whether it's on their mobile device, tablet or streaming directly to their TV. What's also evident is that some films lend themselves to day and date more than others. Laub points to two recent Oscilloscope releases to prove this point. They decided not to do a day and date release for Mother of George because "it's not an automatic draw," said Laub. "We loved the movie when we saw it and the reviews exceeded our expectations, but it needs to be nurtured."

A film like 28 Hotel Rooms was a natural for day and date release, said Laub, pointing out that its title was a big plus (films that start with numbers or letters early in the alphabet tend to do well on VOD). About Cherry, starring James Franco, Heather Graham and Dev Patel, opened in only three theaters last year, but scored on VOD, where it made over $500,000 in the first week across all VOD platforms, according to the film's distributor IFC Films.

Read the rest of this article at USA Today.

- Lena