LB: Movies becoming available "on demand” revolutionized the film world. Before that, if a movie played in your city, that generally meant it was being projected on a 35mm or 16mm print. You ran out to see it during its run or else, like a rare bird, you might never have the chance to see it again!
Is a festival ever less likely to screen a film that’s been widely viewed/promoted online?
LB: If a filmmaker grows a devoted following, that increases the chance of their films being widely distributed. Keep in mind, however, that content shifts a bit along with a shift in viewing space. A short that's popular YouTube might not translate well to television, your local movie theater, or an IMAX screen. The most competitive film festivals tend to require a global, continental, or national premiere. If a film is available in it's full version and full resolution on DVD or online, it's less likely to be selected for a prestigious film festival.