IFH 374: Predatory Film Distributors - The Bankrupt Reboot Scam

IFH 374: Predatory Film Distributors - The Bankrupt Reboot Scam

I've spoken about predatory film distributors before on the show (The Dark Underbelly of Predatory Film Distributors – BEWARE!) but I just discovered how some of these scumbags have figured out how to absolutely screw over filmmakers using a legal loophole. It's called the Bankrupt Reboot Distribution Scam.

Here's how they do it. A predatory film distributor will prey on desperate indie filmmakers and will try to obtain the rights to as many low budget indie films as they can, usually for no money upfront in a short period of time. Let's say 1-2 years, if not faster. During that time they sell-off the rights in one big transaction to a bunch of different platforms, outlets, streaming, foreign agents, etc.

Now here's the rub, rather than actually paying filmmakers what they are owed, the distributor files for bankruptcy protection, which is extremely easy to do in the United States. So you must be asking

"If the distributor goes bankrupt, what happened to the rights of all those films?"

Glad you asked. These bottom dwellers go to the bankruptcy court hearing and then buy back all the rights to the catalog of films from their own bankrupt company. The court has no other choice because that is how the bankruptcy law is written and there's no one else there to buy these assets.

These bastards then form a new company and assign the newly purchased film catalog to themselves through that company. Now they are no longer legally obligated to pay the filmmakers (or anyone else they owe money to). So they own the film you killed yourself to make for pennies on the dollars and they never have to pay you a thing.

This is made possible because of the original contract the filmmaker signed, which has a clause absolving them of that in the event of bankruptcy. Then to add insult to injury when the rights they originally sold off expire, they re-sell them again.

These predators run this scam over and over and over with new companies formed each time. This is an extremely profitable business model. It's not ethical but it is legal.

In this episode, I breakdown a case study of how one of these predatory film distributors pulled this off and I also go over how you can protect yourself. Make sure you take some notes because this episode is a doozy!

Become a supporter of this podcast: https://www.spreaker.com/podcast/indie-film-hustle-a-filmmaking-podcast--2664729/support.

Episoder(980)

IFH 661: How to Make Money in TODAY's Indie Film with Jon Erwin

IFH 661: How to Make Money in TODAY's Indie Film with Jon Erwin

In 2002, Jon Erwin founded a production company with his brother, Andrew. Their first ventures were commercials, documentaries, and music videos. The brothers soon were directing videos and producing concerts and television programs for platinum recording artists such as Amy Grant, Michael W. Smith, Casting Crowns, Switchfoot, Skillet, and others.They received 11 GMA Dove Awards nominations and 3 wins for Music Video of the Year. Jon and Andrew have also produced and directed several documentaries, including the multiple award-winning 9/11 story, THE CROSS AND THE TOWERS. In 2010, Jon and Andrew began exclusively developing dramatic feature films. In August 2018, they partnered with Kevin Downs and Tony Young to launch Kingdom Story Company, in an exclusive partnership with Lionsgate, which creates life-changing content from a variety of talented storytellers.Their features have all opened in the top-ten box office and they have received the coveted A+ CinemaScore® three times. Early hits include OCTOBER BABY, MOMS’ NIGHT OUT, WOODLAWN, and the surprise hit I CAN ONLY IMAGINE, which became the #1 independent film of 2018, earning more than $86 million at the box office. Others include I STILL BELIEVE, a biopic about CCM megastar Jeremy Camp which was released by Lionsgate in 2020, followed by the 2021 release of THE JESUS MUSIC, sharing the untold story of how Jesus Music transformed into the multi-billion-dollar industry of Christian Contemporary Music.AMERICAN UNDERDOG followed in 2021, which told the story of NFL MVP and Hall of Famer, Kurt Warner. JOHNNY CASH: THE REDEMPTION OF AN AMERICAN ICON, is a documentary that details the true story of a music legend’s spiritual quest and releases Dec 2022. Their latest film, JESUS REVOLUTION based on The Jesus Movement that changed the course of history and comes to theaters Feb 2023.Jon is also the author of the book Beyond Valor: A World War II Story of Extraordinary Heroism, Sacrificial Love, and a Race Against Time, which tells the amazing true story of his grandfather Red Erwin, who received the Congressional Medal of Honor in World War II. Beyond Valor was published in August 2020.Enjoy my conversation with Jon Erwin.Become a supporter of this podcast: https://www.spreaker.com/podcast/indie-film-hustle-a-filmmaking-podcast--2664729/support.

