This article is a sequel to my report, “Welcome to the New World of Distribution,” which was published exactly a year ago in indieWIRE. Since the report appeared, the Old World of Distribution has continued to decline. The vast majority of filmmakers making Old World deals (in which they give all of their distribution rights to one company for up to 25 years) are ending up dissatisfied, including producers and directors who had previously succeeded in the Old World. Many of them have told me that the traditional distribution system is broken and that they are determined to find a new approach.

Meanwhile it has been a banner year in the New World. Hybrid distribution has come into its own with such successes as “Valentino: The Last Emperor” and “Anvil! The Story of Anvil,” both of which hired service deal companies to handle their theatrical distribution. Working with Abramorama, ANVIL has grossed over $675,000 in U.S. theaters. Through Truly Indie and Vitagraph Films, “Valentino” grossed more than $1,755,000 theatrically. In addition to consulting on “Valentino,” I also consulted on a number of other films that successfully combined theatrical service deals and semi-theatrical runs, including “The Singing Revolution” (Abramorama), “Pray the Devil Back to Hell” (theatrical: Balcony Releasing; semi-theatrical: Film Sprout), “Note by Note” (Argot Pictures) and “Throw Down Your Heart” (Argot Pictures).

I coined the term “hybrid distribution” in 2005 to describe the innovative model I had been developing for several years alongside a handful of pioneering independents. Inspired by the example of “Reversal” (which Jimi Petulla sold so lucratively from his website), I helped design the strategy for one of the first hybrid breakthroughs—Mark Neale’s documentary “Faster.” Since then I’ve worked with hundreds of filmmakers to develop and implement hybrid strategies. Each film I’ve consulted on—from features such as “Ballast” and “Good Dick” to documentaries like “King Corn” and “The Future of Food”—has helped me refine the hybrid distribution model.

As this model has been used more widely, the meaning of the term “hybrid distribution” has become less precise. When Thom Powers asked me to give a presentation at the 2009 Toronto Film Festival, I took the opportunity to define the core principles of hybrid distribution. My goal was to break the concept into essential components that filmmakers can use to create customized distribution strategies. This article expands on my Toronto presentation.

Let’s start with a definition. Hybrid distribution combines direct sales by filmmakers with distribution by third parties (e.g. DVD distributors, TV channels, VOD companies, educational distributors). In the Old World of Distribution, Plan A was to give all your distribution rights to one company and Plan B was self-distribution. In the New World, Plan A is doing your own direct sales while splitting up the other rights; Plan B is making an all-rights deal with one company.

Today many filmmakers are as determined to retain “distribution control” as they are to maintain “creative control.” Distribution control is the power to determine the overall structure and sequence of distribution, select distribution partners, and divide up distribution rights. While single source production financing usually means the loss of some measure of creative control, single source distribution through an all-rights deal always means the loss of distribution control.

A hybrid approach enables filmmakers to choose partners with the resources and expertise to maximize distribution in different channels while allowing filmmakers themselves to do what they do best—reach core audiences directly.