Amid an entertainment landscape reshaped by the advent of streaming services, independent film companies are expressing a newfound optimism as they approach the Cannes Film Festival this year. This optimism surfaces as the influence of Netflix seems to plateau and post-pandemic audiences slowly start returning to cinema halls.
With a volatile global economy at play, buyers are being prudent about acquisitions. However, their active participation in festivals continues – a trend that Todd Brown, head of international investments at XYZ Films, anticipates will persist.
Cannes, often associated with its opulence and allure, is the largest platform globally for trading film rights, thus making it an invaluable event for the film industry.
An estimated 12,500 industry professionals, engaged in various capacities from buying and selling to producing films, attend this market. Nearly 4,000 films and projects are showcased here, with trade deals worth hundreds of millions of dollars clinched.
According to Laura Wilson, head of acquisitions at Altitude Films, the market is fiercely competitive this year, barring a few titles which are expected to perform well regardless. “It doesn’t feel like a buyers’ or sellers’ market,” she stated.
Wilson and Brown place their bets on audiences returning to theatres. “Ultimately, we are optimistic about theatrical,” said Wilson.
Earlier this month, AMC Entertainment Holdings Inc reported uplifting quarterly results, propelled by the “Super Mario Bros. Movie.” The world’s largest cinema chain operator also projected that films like “The Little Mermaid,” “Guardians of the Galaxy Vol. 3,” and “Spider-Man: Across the Spider-Verse” would drive box-office sales for the remainder of the year.
However, Brian O’Shea, CEO of The Exchange, found less optimism in these numbers, citing that the box office benefit to independent film is currently subdued. This is mainly due to older viewers avoiding theatres during the COVID-19 pandemic and becoming more accustomed to home viewing.
“The business model used by independent buyers is losing value during this transitional time,” noted O’Shea.
Major film corporations like Walt Disney Co, Paramount, and Warner Bros joined the streaming revolution to counter Netflix’s threat to traditional TV. However, they are now confronting a saturated market with intense competition to grow subscriber counts.
According to Brown, while the contraction of streaming services has been the focus, it also narrows the scope of streaming platforms, creating opportunities for traditional theatrical distribution. The sameness in streaming content has left audiences desiring unique material, a demand independent firms could cater to.
As evidence, Brown cites the success of films such as “Triangle of Sadness,” “Joyland,” and “Everything Everywhere All at Once,” which distinctly veer from typical streaming content.
Apple Inc will debut Martin Scorsese’s “Killers of the Flower Moon” featuring Leonardo DiCaprio at Cannes, signifying a potential shift towards cinema. The film will first hit theatres in partnership with Paramount before global streaming in October.
“Something positive is underway, and I believe other streaming platforms will soon follow,” said Thierry Fremaux, the Cannes Film Festival director, in an interview with Le Film Francais magazine in April.
As we inch closer to a post-pandemic world, the shifts and shimmers in the film industry paint a complex picture. Cannes this year stands as a testament to this evolving landscape, witnessing a resurgence of independent cinema and an adaptation of streaming platforms. In this whirlwind, independent film companies find themselves in an exciting position. With streaming services pivoting towards theatrical releases and audiences showing a renewed interest in cinema-going, the Cannes Film Festival may mark a new chapter for the industry, one where the potential of independent films to offer fresh, engaging content could thrive.
