Getting Paid via Amazon Video Direct

IMG_7243I got my first very small payment from Amazon Video Direct. It’s small because of my content, not because of anything Amazon did. I see people complain about the $75k limit Amazon imposes on their payments. I would love to have the problem of hitting that limit. If you have a film that is generating that much revenue, you don’t need to be on Amazon Video Direct, you need a different (larger) distribution option. But for most of us, this is just fine.

But I got paid. And I got paid more than I did on Youtube. On Amazon I have a total of 13 videos, all dramatic content. No DIY or how to videos. I have over 100 videos on 2 accounts over at Youtube. Those 13 videos in the month of June earned more than the 100 on Youtube. The next month was even better, so I will see a “larger” small payment. The July payment will be larger than any month ever in Youtube payments. Part of that is because this content is new to a new audience.

The evidence from these past few months is that the Amazon outlet has the potential to bring in more even than Youtube, in general. If you can generate short content on a consistent basis, you could see a steady stream of small payments. The video that has been watched more than any other in my library is a 2 minute comedy short. I have no idea how people are finding it. I have promoted the others to my network more than this one. But it is, organically, doing better.

It’s a bit of a hassle to jump through the hoops to get content on AVD, but it looks to be a real outlet to get your content in front of another audience, and to get paid something for it.

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Micro Syndication: Is this the Solution for Indie Christian TV?

tv imageI have written about this before, but I wanted to talk about it again. Christian TV is upside down. Content creators buy time on educational licensed stations so they can then ask for money from viewers. I never paid for airtime with my show, Peculiar,  but most of the time we didn’t get money either. Only one network gave us anything, and that was just to help with paying for closed captioning.

In most cases on religious stations/networks the most you can hope for is free air time. Your program costs money to make, and you want to sell it to them. They can’t sell ads to cover the time, so they aren’t buying. There are a few networks that could afford to buy programming, but they don’t. That’s a problem for shows that don’t ask for donations, because it still costs money to make them.

So what can you do with your program?

Micro Syndication. This is an idea I want to try with my next series. It will be a lot of work, but I don’t see why this wouldn’t work.

The goal is to buy time on a for-profit network locally, and sell advertising during your paid programming. I went as far as pricing the air time on this once before. There are stations that will let you do it.

First you need a program. You’re going to have to have at least the pilot, and likely a few more episodes done before you can implement this. The program needs to be 22:30 with 6:00 of breaks. That’s room for twelve :30 spots. Your program must have space for advertisers, or it won’t work. And your program has to be something people want to see, or it won’t work for long.

Second you need a media buying agency. You could do this yourself, but once you get beyond a couple markets, the relationships your agency has will serve you well, and they can find deals you will miss. They know when and where you can find time near shows that are similar to yours. And you want that.

Third you need a sales agent to find sponsors for your program. They will get a percentage of each ad they sell, but they should be local to the station you’re trying to get on.  Their first calls should be to people in the pages of any Christian Business Indexes for the area your trying to broadcast in. They aren’t just selling spots, their selling a vision. You’re delivering viewers during a program with content they want to support.

The Process:

In a target market have your media buyers shop for a good spot for your program. Find out what it will cost per week. See if they can work in some ads to promote your program.

Once you know how much your program will cost per week, figure out how much to sell spots for. There are a couple of ways to go about this. You could just do a flat rate for every spot. Or you could charge more for different locations in the show. For instance, if you have a strong program in front of your show, one :30 spot right up top could cost more since they will be getting viewers who have stayed from the previous program. For the purpose of this post, let’s say they are all priced the same.

Example (Smaller Market):

  • Weekly airtime cost = $400
  • 12 spots at $50 per spot = $600
  • 20% of $600 for sales agent= $120
  • $80 “profit” per week.

That’s not much. And not a lot of wiggle room if a sponsor drops out. But you could get things off the ground with this. The goal isn’t to generate enough revenue from one market, but to get lots of markets bringing in revenue so you can afford to make more programs. Replicate this in 10 markets and you’ve got $800 per week. $41,600 annually. 20 markets is $83,200. There are hundreds of markets in America. Every one will be different, and will be very hard to expand into any of them.

Example (Larger Market):

  • Weekly airtime cost = $750
  • 12 spots at $90 per spot = $1080
  • 20% of $900 for sales agent = $216
  • $114 “profit” per week

Finally, sell the spots and buy the time. Gather the spots, embed in the shows and deliver them to the stations.

Make no mistake, this is a huge amount of work. And you’re not bringing in the kind of revenue that allows a big staff. And while you are managing all this, you need to be creating more content. If it was easy, everyone would do it.

