U.S. Cinema Chain Woos Indie Filmgoers

Jill Goldsmith writes on Deadline that Marcus Theatres Nudges Patrons Toward Indie Films With Loyalty Program.

Marcus Theatres of the Marcus Corporation is the fourth-largest cinema chain in the U.S. with over 1,000 screens.

The new monthly subscription plans are MovieFlex ($9.99) and MovieFlex+ ($14.99.)

Jill quotes Marcus CEO Greg Marcus as saying, “We can’t live off just blockbusters. We cannot just live off dinner. We need breakfast and lunch too.”

“The question is, is there enough demand in the market? We just don’t know that yet. But it’s promising. We are just going to continue watching, tweaking, working with content partners. But we are seeing positive signs. We want to be a very open book and share what’s happening with the studios, and get their feedback. There’s work to do on companion tickets, and families. And once we get through that, to figure out what the demand is. We want this to be a win-win-win for everyone.”

Marcus Theatres already showcases indie movies in their Spotlight Films series.

My take: I sincerely hope this experiment works. Diversifying the cinema experience beyond comic book movies at a reasonable price is truly a win-win-win for the audience, the theatre and indie filmmakers. It will also counter the rise of streaming and keep another distribution option open.

Claim: Content is No Longer King

Alexandra Canal reports on Yahoo FInance that Streaming has turned film financing ‘upside down’: ‘It’s VOD or die,’ says lawyer.

She quotes Schuyler Moore, entertainment attorney at Greenberg Glusker:

Content is not king. Distribution is king.… If you go back 10 years, the studios had all the power, because they controlled the distribution…. Studios are on their knees. They got no clout at the table because anybody can produce. The whole world is upside down, particularly for the studios.”

His advice:

  1. Team up with producers known to the streamers.
  2. Have a realistic budget.
  3. Sell your film upfront (or finance the contract) to make the movie.

She quotes him:

Most films lose money. This is a losing business, don’t do it, especially if you don’t have a pre-sale to a streamer. But if you can sell to a streamer, then you get your premium. You’re not going to get a share of the net profits. There is no back-end payment, but you’ll get a significant premium and will walk away with some cash.

My take: it seems there’s always somebody in between my movie and my audience!

Cannes 2022: film quotas drive national production

Scott Roxborough reports in The Hollywood Reporter that Wall Street Hits the Croisette: Why Private Equity Investors Are Bullish on Indie Film.

He claims:

“Private equity, or PE, firms are pumping money into the entertainment content, financing independent production and snatching up companies at a level never seen before in the indie industry…. Some of the biggest players packaging projects and inking deals on the Croisette have backing from private equity groups…. The bet PE investors are making is that the explosive growth in streaming services will lead to a similar demand boom for content. And that the companies that own the IP, the original films and TV shows the streamers need, will be best positioned to benefit.”

He traces this demand squarely back to government policy:

“Many see particularly strong growth potential in Europe, where European Union (EU) content quotas for SVOD platforms — 30 percent of all content on streaming services in Europe must be European-made — has created guaranteed demand for original, home-grown films and series which most streamers will be unable to fill on their own.”

As to Cannes, filmmaker Jeremy Lutter (pictured above) compares this year’s experience with previous ones:

“Cannes is in some ways the same and in some ways different. I would say it’s two thirds the size as previous non-COVID years in terms of events. But, considering the situation, it’s impressive! The crowds are smaller but it’s still busy. As for deals — people are looking — there’s been less movies made recently — everyone is hungry for movies. Oh yeah, instead of a gift bag, this year you get a PPE mask with a logo on it!”

My take: of course, quotas drive national production. We proved that with CanCon and Canadian music; witness the dozens of Canadian superstars, who, as Simu Liu points out about Shawn Mendes, Avril Lavigne and Arcade Fire, “like me have fulfilled the ultimate Canadian dream of making it in America — but to our credit, we always come back!”

Auteurs: if you believe in your film, produce it

Randee Dawn, reports in the LA Times: For auteurs, the question sometimes becomes: How much do you believe in your film?