21 Feb 20231h 14min

MONDAY MOTIVATION!: Don't DIE with Your Indie Film Inside of You

MONDAY MOTIVATION!: Don't DIE with Your Indie Film Inside of You

We all need a kick in the butt sometimes on our filmmaking or screenwriting journey. This show will do just that. Never stop chasing that filmmaking dream. Keep on hustling.Proud Member of the IFH Podcast Network (ifhpodcastnetwork.com)Become a supporter of this podcast: https://www.spreaker.com/podcast/indie-film-hustle-a-filmmaking-podcast--2664729/support.

20 Feb 20232min

IFH 660: What Talent Agencies Look for in a Screenplay with Christopher Lockhart

IFH 660: What Talent Agencies Look for in a Screenplay with Christopher Lockhart

Today on the show we have award-winning producer, film executive, educator, and industry story analyst Christopher Lockhart. Christopher is renowned for his script editing acumen. He has read over 60,000 screenplays. He is also an award-winning filmmaker and member of the WGA, PGA, and the Television Academy.Chris got his start at International Creative Management (ICM), where he worked as script consultant to legendary talent agent Ed Limato, who represented industry giants such as Mel Gibson, Richard Gere, Michelle Pfeiffer, Liam Neeson, and Robert Downey, Jr.He later moved to the venerable William Morris Agency, which merged with Endeavor to form WME. At WME Chris has worked on award-winning projects for A-list clients like Denzel Washington, Russel Crowe, and Rachel McAdams among others.Chris branched off into film producing with the cult horror hit The Collector and its sequel The Collection, which opened in the top ten American box-office. He wrote and produced the award winning documentary Most Valuable Players, which was acquired by Oprah Winfrey for her network. Chris has set up several other projects, including A Rhinestone Alibi at Paramount, and Crooked Creek, a modern noir thriller.As an educator, Lockhart shares his talent and 30+ years of industry experience as an adjunct professor at Screenwriting program and at UCLA.His writing workshop The Inside Pitch was filmed for Los Angeles television and earned him an Emmy Award nomination.Chris and I also teamed up for a new webinar from IFH Academy called How to Become a Hollywood Script Reader from Industry Insiders HOW TO BE A HOLLYWOOD READER is a webinar focusing on the secrets of one of Hollywood’s most vital and mysterious jobs.A reader evaluates screenplays and stories, practicing quality control through “coverage” – a written report that judges creative success. The reader wields huge influence that empowers Hollywood chiefs to greenlight film, television, and new media. This webinar examines the core components of coverage, how to write it, and provides tools and pro tips to navigate the reading profession – led by two preeminent Hollywood readers. By pulling back the curtain on this creative process, the webinar also gives writers, directors, actors, and producers a rare look inside the mind of those who decide the fate of their material. Chris prioritizes emotionality and his client's character role and development ahead of the overall story solidity. He shared some tips for new writers, some lessons learned from bad scripts, what goes on behind the agency curtain and the blessing of untapping a story's best version from re-writes.Enjoy my conversation with Christopher Lockhart.Become a supporter of this podcast: https://www.spreaker.com/podcast/indie-film-hustle-a-filmmaking-podcast--2664729/support.

