CALIFORNIA CANNES: THE AMERICAN FILM MARKET

by William C. Martell


The American Film Market turned eighteen this year, and like many eighteen year olds seemed confused about its future. For the past few years, the market has been struggling with questions of identity. Is it a B Movie market? The place were Sundance Festival films are sold? A place where foreign distribs can buy the rights to American family films? A genre film market specializing in science fiction and action? A market for Indie dramatic films starring actors known only for their work in commercial genre films? A schlock market? A quality market? In previous years the market has at least focused on one of these identities, but this year they seemed unable to focus at all. Like a deer dazed by the headlights on an oncoming truck.


CANNES IN LOS ANGELES?

Major studios like Warner Brothers, Sony, and Universal, have long standing deals with foreign distributors. But Independent Producers make their foreign distribution deals on a film by film basis. Every year in May Indies would fly to Cannes to sell their product.


Most people think of Cannes as a glamorous film festival where stars in elegant backless evening gowns pause on the red carpeted stairway for the paparazzi to snap their pictures. That's half of Cannes, the other half is the film market. Hundreds of indie producers flock the beach resort to sell their films in a flea market atmosphere. Topless starlets, billboards, giant balloons, crazy publicity stunts, and all night parties. Anything to sell the film. Bruce Willis may say he's at Cannes to attend the festival, but much of his time will be spent at the market shaking hands with buyers to promote sales of his new film. For a very funny look at the Cannes Market (and film markets in general) check out Michael Ritchie s 1979 film "An Almost Perfect Affair".


Eighteen years ago, a group of American Indie Producers decided to start their own market. Why fly to France when the French can fly here?


Every year since then for nine days in March, Indie Producers from all over the world take over the Leows Hotel in Santa Monica to sell their films. Beds are replaced with office furnishings, turning the luxury hotel into the world's most exclusive office building. Security guards are posted at the elevators and stairwells, to keep uninvited riff-raff (like you and me) off the sales floors. Almost a hundred security guards are hired for the event, blocking every entrance. Only those with badges are allowed. American producers selling films to foreign countries, or foreign producers selling films to America. Every Indie film made in the world is sold here at AFM, in Cannes, or at Italy's MIFED market. As one of the few to get past the security guards and up to the sales floors, I'll share what I learned.


CONFUSION

I've attended the last eleven American Film Markets, but this year was different. There was an undercurrent of fear on every floor. Producers and distributors were scrambling to find the formula for success. For almost twenty years, producers could depend on domestic video for half of their income. A two million dollar Michael Pare action film could make a million dollars in US video sales, and would have no trouble making the other million (plus some profit) from foreign distribs. But the domestic video business has slowed, and Blockbuster and other big chains are solving their financial problems by cutting back on inventory. Despite evidence in Video Store Magazine that non- theatrical titles are more profitable as video rentals than big budget studio films, "Blockbuster is not willing to buy genre pictures", says Nu Image's Avi Lerner. With the big video chains buying fewer B titles, Indie producers are searching for the key to profit.


Some producers have cut the cost of their films. Cutting the number of shooting days in half and spending a higher percentage on names. Or cutting out the names completely and making cheap exploitation films like "Bikini Barbecue". Others have taken the opposite approach, trying to pass off their B movies as A pictures by casting stars like Alec Baldwin and Charlie Sheen. This has resulted in a market with no middle ground: films either cost under a million, or over twenty million. Flooding the market with films that are either too cheap or too expensive.


Shakespeare video only $16.99

The last time Indie film budgets climbed to such heights was in the go-go 1980s, when the expanding video market flooded the business with quick cash. Small companies like Vestron, Orion, Hemdale and Cannon who'd become rich making inexpensive genre films decided to hire big name stars and compete with the studios. Vestron Video, which had a policy of never spending over $4 million on a film, had a huge hit with "Dirty Dancing" and decided to spend more money and hire bigger stars. They cast Nick Nolte (hot off "48 Hours") to star in an epic adventure film called "Farwell To The King". Their average film budget began to rival the studios. "Farewell" and their other expensive films flopped, and within a year they were filing for bankruptcy. Cannon, Hemdale, and Orion suffered similar fates. If a $2 million action film flops, cable, video and foreign will cover your costs. But a $30 million flop can sink the entire company! I fear that many of these companies spending $10 million on stars may be out of business within a few years.


Other companies are trying to make "art films" in the hope that critical attention will help sell their films. This year over 700 films tried for a spot at Sundance, only 66 were chosen, and out of that group, only 43 found distribution of any kind in the United States. That means 650 art films are sitting in their producer's garages!


Here are the titles and log lines of one producer's new films. Would you walk into Blockbuster and rent any of these? "A Fish In The Bathtub" (comedy) When a husband brings home his prize catch, his marriage falls apart. "Home Before Dark" (drama) The passionate tale of the struggle and triumph of a family. "Kitchen Party" (comedy) With his parents away for the evening a teen throws a wild party in his kitchen. "Little Boy Blue" (drama) A young man struggles for survival in a family with a long buried secret. "The Souler Opposite" (romance) A man's universe is turned upside down when he falls head over heels in love. These may be the greatest films in the world, but it's hard to imagine renting a film where the video box shows a middle aged couple and a salmon.


INDIE TRENDS?

