Analysis of an Independent Distribution Company: A24

Panchali Majumdar and Katherine Mallett

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Table of Contents

I. Executive Summary……………………………………………………………….3

II. Company History and Key Players………………………………………………..3

III. Company Releases and Distribution……………………………………………....4

IV. Competition……………………………………………………………………......7

V. Financials……………………………………………………………………….....8

VI. Marketing Strategy………………………………………………………………...9

VII. Awards…………………………………………………………………………….13

VIII. Legal Issues…………………………………………………………………….....14

IX. Works Cited………………………………………………………………………..16

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I. Executive Summary

A24 is an independent distribution company founded in 2012 by a trio of former film

distribution and development executives: Daniel Katz, David Fenkel, and John Hodges. The

company was founded with the intention of creating artistic films that would appeal to an

educated audience looking for distinct films. As of May 2018, the company has released 64

films, with at least 10 more slated for release throughout the rest of the year, and has grossed

over $285 million (boxofficemojo.com). A24 places a heavy emphasis on their online presence,

both in marketing and in daily social media interactions: they first rose into the public perception

with a series of viral campaigns promoting their film ​Spring Breakers​. Their films have been

nominated for hundreds of awards, and won many of them, including two Golden Globes for

Best Motion Picture (one in Drama, one in Musical or Comedy) and an Academy Award for Best

Film.

II. Company History and Key Players

A24 was founded in August of 2012 by Daniel Katz, David Fenkel, and John Hodges. All

three came from strong backgrounds of film

development and distribution; Katz led

Guggenheim Partners, and was personally

responsible for more than $500 million in film

financing; Fenkel was president and a partner at Oscilloscope Laboratories, and notably

spearheaded the release of ​We Need To Talk About Kevin​; and Hodges worked as Head of

Production and Development at Big Beach Films, as well as previously working at Focus

Features, a company that even today continues to release films in line with A24’s (Pride). The
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group founded the company with a specific goal to “create movies from a distinct point of view”

(Doster). Seed money for the company was provided by Guggenheim Partners, Katz’s former

employer, and the company officially launched on

August 20, 2012. The company’s initial statement

announced that they would seek to distribute eight to

ten titles each year, with the intention of including

several wide theatrical releases in that number (Pride).

By 2015, that number had increased to 18-20 films per

year (Doster), and the company has now released 64 films to date, with another 10 films

currently slated for release later this year (A24films.com). As the company has grown, they have

continued to expand their staff, with notable members including Sasha Lloyd, the Head of

International hired in January 2016, and Zoe Beyer, the Creative Director of the company’s

Digital and Social Strategy department, brought on in January 2013.

III. Company Releases and Distribution

A24 began releasing films in 2013, with their first theatrical release being ​A Glimpse

Inside the Mind of Charles Swan II​, directed by Roman

Coppola (Fleming Jr.). The film was their first buy prior to

going to the 2013 Toronto International Film Festival, where

they acquired ​Under The Skin​ and ​Enemy​ (Highfill). While ​A

Glimpse Inside​ did not do particularly well in the box office,

bringing in under $50,000, it was enough to catch attention in

the industry to A24’s preference for off-beat, artistic films

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(boxofficemojo). The company has become known over the years for their “unconventional fare

that appeals to literate and artistically adventurous people in their twenties and thirties, whom

major studios generally ignore”, and the company’s founders have been vocal about their belief

that “people will pay to see movies with a distinct point of view” (Doster). Because of this, A24

chooses to focus mostly on distributing artistically-appealing dramas, which appeal to its chosen

demographic, though they have also found great success with their carefully-chosen thrillers,

such as ​Ex Machina​ and ​Spring Breakers​.

The company first moved into the public awareness with the release of 2013’s ​Spring

Breakers​, a crime drama that starred James Franco as a sleazy local thug who seeks the

assistance of several college-age girls on spring break, and

takes them on a salacious crime romp through Florida. The

film was bought at the Toronto International Film Festival by

Annapurna Pictures, who then selected A24 as a distribution

partner. ​Spring Breakers​ became A24’s first film to have a

theatrical release, and ultimately earned over $14 million,

along with shattering records for per-screen attendance on

opening night (Lee). The success of the film was largely due

to a viral marketing campaign conceived by A24, which swept

social media in a frenzy in the weeks leading up to the release. The campaign helped to secure

A24 as a company that is not only savvy and curatorial in their purchase choices, but also able to

cleverly market their films in a way that is interesting and interactive. Following the success of

Spring Breakers​, director Sofia Coppola chose A24 personally to distribute her 2013 film ​The
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Bling Ring​, which was made on a modest budget of $8 million and featured no bankable actors

(Lee). Coppola chose the company because: “​They saw a way to reach both an art house

audience and a popcorn movie audience. They knew a lot about social media. And they had a

strategy to make it work. I thought their whole approach was smart” (Lee). The film made $5

million in the box office, and despite being considered a financial flop, helped to cement A24 as

a leader in innovative social media marketing.

