Why Indie Movies are an Endagered Species

Posted on January 12, 2011 in Financing | 4 Comments

Edward Jay Epstein explores how the changing financial landscape is making it harder to get small independent films funded.

…What caused this sudden decline was the closing of most of the studio-backed specialty distributors. Within the space of a few months, New Line Cinema, Miramax, Fine Line Features, Picturehouse, Warner Independent Films, Fox Atomic and Paramount Vantage shut down. Most of the remaining ones sharply cutback on making advance commitments. The causes of this cratering ranged from faltering DVD sales in large retail chains to the ending of output deals by HBO and other Pay-TV channels.

The result was that indie producers had to base their ability to borrow money almost entirely on the foreign market. Yet foreign distributors then greatly reduced the amount they were willing to commit because they could no longer be confident that indie films would have the publicity and hype that goes with an American release.

— The Wrap.com| Read The Full Article