Anne Thompson, Variety columnist and author of the widely read Thompson on Hollywood blog wrote a great story yesterday (and not just great because B-Side is featured) on the challenges of online distribution. A companion piece to her must-read pre-Sundance story “Sundance Shoppers Beware,” today’s story is titled “Frustrated indies seek web distrib’n: But still face challenging online marketing gap.”

The story explores the question of what options remain for the 100+ features from Sundance that failed to secure distribution.

Once filmmakers make the mental leap that Hollywood isn’t going to offer them a $2 million minimum guarantee, they have plenty of other distribution options, from cable and self-distribution to the Internet. The problem lies in getting the word out to sufficient viewers to convince them to download, stream or pay-per-view the pic.

Thompson argues that alternative distribution models are starting to offer real possibilities for filmmakers. But she also lends ink to my assertion that making films available online is only part of the puzzle.

So far, a large market for selling movies online has not developed. Tiny movies with microbudgets are selling online, but while Amazon, Netflix and others are expending considerable effort in building these marketplaces, this is a nascent business. “The pure online approach is not generating returns,” says B-Side’s Hyams, who has recently partnered with IFC to air five new B-Side fest pickups on “Choice Indies” each month, promoted by 30-second spots both on IFC and online. SXSW discovery “Before the Music Dies” debuts in February.

“Combining different approaches both online and offline allows us to identify things that other people are missing and get them in front of audiences,” says Hyams, who also books and invites B-side members to local screenings — more than 300 in 2007 — and sells both $7.99 high-res downloads and $12.99 DVDs, such as “Four-Eyed Monsters,” on the site.

B-Side promotes eco-horror comedy “Blood Car” on the site, but the filmmaker still owns the DVD rights and a click to “buy now” goes to Bloodcar.com/store.

B-Side is featured throughout the article, alongside the perspective of with Netflix’s Ted Sarandos, Cinetic’s John Sloss, and others. The full article can be found here.