How can you make this work better? Reduce costs.

Can you get the airtime for less per week? In the smaller example, at $300 for airtime you’re bringing in $180. That’s $2340 for a 13 week run. $9360 annually. From one market. But this is a balance. The better the time, the more expensive the time. Your buyer needs to be aggressive.

Can you charge more for ads? Your media buyers should be able to tell you what ads in your time slot would go for. Christian who are business owners may be willing to give a little more to support the kind of programming you are creating. $60 per spot? $75? With a discount for multiple spots in a program? I once paid $3500 for a :30 spot in the bottom half of the hour during a season finale on a major network. If you have the audience, people will buy the spots for more.

Work out a trade with a station. They give you the time, you provide the audience, and you split the ads spots. In the smaller market, you’d be looking at $300 per week in revenue. This becomes tricky with the media buyers, because you still need to pay for their services for that market. They will want, and you should be willing to pay for, their cut for buying the time. You should still clear more revenue per market, per week. But you need to show the station that you have an audience in their market.

This is going to be a lot of work.

Issues to Overcome:

Selling spots. You have to keep the spots sold, or you will sink. That’s it.

Placement. You have to have the program in the best time slot. Cheap enough to allow you to sell spots. Good enough that people will watch your show. 3:00 AM will be cheap, but no one will watch. Without viewers, it’s a waste.

Why not use a network? The key, at least initially, is local advertisers. It’s definitely possible to go to a cable network and buy time regionally and nationally, but it’s a lot of money. (Even Christian networks can charge $5000 for a 30-minute slot.)  You’ve got potential advertisers on the local level. But, they won’t pay to advertise their business where they don’t sell products. Until you can prove your show can draw a good audience, the regional and national sponsors aren’t going to be an option. You might have dreams of going to an Interstate Batteries or Chic Fil A for sponsorship, but they are going to want some ratings and proof of audience before they spend any money. So start local.

Why bother with traditional broadcasting? We know that online viewing and streaming is on the rise. TV viewing is declining. But it’s not dead yet. People still watch 140+ hours of TV per month. How to generate revenue online is a huge topic, and we should be working toward a sustainable model there as well. But in the meantime there is still an audience for your program watching traditional broadcasts.

Success and Failure

IMG_4080I got a box of DVDs in the mail today. It’s one year after they were first released for sale.

I remember that day. My whole family piled into the car and drove down to the local store that was selling them. We rolled into the store and started looking for the shelf. I don’t remember who saw them first, but what great feeling to see something you worked so hard on available for people.

I didn’t know what to expect from the retail release of the DVD. IMG_2597 I knew that we were a show filled with unknown actors, created by an unknown director. But I was hopeful. We had TV exposure and a few hundred fans on social media.

The weekend after the release we had the discs available at the church which helped so much with the production. Most of the cast and crew were from that congregation. And we sold a couple dozen that day. Through my distributor’s contract with Word, I knew we had several dozen in stores across the country. And I knew that friends and family were buying copies. I personally bought one just so I could say I did.

Fast forward 3 months. It’s the end of the first quarter. I get a small check. I had spent more on social media advertising. In the 2nd quarter my distributor loses a partnership, and has multiple copies returned. For the rest of the year the DVD is only available online, from a dozen or so different outlets.

I can’t tell you exactly how many were produced, or how many were sold. But it wasn’t very many. Despite my best efforts, we never landed a major retail placement. There are a lot of new video products coming out every month, and we were buried in the pile. After a year in relationship with our distributor, we decided to part company.

Thank God retail sales are not the only measurement of success or failure!

I actually wrote an ebook about this. I almost titled it “How to create a successful Christian TV series and still not make a living.”

So what makes me say the show was a success when it certainly didn’t do well in retail?

We made the show so people would be impacted by the content. Entertained by a biblically based comedy. The more people who see it the better. Yes, people who buy the DVD would be people who see it, but luckily that wasn’t the only way it could be watched.

All 10 episodes of Peculiar broadcast on multiple religious networks around the world. JCTV (now JUCE), NRB Network, CTN-Lifestyle, and The Walk TV broadcast the show in the US. Plus several individual stations. Internationally it’s on a satellite channel in Africa, and being translated for broadcast in Romania and India.

An episode was shown at the 2013 Gideon Film Festival, and the series won the 2014 NRB Media Award for best Creative TV Programming. And did I mention that we did the whole thing for under $9000, and no one went into debt to make it happen.

Retail has been a failure. But the show has been a success! I’m proud of what we accomplished, and I can’t wait until I can do more projects like it.