Great article by Lance Weiler in the Winter 2008 Filmmaker's mag about digital distribution and generating online revenue for independent filmmakers. I think the most important point of the article, besides the benefits of working with a content aggregator/distributor, is that filmmakers need to be very technically savvy when it comes to self-distribution.
A lot of times filmmakers are advised to avoid working with traditional distributors, who are essentially described as greedy vultures, and to strike out on their own. The main challenge of doing so is creating awareness of your one, lone film and connecting it to your audience. There are a gazillion websites out there, two dominant social networking sites, and an undefined marketplace. Unless your potential customer can find you, no matter how good your film is they aren't going to buy it. This is not an original idea and a book that expresses this idea very eloquently is Ambient Findability by Peter Morville.
As a buyer of documentaries, factual series and digital content, I have gotten to know many filmmakers, producers and distributors over the last ten years. I have watched friends and colleagues go from a simple idea to a a completed film, wading through the muddy waters of fund raising, securing a broadcaster, international distribution, DVD licensing -- sorting out non-theatric vs. home video -- and then on to the next project, starting the whole process over again.
Every stage poses its challenges. Producing is a solitary process that requires four components: passion, patience, perseverance, and promotion. If you lack patience, your project will never be completed; even the best timelines mysteriously morph as raising production funds can, and usually does, take more time and energy than making the actual film. Without perseverance, each rejection letter, no matter how politely worded, will be like the fatal gun shot wound rather than the spaghetti stain on the wall it really is. Perhaps patience and perseverance are manifestations of passion but passion without promotion will mean that even a great idea will remain just that: an idea.