2.    Living outside L.A. is ok

3.    Pitching your story without you (your ‘why’) is a losing deal

4.    Perfecting your craft is half right

5.    Query after the call, not before

6.    Asking producers to read your script (or casting directors to watch your reel) can wait

7.    Followup is your opportunity, not someone else’s job

8.    The smaller your Call to Action, the bigger your result

9.    Ask for the assistant, not their boss

10.    Advice before Favors, Relationships before Results

Follow my top 10 and kiss rejection goodbye… why ?

Because most everything you’ve been taught about success in Hollywood is wrong.

The writers’ strike of 1988 shut down the entire business for almost a year. One day, J.F. came to my office. I think I surprised him when, out of the blue, I said “You’ve nothing to do and I want to make a film”.

I asked him to choose a script from the many he’d written, the one that we could shoot in Los Angeles, on a shoestring budget, that he’d most want to direct.

I’d never raised money for film production, but it never occurred to me it would be a problem or challenge. So I began dialing the phone and taking meetings. Within weeks, I’d raised Two Hundred Thousand Dollars. And off we went to make our first film ever – Cannibal Women in the Avocado Jungle of Death.

It was a comedy of errors, guerrilla filmmaking at its finest. Neither of us had an inkling what we were doing. We had barely four weeks until he and I were due to be at the Sundance Institute’s production lab. We thought about waiting to make the film til we returned from Utah.

But ignorance is bliss. We’d no idea four weeks was not enough time to properly prep, produce, post-produce and deliver a feature length film. So we chose to make the film before we left town.

We plotted two weeks for pre-production, eleven days of photography (with one day off in the middle) and a few days to edit and post the film. Seemed sensible at the time.

I converted my offices to production offices. One week into our two week prep period, J.F. and I were the only two people there, each wearing way too many hats. I was the film’s creative producer, line producer, casting director, assistant director, and more. J.F. was acting as writer, director, editor, location scout and more.

So one night around midnight, we called all our friends. We told them to tell everyone they knew to show up the next day. Our seat-of-the-pants plan was to hire ‘on the spot’, and instantly fill each and every production job (script supervisor, cinematographer, line producer, and some 30-odd other positions).

Without knowing these people, we simply eyeballed them. J.F. and I had a very scientific approach and a subtle way of communicating. If someone was well-dressed, we’d point and nod and they were instantly our head of wardrobe. If someone had ever held a camera or shot a documentary, they were our cinematographer.

Within hours, we were “crewed up”. We crammed thirty plus people into a couple of offices and, crawling all over each other with one week left, ignorant of what we didn’t know, we forged ahead and started shooting on the appointed day.

I seem to recall we made more than 25 company moves (changes of location) in eleven days that took us from Riverside, to Malibu and Hollywood. It was barely controlled insanity. The poor actors and crew – we barely paid them enough to fill their gas tanks.

With only a handful of days left, the editing was ‘almost’ completed before the financier grabbed the film away and declared it ‘finished’. J.F. and I jumped on a plane to Sundance’s production lab on another project (later to become Pretty Woman).

While it was a matter of the blind leading the blind, we completed the film with what little time and money was available – and had a riotous good time. A feminist spoof of Heart of Darkness, the film is absurdly funny, made money, and ran on cable tv for fifteen years. And that is how we got into the business of making films.

I’d developed a rather romantic notion about criminal defense. It echoed the reformist ethic of my upbringing. It felt consistent with the ‘values’ of my colorful Haight-Ashbury past. So I made a choice. Off to law school I went.

So I began my career in law, only to quickly discover my temperament and being a criminal defense attorney were a very bad match. Oil and water. So I fled.

I realized the one other thing I often fantasized about was the world of writers and writing. So I ran away to the circus – Los Angeles in the 80s appeared rather like a circus to my naïve eye – hoping to become the Maxwell Perkins of the screenwriting trade.

