If the film ends up playing few festivals and getting no interest, I plan not to try to put the film on VOD, but try a freemium model of distribution. The film "The Tunnel" is a good and successful example of this, as they mounted an aggressive online campaign to all the big horror websites and offered the film on their website for free download. Not just any download, but an HD version that could play off a flash-drive on any bluray player.
On getting viewers, the film was a massive success, with 3 million downloads off the website alone. They used a download website called VODO to handle the traffic and allow people to legally torrent the film. ( http://www.thetunnelmovie.net/seeit ) But how did the film do financially? For starters, that was never the ambition, to make a lot of money. It was to establish a brand and get the filmmakers' names out there. Fortunately for them, though, they did make money back through theatrical and cable deals, though the specific amounts are undisclosed. It couldn't have been too bad, as the filmmakers are shooting the sequel soon.
For INTERIOR, I believe this is the route to go. In an ever saturated market (the low budget horror film), films have to stand out, and having a binaural version for free online is an offer you just can't refuse. My plan is to offer the theatrical version as a BluRay and give the Binaural version away for free. I am quite skilled at created menu structures and covers for discs (I did the last 3 Five Stories myself.) It is all a question of getting them printed, which there are several local businesses in town that would do this. That route could cost up to $3000 for 1000 discs. What I could also do is buy my own duplicater/burner/printer for under $2000 and manufacture the discs myself. Sure, the ink costs may be high, but that would mean we are selling too many, a good problem to have.
I don't expect to make money off this film, I expect to get my name out there in some way. I want to keep this film as independent as possible, and that includes controlling all facets of distribution and duplication, until enough word of mouth spreads and other companies want the film. Or if I sell it. If I sell it, please disregard all of the above...
Doing the legal torrent thing is a pretty interesting idea. Do you know if there are any other films that have been successful at this, or any films that have tried this and not made a dent? Horror does seem an ideal genre for this strategy, as its fans are more of a community maybe than other genre fans.
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