Do independent filmmakers that work outside of Hollywood create revenue and generate profit over their films?

Question

How do they create revenue and generate profit over their films based on shooting in DV, MiniDv, or even HD Cameras?

Answer 1

They create revenue and generate profits the same way the studios do - by showing the movies in theaters and by selling DVD's.  The method of filming is really irrelevant.  In order to distribute the final product, it must be in a form that can be watched - film or new HD projectors for theaters and DVD for consumers at home.  

One new option, of course, is to sell the final product to cable channels (Lifetime, HBO, etc.) that can show it as an original movie.  You would have to check with the cable channel itself to see what types) of formats they will/can accept.

One way to get buzz about a film would be to submit it to film festivals for judging and showing.  There are tons of film festivals around, each with their own submission rules - an Internet search on "film festival" or similar wording should turn up a good list.