Maxwell E. Perkins was the single most influential book editor of the 20th century. He single-handedly discovered many of the most prominent American writers of the first half of the last century. During his tenure at Charles Scribner’s Sons, Perkins discovered and nurtured the likes of F. Scott Fitzgerald, Ernest Hemingway, Thomas Wolfe, Ring Lardner, Ezra Pound and James Jones. “Editor to Author: The Letters of Maxwell E. Perkins” is a brilliant book, filled withg correspondence between Maxwell Perkins and his many authors.

I too wanted to discover great writing talent. I could envision myself nurturing their creativity, championing them to the world and building their careers. I imagined helping many excellent films to get produced along the way. I had a picture in my head, imagined being inspired by a tantalizing collection of creative minds, enjoying a seat at a latter day ‘Algonquin Round Table’.

I was sorely surprised to find it would not be so easy, not nearly so romantic an undertaking.

When I arrived, I knew virtually nothing of “the business” [the entertainment industry] and proceeded to interview with quite a few places, primarily studios. I couldn’t come close to getting a job. I knew no one and knew nothing about the business. They looked at me as if I was a stranger in a strange land. And it felt strange and foreign.

So I naively thought “oh well, I’ll just start my own company.” ‘Management’ was a relatively new and unregulated area, so I immediately started a literary management company. I focused on writers and writer-directors, because writing and storytelling were my first loves. The first few years were lean, to say the least.

I’d long been enamored of both contemporary and classic films. I knew it was the calibre of the writing that separated out those that made a lasting impression on me.

Though impossible to list all that top my list of ‘great’ films, Graham Greene’s “The Third Man” would be near the top of the list. The creative prowess underpinning the unfolding mystery and relationship between Joseph Cotton’s ‘Holly Martins’ and Orson Welles ‘Harry Lime’ remains to this day a perfect fascination. This is the sort of magic that inspired me to want to discover and champion young film writers.

As much as I admired the work and contributions of directors, actors, producers and others, it is the writer who inhabits the cradle of creation. The process of writing is arduous, mysterious, challenging and inspiring to me.

I managed writers for better than ten years, the first six years just managing, and the last four or more years producing on the side. My initial foray into producing included some fun, if not well-known, small-budget independent films (Cannibal Women in the Avocado Jungle of Death, Pizza Man, a CBS movie-of-the-week Victim of Love, among others). My experience with writers, and my desire to collaborate ever more closely, led me to choose producing as a full-time pursuit.

My admiration for writers and the years spent fighting battles on their behalf, giving story notes, making deals and learning how to be their best advocate afforded me the single greatest preparation to be an effective producer… and to develop career strategies that deliver consistent and measurable results.

I’m excited to continue collaborating with writers, developing more exciting films together. The surprise of discovering another brilliant story, another inspired writer, is its own reward.

I’ll be eternally grateful to the many creative and talented writers who’ve entrusted me – as their manager or as their producer – with their work and their careers. I’m certain they’ve taught me far more than I taught them.

I found Julia Roberts by attending a pre-release screening of “Mystic Pizza”. By merely accepting an invitation from the producers of that indie film, I struck gold and they were kind enough to introduce me to Julia and her agent. Not long after, she’d attached to ‘Pretty Woman’, then titled ‘3000’. Not yet a household name, but my instincts nonetheless screamed this actress was destined to be ‘Vivian’ – the lead in our film.

I’d sold ‘Under Siege’ as a script to New Regency who, at the time, had a deal at Warner Bros. Knowing the studio had just signed a deal with a then up-and-coming Steven Seagal (after his success with smaller films like ‘Hard to Kill’ and ‘Above the Law’ etc), I encouraged everyone to get the script into his hands as his first project with the studio. And it worked. Sometimes an actor responds well, other times you have to be persistent beyond reason.

Richard Gere loved the storyline and lead role in ‘The Mothman Prophecies’, and tracked the project for months even reading various drafts as we were developing it. Securing Richard as our lead in ‘Pretty Woman’ was quite a different experience.

Richard Gere had turned down the role of ‘Edward’ in ‘Pretty Woman’ on multiple occasions. Ed Limato, Richard’s agent for many years, responded enthusiastically to the project. Despite his support, Richard first declined the project when I’d originally optioned it to Vestrong, and again later when I’d moved the project from Vestron and set it up at New Regency.

