New short film distributor Ouat Media makes its debut

Not satisfied with operating two specialty channels – and not dissuaded by an unsuccessful bid for a pay TV service earlier this year (CCR, May 19/06) – Toronto’s Channel Zero Inc. has launched a new company to distribute short films. "A lot of what we’re interested in doing is really proactively seeking out the emerging filmmaker," says Jennifer Chen, general manager of recently formed Ouat (pronounced "what") Media Distribution. "So, we’re screening a lot more films, and we’re looking to acquire a lot more films." How many more? Try a catalogue that will expand by four digits every year, at least initially. "A lot of film distributors will look at adding 20 films to their catalogue each year – Ouat Media’s mandate is to assign a thousand new titles each and every year," says Cal Millar, cofounder of Channel Zero. Given that ambitious target, it bodes well that Chen is in charge at the fledgling distributor: her pedigree makes her a natural choice to lead Ouat. She started Flow Distribution, the Canadian Film Centre’s short film distribution unit, from scratch. But where Flow was conceived as a vehicle for distributing the centre’s short-format output – although it does acquire programming from other sources as well – Ouat Media is unfettered by genre restrictions or requirements to source content from specific locations. "Ouat its own distinct mandate: to find Canadian and foreign out-of-market films that can be distributed to broadcasters other users of short-form content" around the world, says Millar. Recently, Statistics Canada pegged the size of the Canadian film, video and audio-visual distribution industry at nearly $1.6 billion last year, and Millar says he’s confident shorter films will increasingly make up a larger percentage of that market. Chen concurs with that sentiment. "I think short form content is going to be a bigger chunk of that – it’s just right now there’s no outlet for the filmmakers," she says, adding that consequently "we are probably going to be the largest in Canada in a very short period of time. We’re the only outlet for them right now." While there are other distributors of short-format content in Canada, most of them are like Flow Distribution: tied to a particular group of filmmakers, or a specific genre. In addition to Ouat, Channel Zero already operates two Category 2 specialty channels, Movieola: The Short Film Channel and Silver Screen Classics. But while the former of the two obviously focuses on the type of content Ouat will be distributing, Millar says there will likely be "a bit of tension there because Movieola will have to bid on the same films as other broadcasters." Any advantage Movieola will have in its dealings with Ouat will stem from its status as Canada’s largest broadcaster of short-form content, not its familial relations with the distributor. However, the ties with Movieola, which already has an international reputation as a buyer of short-format content, will be useful in putting Ouat front-of-mind with filmmakers looking to get their content into distribution, thus increasing the likelihood of finding short-film treasure in the thousands of films it will screen each year. "When Ouat promises a filmmaker that they can make at least one sale, they’re believed," Millar says. Despite that profile, Ouat is committed to proactively finding filmmakers to add to its catalogue. As such, it will target not only the obvious sources of short-form content, such as the short film festivals held annually in Clermont-Ferrand, France, and Palm Springs FL, but perhaps also some unconventional – and underexploited – places. "If you really dig deep enough you can find really extensive arts programs in the last years of high school," Chen notes, adding that film schools, advanced training institutions, filmmakers’ co-operatives and other more formal venues will also be on the list. And while many in the broadcast industry recount the growing threat from emerging forms of digital media – most recently at the behest of an Order-in-Council from Heritage minister Bev Oda (see story on p.1) – the market for short-format productions is perhaps diversifying at a somewhat faster rate than others. "I would say though probably broadcast is still the common playground, now we’re looking at all of these tertiary and ancillary markets where I think short-form content will be more popular," Chen says. Proof of that is already starting to emerge: Millar says that Movieola is finalizing a deal to supply content to Telus, with several more similar arrangements in the works. "We expect to sell to people we haven’t even thought of today," he says. "We can talk about wireless or mobile platforms, but also looking down the road a couple of years at who else would be a potential customer for these films, or a licensor of these films." Film, video and audio-visual distribution and videocassette and DVD wholesaling (By primary market, 2000/2001 to 2004/2005) 2000/20012003/2004($ millions)2004/20052003/2004 to 2004/2004change (%)REVENUEDomestic Distribution1070.901194.501256.805.20Movie theatres390.6382.7446.316.6Pay TV81.2105.6134.627.5Conventional TV409.6433.6404.4-6.7Home video165.8244.9246.60.7Other23.727.724.9-10.1Foreign Distribution222.3321331.93.4Total Distribution Revenue1293.101515.501588.704.80Wholesaling videocassettes and DVDs1399.401816.101817.100.10Other revenue120.6106.1133.826.1TOTAL REVENUE2813.103437.603539.603.00EXPENSESLicensing costs (rights, royalties and other fees)806.70838.80847.001.00Videocassette and DVD wholesaling costs660.7745.1673.6-9.6Salaries and benefits144.60153.20166.908.90Other costs853.99501050.0010.5TOTAL EXPENSES2465.902687.102737.501.90PROFIT (% OF TOTAL REVENUE)12.321.822.70-Note: figures may not add up to 100% due to roundingSource: Statistics Canada's The Daily, Aug. 28, 2006

New short film distributor Ouat Media makes its debut

Broadcast | September 13, 2006

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