A24 does not typically do wide releases for their films, with only eight of their 64 films

ever being released to more than 1,000 theatres (boxofficemojo.com). Because they focus on

more niche, artistic films, the company typically limits their releases to a relatively small number

of theatres, and they place an emphasis on distributing their films in a unique way: in an

interview with GQ, Fenkel stated that: “We find movies [for which] our perspective, our system,

our people, can act to make it something special. If it’s gonna be released the same way by

another company, we usually don’t go after it” (Baron). The founders allude in the interview to

having learned their lesson about releasing to large numbers of theatres with the failure of Kevin

Smith’s 2014 horror film ​Tusk​, stating that they prefer to keep their theatre numbers small to

appeal to a selective audience.

While the company initially outsourced international distribution to other companies,

they made the decision in January 2016 to hire Sasha Lloyd as Head of International. In April

2016, they announced their intention to handle the global release of ​Swiss Army Man​, making it

the first international release handled by the company. The film ultimately brought in $1,626,657

internationally, comprising about ¼ of the total box office, which was considered to be relatively

successful.
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While the company initially

started with the goal of distributing

8-10 films per year, that number has

increased rapidly as they have found

their footing and garnered more

attention. In 2013, the company

released 5 films, with ​Spring Breakers

being the box office standout of the group, bringing . By 2017, that number had increased to 15,

with ​Lady Bird​ and ​The Disaster Artist​, a biographical comedy-drama about the making of

Tommy Wiseau’s ​The Room​, leading the year in terms of box office success for the company.

The company currently has 13 films slated for release, or already out, in 2018, and plans to

release several more through the remainder of the year.

IV. Competition

A24 competes directly with other indie distribution companies such as Annapurna

Pictures, Focus Features, Blumhouse, and NEON. All of the companies tend to produce similar

genres of film, often drama or horror films that are aimed toward an older audience; A24 sets

themselves apart through their distinctive and innovative marketing strategies, a careful eye

toward selecting films, and focus on artistry and quality over quantity; they are also the only one

of the indie companies to have won the Academy Award for Best Picture. They are dramatically

overshadowed financially by the larger distribution studios such as Fox Searchlight, Universal,

and Paramount. Despite never breaking the $100 million mark at the box office, A24 remains
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successful, and retains a strong foothold among the independent distribution companies putting

out films today.

V. Financials

A24’s films rarely break particularly high into the box office, and none have ever broken

$100 million. This is largely due to the company’s choice in films, as they appeal to a very

specific artistically educated audience, as well as their distribution strategy, which almost never

includes wide releases for their films. ​While the majority of A24’s releases have made less than

$10 million in the box office, they have also had several films do significantly better: 2017’s

Lady Bird​ brought in $48,958,273 across a maximum of 1,557 theatres; 2016’s ​Moonlight​ made

$27,854,932; 2016’s ​Ex Machina ​made $25,440,971. The chart “Weekly Grosses of Top Five

Films Over First 10 Weeks of Release” plots the weekly gross of the five highest grossing films

distributed by the

company through

the first 10 weeks

of release. The

chart shows that

A24’s typical

strategy of

starting with a

limited release and allowing the film to build buzz through word of mouth is successful.

A24 takes in a significant portion of their box office internationally; this is most obvious

in 2016’s ​Moonlight​, which grossed $27,854,932 domestically and $37,191,755 internationally.

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However, all of their top 5

highest grossing films have

brought in at least 30% of

their total gross from

international releases.

The Bling Ring​, which was

one of the company’s first

buys, was largely considered

a failure. Against an $8 million budget, the film made $5,845,732 domestically (worldwide, it

made $6,561,759). The company has had several notable failures, including 2016’s ​Mojave​,

which made only $8,253 after opening in 26 theatres, and 2017’s ​Trespass Against Us​, which

opened in 20 theatres and brought in $5,711 (boxofficemojo).

VI. Marketing Strategy

Even without considering their films, A24 can be considered a notable company solely

due to their marketing campaigns. The company aggressively uses social media as a large part of

their marketing, and is focused on making viral, often interactive, content that creates a buzz

leading up to the release of their films. Despite the sometimes niche nature of the films A24

chooses to distribute, the mainstream social media buzz they generate is extremely effective at

drawing in a larger demographic.