Her thesis is that to guarantee getting your film made, more often now, you have to produce it yourself:

“Being inspired by film actors, directors and writers is easy. It’s all there on the big screen, in the finished project. But fewer aspirational filmmakers first think, “What I really wanna do is produce.” That particular job, which can cover an enormous range of organizational, financial and generally unsexy duties, is frequently invisible and thankless. But without producers, films wouldn’t get made. Perhaps that’s one of the reasons we’re seeing so many writer-directors also putting on producer hats this season. Films including “Marriage Story,” “The Report,” “Knives Out” and “Parasite” have all been made by filmmakers wearing three hats, while “Jojo Rabbit” and “Motherless Brooklyn” feature writer-director-actors who took on a producing role.”

She interviews Edward NortonRian JohnsonScott Z. BurnsBong Joon HoTaika Waititi and Noah Baumbach for their perspectives.

On producing, Norton evokes the legend of Sisyphus:

“Writing is lonely; directing and acting, if you’re overlapping them, is challenging but fun. But producing is just pushing a rock up a hill. And sometimes it rolls over you on the way back down.”

He goes on to explain why he produced his own indie:

“It’s the film business equivalent of if you want something done right, you have to do it yourself. It’s a necessary grind to get to the fun part. And if you believe in your story, it’s what you have to do to put it all together.”

My take: I love DIY filmmaking! More often than not, no-budget filmmakers like me wear many, many hats, including the producer’s. But finding someone who only wants to produce is a challenge. Everyone wants to direct, or shoot. If you want to produce, let’s talk. I’ve often said, “If you can balance your chequebook AND throw a fantastic party, you can produce.”

Self-distribution de-mystified

Big thanks to Chris O’Falt, writing on IndieWire, for shedding some needed light on feature film self-distribution.

In his article he shares the dilemma faced by SXSW Film Festival Grand Jury Prize winner Jim Cummings: take a $100K all-rights deal or gamble and D-I-Y.

“Thunder Road” cost Cummings $200K. What to do?

Because he received a Sundance Creative Distribution Fellowship grant, he decide to self-distribute:

“Sundance encouraged us to try all these different things a smaller distributor would have never done. It’s been a total learning experience — some things I never would have guessed would work have, some haven’t, and we adjusted.”

For instance, becoming a theatrical hit in France, by parlaying exposure at Cannes to the Deauville American Film Festival and finally to opening on 67 screens.

The trade-off? Cummings has to be fully transparent and allow Sundance to publish a case study of his self-distribution, like the one for “Columbus”.

My take: This (and the “Columbus” case study) should be required reading for anyone with a prize-winning feature film. Every film has an audience and its creators are probably more motivated than anyone to find it. Just be forewarned that it will take you at least a year, and there’s no guarantee of success.

del Toro and Besson make deals

Two interesting developments in the realm of auteur filmmaking to report today.

Firstly, Adam Epstein writes on Quartzy that Guillermo del Toro is “getting his own film label at Fox Searchlight, the studio where he directed this year’s best picture winner, The Shape of Water.”

As quoted by The Hollywood Reporter, del Toro says:

“For the longest time, I’ve hoped to find an environment in which I can distribute, nurture and produce new voices in smart, inventive genre films and channel my own. In Fox Searchlight, I’ve found a real home for live action production — a partnership based on hard work, understanding of each other and, above all, faith.”

Secondly, Charles Barfield writes on The Playlist that Luc Besson‘s company is in talks to be bought:

“According to French media outlet Capital.fr , EuropaCorp is in advanced talks to be purchased by none other than Netflix. There’s no terms to the agreement, and honestly, the report is very heavily leaning on unnamed sources, but the structure of the deal is clear. EuropaCorp, founded in 2000 by filmmaker Luc Besson and Pierre-Ange Le Pogam, would be purchased by Netflix, with Besson to stay on to oversee the creative side of the company. The goal is to have the deal worked out by the summer.”

My take: once upon a time, this might be considered selling out. Now it’s monetizing your celebrity in exchange for a promise to keep moving in the same direction. It shows just how much money mini-majors and Netflix have to invest in building up their artistic credibility and aligning with like-minded creatives. That’s the short play — the long play is betting on which streaming service will rule them all.