Independent Films Surge as Major Studios Retreat: What Asia’s Rise Means for Hollywood

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At the European Film Market, Ampere Analysis’ Guy Bisson provided an insightful overview of the present condition and future direction of the global film industry as it adapts to changes following the pandemic, offering a glimpse into what it might look like in 2025.

Amidst the ongoing recovery of the worldwide cinema industry after the pandemic’s destructive effects and the growing influence of streaming platforms on audience consumption habits, Bisson provided a keen prediction about the future direction of the market and its implications for film manufacturing, distribution, and funding.

A Shifting Landscape

Bisson pointed out that the $800 billion global market is essentially divided into two sections: one part is declining, and the other is expanding. This division signifies a significant transformation in the entertainment industry landscape. Traditional businesses such as broadcast TV, transactional video, and cinema are facing hardships, whereas sectors experiencing growth encompass streaming services like YouTube and TikTok, along with online video platforms.

As streaming services remain popular, the theatrical market is still relatively stagnant and has yet to reach its pre-COVID heights. However, Asia, particularly China, seems to be an exception as it’s projected that the box office in this region will surpass its pre-pandemic levels. This trend suggests a gradual recovery of global box offices amidst the ongoing impact of COVID-19. As Bisson noted, “Asia is the only area predicted to slightly exceed its position before COVID.

The Decline of Traditional Business Models

From a passionate film enthusiast’s perspective, I can’t help but marvel at the seismic change sweeping through the entertainment world. As Bisson rightly points out, we’ve transitioned from traditional models that relied heavily on geography, to a far-reaching distribution model made possible by streaming technology. This transformation has shattered the geographical barriers that once confined content distribution, opening up a global audience for us all to explore. As more and more platforms follow this path, we’re witnessing an increasing overlap between different release windows – something we once thought of as distinct entities.

With streaming platforms becoming the dominant method for entertainment dissemination, the once separate avenues for movie distribution such as cinema releases and television are merging. As Bisson put it, “Everything has shifted towards streaming now; all those post-theatrical windows with distinct distribution methods in the past have been gathered together.” This unification presents a fresh challenge for filmmakers and distributors who need to adapt to a more intricate market where traditional content classifications are becoming less defined.

The Changing Role of Streaming and Movies

Although streaming services have been leading the way, Bisson points out that their role has significantly changed. Initially seen as the lifesaver of the film industry during the pandemic, streaming platforms are no longer the primary choice for movie releases today. In his words, “Streaming as a premier platform is… considerably less significant” now. This transformation is partly because there’s been a shift from first-run films to TV series renewals and more reliable, time-tested content.

As time goes on, streaming services are choosing to renew TV shows over new films and movies, according to Bisson. This shift is mainly due to the growing significance of advertising and the necessity to engage viewers consistently. Now, there’s a stronger emphasis on keeping subscribers by offering popular, long-lasting TV series that attract audiences again and again.

At the same time, Bisson points out a decrease in movie output from big Hollywood studios. Companies such as Disney are choosing to produce fewer films, instead focusing on creating fewer, more superior projects. In his words, “If the market is stagnant and there’s no rise in production numbers, majors are indeed pulling back.” This leads to a reduction in production budgets by approximately 10%, as the major studios trim their spending. These cost reductions are further amplified by the challenges faced by streaming platforms, which are also scaling down their film production budgets.

Independent Film and Financing

This year’s EFM brought a glimmer of hope for independent producers, sales agents, and distributors. While the big studios and streaming platforms are scaling back, the independent sector is thriving. As Bisson highlighted, the smaller production and distribution companies are expanding substantially. However, they frequently encounter considerable hurdles when it comes to securing funding. According to him, the financial backing has changed again, making financing deals more intricate as multiple parties need to be involved.

In today’s financing landscape, where traditional one-time funding deals are becoming increasingly scarce, the role of producers and distributors in the financial process is expanding significantly. A notable illustration of this shift can be seen in the recent 30-picture agreement between Paramount Pictures and Domain Capital, a deal that Bisson predicts will become more prevalent in the industry. “We anticipate seeing more deals like this one in the future,” he states.

A New Frontier in Asia

According to Bisson, Asia is poised to take on a more prominent role in the international film industry. While established markets in North America and Europe are grappling with difficulties, Asia stands out as a promising area. He views Asia as an attractive region for future collaborations, stating, “Asia is becoming more intriguing when considering potential partnerships.” The region not only serves as a vital market for theatrical debuts but also plays a substantial role in commissioning first-run TV shows. Bisson predicts that both TV and film production will be increasingly influenced by partnerships and financial deals originating from Asia in the future.

Conclusion

Guy Bisson’s analysis portrays the film industry evolving to suit changing times. Streaming services are expanding and commanding a larger share of the market, causing conventional methods of movie production and distribution to be revamped. Large studios are shifting their focus towards quality productions rather than quantity. The independent sector is gaining traction, but securing funding remains difficult. At the same time, Asia becomes increasingly important for the future of cinema and television.

In essence, Bisson’s observations point towards a crucial shift for movie creators, managers, and vendors: embrace an age dominated by streaming platforms, as traditional ways diminish, and international markets, particularly those in Asia, will shape the future of film production and distribution. This emerging phase does not merely imply “less is more” is fashionable; it’s a reflection of the actual transformation underway within the entertainment sector.

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2025-02-16 12:17