TX The American Film Market, which opens Thursday in Santa Monica, may this year look more arthouse than beachhouse.
Out of a record 227 screenings, more than 10% are features that bowed at the Sundance Film Festival and are making their market debut here; nearly two-thirds of the 66 films screened at the Park City fest will, in fact, be included or have already been acquired by AFMA companies.
With the video market drying up around the world and indie films dominating the awards season, the buzzwords for the more than 6,000 buyers from 64 countries expected at this year's market are "quality films" and "bigger pics." That means films that can segue from theatrical release in the U.S. to international markets, particularly to TV outlets.
"For this year, our goal is to be a little more selective than in years past and look for bigger product," said Martin Heldmann, co-president of Germany's Helkon Media.
Some of the 270 exhibitors are proclaiming that the deathwatch has begun for straight-to-video, action/erotic pics, formerly the bread and butter of many AFMA companies.
"Those no-story, low-budget action films are virtually dead," said Heldmann. "The high times of video are over in Germany and the networks have a glut of 10 and 11 o'clock movies --- what they want are quality movies for primetime."
"We will see who will be around in the next two years," said Keystone Entertainment's Robert Vince. "Most companies will either have to put their money where their mouths are or go out of business." Vince is suggesting that not everyone will know how --- or even ought to --- retool in order to come up with the highbrow fare currently in vogue.
Vince added that with mini-majors like Miramax hot on the trail of every "hidden gem," the acquisition game for smaller players is no longer where the action is. For Vince, the game now is co-financed, co-produced, filmmaker-driven projects.
As the world's appetite for film and television product grows, the outlook would appear bright for indies. However, the growth in demand belies an industry in which many are desperately striving to find what works.
"With the shortcomings of the domestic video market and the dependence on how much product the international market can absorb," said Bob Sigman, head of sales at Republic Pictures, "we're looking at what genres are working. Now that most people are doing international deals, I want to see what is working in all territories."
Trying to emulate their bigger, more successful rivals like Miramax --- which recently acquired the rights to "Air Bud," the Keystone Family pic featuring a basketball-playing golden retriever --- Sony Classics and Fine Line, many smaller film companies are expanding their budgets and going in new directions to provide the product that foreign buyers are demanding. The guiding principle has become that uttered by Secondo Pilaggi in "Big Night": "Give them what they want now and what you want later."
Alliance Communications' senior VP of international film sales, Charlotte Mickie, said, "We've done well with American films lately --- like 'Welcome to the Dollhouse' and 'Denise Calls Up' --- but now there are so many of them, American indies have worn a little thin."
Richard Guardian, senior VP of worldwide distribution at Overseas Filmgroup, said his company "is not looking to find a single niche per se. Fifty percent of our slate is comprised of films we have an investment in, and some creative input. The other 50% we picked up because we liked the film."
Lakeshore Intl. --- the recently formed international sales and acquisition division of Paramount-based Lakeshore --- picked up the drama "Dream With the Fishes" at Sundance. Senior VP Rena Ronson said, "Just as one year it was buddy movies, now it's feel-good movies which work in ancillary markets as well as theatrically."
She added, "The reason why we're not in a doom-and-gloom mood is that we're a new company, and we have the financial ability to make movies, both (with) smaller budgets and larger studio films. We're not making exploitive films, we're not in that business."
Trident Releasing, on the other hand, has done a full-scale reversal from what principals Jean Ovrum and Victoria Plummer say were "action/exploitation, no-name films for in-home video release."
The duo said they have changed their focus to more arthouse product and are looking for films with a known cast.Ovrum said Trident will primarily represent romantic comedies and thrillers in the $1.5 million to $3 million range with better casts and production values. "We're interested in acquiring two to four new films each market in this genre," Ovrum said.
Trident is so optimistic about its change in direction that it is putting together a plan to raise substantial capital so it can move toward producing its own films.
Paul Rich, president and CEO of Trans Atlantic Entertainment, admitted that this is an interesting time for indies because "there will be a lot of casualties from this arthouse feeding frenzy."
Even though Disney president Joe Roth declared in a recent interview that "the studios are out of 'The English Patient' business," indies still must compete with the majors for screen space --- which has made the cost of marketing niche films often prohibitive.
But Keystone's Vince said his company is not competing with the studios on P&A, so "we're either selling to the majors or releasing the films in about 10 theaters around the country --- you have to spend money to get the film out there."
Trans Atlantic's Rich said another added challenge for these specialized, high-brow indies is the dependence on critical acclaim.
"If you're lucky enough to get the film at a price you can live with, you have to hope for the critics to carry you, otherwise you'll never see the light of day theatrically," said Rich.
TV sales now make up 50% of AFMA members' revenues, meaning this ancillary rights market has never been more important. Buyers such as Helcom Media insist that films they buy for TV have had theatrical release in the U.S. This presents a huge challenge for indies, as the glut in product caused by films released by the majors is squeezing what little outlets indies once had.
"It's more important than ever to have something that will play on TV as well as theatrically," said Lakeshore's Ronson. "Films that don't have excessive violence and don't have to be censored --- basically what would work on domestic TV networks."
While there is a lot of demand for product that can play on primetime TV worldwide, that product is generally more refined than many companies in the straight-to-video marketplace are used to producing.
According to TransAtlantic's Rich, "TV is the basis for all of us now. Unless you're talking about a breakthrough hit like 'Swingers,' you must ask yourself: Will it work in TV? or Can I bail out in TV?"
While his company brings a slate of 20 films from various genres to this year's AFM, Saban Intl.'s president Stan Golden said Saban's strength has been its foundation in TV production.
For CineTel Films president Paul Hertzberg, it's nothing new that buyers are wanting bigger films. "They've always wanted A titles and A actors at B prices. What we're seeing is the buyers are pickier today."
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