After I’d submitted and ultimately sold the script to Touchstone (Disney), and now had a major studio and director on board, I was able to convince the studio executives (along with the film’s director, Garry Marshall) that Richard Gere was the absolute best choice for the male lead role and to make him an irresistable offer. And the rest, as they say, is history.

The lesson learned is simple: trust your instincts and then just become single-focused in your determination and advocacy and pursuit.

Instead, I ended up representing the indigent adults in San Francisco’s largest ghetto, an extraordinary community, although my clients were far from politicos. But not before being rejected outright from law school, a seeming failure I had to overcome and a harbinger of what awaited me in LA (yes, every single film is a failure many times over before it becomes a success… more on that another time).

I quickly realized the harsh day-to-day reality of legal defense was not well-suited to my temperament, so I ran away to Los Angeles just as I was entering my 30s, to the fantasy world of storytelling and film. Norman Mailer had described filmmaking as “a combination circus, military campaign, nightmare, orgy and a high” and that sounded right up my alley.

So I arrived, knowing nothing and nobody, proceeded to rent offices and launch a literary management firm, with zero clients. I went to every screening, gathering, party, joined every organization I could find. And played tennis. Turns out that was my best strategy. In the middle of the afternoon, LA’s tennis courts were filled with writers. Who else would be playing at that hour ?

Ignorance does turn out to be bliss, so long as it’s accompanied by a very stubborn streak and a daily regimen of persistence.

As soon as the strike hit, I approached one of my screenwriting clients (J.F. Lawton, who wrote “Pretty Woman” among other amazing scripts) and told him it was time for him to direct his first ‘low budget’ indie film. I asked him to pick a script from his ‘stack’ at home, one that could be produced cheaper than cheap, and off I went to raise money.

Empire Pictures – a B minus minus company that went out of business several years later – offered $200,000 to finance our project “Cannibal Women in the Avocado Jungle of Death”. I grabbed at the opportunity.

With that money in hand, J.F. directed and I produced our first ultra-low budget film with Bill Maher, Shannon Tweed (the only film where the producer – me – insisted she keep all her clothes on !), and Adrienne Barbeau. Two weeks of prep, eleven days of photography, and a couple of weeks of post-production and… voila ! We had our first film. It was guerilla filmmaking meets the keystone cops, but we learned more from that little film than I could ever have imagined. And I got the bug for producing. Humble beginnings…

You’re standing on stage holding a shiny gold statuette.

You begin your “thank you” speech.

Who are you thanking ?

Who are the people who helped you get up on that stage ?

You can’t possibly thank them all, but there’s an after-party and they will all be there. You’ll embrace each one, thank them personally. Without them, this special night would never have happened. Who are they ? Your TOP 100 is a list of those very people who will play a seminal role in your success in the future. Your future begins as soon as you make them a part of your present.

In any other industry, your ‘Top 100 List’ (aka your ‘Dream 100 List’) might be called your ‘best buyer’ or ‘best ally’ strategy. You want to be clear on your criteria for putting someone on your TOP 100 list, because these are the people you will focus on and succeed in making a part of your professional circle and conversation.

There’s a precise system for researching and identifying, then segregating into your ‘A’ list and your ‘B’ list, those who belong on the Top 100 list for you and your project, but I’ll leave that for another discussion.

Your list will grow to include a smart and diverse mix of talents to suit your long-term goals. If you’re a screenwriter or filmmaker, for example, your Top 100 would strategically list a cross-section of agents, producers, managers, studio executives, casting directors, sales agents, creative executives at independent companies, financing connections, line producer (to prep your film’s budget), and so on. Logic dictates you’ll not have an equal number from each category on your list, focusing on greater numbers of producers than sales agents, and more agents than casting directors, and so on.

