The Economist Thinks We've Reached 'Peak Indie'
By Benjamin Craig | 03-Mar-2017
Anyone working in the indie scene over the past few years will have noted the paradox that now exists between the exponential increase in the availability of new distribution platforms and the ever-increasing difficulty for indie films to recoup their budgets.
This is particularly true for the independent films with budgets that are not large by Studio standards, but still represent a significant fundraising challenge and the necessity to present a fairly sound business plan to outside investors. But that sell is now harder than ever, particularly as The Economist says that, "The median box-office return for low-budget films in America is a measly 45 cents on the dollar." In other words, the average indie film will likely provide an investor with a loss of more than half of their investment.
"IT MIGHT seem a great time for indie cinema. The Academy Awards on February 26th [2017 were] something of a showcase for films not financed by a major studio. “Manchester by the Sea”, a contender for six Oscars, including best picture, was a darling of the Sundance Film Festival last year. Kenneth Lonergan’s masterpiece about family and loss has earned $46m in cinemas in America and Canada, a spectacular return on its production costs of $8.5m. Amazon, which bought distribution rights, will benefit."Read the rest of Peak indie: It is easier than ever to fund an indie film, but harder than ever to get people to see it at The Economist.