16 Feb 20231h 18min

IFH 659: RAW Confessions of a Hollywood Blockbuster Screenwriter with Ted Griffin

IFH 659: RAW Confessions of a Hollywood Blockbuster Screenwriter with Ted Griffin

There's no con more satisfying and lucrative than finding a way to make a living as a screenwriter. And Ted Griffin is a man who knows a good con.Anyone who tried to follow the clever criminal head games he built into his screenplays for Ocean's 11 and Ridley Scott's Matchstick Men knows not to trust this guy - except when he talks about screenwriting, which he does with great humor and insight in this enlightening interview.The conversation ranges from his early work on Ravenous and Ocean's 11 through the unexpected pitfalls of trying to direct his first film, Rumor Has It. He was scheduled to make his directorial debut with Rumor Has It..., for which he had written the original screenplay, but was replaced by Rob Reiner 12 days after principal filming began.He did a rewrite of the Ashton Kutcher film Killers. He moved into television by creating Terriers for FX. Griffin played Agent Hughes in The Wolf of Wall Street.The Dialogue: Learning From the Masters is a groundbreaking interview series that goes behind the scenes of the fascinating craft of screenwriting. In these 70-90 minute in-depth discussions, more than two dozen of today's most successful screenwriters share their work habits, methods and inspirations, secrets of the trade, business advice, and eye-opening stories from life in the trenches of the film industry.Each screenwriter discusses his or her filmography in great detail and breaks down the mechanics of one favorite scene from their produced work.Your Host: Producer Mike De Luca is responsible for some of the most groundbreaking films of the last 15 years. After enrolling in New York University's film studies program at 17, De Luca dropped out four credits shy of graduation to take an unpaid internship at New Line Cinema. He advanced quickly there under the tutelage of founder Robert Shaye and eventually became president of production.To watch Ted Griffin's amazing episode go to The Dialog Series on IFHTV.Become a supporter of this podcast: https://www.spreaker.com/podcast/indie-film-hustle-a-filmmaking-podcast--2664729/support.

14 Feb 20231h 58min

MONDAY MOTIVATION!: When No One Believes in Your Filmmaking Dream

MONDAY MOTIVATION!: When No One Believes in Your Filmmaking Dream

Monday Motivation! We all need a kick in the butt sometimes on our screenwriting journey. These episodes will do just that. Never stop chasing that dream and keep on hustling.Become a supporter of this podcast: https://www.spreaker.com/podcast/indie-film-hustle-a-filmmaking-podcast--2664729/support.