A24’s first viral marketing campaign resulted from their ​Spring Breakers​ campaign; the

image featured Franco and his co-stars posing at a table in an image reminiscent of Da Vinci's

The Last Supper​. The imagery was instantly recognizable and engaging, and was captioned “On
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Friday, be good. We’re saving

you a seat”; the image linked to

a site for ticket sales. The image

went viral, garnering over

19,000 likes on Facebook, and

led to ​Spring Breakers​ breaking

per-screen attendance records for

its premier (Lee). This was not

the only ​Spring Breakers

campaign to create a buzz: the

Oscar consideration campaign for the film, which aimed to gain James Franco a nomination for

Best Supporting Actor, was directly on-brand for both the character and the film. The campaign

urged academy voters to “Consider This Sh*t”, featuring images of James Franco in full gangster

attire, and quotes from reviews of his

performance, such as one from Scott

Foundas of the Village Voice, which

reads “A full-blown method

performance (with an emphasis on

‘meth’)” (@A24). Korine, the director

of ​Spring Breakers​, was quick to praise

A24’s method of using social media as

the backbone of marketing for the film,

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commenting that “they saw that marketing was a creative act that could be entertaining in and of

itself. They were thinking in a different way… that broke the film out. It became something more

like a cultural event” (Lee).

Another notable success of marketing strategy is a mock Tinder account that Watson

Design Group created in conjunction with A24 for the premier of ​Ex Machina​ at the 2015 South

by Southwest festival in Austin. The profile featured a woman named Ava, who, when matched

with on the app, would ask

users a series of questions

about love and life, before

directing the users to her

Instagram feed, which

featured pictures of herself,

the film, and information

about the American debut

happening at the festival that

weekend. The campaign was a catfish, but went viral and made international headlines as a

result, spawning articles from news organizations such as AdWeek, IndieWire, Hollywood

Reporter, and even the BBC. The campaign was awarded a Gold Distinction in the Emerging

Platform category from the 8th Annual Shorty Awards (shortyawards.com).

A24’s emphasis on social media marketing goes far beyond their viral campaigns for

their films: the company’s social media, in particular its twitter page, is a viral sensation. At first

glance it seems disjointed, as tweets promoting their films are mixed in with retweeted memes,
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offhanded comments from fans about their films, and pictures of stranger’s pets. Zoe Beyer, the

head of Digital & Social Strategy at the company, manages social media for the company, and

for the most part manages all of the content that is posted to the pages. When asked about how

she chooses content to publish on Twitter in a 2013 interview, she stated that: “For most of the

content, I think of what will be relevant to people who like A24 movies… I think the film

industry in particular can be so opaque, it is nice to know there are actual human personalities

behind these companies. That’s why, sometimes, I will tweet about exotic pets or the NBA. The

idea is just to keep it authentic” (Lazauskas). The company’s most recent viral Twitter sensation

sprang from an IndieWire tweet with the headline “Australian Movie Theatre Plays #Hereditary

Trailer Before #PeterRabbit, Families Panic and Flee the Cinema”; A24 retweeted the article and

added the comment: “We will

consider subsidizing their child

therapy. #hereditary” (@A24).

The exchange was liked over

3,000 times on the platform and

retweeted more than 500 times.

A24’s Twitter page functions as a

highly-engaging ongoing

marketing scheme for all of their films, and is specifically tailored to the company’s target

demographic, complete with cat pictures, emojis, and relevant cultural memes.
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VII. Awards

A24 has been a highly nominated company, receiving twenty-four Academy Award

nominations and winning six of their nominations. Their films have also won Golden Globe

awards in various categories, several awards at Cannes Film Festival, and been nominated and

won for several awards at Sundance. The following list is non-exhaustive:

A Ghost Story National Board of Review Top Ten Independent Films

A Most Violent Year National Board of Review Best Film

American Honey British Independent Film Awards Best British Independent Film

American Honey Cannes Film Festival Jury Prize

Amy Academy Awards Best Documentary Feature

Amy British Academy Film Awards Best Documentary

Amy Grammy Awards Best Music Film

Amy Producers Guild of America Awards Outstanding Producer of Documentary Theatrical Motion Pictures

Ex Machina Academy Awards Best Visual Effects

Ex Machina Directors Guild of America Awards Outstanding Directing - First-Time Feature Film

