Two Channels, One Film, Better Revenue Streams

The Movies Revolutionized

Two Channels, One Film, Better Revenue Streams

In the past I have talked about how YouTube is one of the greatest resources for indie filmmakers to gain audiences, earn revenue, and to build their own small indie studio. From strategies on how to release your film on YouTube to building an audience and growing your filmmaking career with YouTube.

Today’s article came about because of a great conversation with the Director Christopher McGuinness (follow him on LinkedIn here: https://www.linkedin.com/in/chris-mcguinness/)

Chris mentioned some failed concepts to me in a message about using a YouTube channel as your distribution channel for your film. By the way, I use the word failed in a very loving way here. I have learned so much more from what failed or didn’t work than what did work. Ironically, it is harder to learn from what worked. When something works, you just assume “of course it works!” without understanding WHY it works. On the other hand when something fails you usually say “why the hell didn’t this work!” and then you look into why.

In that conversation Chris brought up some interesting ideas and points, so the obsessive learner in me had to dive in deep and explore his theories while exploring what others have said on this.

But before we dive into all of that you can watch the film here that became the catalyst for this conversation:

Don’t Overcomplicate it, but Keep it Separated

The concept is this, you create TWO YouTube channels that have different functions serving the same goal.

One channel is the film channel and the other channel is the content channel driving traffic to the film channel, while also being its own stand alone content. Both channels hypothetically can also earn revenue. Doubly whammy!

Now already this sounds overly complicated so here is how I think of it.

When you buy(or used to buy) a DVD, you could have the DVD to just watch the film (one channel) but if you were interested you could also click on extras and see the behind the scenes, the interviews, the making of, and deleted scenes - the extras content (another channel).

The Film and The Extras.

This matters because some people get DVDs just to watch the movie while others want all the extras content and the movie. You want to tailor the experience to both types of audiences. That’s where the two channel playbook comes into…play.

It’s a lot but stick with it.

The rest of this article is going to be written a bit different than I normally write. I feel like the idea is simple but the concept complex and I want to try to relay the information in the most easily consumable streamlined approach as possible.

Key Concepts:

  1. Main Channel (Indie Film Channel):

    • This is where your indie film is uploaded and where you aim to build a dedicated audience.

    • The trailer and teaser can also live on this channel.

    • The focus here is on organic growth, viewer retention, and engagement.

    • Revenue is primarily generated through ad impressions, YouTube Premium views, and potentially other monetization methods like memberships, super chats, and merchandise.

  2. Secondary Channel (Ad Campaign Channel):

    • This channel is used for running paid ad campaigns to promote your indie film or other content from your main channel.

    • The goal here is to attract new viewers to your main channel by targeting specific audiences through YouTube's advertising platform.

    • You do not rely on this channel for organic growth or engagement; its primary purpose is to serve as a promotional tool, though it can earn revenue and build its own audience.

    • This channel hosts all the behind the scenes, making of, interviews, deleted scenes, how to’s (how did you make that prop for the film), and any other related content to the film.

Why Separate Channels?

Algorithm and Metrics:

  • YouTube’s algorithm uses various metrics to determine the ranking and recommendation of videos. These metrics include watch time, viewer retention, engagement (likes, comments, shares), and click-through rates.

  • If you run paid ads directly from your main channel, the viewers who come in through ads might not be genuinely interested in your content. They might click on the video but not watch it for long, reducing your average watch time and viewer retention.

  • Poor performance metrics can signal to the YouTube algorithm that your content is not engaging, which can result in your videos being less likely to be recommended or ranked highly in search results.

Maintaining Organic Growth:

  • By keeping your main channel focused on organic growth, you ensure that your audience is genuinely interested in your content, leading to better engagement and retention.

  • This helps maintain and potentially improve your channel's standing with the YouTube algorithm, making it more likely that your videos will be promoted to new viewers organically.

Running Paid Ads:

  1. Paid Ads on YouTube:

    • When you pay for ads on YouTube, you can target specific demographics, interests, or even people who have previously interacted with your content. These ads can appear as pre-roll ads (ads that play before other videos) or as suggested videos in the YouTube interface.

  2. Channel Performance Metrics:

    • YouTube’s algorithm tracks a variety of performance metrics to determine the popularity and quality of your channel. These include watch time (how long viewers stay on your videos), engagement (likes, comments, shares), click-through rates, and overall viewer retention.

    • Paid ads can sometimes lead to artificial spikes in these metrics. For example, viewers might click on your ad and start watching your film but then drop off quickly if they weren’t genuinely interested. This can lower your average watch time and viewer retention rates.

  3. Algorithm Penalties:

    • The YouTube algorithm prioritizes content that naturally attracts and retains viewers. If the algorithm detects that your viewership metrics are inflated or unnatural, it may deprioritize your videos in search results and recommendations. This is because the platform aims to promote content that organically engages viewers.

    • Running paid ads on the same channel might create a pattern where a significant number of viewers click on your video due to the ad but do not watch it for long or engage meaningfully. This can signal to the algorithm that your content is less engaging, even if that’s not truly the case.

