Yes, BED HEAD did quite well for him. I forgot to mention that Peter Jackson finished BAD TASTE around that time, using a 16mm Bolex. Rodriguez also got popular, after Gulf War 1 bankrupted a lot of the industry. He had good timing.
The heyday of DVD was the last moneymaker for indies. My friend, Garo, works at Lionsgate and he misses the days where they would take chances on indie B movies, like TRANS-AMERICAN KILLER or my own WAR OF THE PLANETS.
Blu-ray has not lived up to the expectations of the next big format. It really is going to be about word of mouth, like it has been for MONSTERS and PARANORMAL ACTIVITY. There will always be indie successes, but the movies need to have something special going for them - an amazing story, visuals, timeliness or a catchy gimmick. It will be harder for truly bad films to sneak in.
Some of the people I know, like Christian Viel (RECON 2020 series) have turned to web series (HEROES OF THE NORTH), with online advertising. Michael Bartlett did pretty good with ZOMBIE DIARIES, which got distributed all over the place. He has his foot in the door, hence some projects on the horizon, including TIMELESS, ZOMBIE DIARIES 2 and something else.
I don't know if it's going to be any single format, as much as multiple formats. A filmmaker can push on places like AMAZON and NOMOSA, but their success has to do with their own footwork and promoting. On the other hand, a distributor can push you all over the planet!
My agent, Darlene Cypser, is hitting downloads pretty heavy. Three of my features, THE AWAKENING, EXILE and WAR OF THE PLANETS will be available for Android and Iphone in the next week or so. I don't know what that will translate into dollars to me. It's different than getting a foreign sale of a set amount.
Originally, Comcast VOD was supposed to unveil an indie film channel, where I would get 79 cents a download (and 20 cents for my agent), but they didn't do it, yet.
It's been a rough couple of years, so my goal is to keep budgets low and improve my stories and perceived production value. I've betrayed my budgets with crappy FX and set pieces. Now, it's coming down to Story, shadows and Video-copilot.