Ireland,
It IS very hard to self-distribute, and do it properly. It takes a TON of time to make the profits people dream about...but that's not going to happen with indie film. Unless you have the next Blare Witch, your film isn't going to make you millions--not to mention, Blare Witch came around when the market was still thriving. The good thing is, self-distribution doesn't NEED to be that time consuming. You simply have to put your film up for sale, spend a little time every day online creating buzz for your film--hopefully you have a high quality teaser that helps your cause--and set up screenings in indie theaters around the nation (ones that don't cost a ton).
And sadly, that's really the only way to make any money at all. Distribution companies aren't paying squat for films nowa'days. Even if they buy it outright, they are going to give you peanuts. Unless your film cost less than $5k, you aren't going to get your money back from a distribution company. There is no money for them in your film. Even the independent subsidiaries of Lion's Gate (one of the best to get in with) aren't going to pay you that much. But hey...if LG buys your film, you'll be too happy to care.
And I realize 1000 copies in 8 months isn't a ton, but honestly, it's pretty much close to our entire budget...so we are happy. Plus we are getting great reviews online...which people read...sites with traffic see these great reviews about a movie based on Lovecraft, and they either buy it, or talk it up to a friend that does. I don't expect DUNWICH to make anyone rich...neither does the director, but we are going to make our money back and more...and that's all our team is really in it for. As long as we make enough money to shoot the next feature, we are happy. And I don't think enough indie companies are in it for that...they want to make the next SAW, gross millions, and get famous.
Basically it comes down to this--the DVD market sucks to high heaven right now. Distribution companies are hurting, and pay peanuts to desperate indie companies. If you have a little time to do the things I mentioned...then you have a chance to make your money back.
Keep in mind, all of what I'm talking about is for micro-budget films--if your film costs over 60K...you might want to get a knowledgeable producer on your side to create the buzz you need to bring in a profit. The films I'm talking about are 40K and under...and that's another thing...if you're shooting an indie picture that's costing you 100K or over, you're in a different market...that's a whole new can of worms. You probably have people doing the work for you, and they have their own headaches. It's actually not worth it to shoot a 'true' indie for that much...keep it as cheap as possible, but make it look like a million bucks...that's the trick. Make enough to support your next feature...rinse...repeat...and I don't know...find a rich lover or uncle to pay your bills. lol.
No but really...in time you'll make a name for yourself if you keep pushing them out (and they are decent). One of the reasons Richard Griffin has made a name for himself, and has been able to slowly build a reputation is because he's kicked out 8 features in 5 years...because he's kept them cheap, and didn't play around. Fango calls him the director that never sleeps...are you willing to do the same? I will be honest...he has help from his partner, so on top of his previous movies profits (when the market was good) and his current partners support, he's able to devote himself fully to writing, directing and editing his own pictures.