Once you’ve decided to add a name to your Top 100 list, research or google them for articles, press releases, life details such as where they went to school, clients they represent, past jobs or projects or companies, as well as people with whom they’ve been associated. Keep track of whatever information you unearth by entering that as well into your database. Every time you make contact, even if a simple phone call to get the correct spelling of their name, is yet a further opportunity to learn more about this person.

Fundamentally, this is a campaign to win the attention of and rapport with people you deem truly relevant or important. It’s not about one phone call or one letter. In fact, consider a letter simply a means by which you soften them up to your next call. Life is a process, not an event, so be consistent and, when you do break through the clutter, treat them like they are special, because they are.

Be prepared. It will require pig-headed determination and discipline over time – moreso for some connections to be made than for others. Refuse to give up after a first or even a second rejection. That’s merely your cue to become more determined, albeit never wavering from a thoughtful, professional and charming demeanor.

How important could your project or conversation be if you were to give up after one or two rejections ? I’ve hired people in the past simply because they were relentless and wouldn’t go away. Everyone respects persistence in the face of resistance. Only those who behave inappropriately ever become labelled a ‘stalker’. So be consistently persistent, and just avoid any approach or behavior that could be perceived as crossing the line into stalker-dom.

Gary’s expertise and enthusiasm ranges from philanthropy, to being a speaker, author and consultant, and as a ‘go to’ person for the Hollywood A list.

Film Industry Network brings you an insight into Gary’s successful mindset.

IN CONVERSATION WITH GARY GOLDSTEIN

How did you get your first feature made?

Every problem or obstacle is merely an opportunity in disguise, and that was certainly true when the WGA (Writers Guild of America) went on strike in 1988.  That strike lasted the better part of a year, inflicted grievous harm – economic and otherwise – not only on the Hollywood production communities of film and television, but on the economies of Los Angeles and California.

During that time, most everyone was in the grip of fear, not able to work, not able to generate income or move their projects forward.  No one was buying, the studios and networks simply shut down all production.

I saw an opportunity to shift gears and produce a low-budget ‘indie’ film.  At the time, I had my own literary management company representing writers and directors.  So I called one of my writer clients and asked him if he wanted to direct his first film.  We dusted off an older low-budget script of his, I went out and raised enough to cover a very modest budget (approximately $200k) and I became the film’s producer.

We prepped, cast, crewed, shot and post-produced that film in exactly four weeks.  We had an internal deadline, because that client, J.F. Lawton – a complete unknown at the time – and I were accepted to Sundance’s ‘production lab’ with a script then-titled “3000”.  That script later got produced and released as “Pretty Woman”.

So the moral of the story is simple.  Take action, do your passion, believe in yourself and what’s possible.  That little ‘indie’ – “Cannibal Women in the Avocado Jungle of Death” jump-started my producing career and I’ve never looked back.  Today, with all the technology and options available to us, anyone can make a short or feature film if they’re truly committed.

What do you believe is the most important asset to have in order to be successful?

Relationships.  Period.

Yes, persistence and pig-headedness are critical.  Taking consistent persistent daily action is imperative.  And all that must in large measure be focused on the goal of creating rapport and relationship with your “Top 100” list… the people you want to thank some day when you’re standing on stage, accepting an award, and acknowledging all those without whom you wouldn’t be standing there.

Who are the people – across all the landscape of film or tv – you need to strategically target and get into relationship with, to set you apart and set you up for an enduring success ?  To create a career, and not be at the whim and mercy of circumstance  and prayer ?

Agents, managers, producers, script consultants, executives, directors, attorneys – all form and manner of life forms in the eco-system of Hollywood – that will increasingly make up your network and your team.

I’ve a simple theory that 100 significant relationships across these diverse populations are all one needs to create a meaningful career and business.  Set aside 30 minutes every day – and this is gospel – for your research, goal-setting (not destinations, but action steps), your step-by-step marketing plan, for reaching out to people via email and phone.

Who are they ?  How do you approach them ?  How do you build in a specific yet easily achievable ‘call to action’ and ‘followup’ into every initial conversation ?  These and other precise, very ‘do-able’ strategies are the exact things that separate

out those who are committed to success, and who ultimately succeed.