  4. Separate Channel for Ad Campaigns:

    • To avoid negatively impacting your main channel’s performance metrics, use a separate channel to run your ad campaigns. This way, any potential negative impacts on viewer retention or watch time won’t affect your primary channel’s standing in the algorithm.

    • The main channel remains focused on organically growing its audience through genuine engagement, while the separate channel can handle the promotional efforts without risking the main channel’s algorithmic standing.

In essence, by separating your ad campaigns from your main content, you protect your primary channel’s metrics, ensuring that the YouTube algorithm continues to promote your films to an organically interested audience.

Are You Sufficiently Overwhelmed? Great, lets move on!

Revenue Generation Process:

  1. Secondary Channel Extra Content:

    • With enough material on your extra channel you may very easily meet the ad revenue threshold of 1000 subscribers and 4000 watch hours. Now the channel can earn ad revenue from audiences viewing all the Extras content.

    • With enough subscribers you can now sell sponsorship in the extras videos without diluting the perceived quality of the film.

  2. Main Channel Monetization:

    • With high watch times and better engagement, your main channel can earn more ad revenue and attract further organic growth, leading to a sustainable audience base.

    • Additional monetization can come from direct methods like selling/renting the film, brand deals, merchandise, and fan support through memberships.

Example Scenario:

  1. Secondary Channel:

    • You create an ad campaign for your indie film, targeting fans of similar genres.

    • The ads direct viewers to your main channel where the film is hosted.

    • Audiences of the main channel come back to the secondary channel to watch making of, behind the scenes, interviews, and so on.

  2. Main Channel:

    • New viewers arrive at your main channel through the ads or click through from the extras content on the secondary channel. (All of the extras content on the secondary channel should end with a call to action to users to watch the main film with a link they can link on that drives them to the main channel/film).

    • They watch the film, generating ad impressions and possibly contributing through other monetization methods.

    • Positive engagement and high retention rates improve your channel’s metrics, making it more likely for the algorithm to recommend your content to others.

In summary, by using a separate channel for ads, you protect the main channel’s performance metrics, ensuring a healthier organic growth and better overall revenue generation. This strategy leverages the strengths of both paid promotions and organic content discovery to maximize the potential success of your indie film on YouTube.

TL;DR

Ads Channel (Promotional Channel - THE EXTRAS):

  1. Content Type:

    • This channel hosts promotional content, such as trailers, teasers, behind-the-scenes footage, interviews, and other marketing materials.

    • It is also used specifically to run paid ad campaigns that target specific audiences likely to be interested in your film.

  2. Purpose:

    • The goal is to attract viewers to the main channel where the film is hosted.

    • You run YouTube ads from this channel, which appear as pre-roll ads, in-stream ads, or suggested videos.

  3. Metrics:

    • The performance metrics on this channel (like watch time and engagement) are less critical since it’s primarily used for advertising and driving traffic to the main channel.

    • You focus on crafting engaging ads that drive clicks and views to the main channel.

Main Channel (Film Hosting Channel - THE FILM):

  1. Content Type:

    • This channel hosts the actual indie film and possibly other related full-length content.

    • It can also feature supporting content like director’s commentary, full scenes, or fan interaction videos, but the focus is on the main film.

  2. Purpose:

    • The main objective is to build a dedicated audience and monetize the content through YouTube’s ad revenue, rentals, sales, brand partnerships, and other monetization options.

    • Ensure this channel grows organically by maintaining high viewer retention and engagement.

  3. Metrics:

    • The metrics on this channel are crucial. High watch times, viewer retention, likes, comments, and shares positively influence the YouTube algorithm.

    • Good metrics help the channel gain better visibility, leading to more organic growth and higher ad revenue.

The Studio Channel

Let’s make it more complicated but easier. The Film Channel could eventually turn into your Studio Channel that hosts all your films, including short films. As you make more films you don’t make a new channel, but you put those films on the Film Channel.

All the Extra Material from all the films live on one secondary Extra Channel.

After a while you could earn a monthly revenue just from the film/studio channel, which I talked about a while back with a filmmaker who is doing just that. You can read that here https://www.linkedin.com/posts/tylermreid_sheikh-shahnawaz-youtube-activity-7143601019128647680--RD8/

The bonus is that you could ALSO earn revenue from the secondary extras channel. Best case scenario here, you are earning revenue from two sources.

How I would Do It

For example, I could have Reid Films channel (which is where my main films live) and then have The Making of Reid Films channel, where all the other content lives and the channel where I run paid ads from that direct users to the film channel.

There is no right way, but various paths you can take to get your film to audiences and earn a revenue.

Sometimes, it just takes having a casual conversation with someone to open up a world of ideas and research.

Thanks Chris for the inspiration.

If you are looking to take the next step there are two ways I can help you.

  1. Indie Filmmaker Bundle gives you access to an extensive collection of templates for agreements, deal memos, and contracts, including actor agreements, crew contracts, location releases, and more.

  2. Get yourself, your company, or your film seen by over 1000 industry professionals by sponsoring this newsletter. Reply back if you are interested in sponsoring.

Use code TYLERMREID to get $20 off the annual subscription. SoCreate Screenwriting Software is an affiliate partner.