Ex Machina National Board of Review Top 10 Independent Films

Green Room National Board of Review Top Ten Independent Films

Krisha Independent Spirit Awards John Cassavetes Award

Krisha National Board of Review Top Ten Independent Films

Krisha National Board of Review Best Directorial Debut

Krisha South by Southwest Grand Jury Prize - Narrative Feature

Krisha South by Southwest Audience Award - Narrative Feature

Lady Bird Golden Globe Awards Best Motion Picture - Musical or Comedy

Moonlight Academy Awards Best Picture

Moonlight Academy Awards Best Supporting Actor

Moonlight Academy Awards Best Adapted Screenplay

Moonlight Golden Globe Awards Best Motion Picture - Drama

Morris From America Sundance Film Festival Special Jury Prize

Remember Calgary International Film Festival Audience Choice - Narrative Feature

Room Academy Awards Best Actress

Room BAFTA Award Best Actress

Room Canadian Screen Awards Best Motion Picture

Room Canadian Screen Awards Best Direction

Room Golden Globe Awards Best Actress

Room Screen Actors Guild Best Actress

The Disaster Artist Golden Globe Awards Best Actor - Motion Picture Musical or Comedy
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The Disaster Artist National Board of Review Top Ten Films

The Florida Project American Film Institute Top Ten Films of the Year

The Florida Project National Board of Review Top Ten Films

The Florida Project Toronto Film Critics Association Best Film

The Killing of a Sacred Deer Cannes Film Festival Best Screenplay Award

The Lobster Cannes Film Festival Jury Prize

The Witch Independent Spirit Awards Best First Feature

The Witch Sundance Film Festival Directing Award

The Witch Toronto Film Critics Association Best First Feature

A24 has also won awards for their marketing, specifically winning a Webby in 2015 for their

blog ​NYC, 1981​ (webbyawards.com). The blog was created to give historical context to their

film ​A Most Violent Year​. They have also been granted a Gold Distinction in the Emerging

Platform category of the Shorty Awards for their Ex Machina Tinder Turing Test, a marketing

stunt they employed at the 2015 South by Southwest Festival to promote their film ​Ex Machina​.

VIII. Legal Issues

A24 has managed to avoid legal trouble for the most part, but ran into trouble regarding

their 2015 Tinder marketing stunt at the SXSW festival, where they were promoting and

screening ​Ex Machina​. In an interview with GQ, Fenkel refers to “[doing] this, like, illegal

Tinder stuff. Tinder was yelling at us. They kept shutting us down” (Baron). Tinder’s terms of

service clearly prohibit the use of bots on the platform, as well as the use of photos of anyone

other than the user without their permission (gotinder.com). In the same GQ interview, the

founders talk about how they had used photographs of Alicia Vikander, the lead actress of the

film, without her permission. According to Jeanie Igoe, a member of the production department

at A24: “...we still had that kind of start-up mentality that I don’t know we’d be able to get away

with now” (Baron). The company acknowledged their error, and has no plans to repeat the stunt.
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While not directly connected to A24, the film ​Spring Breakers​ was sued in 2014 for $1.3

million by an early investor, who claimed that the producers and production company behind the

film, Muse Productions, had failed in their delivery of repayment of his investment of the film.

The filing also claimed that Muse Productions had turned down an offer from the Weinstein

Company to distribute the film in favor of working with A24, who created a costlier plan to

distribute and market the film (Division Entertainment LLC. v. Spring Breakers LLC.). There is

currently no resolution to the case available to be found online.

On February 9, 2018, A24 found a shirt on the site RedBubble titled “Look What You

Made Lady Bird Do”, featuring an

image of Saoirse Ronan as Lady Bird,

photoshopped into an image evocative

of the cover of the Taylor Swift album

Reputation​. The company tweeted a

screenshot of the sale page with the

caption “CEASE AND DESIST”;

however, instead of asking the creator

to take the shirt down, they profiled the

creator, 16-year-old from Brazil, on the Notes section of their website, where the company joked

about him wearing the shirt to court and embarking on a life of crime (Rondon). Their laid-back

approach to the situation is consistent with their company culture, which celebrates artistry and