These, along with a myriad of concrete strategies – the very ones I’ve used to build careers for my former clients, as well as to build my own career, are the stuff of my courses, mastermind group, teleseminar – all the mentoring I do.

Why ?  Because I believe those with talent need to un-learn old mindsets and behaviors – the ones we’ve all been ‘taught’ – and get on the path to their success.  Stop believing it’s just about your script or project, or that it’s simply a matter of getting an agent.  It’s about you, and the relationships you can create – intiating a minimum of one per week.  You’re the ‘value add’, the reason people will hire you, option you, finance you, produce you.  Know how to do this effectively and it becomes a natural, comfortable habit.  In as little as 6 to 12 months, you’ll have created a real, exciting, viable foundation for a far bigger future and career.

What does it take to get your foot in the door as a screenwriter?

A stubborn streak, intelligent marketing habits, an action plan that is clear, specific and measurable.  I’ll mention one very specific item in a long list of strategies and that’s to befriend the gatekeepers – the ‘assistants’ in film and television, at studios and agencies, at management and production companies.

When you understand their mindset, how to effectively communicate with them, what not to do or say, what specific types of advice, tasks, favors, actions you can ask at the outset (enabling you to nurture your rapport and grow a ‘relationship’), you’ll have mastered a key strategy that will massively reduce frustration and cut years off your ‘success curve’.

The assistants are a culture unto themselves, and knowing how to work that system will pay dividends far beyond the individual on the other end of your phone line.

How did you build your network of contacts?

Relentless networking to zero in on those worthy of the time and effort needed to build meaningful relationships.  Wherever I went – film festivals, the local coffee shop, the gym – I would engage people in conversation.  It’s amazing what you discover – the unexpected relationships others enjoy, and their natural willingness to help – if you approach people openly and authentically.

Another key is, at all costs, to avoid asking a favor.  Instead, seek advice.

There’s no quicker way to learn, to honor another, to make people actively want to help you than to respect their knowledge and experience, subconsciously or consciously placing them in the role of mentor.

And yes, mentors are a non-negotiable mandate.  Get thee a mentor.  Better yet, identify various mentors with different expertise.  When I recognized the void, my lack of mentors, I course-corrected and it’s made all the difference.  I have enjoyed and will for the rest of my life have mentors.

Similarly,  join or create masterminds.  Surround yourself with committed, smart people – hopefully those who’ve ‘been through it’ and are more successful – and make them a part of your inner circle, your feedback loop, your trusted advisors.

Today, social media has opened the door wide.  So much can be done faster, smarter, more effectively (beginning) online.  Take advantage, put your message and goals out for others to see, join groups, get known.

What kind of projects are you working on at the moment?

I’m in the midst of several projects, all in various states of readiness.

I’m just completing a capital raise for an ‘indie’ that we’ll shoot on high-definition for a mid-six figure budget.  We’ve an innovative distribution model and I’m as excited about this little film as any I’ve been involved with in the past.  The opportunity for quality storytelling has never been greater, but the need to be brilliant – to stand out from the crowd – has likewise never been more essential.

Technology is shifting, opening up significant opportunities.  How we finance, produce and distribute films is also changing rapidly.  Likewise, more talent is available to work on smart, independent projects than ever before.

This particular film – which I’ll produce with an extraordinary partner  – is a story set in the midst of one of the most powerfully positive youth movements to come along in modern time… and has exquisite music and dance elements to boot.  Beyond that, you’ll have to wait and see !  Mum’s the word.

Where have we come from, where are we today, where will we likely be in one year and beyond ?

The event producers – Variety and DigitalMediaWire – brought together a ‘who’s who’ of the film industry as speakers and panelists.  The dais boasted a steady stream of thought leaders and success stories in Hollywood.  Rick Nicita, Bill Block, Michael London, Paula Wagner, Ashok Amritraj and Oren Peli (writer/director of “Paranormal Activity”) were among the many luminaries..