13 Feb 20231min

IFH 658: My Script Can Beat Up Your Screenplay with Jeffrey Alan Schechter

IFH 658: My Script Can Beat Up Your Screenplay with Jeffrey Alan Schechter

Today on the show we have million-dollar spec screenplay writer, director, showrunner, and author Jeffrey Alan Schechter. Jeff has been beating up stories for over twenty years. He is a WGA, WGC, Emmy, and BAFTA-nominated writer, a Gemini award-winning producer, director, and a million-dollar spec screenplay writer.Jeff’s first credits were in action films such as BLOODSPORT II, THE TOWER, and STREETKNIGHT. Turning to his love of family films, Jeff sold his spec screenplay LITTLE BIGFOOT to Working Title Films and then did a rewrite on THE AMAZING PANDA ADVENTURE for Warner Brothers which led to him working on DENNIS THE MENACE STRIKES AGAIN.Jeff followed this with another rewrite, this time for Warner Brothers’ IT TAKES TWO. Following this, Jeff’s spec screenplay STANLEY’S CUP was bought by Walt Disney Pictures in a deal worth over a million dollars.Jeff next rewrote I’LL BE HOME FOR CHRISTMAS for the Walt Disney Company and wrote the TV movie BRINK! For the Disney Channel and for which he was nominated for the Writer’s Guild of America Award for Outstanding Television writing.Jeff also wrote THE OTHER ME for the Disney Channel as well as BEETHOVEN’S 3RD for Universal Studios.[presto_player id=154698]In television, Jeff has written and executive story edited dozens of episodes for series such as THE FAMOUS JETT JACKSON, ANIMORPHS, MARTIN MYSTERY, TOTALLY SPIES, TEAM GALAXY, GET ED, FREEFONIX, DI-GATA DEFENDERS, HOT WHEELS BATTLE FORCE 5, and JANE AND THE DRAGON. He’s written both DTV productions for the Care Bears; JOURNEY TO JOKE-A-LOT and THE BIG WISH MOVIE, the latter for which he was nominated for a 2005 Writer’s Guild of Canada Award.Jeff was an executive story editor and director on the Hit Discovery Kids/NBC series STRANGE DAYS AT BLAKE HOLSEY HIGH (aka BLACK HOLE HIGH) for which his work was nominated for two Emmy Awards for Outstanding Writing as well as a BAFTA Award for Best International Series. Most recently, Jeff created and was the showrunner of the sci-fi procedural drama Stitchersfor Freeform which ran for three seasons and which took place in the proverbial ten minutes in the future.In publishing, Jeff is a co-founder of the award-winning ebook publisher PadWorx Digital Media, and his book My Story Can Beat Up Your Story: Ten Ways to Toughen Up Your Screenplay from Opening Hook to Knockout Punch was published by Michael Wiese Books. Jeff is hip-deep in several other screenplays, television series, book projects, and software ventures. In his spare time, he’s married and has 4 kids.Enjoy my conversation with Jeffrey Alan Schechter.Become a supporter of this podcast: https://www.spreaker.com/podcast/indie-film-hustle-a-filmmaking-podcast--2664729/support.

9 Feb 20231h 17min

IFH 657: Audience•ology: Hollywood's Best Kept Secret to Make Money with Kevin Goetz

IFH 657: Audience•ology: Hollywood's Best Kept Secret to Make Money with Kevin Goetz

Kevin Goetz has been at the center of what Hollywood calls the ‘movie research’ industry for more than thirty years and his position in the entertainment world is quite unique. Named one of the most powerful and influential people in Southern California by The Los Angeles Times Magazine, Goetz became one of the leading advisors, researchers, and focus group moderators over two decades before starting his own firm, Screen Engine/ASI out of his living room.Today, his research firm is a multi-million-dollar company that employs over 300 people worldwide where he works alongside the major film studio chiefs, decision-makers, network and streaming platform executives. The insights produced by his firm touch every aspect of entertainment and television content creation from selection, acquisition, casting, and production, to post-production, marketing, and distribution.Goetz recently wrote the book, Audience•ology: How Moviegoers Shape the Films We Love about an important aspect of his business—audience test screenings. His podcast, Don’t Kill the Messenger, brings this book to life with filmmaker interviews discussing filmmaking, their films, and how audiences have impacted their final cuts.Goetz has also produced twelve movies and brings both a marketing and filmmaking perspective to the interpretation of his research analysis. Kevin Goetz is a member of the Academy of Motion Picture Arts and Sciences and several other distinguished organizations including the Television Academy and the Producers Guild of America. He is a board member of five charitable organizations as part of his philanthropic endeavors and resides in Beverly Hills with his husband, Neil, and their labradoodle, Kasha. Please enjoy my conversation with Kevin Goetz.Become a supporter of this podcast: https://www.spreaker.com/podcast/indie-film-hustle-a-filmmaking-podcast--2664729/support.

7 Feb 20231h 17min

MONDAY MOTIVATION!: Never Stop the Filmmaking Hustle!

MONDAY MOTIVATION!: Never Stop the Filmmaking Hustle!

Monday Motivation! We all need a kick in the butt sometimes on our screenwriting journey. These episodes will do just that. Never stop chasing that dream and keep on hustling.Become a supporter of this podcast: https://www.spreaker.com/podcast/indie-film-hustle-a-filmmaking-podcast--2664729/support.

6 Feb 20234min

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