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.

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MOTIVATION: Stop Making Excuses, Make Your Film!

MOTIVATION: Stop Making Excuses, Make Your Film!

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 Okt 20202min

IFH 411: Inside Action Film & TV Directing with the Legendary John Badham

IFH 411: Inside Action Film & TV Directing with the Legendary John Badham

Today on the show we welcome back returning champion the legendary director John Badham. If you didn't already know John has directed some of the most iconic films in history. From the decade-defining Saturday Night Fever to 80's hits like War Games, Short Circuit, & Stakeout to 90's action classics like Bird on a Wire, Point of No Return, Nick of Time, and Drop Zone.John's second edition of his second book continues with more stories from filmmakers and actors working in TV, movies, and streaming content.John Badham on Directing also includes sections detailing methods for working with action and suspense, hallmarks of Badham's Filmography, as well as a 12 step "Director's Checklist" for comprehensively analyzing any scene and how best to approach it with your actors.Sit down and get ready to take a TON of notes on this epic conversation with John Badham.Become a supporter of this podcast: https://www.spreaker.com/podcast/indie-film-hustle-a-filmmaking-podcast--2664729/support.

16 Okt 20201h 20min

MOTIVATION: What is Your Filmmaking Brand?

MOTIVATION: What is Your Filmmaking Brand?

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.

13 Okt 20202min

IFH 410: Why Most Independent Films Never Make Any Money

IFH 410: Why Most Independent Films Never Make Any Money

I've been thinking about doing this podcast for a long time. In the tradition of Why Filmmakers are Always So Damn Broke & What They Can Do to Change It this episode is going to be a cold bucket of water over your head if you are not ready for it. In the insane world we are all living in today, filmmakers need to break out of the mindset that we are living in the golden age of indie cinema.The rules have changed dramatically since the 90s and even more so in the last 8 months of the COVID pandemic. The rules aren't the only thing that has changed but the game has as well. The film distribution infrastructure is broken and has been broken for many decades. It is not set up to help filmmakers make money. It is purely designed to put more money into the pockets of film distributors.I have written extensively about this in my book Rise of the Filmtrepreneur: How to Turn Your Indie Film into a Moneymaking Business. I want to put together one of my hard truths episodes to help filmmakers better understand the indie film marketplace and how to best position themselves to actually make money.There is so much talk about new cameras, lenses, rigs, post-production software, and other more interesting aspects of the filmmaking process but when it comes to selling and making money with movies filmmakers rely on old information that is no longer relevant in the current marketplace. I hope this episode empowers you to not only make more movies but to also make money while doing it.Strap yourself in because for some of you it will be a rough episode to listen to. Be well, stay safe, and keep that hustle going.Become a supporter of this podcast: https://www.spreaker.com/podcast/indie-film-hustle-a-filmmaking-podcast--2664729/support.

9 Okt 20201h 13min

MOTIVATION: If Your Filmmaking Career is Going Nowhere

MOTIVATION: If Your Filmmaking Career is Going Nowhere

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.

6 Okt 20203min

IFH 409: Misadventures in Independent Filmmaking & Distribution with Anderson Cowan

IFH 409: Misadventures in Independent Filmmaking & Distribution with Anderson Cowan

Today on the show we have filmmaker Anderson Cowen. Anderson and I met through a mutual friend in Los Angeles. When I first met Anderson he was a deer in the headlights when it came to selling an indie film into the marketplace. His film is called Groupers. It's about a grad student kidnaps two homophobic high-school bullies to use as her subjects in an experiment performed at the bottom of an empty swimming pool.Needless to say, Anderson went on an adventure getting this film into the marketplace. I wanted to share his journey with the tribe and I hope you grab some lessons of want to do and more importantly what NOT to do when making and selling a film.Enjoy my conversation with Anderson Cowen.Become a supporter of this podcast: https://www.spreaker.com/podcast/indie-film-hustle-a-filmmaking-podcast--2664729/support.

2 Okt 20201h 13min

MOTIVATION: What Are Filmmakers Afraid Of?

MOTIVATION: What Are Filmmakers Afraid Of?

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.

29 Sep 20202min

IFH 408: How to Attach a Bankable Movie Star to Your Indie Film with Steven Luke

IFH 408: How to Attach a Bankable Movie Star to Your Indie Film with Steven Luke

Today on the show we have writer, producer, director, actor, and Filmtrepreneur Steven Luke. Steven and I discuss how he attaches bankable movie stars like Dolph Lundgren, Mickey Rourke, Chuck Liddell, James Cromwell, Sam Worthington, Tom Berenger, Ron Perlman, and Billy Zane to his independent films. We also discuss his misadventures in film distribution, how he presells his films and if he actually makes any money with film distributors.Steven also has a Filmtrepreneur mind when it comes to his film productions. He has found his niche, war films. Understanding his niche market he uses the films he produces to advertise his company Man the Line. It is the internet’s number one source at recreating war!Man the Line is a small South Dakota business offering original militaria and quality reproduction uniforms and headgear for collectors, reenactors, and film productions. By doing this Steven has created additional revenue streams for himself by using his films. This is the Filmtrepreneur way.Enjoy my conversation with Steven Luke.Become a supporter of this podcast: https://www.spreaker.com/podcast/indie-film-hustle-a-filmmaking-podcast--2664729/support.

25 Sep 20201h 33min

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