The sessions ran the gamut, from the technological revolution now convulsing the entertainment industry (who will be the winners and who will be the losers), ‘game changers’ (how new Hollywood players are changing the business as we know it), new finance models, the next wave of mobile film and video entertainment, how international markets are shifting the business, as well as a dealmakers’ roundtable.

A few ‘notes’ from the day…

• Producers, writers, studios – all of us – are the agents of our audience.

• ‘Write movies, not scripts’ (a quote from Paula Wagner).

• Our business model needs to increasingly shift – working together ‘on spec’;
we can no longer be process-oriented, but must create consensus from the outset
and adopt a success or result-oriented philosophy; writers, directors,
talent and producers must collaborate from the inception, and be willing to
reduce fees and contain budgets, and participate in successful outcomes.
“It’s better for the industry if we are all talking to each other early and more
often” – David White (Nat’l Exec Director, SAG).  Paula Wagner admonishes
“this is not the time to come into the film business to get rich”.

• Conversations are not always easy or speedy, but agencies and talent are slowly
embracing the future reality and culture where full-fee cash offers are not the
order of the day;  they too are ‘in the mix’ and, albeit reluctantly, are selectively
beginning to ‘partner’ up on projects.

• Budgets are an organic part of a film.  Candidly assess a film’s ‘value’ in the
marketplace, rather than simply budget the line-item or cost-based need of a
project.  That determines what number of dollars can be spent on production and
marketing – if the film can reasonably be projected to do X revenues, then you
can responsibly factor half X for your negative and marketing budget. The
conversation or rationale should no longer be “we’ve a small budget and can’t
afford X talent”, but rather a given film has a projectable value and all must
participate fairly and proportionately in a smaller pie.  On the subject of paying
talent, QED’s Bill Block says “We need to reward today’s performance, not
yesterday’s, and have a transparent backend.”  If creatives are to get paid from
successful results, accounting needs to detoxify.  Real costs have been artificial
for some time.

• Marquee talent is no longer the sine qua non for a film to get produced, or to
enjoy a successful experience at the box office;  films without big stars (or at least
the traditional high-ticket male star) suggest overwhelming and discerning
audience appetite for quality, whatever the genre or budget.  Witness: District 9,
Paranormal Activity, The Blind Side, and Precious.

• It’s no longer viable to allow the major studios to finance and own films.
A culture seems to be emerging that increasingly encourages all to see
themselves and behave as ‘partners’ in our projects.

• In recent time, the biggest problem in film finance has not been the credit
crunch, but the utter lack of domestic distribution for non-blockbusters, all of
which looks to be shifting with new indie models and companies coming on line.

• Brands will continue to marry, blend and interact in new ways with filmed
entertainment projects.  Imagine print and ad funds (last monies in, first monies
out) sourced from an established brand to underwrite your film’s marketing
budget.  There are more robust, innovative approaches to brands beyond
traditional product placement.

• Paula Wagner observed: “Those who figure out the monetization of new media
will be our next stars”.  Another interesting comment: “We have led technology
and we have been led by technology”.

• Search, recommendation and social media are the new opportunities for the
future of film.

• In 2010, independent filmmakers will find viable new audience and new
modes of distribution online, per Sibyl Goldman (VP Entertainment, Yahoo!
Entertainment).

• We are an ‘on demand’ generation, and we’ll soon see ‘day and date’ worldwide
releases become the norm, with video-on-demand and other distribution
channels opening the same day as a film’s theatrical release.  Jay Cohen (Head of
Film Finaning & Packaging Division at The Gersh Agency) agrees day-and-date
will be more prominent on the independent side. A primary benefit and
motivator is maximizing marketing spend (Mark Horak, President, Warner Home
Video). Sandra Aistars (Ass’t Gen’l Counsel for Intellectual Property, Time Warner
Inc.) agrees VOD will only continue to grow in the coming year.  Fox’s VOD
revenues are up over 100%.

• Ed Leonard (CTO, Dreamworks Animation) says “3D and holograms are not sci-
fi, they’re reality now, and will change entertainment experiences forever”. He
talked in terms of “removing the middle between technology and art”.
Sandra Aistar also believes we’ll see a real market for 3D in 2010.  Most agree
3D is a game changer and will reinvent the film experience.

