Video On Demand (VOD) Distribution
As long as the content owners have all the raw core metadata (materials) required, Hollydan Works Canada will do all the technical work according to various Video on Demand (VOD) outlet requirements.The materials required by the different VOD outlets include 5 different sized poster images. Some require all images to be in JPEG file, while others require only PNG files. All outlets have various Megabyte size restrictions for art. There is no universal size for title art readable at thumbnail size, everyone has their own idea of what the size should be. Most outlets will not accept close-ups of faces, close-up images do not scale well for some outlets, however some do accept close-up images. The required length of long and short synopsis and loglines and taglines all vary by different outlets, and then there is the different digital formats for the actual feature film, TV series or documentary.
The only thing everyone agrees about is that they all want the highest possible quality picture and sound, hence why we recommends feature films, documentaries and TV series episodes to be in (HD) high quality digital video file format – Apple ProRes, 422 HQ QuickTime .mov 1920×1080, 23.98, 24, 25, 29.97 fps typically 100GB in size for a feature film, from this file we can break it down to various different formats retaining the highest possible quality regardless of the format required by the various VOD outlet. Standard Definition (SD) is acceptable too, Apple ProRes 422 HQ, QuickTime .mov 720×480 or 720×486 (NTSC) 720×576 (PAL) 23.98, 24, 25, 29.97 fps and for both HD and SD audio in 16 or 24-Bit depth 8CH (5.1 + Stereo) or 2CH Stereo, 5.1 Surround audio (if available) – L, R, C, LFE, Ls, Rs, 2.0 Stereo – Left Total, Right Total.
ales on certain VOD outlets could be impacted by lesser quality video and audio and in some cases not accepted by the VOD outlet. We relieve the content owners of the time consuming burden of satisfying everyone’s different technical requirements.The most effort you will put into distributing your feature film, documentary or TV series through Hollydan Works Canada is uploading your raw material to us via industry trusted DropBox. Full details of required material provided via email upon your request for submission.
Hollydan Works Canada will make all the submissions on behalf of the content owners and follow up on the submissions as required and then manage their accounts with the various VOD outlets for a fee of 30% of the net profits. We charge no upfront fees for distributing, we also offer an additional layer of marketing free of charge to supplement the various VOD outlets and content owners marketing, giving the content three sources of online marketing. No other distributor markets content that they distribute to VOD outlets. As we do not charge upfront fees to distribute, it is in our joint interest with you that the content sells well, marketing plays a big part in sales.
The content owners always retain all their rights and Hollydan Works Canada does not require exclusivity. We offer certain services that are required for the distribution to worldwide VOD markets, for example, Subtitles and Closed Captions, but you do not have to acquire these services from us and can acquire them from another provider if you wish.The only certain fee is the 30% from the net profits that the content generates.
There are many benefits to choosing Hollydan Works Canada to distribute your content, one of which is thousands of dollars in savings, many of the online premium VOD aggregators charge from $380 to $1,580 and as much as $1,870 per VOD outlet, (per content), these fees could amount in the thousands of dollars if you want to place your content on multiple outlets, with us there are no such fees.
For non-English films, TV series episodes, or documentaries with non-English dialogue, subtitling in English is required as is Closed Captioning for most VOD markets, e.g., Amazon Prime, Fandango Now, Hulu and others including all cable TV VOD which will NOT accept feature films, TV series episodes and documentaries without Closed Captions. Subtitles and Closed Captions are not to be burned into the content. We can provide Subtitles and Closed Captioning of content for significantly less (up to 60% less) than industry standard rates, for more information see our Services Section.
In order to pay you we need the following: PayPal email address, Hollydan Works Canada’s primary method of payment for revenues earned is PayPal, for payments via Bank Wire Transfers, a bank service fee will be charged. All content owners are required to fill out an IRS form W-9 (U.S. residents) or IRS form W-8BEN (non-U.S. residents). We will provide you with the correct forms. Most VOD outlets pay quarterly. Hollydan Works Canada must then consolidate the sales reports from each outlet into a single sales report, showing sales broken down by rentals, purchases, clicks, subscription views percentage, total minutes streamed, etc. We require time (2 to 3 weeks) to consolidate these reports and make payments to content owners.
Content owners receive 70% net of what their Feature Film, Documentary or TV Series generates on VOD. Hollydan Works Canada keeps 30% net. To break it down a little more: Most VOD platforms, e.g. Amazon Prime, Hulu, Fandango Now, Google-Play and others take up to 50% of gross revenue (some take less), they then pass the other 50% (the net revenue) to Hollydan Works Canada. We take 30% of the net, and pay you 70% of the remaining net revenue. For more details regarding sales reports schedules, and the various methods the VOD outlets payouts, download our VOD Distribution Brief.
MINIMUM GUARANTEE (MG)
Hollydan Works Canada may choose to offer some content owners a Minimum Guarantee (MG) for their content. We are the only distributor in the world that may offer an MG for online VOD distribution.
HOW IT WORKS
Hollydan Works Canada will make a VOD sales projection for select content that we deem exceptional and then offer an MG of 50% of the projected annual total minimum net revenue. Should the content not reach or exceed 50% of the projected minimum total revenue minus the revenue already paid out in the four quarters of the first year of distribution, we will then pay the difference of the projected minimum at the end of the first quarter in the second year of distribution.
Hollydan Works Canada does not offer advances on any distribution including distributions with Minimum Guarantees.
Hollydan Works Canada assesses all content using a registered proprietary software developed exclusively for us that ranks content on a 1-100 scale of probable VOD success, based on 15 factors: year of content, technical specs, stars, director, trailer, artwork (posters), run time, press, festivals and awards, social media, website, etc. Our ranking system has consistently been over 70% accurate in assessing content’s VOD sales potential. We pass to you the rank and report generated (free of charge) so that you may have an idea on how well your content may do in VOD sales. This is the system from which we define exceptional content that qualifies for Hollydan Works Canada’s MG offer. Content must score a minimum of 85% to qualify for an MG and over 40% to qualify for distribution. Content that scores less than 40% we will not be considered for distribution.
NON-U.S. CONTENT & RIGHTS HOLDERS:
Claiming tax treaty benefits to avoid U.S. 30% withholding tax.
SUMMARY: this is a simple overview of how U.S. tax law affects payment of your film’s royalties. This is not intended as tax advice and you should seek more specific advice from a tax advisor in your country.
If you are a content owner with a film generating revenue via U.S. video-on-demand (VOD) outlets, and you are domiciled (living) outside of the United States, the royalties’ revenue is subject to U.S. withholding tax of 30%.
The United States has tax treaties with most countries that allow content owners who are domiciled (living) outside of the U.S. to reduce or (generally) avoid the withholding tax of 30%.
YOU HAVE TWO OPTIONS
In which case Hollydan Works Canada is legally obligated to withhold 30% of the film’s royalties as U.S. tax and to pay this to the U.S. Internal Revenue Service (IRS.) This may make sense if your film is not generating large royalty revenues, since the money you lose to the IRS may not be worth the trouble of filing U.S. taxes.