Victim Of Desire

Amidst all of this confusion, a couple of trends did surface. My article last year debated reports that Erotic Thrillers were dead, and this year The Hollywood Reporter had a story on the resurgence of this genre. Michelle Gahagan from North American Releasing told me, "There's a lot of interest in Erotic Thrillers from some territories like Malaysia. This is still a popular genre."


The other trend comes as no surprise. Despite rocky economies in both Japan and South Korea (the two largest markets for American action movies)... "Action is what sells", Patrick Choi from Interlight Pictures told me. Only their second year at market, and Interlight scored a coup: They partnered with Steven Seagal's new company and will be releasing all of his new films.


"It's always been action", Judy Gold from Nu Image explained. "Family films have begun to fade, but action remains strong. We also have a psychological thriller starring Mickey Rourke that's been selling well." Nu Image claims that their films are "staff written" but offered no method for becoming a staff writer.


Michelle Gahagan from North American, "Action Adventures are number one. Our new title, "Code Of Dishonor" is selling really well. It's a post Cold-War story about a group of retired spies called back into action to recover a stolen high tech bomb. Though everyone says science fiction is a soft market, our sci-fi titles are selling well."


Science fiction suffered a big hit earlier this year when UPN decided to cancel their proposed sci-fi movie night, opting for a night of action movies and thrillers instead. David Silberg from Hit Entertainment noted, "The foreign market today is in satellite and cable broadcasting. As this market continues to expand, there's going to be more call for TV friendly programming. Less violence. Thrillers and suspense films are becoming more popular than blood and guts action".


Hard Evidence

Thriller specialist Image Organization agrees. "We have all genres, from romantic comedies to family films, but most of our titles are thrillers", Lisa Johnson told me. Image's "Little Men" was picked up for theatrical release by Warner Brothers. Where does Image get their scripts? "We have produced projects from spec scripts, from pitches from known writers, and from ideas generated in-house. I think the only thing we don't do is buy books. The script is the most important element," Johnson said. "Actors want to do good scripts, where they can identify with the characters. Talia Shire really wanted to play the role (in "The Landlady"), that s why she s doing it. The script attracts the actors."


The one question guaranteed to get me kicked out of a producers office was: "There are actor driven films and director driven films, do you have any WRITER driven films?"


Steve Klain at Miramax pointed to "Scream"s Kevin Williamson, who the company is promoting like a movie star. Miramax has a policy of finding writer driven projects, from successes like "Good Will Hunting" to failures like "The Boondock Saints" (where the writer's ego proved more powerful than his script, according to the LA Times.).


When I asked about writer driven films at Trimark, I was practically tossed out. Nu Image told me, "There is star driven, there is director driven, there is no such thing as writer driven." Almost every other company I talked to echoed this opinion. Could the reason for the B movie market's slowing sales be this complete disregard for writers?


"What many of these producers don't seem to understand is that the same scripts being offered to them are also under consideration at the studios," a fellow writer told me. "They don't realize they are competing with Warner Brothers and Paramount for scripts." Another writer who wished to remain anonymous told me, "Some of there producers end up being their own worst enemies. The very things the studios like about the script are the first things they remove. They can take a script I almost sold to a studio for $400,000 and turn it into a schlocky $400,000 movie they can't even sell to Malaysia."


Michelle Gahagan from North American offered a ray of hope, "We have a great writer we've been working with for several years, but we are always reading, always looking for good scripts."


THEY HAVE CABLE

The expanding domestic cable market may be the solution to the AFM's problems. The Fox Family Channel has announced plans to spend $125 million on 26 original movies for a Sunday film night. These films range from standard family fare like "Casper Meets Wendy" to action thrillers like "Earthquake In New York" starring Greg Evigan. HBO has expanded their World Premiere program to 36 films a year, spending as much as $1 million for B action thrillers. The Sci-Fi Channel pays up to half a million for its monthly Premiere movies. TBS will buy or make four original films for next season. Lifetime continues to be on the look out for "girl flicks". The Sundance Channel debuted with Jeff Burr's scathing Hollywood satire "Eddy Presley" and continues to buy quirky indie films. Cable is the new market for any film which costs less than $50 million and doesn't feature a major star.


SELLING TO INDIES

Most writers got their starts selling to Indie producers, from John Sayles' work for Roger Corman ("Piranha", "Battle Beyond The Stars") to Pat Duncan's first sale ("Beach Girls") to November's cover writer John Lee Hancock's first film "Hard Time Romance". Unlike the big studios, Indie producers are more than willing to read scripts from unknown writers... provided the scripts have a limited number of locations and a limited number of speaking roles. If the Sci-Fi Channel is paying half a million for a movie, that film's total budget is probably only a million. That translates to no more than 8 locations, 10-15 speaking roles and very few special effects. Concept is the star, here, so be creative... not expensive.


The Hollywood Reporter publishes a special "bumper" issue for AFM (in late February), the Cannes Market (mid-May), and MIFED (in October) that lists all of the Production Companies attending, key personnel, and films offered. The cast list of film's offered will give you a clue to the budgets: Does the film star Sam J. Or Tommy Lee Jones? The bigger the names, the bigger the budgets. Read over the listings until you find a producer who specializes in the genre you are writing. Then send them a query letter with a brief description of your script. Personalize your letter by mentioning the company's current productions. There's a good chance they will ask to read your script. If you have a great script, it will sell. You can't get rich writing for Indie films, but they do make movies. Lots of them. One of their next films may even be yours.


END


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