• Those with compelling and universal concepts and stories, and a true ‘wild west’
indie filmmaker attitude, will fare better.

• Content will find its own level of distribution.  It’s not about your budget, it’s
about the quality of your story.  Oren Peli (writer-director of “Paranormal
Activity”) admitted going ‘over budget’ – his film cost $15,000 (the initial budget
was $10,000) !

• A host of new independent distribution companies with forward-thinking models
are beginning to come online and will increasingly dot the landscape within the
coming year, a harbinger of a new  and healthier day for what has been, in recent
years, an independent cinema in decline.

• Foreign film investment will increase in the coming year, according to Lindsay
Conner (Partner, Entertainment & Media, at Manatt, Phelps & Phillips).

• As the studios produce fewer films annually, the ‘middle’ has dropped out of the
market (films in the $20-50M range), yet new technologies, financing models,
and distribution companies and models are re-defining what is possible in the
independent arena.

• The consensus: one year from today, the independent (not necessarily low-
budget, but non-studio) film landscape will look far more robust, with more
funding sources, distribution companies and methods enabling quality
productions.

Future of Film Summit

http://www.lafilmconference.com/

Click on images to enlarge.

Besides producer Peter Jackson and director Neill Blomkamp, the biggest beneficiary has been Bill Block’s QED Intl which was given first shot to finance foreign pre-sales. Block had to commit to fully financing the movie even before the American Film Market got underway. What a risk — because there was no star, no budget, no script. Only Peter Jackson’s name, which meant a lot in the marketplace. That enabled Block to organize the funding from Comerica back in 2007, well before the financial crsis. “I wonder if in the current climate those institutions wuld have stepped up,” one of my insiders questioned. “On the other hand, every time something like this happens, it makes indieprods more attractive to institutional financiers.”

Sony’s Peter Schlessel acquired the pic from QED at AFM for domestic, UK, Australia, New Zealand, South Africa, Russia, Italy, Latin America, Korea, Hong Kong, China, and some other territories. Sony paid a $25M advance so the studio shares in the film’s profits. Also involved is Metropolitan Films, which has France. MGM acquired Spain, Germany, Benelux and Japan. But distributing for MGM is Sony in Spain, Germany and Benelux, and Warners for MGM in Japan. All the backend is shared with the partnership of QED, Jackson and Blomkamp. ”The good news is everybody in this wins,” an insider tells me. “It’s just one of these great stories where the movie came out of nowhere and has performed globally.”

The secret of the indie’s success, like Paranormal Activity, was that it was made outside the studio system and marketed outside the studio formula. The edgy and original content, the South African cast instead of Will or Adam or Brad, were thought to be integral aspects which the majors would have rejected during their own development process. ”Audiences are driving the agenda and deciding for themselves what they want to see through Twitter and social networking sites,” one insider explained to me. When District 9 was screened at Comicon, American Idol’s Jordan Sparks alerted 220,000 followers how good the pic was. That’s when the pic exploded in popularity. By the time it opened on a Friday, it was the #1 most tweeted topic. That followed the studio’s viral marketing campaign which for a year bore no Sony/Tri-Star logo on purpose so the pic wouldn’t have a big studio’s PR machine feel to it. (Thus, making audiences feel like they had organically discovered it.)

Meanwhile, here’s how the pic went down: Neill Blomkamp was supposed to be Peter Jackson’s helmer on Halo, which went down in flames. But Peter and his partner Fran Walsh kept Neill in New Zealand to develop his short film, Alive In Joburg. Jackson then turned it into a hard-cover faux graphic novel. That book went to Peter’s longtime manager Ken Kamins to arrange financing and set it up as a film. Ken made the decision to go indie, and hooked up with his former colleague Bill Block. That November 2007 at AFM, other studios kicked the tires but didn’t buy. Finally Sony picked up the domestic through Tri-Star.

By NIKKI FINKE