When we asked Mark Padilla, President of Worldwide Sales and Acquisitions at Jackrabbit Media how the media industry had changed in 2024, his answer surprised us: it hadn’t - but it needs to.
His point: 2024 has largely maintained a challenging status quo for distributors, especially independents. Yet this current landscape is the product of a tumultuous decade. Over the last ten years, major shifts in audience preferences, distribution channels, and world economies have reshaped the industry. From the pandemic to Hollywood strikes and this week’s devastating wildfires in Los Angeles, these events have left lasting marks on the global media landscape. Alongside Kaleidoscope Film Distribution's Director of Sales, Daniel Cooper, and Molten Cloud CEO, Arjun Mendhi, we discussed the impact of these events in a recent webinar.
If there’s one thing distributors have had to do in recent years, it’s adapt. DVDs, once a cornerstone of revenue for independent distributors, are now nearly obsolete. Similarly, the theatrical model has significantly diminished, with even major studio films moving to streaming platforms faster than ever, sometimes overlapping with their theatrical releases.
Adding to these challenges, SVOD (subscription-based video-on-demand) platforms like Netflix, which once provided substantial opportunities for independent filmmakers, now prioritize in-house productions, squeezing out independent content in the process.
This leaves one critical question: where is the money? For independent distributors, the narrowing opportunities and shifting dynamics of the industry present a daunting challenge - but sales leaders like Daniel and Mark have strategies
As markets contract, finding reliable revenue streams has become the million-dollar question. Traditional pre-sales and upfront payments are no longer guaranteed, making it harder to finance independent productions.
Mark from Jackrabbit Media described the situation succinctly: “First, the collapse of physical goods like DVDs obliterated a massive profit center. Now, with SVOD focusing on in-house productions, even fewer doors are open for independent content.”
Distributors are now turning to alternative models like AVOD (advertising-based video-on-demand) and FAST (free ad-supported streaming TV). While these platforms are growing, they come with challenges. “AVOD revenue isn’t upfront—it’s collected over time,” Mark explained, underscoring the difficulty in using these models to fund new projects.
Despite these hurdles, there are still opportunities for those willing to innovate and adapt their strategies.
Understanding audience preferences is key to navigating the evolving distribution landscape. Today’s viewers are more sophisticated than ever, demanding high-quality, engaging content. Genres like elevated horror, smart thrillers, and family-friendly live-action films have gained traction due to their ability to capture niche audiences.
“High-concept, niche content is what gets attention,” said Daniel Cooper “Audiences are drawn to unique stories and genres that stand out from the mainstream.”
Content strategy must also adapt to changing consumption patterns. With so many platforms competing for attention, distributors need to ensure their titles are not only high-quality but also strategically marketed to reach the right audience at the right time.
Platforms like AVOD and FAST offer potential for monetization, but they also require strategic navigation. These models thrive on ad revenue, which grows over time as content gains traction.
However, this presents unique challenges. “AVOD is a long game,” Mark noted. “It’s about getting your content out there and letting it build over time.” Success on these platforms requires operational efficiency, from delivering content quickly to managing royalties and avails seamlessly.
The importance of technology cannot be overstated. For distributors, tools like Molten Cloud enable seamless delivery, real-time rights management, and automated royalties, making it easier to adapt to these complex platforms.
Adaptability is the cornerstone of success in today’s distribution landscape. With audience preferences evolving and platforms multiplying, distributors must be able to pivot quickly.
Operational efficiency is critical to this agility. By leveraging technology like Molten Cloud, distributors can streamline processes, reduce manual workloads, and focus on strategy.
Molten Cloud’s end-to-end workflow solutions allow distributors to:
As Daniel put it, “Streamlining operations allows us to focus on building relationships and crafting smarter strategies.” Mark shares a similar sentiment, explaining how Molten Cloud allows Jackrabbit Media to move quickly not only in terms of streamlining sales, but also in delivering their content.
Looking ahead to 2025, several trends are likely to shape the industry:
The distribution landscape in 2024 highlighted both the challenges and opportunities facing the media industry. While AVOD and FAST platforms continue to grow as viable options, their long-term sustainability and profitability are still in question due to fragmented revenue streams and reliance on audience growth. Daniel emphasized the need for diversification across channels: “Everything can be available pretty much everywhere at the same time, for a certain level of film... The important thing is the diversification of it.”
The real opportunity lies in spreading risk by embracing multiple distribution avenues, from ad-supported models to self-distribution and direct-to-platform strategies. This approach allows independent distributors to remain agile in an increasingly fragmented and volatile market. By utilizing tools like Molten Cloud, distributors can streamline operations, reduce delivery costs, and scale efficiently, opening the door to wider experimentation and access to global audiences.
Ready to transform your distribution strategy? Discover how Molten Cloud can streamline your operations and future-proof your business. Learn More
