Will Las Vegas Make or Break the American Film Market?

As a seasoned industry insider with over two decades of experience under my belt, I find it intriguing to see the dynamic shifts happening in the world of film. The move of production houses like Netflix outside the U.S., driven by cost-cutting measures and creative exploration, is a testament to the globalization of cinema and the changing tastes of audiences.

As a movie enthusiast, I’m not just keeping my eyes on the presidential election; the upcoming days are also shrouded in anticipation for a significant event in Las Vegas – the American Film Market. Just like political pundits predict outcomes for our nation’s future, industry insiders are placing their bets on the destiny of an institution that holds a special place in many hearts: the world of American cinema.

Originally known for its vibrant atmosphere filled with B-movie excitement, the American Film Market (AFM) has faced some challenging times in recent years due to factors like the pandemic, two Hollywood strikes, hospitality problems, and expensive entry fees. However, it’s now moved to Las Vegas, where it’s happening alongside slot machines and roulette tables. It aims to prove its significance within the film industry, and for numerous international visitors, it hopes to make a case worthy of a connecting flight.

Scott Shooman, the head of film at AMC Networks (which includes IFC Films, RLJE Films, and Shudder), states that last year was not a standout for them, but this situation presents an opportunity to demonstrate why America needs a film market, specifically during the first week of November. If not, he suggests there are many people ready to seize that chance.

Among those vying to take over the opportunity previously held by the AFM, the Toronto Film Festival has declared its intentions to debut a film market in 2026.

Although numerous packages are being unveiled at the American Film Market (AFM), some U.S. representatives opt not to travel to Las Vegas or make brief visits instead. For instance, Nick Shumaker, the New York-based head of AC Independent, a sales division of Anonymous Content, held multiple meetings in Los Angeles before the AFM began and returned home without stopping over in Vegas.

Beyond just the condition of the AFM, Shumaker notes that the independent business is undergoing a shift. He anticipates that the “next two segments will be crucial,” suggesting that some U.S. buyers seem to have an overwhelming amount in production currently and in the pipeline of development.

It’s intriguing to observe the level of demand for third-party content in its early stages. I believe we’ll witness an increasing number of content producers seeking partnerships with distributors earlier than they did a decade ago, simply because production slates are currently quite crowded,” he points out.

In essence, Shooman points out that what truly matters in shaping the marketplace are successful projects, regardless of any challenges associated with a specific hotel or navigating its surroundings.

Sarah Schweitzman, representative from CAA Media Finance, shares that the current market leans heavily towards genre and action films. However, when it comes to specialty projects, there’s a greater emphasis on top-notch script quality, skilled filmmakers, and a strong cast. It’s crucial to have a keen understanding of the intended audience for each movie.

According to Stuart Ford, AGC Studios’ chairman and CEO, the selection of packages before the American Film Market (AFM) suggests a good balance of films costing less than $30 million. However, there appear to be fewer high-budget packages in comparison.

In higher-priced productions, foreign purchasers require a strong U.S. cinema release as a crucial component, but there’s been an unusually cautious approach from U.S. theater buyers in 2024. This mismatch is the most significant hurdle for the independent market right now, according to Ford.

One of the talking points of the AFM will certainly revolve around production budgets which skyrocketed during the peak years of streamers and rose even more after the pandemic. With streamers scaling back on investment, some indie projects with bloated budgets have gone from one market to another, struggling to find buyers willing to splurge. As film executives have been looking to bring down budgets, more and more movies have been shooting overseas to tap into tax incentives and cheaper crews.

Shooman notes that filmmakers are compelled to work in locations offering more financial support than usual, in a bid to reduce costs. Countries such as the U.K., Canada, Australia, and several other international destinations grasp this concept and treat it like an artistic endeavor. Regrettably, it hasn’t been as beneficial for filming in the United States.

As a passionate film enthusiast, I can’t help but notice a significant trend: the eastern regions, particularly certain parts of Canada and the far-eastern corners of Europe, are becoming hotspots for production. This shift towards the East is quite evident in the realm of psychological horror films, such as “Victorian Psycho,” starring the talented Margaret Qualley.

According to Ford, one of his upcoming projects titled “The Last Druid,” starring Russell Crowe, plans to film in Spain. This decision brings co-production funding, significant incentives, a skilled workforce, and qualifies the movie as European, increasing its value for European broadcasters. He added that talent costs have decreased over the past year or so primarily due to the slowdown in streaming production. Apart from incentives and reduced talent expenses, Ford is hopeful about the potential decrease in “cost of capital” and a continuous flow of AI technologies which he believes will significantly lower costs.

I’m embracing this global expansion as a strategic cost-cutting measure, but it’s not just about saving money. It’s also about unleashing creativity and aligning with the evolving international landscape of awards season. The growing curiosity and appreciation among audiences for non-U.S. films is something I find fascinating, and this move mirrors that trend.

It seems that with globalization, opportunities abound for many, as people have grown more accustomed to reading subtitles. This openness extends to the acting world, where there’s increased willingness among talent to collaborate with international peers.

As a movie enthusiast, I’ve been noticing a fascinating trend lately within the realm of the Academy Awards. Films like ‘The Zone of Interest’, ‘The Worst Person in the World’, and ‘Anatomy of a Fall’ have been popping up in the categories for Best Actor or Best Screenplay. It’s intriguing to see such thought-provoking, character-driven narratives making their mark on the big screen.

2021’s Oscar competition is including “Emilia Perez,” a musical-thriller directed by Jacques Audiard and streamed on Netflix, among its top contenders. This film stars Karla Sofía Gascón, Zoe Saldaña, and Selena Gomez.

Shooman notes that the Academy has become increasingly global, making the world feel smaller for its productions. This is evident in the recent success of ‘When Evil Lurks,’ an Argentinian movie they managed, which was shown in theaters. He points out that a decade ago, it would have been unheard of to release a Spanish-language horror film theatrically,” he contends.

Despite significant changes in the independent film industry in the United States over the past five years, brought on by the pandemic, labor disputes, and a decline in streaming services, a select group of indie film producers have continued to prosper.

As a cinephile immersed in the world of cinema, I’m particularly drawn to the thriving independent scene. This year has been exceptionally fruitful for us, with our opening weekends breaking records at the box office. Companies like A24, Neon, and Magnolia have also experienced their most successful openings this year. Remarkably, there seems to be a plentiful supply of captivating movies for all audiences to enjoy.

As a movie enthusiast, I’ve noticed an upsurge in the popularity of genre films, particularly horror, following the pandemic. However, Sony Pictures Classics SVP of acquisitions and production, Dylan Leiner, hints at a revival in non-horror genres too.

Looking forward, Leiner, having just returned from Las Vegas, expresses that “the AFM (American Film Market) is not the sole significant U.S. cinema event currently facing an existential crisis.

“We’re seeing a lot of that transition right now, and the AFM is the first one. Sundance may well be the second. And Toronto has declared that there will be a major shift in 2026,” he says, noting that having Toronto step in as a market, and possibly replacing the AFM, may not be a feasible option.

Leiner notes that there’s often high tension when the market is this early into the fall since deliveries tend to be rushed at the last possible moment. He also mentions that he himself had been receiving packages right up until the end of last week.

Given that about half the world typically takes their vacations in August, and with no suppliers available to produce trailers during this time, particularly in France and other parts of Western Europe, it seems unusual for something requiring their services to occur.

John Hopewell contributed to this article.

2024-11-05 22:51

Will Las Vegas Make or Break the American Film Market?

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