innovation.
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IX. Works Cited

“A24 All Time Box Office Results.” ​Box Office Mojo,​ http://www.boxofficemojo.com/studio/
chart/?studio=a24.htm.
Baron, Zach. “How A24 is Disrupting Hollywood.” ​GQ​, 9 May 2017, https://www.gq.com/story
/a24-studio-oral-history.
Doster, Adam. “Upstart Distributor A24 Is Making Indie Films Exciting Again.” ​Fast Company​,
11 January 2016, https://www.fastcompany.com/3054918/upstart-distributor-a24-is-
making-indie-films-exciting-again.
Division Entertainment LLC. v. Spring Breakers LLC. Superior Court of the State of California.
06 May 2014. N.p., n.d. Web. https://pmcdeadline2.files.wordpress.com/2014/05/spring-
breakers-investor-lawsuit_redacted__140507002653.pdf>.
“Ex Machina Tinder Turing Test: The Shorty Awards.” ​The Shorty Awards​,
http://shortyawards.com/8th/ex-machina.
“Films.” ​A24​, https://a24films.com/films.
Fleming Jr., Mike. “A24 Acquires U.S. Rights To ‘A Glimpse Inside The Mind Of Charles Swan
III.” ​Deadline​, 30 August 2012, http://deadline.com/2012/08/a24-acquires-u-s-rights
-to-a-glimpse-inside-the-mind-of-charles-swan-iii-327199/.
Highfill, Samantha. “Toronto 2013 Deal Report: A24 grabs Jake Gyllenhaal’s ‘Enemy’, more.”
Entertainment Weekly​, 13 September 2013, http://ew.com/article/2013/09/13/toronto
-film-festival-2013-deal-report-a24-jake-gyllenhaal-enemy/.
Highfill, Samantha. “Toronto 2013 Deal Report: Magnolia Pictures snags ‘The Right Kind of
Wong’, and more.” ​Entertainment Weekly​, 6 September 2013, http://www.ew.com/article
/2013/09/06/toronto-2013-deal-report/.
Lazauskas, Joe. “Revealing A24’s Mystery Social Media Strategy Genius And All Her Secrets.”
The Content Strategist​, 30 September 2013, https://contently.com/strategist/2013/09/30/
The-mystery-genius-behind-a24s-hilarious-content-reveals-how-to-break-all-the-rules-nd-get-away-with-it/
.
Lee, Chris. “A24: the brains behind ‘The Bling Ring’ zing.” ​Los Angeles Times​, 14 June 2013,
http://articles.latimes.com/2013/jun/14/entertainment/la-et-mn-bling-ring-brains-2013061
4.
McNary, Dave. “Oscilloscope’s Fenkel starts A24 Films.” ​Variety​, 17 August 2012,
http://variety.com/2012/film/news/oscilloscope-s-fenkel-starts-a24-films-1118058021/.
McNary, Dave. “A24 handles Korine’s ‘Spring Breakers’.” ​Variety​, 15 November 2012,
http://variety.com/2012/film/news/a24-handles-korine-s-spring-breakers-1118062252/.
“NYC, 1981.” ​The Webby Awards​, 2015, https://www.webbyawards.com/winners/nyc-1981/.
Olsen, Mark. “TIFF 2013: A24 to get ‘Under the Skin’ with Scarlett Johansson.” ​Los Angeles
Times​, 10 September 2013, http://articles.latimes.com/2013/sep/10/entertainment/la-
ca-mn-tiff-2013-a24-to-get-under-the-skin-with-scarlett-johansson-20130910.
Pride, Ray. “A24 Opens Doors For Film Distribution, Finance and Production.” ​Movie City
News​, 20 August 2012, http://moviecitynews.com/2012/08/a24-opens-doors-for-film-
distribution-finance-and-production/.
Rondon, Andre. “Meet the 16-Year-Old Brazilian Cinephile Behind the ‘Look What You Made
Lady Bird Do’ RedBubble T-Shirt.” ​A24​, 25 February 2018, https://a24films.com/notes/
2018/02/look-what-you-made-lady-bird-do-1.
Tartaglione, Nancy. “A24 To Handle ‘Swiss Army Man’ Global Release In Company’s First
World Rights Move; New U.S. Release Date - Update.” ​Deadline​, 5 April 2016,
http://deadline.com/2016/04/swiss-army-man-worldwide-distribution-a24-sundance-dani
el-radcliffe-1201732184/.
“Terms of Use.” ​Tinder​, 9 May 2018, https://www.gotinder.com/terms/us-2018-05-09.
“A24.” ​Twitter​, https://twitter.com/A24.
@A24. “You should seriously consider this shit.” ​Twitter​, 3 September 2013, 11:14 AM,
https://twitter.com/A24/status/374913642632077312.
@A24. “We will consider subsidizing their child therapy. #hereditary.” ​Twitter​, 26 April 2018,
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11:47 AM, https://twitter.com/A24/status/989531345994108928.